Are you online shopping savvy enough? Well if you log in frequently to sources like Jabong, Myntra, Flipkart, Snapdeal and other sites, you will become one. Yes, the Indians are going online with the overhaul and enthusiasm of high-spirited shopping spree. Before proceeding further on this discussion have a glance at the following statistics:
As of October 2014, the number of internet users in India exceeded 278 million standing next to China with over 600 million users and the USA with over 279 million users. Crossing the 300-million bar in December, the country is now the second largest in terms of the highest number of Internet users.
Amid the rising addiction to gadgets and other electronic devices, the inclination to Smartphone access and mobile internet surfing is also on a constant rise. It is now being estimated that the number of users has crossed 128 million and 45 million in urban and rural India respectively by the end of December 2014.
At present, the eCommerce market in India is estimated over $11 billion that is all set to cross the $20 billion mark in 2015 as per the expert forecasts considering the rising trust of the buyers in online shopping practices. The big companies are all set to expand their online businesses in India as the increasing number of brands in modern day is interested in leveraging efforts on this most extensive marketing platform.
While brand collaborations are integral part of the online business practices, the big giants including FabFurnish, Myntra and several others. Stepping on the same road many well recognized eCommerce ventures including Jabong are now opting the private label strategy that brings in higher profit margins and convenience of selling under own brand name. However, price margins are considerably different as the customers may find better offers from such labels compared to ones offered on multi-category companies like Flipkart, Amazon, eBay, Naptol, Snapdeal etc.
One of the most noted characteristics of the eCommerce operations in India is the dependence on cash payments. About 80 percent of the customers prefer to pay the amount only after receiving their parcel. One of the major reasons may be the trust factor or this is only a consequence of being a cash vibrant economic scenario in the country. Whatever be the reason, the experts opine that this is a degrading and limiting factor for the future of eCommerce. It is high time that people should seek adaptation of alternative online payment methods that are fast, simple to regulate and convenient. The travel industry acquired maximum response from the customers opting for online transactions that account for 70% of the eCommerce business in terms of revenue earnings. At present, the online business is based on the 10 million dedicated online shoppers spread across 5000 cities and towns. The rise in internet users and 3G penetration is a positive sign as the industry eyes over 30% growth mainly dedicated to the purchase of electronic and apparel products.