Issues and Challenges of E-Commerce in India

Abstract

India's retail market is estimated to be worth $600 billion. Today, ecommerce comprises only 5% of the total. Compare that to the 15% stake ecommerce has in the US market, and it becomes clear there's still plenty of room for growth. Despite efforts like 'Digital India', affordability of smartphones and data packages, vast sections of India's population have yet to come online. India's total internet user base is set to grow from 665 million in 2015 to 829 million by 2021. So, the inherent potential of the market is undeniable. And, yet, ecommerce remains highly underpenetrated with only 50 million online shoppers, of whom only 20 million are active monthly purchasers. This gap is indicative of the need to tackle a concern if India is to maintain its role as a global ecommerce lynchpin. For this, the corporate sector must join hands with GoI to ensure that transitions occur seamlessly and with minimal disruption. To that end, a holistic ecommerce framework needs to be established, one that incorporates best governance practices while catering to the unique needs of this vast new consumer base. Arobust physical and digital infrastructure must be implemented, one capable of handling the immense load placed upon it daily. The eCommerce industry in India is growing at a remarkable pace due to high penetration of internet and sophisticated electronic devices. However, the recent growth rate of eCommerce in India is far lagging behind than other developed countries. There are many big problems and challenges faced by an e-commerce industry. Factors like safety and security of online money transaction being the biggest problem along with others, have curb the smooth expansion of the online industry in the country. Although, major portion of e-business sectors have affected by the below mentioned challenges but still there are few online giants like Makemytrip.com, flipkart.com, Snapdeal.com who have overcome the challenges and represents the perfect growth trends of eCommerce in India.Equally important are efforts to promote a shift to a digital economy. While GoI has taken a valuable first step through the implementation of the Unified Payments Interface (UPI) system, further efforts are needed via the expansion of formal banking and easy credit facilities for the citizenry. Today, 70% of ecommerce customers are men with an average age of 25. The present paper intends to study the challenges of e commerce in India and also show the possible issues that make the E-Commerce ecosystem in India vibrant place