eCommerce - An Avenue for Exploration of Indian Entrepreneurs

Geography and Indian Economy

India is a beautiful country in South East Asia. There is a Himalayan range in North of India, the highest in the world, which stands between it & western countries to protect its climate f

rom western disturbances. Geographically, it is better placed than any other country to claim the richest economy of the world.

Mixed Economy

India is a mixed economy. Since, 1991, until disintegration of the Soviet Union, Indian economy was a mirror of Socialism. But disintegration of USSR has disheartened all its think tanks to avert their path from socialism to capitalism.

Capitalist Economy

Finally, open economy has been adjudged better and introduced in 1991 in India in the leadership of Sh. Manmohan Singh, the then Finance Minister. It is the strength of Indian economy that rise leaps and bounds even at the time of recession in 2009-10.

We beat the recession because we are using our products to meet with our own demands. Open economy has opened all global markets for Indian entrepreneurs to explore the avenues where they can sell or resell their products and services. An entrepreneur is always in search of a forum or market where he can sell his goods & services with ease to his customers directly without a middleman. The e-markets have given such avenues to Indian Entrepreneurs. These avenues are called as e-comm, eCommerce, e Business etc.

eCommerce websites in India

eCommerce website helped marketers to sell their products directly via online transactions. It is a business to customer (B2C) approach of e Business. The facility of Electronically Fund Transfer (EFT) has made it possible to receive payments for the offered products online and give receipts thereof to the respective customers immediately. The biggest problem in EFT is that, people of India feels more safe in using orthodox modes of payments for buying goods & services. So, now, eCommerce websites are also accepting cash (on your door facility), demand draft and cheque etc. The facility of e-ticketing is being extensively used in India and it has helped a lot in educating people about what is eCommerce.

Business to business (B2B) is another forum for all affiliated businesses dealing in raw materials to end

products. It is a typical supply chain where many transactions are possible and even volume of electronic transactions is comparatively much higher in B2B than B2C. Electronic & automobile industry is the best example of B2B eCommerce where volume & number transactions are much higher. A few of Indian industrialists have shown interest in these forums. The main problem stands between utilization of such avenues is low awareness among entrepreneurs and traders. I have described some of the barriers as under:

Barriers in eCommerce in India

1) Collection of Payment: Through poorly designed payment gateways, higher transaction charges to the tune of 3% to 4%.

2) Logistics: Safe delivery of goods to the right person in right time. Courier charges are higher for delivery goods in remote areas. Insurance for goods is affecting revenue of the business house.

3) Vendor Management System: Checking and updating prices at regular interval is the biggest problem. Servers behind the curtain are also creating problems.

4) Policies & Taxation: Different taxes at different places are also creating chaos while offering goods through eCommerce.

Read about: Payment Gateways