Tag Archive : Ecommerce

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Online shopping has taken over the retail market by storm. With a massive population of 500 million internet users in 2017, India has one of the fastest growing internet population on a global level. This is the primary reason why we have seen campaigns like India ki dukaan and Paytm karo become a hit.

Today everything is available online. From grocery, apparels, gadgets to home cleaning services our Indian e-commerce fraternity has left no service addressed to. This is the result of steady growth in the Indian e-commerce from 2014. Currently, the market size is $53 billion which is expected to cross over $100 billion by the year 2020 and $200 billion by 2026.

Watch Online retail sales in India seen growing to $32.7 billion in 2018

In this blog, let’s look at Factors That Have Contributed to Growth in E-commerce

Internet localisation: E-commerce sites allow you to search for your product in Hindi, Tamil and various other languages. Now you need not wonder what do you need to type while searching a mop or a camisole. Google spokesperson confirmed that after the localisation of the internet, web content search in Hindi grew at a rate of 155%in 2014 and Hindi content searched through smartphones grew up to 300% in the same year. Looking at the growth in the mobile subscriber base from people comfortable in languages other than English, online platforms held personalisation as the key to success and launched platforms in local languages or enabled local language searches.

The Growth of Mobile E-commerce: The number of mobile internet users in the country was 173 million in December 2014 and has grown twofold since then. Smartphone adoption due to easy accessibility and availability of the internet has contributed to extensive growth. This is something that the e-commerce retailers have been banking on. There are mobile-specific marketing campaigns created to entice these users to attract, close, delight and convert.

Watch Indian e-commerce sales to reach $55 billion by 2018

Digital India: Government of India’s Digital India initiative has been a significant factor in triggering internet penetration across the country, which has triggered a host of services being digitally delivered. The invariable result of this trigger in internet penetration has shifted the consumer to online shopping and online payments.

Payment Options: Digital wallets like Paytm and UPI have increased the payment options. Earlier, e-commerce players recorded immense growth because of the success of the Cash on Delivery (COD) model, which was a massive hit in India, due in no small amount of cash usage. Demonetization drive has prompted the Indian population to opt for electronic payments. EMI is another factor that fueled the sales of those products that consumers could not afford at one go.

Employed Population in India: About 60-65% of the Indian population is under 35 years of age and out this the employed, educated and the tech-savvy are driving e-commerce growth through their purchasing power.

Attractive deals and marketing campaign: E-commerce retailers have launched engaging marketing campaigns on Radio and TV as well. They are wooing consumers with attractive deals, discounts and challenging to say no’ offers.

Shop Conveniently: Technology has enabled us to sit on the couch and order food, groceries, books, gadgets, clothes, and much more. The convenience of shopping on the go or use voice to search the product you need has triggered the and contributed to the growth of e-commerce.

Logistics: Courier and packaging companies are assisting the e-commerce boom. From attractive packaging to use of eco-friendly, reusable products to support the plastic ban along with on-time delivery there is everything that the logistics and courier partners are doing to help the e-commerce industry.

Fierce Competition: Apart from the boom in mobile and internet usage, Flipkart, Amazon and Paytm Mall have been competing for neck-to-neck to claim the cream of the Indian market. All three companies are making significant investments, which include improved logistics and payment, as well as attractive offers, which has triggered their growth in the market.

References:

http://www.successmonks.com/what-is-e-commerce-business/
https://www.livemint.com/Industry/EBKt9C9WrVmOMogOzFoEMK/Indias-ecommerce-market-to-grow-fourfold-to-150-billion-b.html
https://www.ibef.org/industry/ecommerce.aspx
https://www.business-standard.com/article/companies/indian-e-commerce-industry-is-expected-to-cross-100-billion-mark-by-2020-118051801480_1.html
https://www.emarketer.com/content/india-s-ecommerce-market-continues-to-surge

Current Ecommerce Trends in India

November 15, 2018 | Why Ecommerce | No Comments

With the advent of festivals, one thing that took over television sets, mobile phones, internet and newspapers was the online sale. Whooping discounts, mindblowing offers, and gift cards became the talk of the town. Yes! This was the magic created by e-commerce sites. Today, e-commerce is not just buying and selling online; it’s much more than that. In this blog, let’s explore Current E-commerce Trends and look at the ones which are here to stay.

Key findings: According to reports published by financial services firm Morgan Stanley in 2017e-commerce is estimated to grow over 1,200% to $200 billion (Rs13,30,550 crore) by 2026, from $15billion in 2016. By 2026, Morgan Stanley expects India to have 475 million online shoppers whencompared from 60 million in 2016.

