Any business category that is popular with the middle class people can be considered a successful. Indian e-commerce industry is one such industry. People began buying things like books, pen drives and memory cards online in the beginning and now are purchasing everything from footwear to readymade dresses, cell phones and other fashion products.
Mumbai: Number of internet users including those who are accessing internet on their mobiles crosses nearly twenty five crores and as per estimations, it will cross 50 crore by 2015 e-commerce business is likely to reach 13 billion dollars by this time. during 2012-13, online retail companies did a business of Rs. 14000 crores and in the coming three years, it will reach Rs. 50 crores.
Presently, the market share of domestic retail online business is only 0.5 percent but is increasing by 50 percent every year. Though furniture is also available online, popularity of small products is more when compared.
No online retail portals cell product manufacturer by them. they make an agreement with manufacturers and other retail shops for supply of products. eBay has 30,000 traders, Shopclues ahs 50,000, Snapdeal has 30,000 and Flipkart has 4000 traders that supply products to them
Consumers are not ready wait for days together to receive the product after placing the order. E-commerce portals are concentrating on providing quick delivery. The products are even transported in aeroplanes. Most of the online purchases are made in cash on delivery payment mode. Flipkart has its own logistics e-cart and Amazon delivered through its Amazon logistics.
Shopclues tied up with Suvidha an offline payments and remittance company. Suvidha has 65,000 authorized representatives that collect the cash two days before the order is delivered to the customers. this is because electronic mode of payments such as debit/credit cards and net banking are not possible in small towns and villages. Only after payments are collected order will be delivered to the customers. Shopclues received ten to fifteen thousand orders on week days and on Sunday it receives about fifty thousand orders.
Another trend catching up is launching of new smartphones via online retailers. Recently Motorola launched its three new phones via Flipkart. few other mobile manufactures are also launching and selling their products through web portals and are attracting the customers.
Presently tax percent is different in various states. Soon, GST is going to be implemented in India and same tax will be applicable for the products in all the states.