eCommerce in India: Overview and Reasons for Growth

eCommerce in India: Overview and Reasons foreCommerce in India such as:
Growth- Rapidly increasing Internet user base
As quoted in the report on eCommerce in India, from- Technology advancements such as VOIP
 ( India’s eCommerce industry is on the growth(Voice-over-IP) have bridged the gap between buyers
curve and experiencing a spurt in growth. The Onlineand sellers online
Travel Industry is very well developed and is booming- The emergence of blogs as an avenue for
largely due to the Internet-savvy urban population. Theinformation dissemination and two-way communication
rest of the segments, categorized under onlinefor online retailers and eCommerce vendors
non-travel industry, include e-Tailing (online retail), online- Improved fraud prevention technologies that offer a
classifieds and Digital Downloads (still in a nascentsafe and secure business environment and help
stage).prevent credit card frauds, identity thefts and phishing
Though eCommerce took a beating in the dotcom- Bigger web presence of SME’s and Corporates
bust, it seems set to grow globally. The global revivalbecause of lower marketing and infrastructure costs.
of eCommerce is having a ripple effect in India too- Longer reach - Consumers in the Tier II & Tier III
where the B2B (Business to Business), B2C (Businesscities are fast realizing the potential of the Internet as a
to Consumer), C2C (Consumer to Consumer), G2Btransacting medium
(Government to Business) and G2C (Government to- The young population find online transactions much
Citizens) segments are showing rapidly increasingeasiereCommerce offers several benefits to
activity over the past few years.businesses
India has its share of success stories in the B2C- Easy reach to a fast growing online community
segment in the form of Indiatimes.com, Rediff.com,- Unlimited shelf place for products and services
Shaadi.com, Indiamatrimony.com, ebay.com,- Fuse the global geographical and time zone
MagicBricks.com, and etc. These and such otherboundaries
portals are generating a lot of interest and increasing- Helps reach national and global markets at low
transaction traffic. Smaller businesses have jumpedoperating costs
onto the bandwagon by offering products andThere is a growing awareness among the business
services online and have successfully carved outcommunity in India about the opportunities offered by
niches for themselves. The online community iseCommerce. Ease of Internet access and navigation
growing by leaps and bounds as an increasing numberare the critical factors that will result in rapid adoption
of consumers have started transacting online becauseof Net commerce. Safe and secure payment modes
the initial fears and apprehensions are being laid to rest.are crucial too along with the need to invent and
Research studies have indicated several factorspopularize innovations such as Mobile Commerce.
responsible for the sudden spurt in growth of