Searching and shopping using Voice Search:​​ Artificial Intelligence has made voice search a rage. With smartphones, people can search and shop online with their voice. Reports show that about 40% of millennials have used a voice assistant to search for products before making a purchase. Since voice search has become more precise, consumers and e-commerce retailers are reaping benefits. It is also predicted that by 2020, the number of people using voice search for shopping with surpass 50%.

Churning Video Content: ​​Gone are the days of static content. With social media, dynamic content is the fastest growing ad format. Video content is poised to be the next big thing for e-commerce as consumers find video content engaging and relatable, which makes it all the more shareable. Statistics show that video marketing alone can increase the click-through rates by a staggering 200-300% and stimulate purchase intent by an incredible 97%. Hence video content is trending and bound to stay for long.

Creating Interactive Content​​: Storytelling or interactive content has booked a strong place in e-commerce trends. Unique content strategies are being adopted by online retailers to drive conversions and differentiate. Brands are churning content like recommendations, reviews and opinions to build outstanding customer experience.

Wallet offers and discounts:​​ Demonetization opened realms of opportunities for mobile wallets. E-commerce retailers leveraged the same, and are offering great cash backs on loading money in their respective wallets. Not only this, they have a set a trend by offering discounts on shopping from wallets.

Personalised Shopping Experience:​​ Unlike a normal Kirana store, e-commerce sites have tailored and personalised the entire shopping experience. For instance, when you buy a bedsheet, you are given options of matching pillow covers, curtains, and rugs. Today, online retailers classify the products that you would need on a monthly basis. So just like you subscribe to a newspaper, you can now subscribe for a toothpaste, floor cleaner and much more.

Virtual Shopping Experience Is on the Rise: As I mentioned earlier, AI is changing the face of e-commerce. Today, eyewear brands like Lenskart allow customers to try frames instead of visiting the store virtually. Though this phenomenon is still catching up, soon online retailers will adapt it full-fledged.

Clearly, e-commerce is the future of retail, and though there might be trends that will come and go, virtual shopping and interactive content with a touch of personalisation are here to stay.

The number of ecommerce buyers worldwide  has increased by 340 million from 2014 to 2017. In the light of this growth spurt, businesses need to consider options to build an online presence.Here are some of the most popular options to explore:

Ecommerce Website Builder – Shopify, Wix and BigCommerce are a few amongst the several available options to build an ecommerce business or expand into the online channel. Shopify and BigCommerce are for bigger businesses and require a web developer to produce, manage and run the website. This is because bigger businesses need to maintain the look-and-feel of the business even on their online store which requires professional developers who have previous experience with coding. However, using Wix and other similar builders, small businesses can create a website easily for free without hiring any tech personnel. Such websites have a great user-interface that does not require any coding skill.

Facebook – Several businesses enter the online channel by selling goods via social media platforms. Facebook allows businesses to sell products via their own online store at a small cost. This store is already built and ready for businesses to simply add their products and payment options. For businesses that already have a Facebook page, this is a great way to market products to a wide audience of followers that have been built over time. However, social media platforms can limit the creativity of the website, which may not help provide a good shopping experience for customers. Also, if there are some specific features (like certain payment options) that a business requires, they may not be available on Facebook and other social media platforms.

WordPress – WordPress can be used by businesses to develop a highly customized website. WordPress has many features that can help businesses identify consumer trends and effectively boost sales. It also allows businesses to use various ecommerce plugins that allow them to accept orders and payments, apply shipping charges, offer coupons, process payments and so on. However, it is very difficult to set up at first. It requires a considerable amount of time and skill to begin selling products. There are many things that need to be learnt, including building a custom domain and setting up one’s own hosting. Therefore, businesses need to hire trained personnel for this channel.

Outsourcing – Businesses also have the option of outsourcing the task of expanding into ecommerce from a professional web-development company. This is usually done in order to build a very professional-looking, customized website that can be maintained easily. Outsourcing can be more costly than the options listed above, but it has several benefits. This option is ideal for companies that wish to significantly boost their sales and build a large pool of online customers. This is because outsourcing results in the best quality websites that suit the exact requirement of the business.

There are several digital channels that allow online shoppers to pick their products and services, the most popular ones being internet sites, smartphone applications and social media. Each of these channels have their own perks and pitfalls, but they all provide businesses with a medium to communicate with a world that hasn’t experienced the beauty of their innovative products and services.

Sources:

  1. https://www.business.com/articles/5-options-for-setting-up-an-online-store/
  2. https://fitsmallbusiness.com/sell-on-wordpress-website/
  3. https://www.statista.com/statistics/251666/number-of-digital-buyers-worldwide/

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