Barriers to the growth of E-commerce in India

Presented By:- Rajdeep Nirankari

E-commerce can be defined as modern business methodology that addresses the needs of the organization, merchants and consumers to cut costs while improving the quality of goods and services and speed of service delivery.

E-commerce in India
The cutting edge for business today is e-commerce. Most people think e commerce means online shopping. Providing a quick and convenient way of exchanging goods and services both regionally and globally, e-commerce has boomed. The travel industry has benefited hugely through the growth surge in e-commerce. According to IDC, online sales of airline tickets, car rentals, and hotel reservations make the travel industry one of the strongest e-commerce markets in existence today.

E-Commerce transactions in India

Year Total E Commerce Transactions (Rs Crores 131 450 1200 B2C (Rs Crores) B2B ( Rs Crores)

1998-1999 1999-2000 2000-2001

12 50 100

119 400 1100

 . It is expected that by 2003, more than 75 per cent of

revenues of Internet business-to-consumer business would come from transactions Analysts also believed that one of every four nonresident Indians (NRIs) would make some form of purchase from India-based web sites by 2003. And it actually happened.

Is e-commerce happening in India?

The Internet has created a new economic ecosystem,

the e-commerce marketplace, and it has become the virtual main street of the world.

Growth of E Commerce in India

It is being stated that in the case of business-to-

business transactions, the Indian industry will reach online penetration of 5 per cent by 2003.YearTotal ecommerce transactions B2C B2B

Barriers to the growth of E Commerce in India

Some of the barriers to e-commerce adoption in India include the following:
Limited Internet access among customers and SMEs (current level of internet usage is low among businesses and users) Poor telecom and infrastructure for reliable connectivity (Internet connectivity slow, access costs are high and connections are unreliable)

 Multiple gaps in the current legal and regulatory

framework Multiple issues of trust and lack of payment gateways (privacy of personal and business data connected over the Internet not assured; security and confidentiality of data not in place)

How can we make a Successful E Commerce Transaction?

To make a successful e-commerce transaction both the payment and delivery services must be made efficient. There has been a rise in the number of companies' taking up e-commerce in the recent past. Major Indian portal sites have also shifted towards ecommerce instead of depending on advertising revenue. Many sites are now selling a diverse range of products and services from flowers, greeting cards, and movie tickets to groceries, electronic gadgets, and computers.

 On the negative side there are many challenges faced

by e-commerce sites in India. The relatively small credit card population and lack of uniform credit agencies create a variety of payment challenges unknown in the United States and Western Europe.