Road ahead: eCommerce will have to face serious challenges
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It goes unsaid that Though the companies have spent a lot more time trying to sell their concepts and platforms to VCs who have cut the deals for them by investing huge monies, or have helped the idea become bigger and better with their insights; there is one thing for sure. Whether we love it or not, the future for Indian eCommerce is bound to become an example of sorts to the companies worldwide.
Experts forecast that the share of online retail in total organized retail in India will grow from 0.1% to 5.3% into the beginning of the next decade. Online markets will continue to grow in tier II cities and even tier III ones because the tier I cities would have grown moderately saturated by that time. The brand-conscious consumers, who don’t have outlets in their own cities, will help this portion of eCommerce grow well, robustly and rapidly. But, while the future looks bright and beautiful for the eCommerce companies, not all is hunky dory and pink on the horizon that holds their dream future.
Could it be an indication that rest of the eCommerce segment concentrated on grabbing consumers through their buying preferences, that Indian ecommerce logistics startup delivery service ‘
Delhivery currently employs over 10,000 people across 200 cities in the country through its 11 ‘fulfillment’ centres covering more than a million sq ft of warehouse space. The company claims to be India’s top ecommerce fulfillment company, which processes over three million transactions every month, for 70,000 merchants and 1,500 eCommerce companies, along with 200 offline retailers.
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Delhivery is among many companies that are harnessing the vacuum created by logistics-dependent ecommerce companies.
Today, as eCommerce companies get their parachutes ready to jump into the market, there are some crucial aspects that stare at them in their future together. Logistics is probably the most important aspect that needs to be paid attention to, by companies that are aiming at harnessing the ecommerce potential.
Inadequate warehouses, poor tracking systems, lack of skilled and reliable workers, and limited cargo options are leaving a dent on the future of eCommerce in India because Indian eCommerce shopping experience is said to be way too low when compared to the US and China. Now, having said that, India needs to focus on making this system better only so that the space for eCommerce expands in India rather than contracting.
This month, Indian e-retailer Myntra has taken a rather bold decision that it would only exist on mobile platform. It makes sense in some manner that the companies are willing to experiment and leave crucial lessons behind for consumer behavior, but what can never be undone would the wrath of a scorned customer. There are people who have done high-end shopping on the Internet and have been left desiring for more. Phones, laptops among high end gadgets somehow mysteriously disappear, and the customer finds it hard to interact with the company to get a replacement. More often than not, these are not replaced.
When the news spills out on social media, it does more harm and raises a question on the reliability factor of the brand name. Though India has long replaced US as the second highest nation with Internet penetration, only half a percent of nation’s retail comes from the Internet. This number has to be pushed and prodded for better growth. With no efficient delivery system in place, the companies often take it easy so that they don’t earn a customer’s wrath after overpromising.
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Unprecedented high volume of goods move around festive times, especially around Diwali when the culture of exchanging gifts gets a revival. But to depend only on air cargo hurts the chances of ecommerce companies.
Apart from logistics, the industry for its growth needs to have some indication of customer loyalty. As of now, that comes at a premium, and since most eCommerce companies present similar shopping experiences except for the niche market they are dealing with, a customer will always be spoilt for choices. A lesson in this chapter would do a lot better for the companies than having to shoot in the dark and hope to hit the goal.
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