1. Case Studies

5 Major Challenges Faced by eCommerce Businesses in India

eCommerce Businesses in India

Day-by-day, the growth of the eCommerce market in India is expanding as it attracts lots of retailers to have an online store to boost their business worldwide. We all know that India is the second-most populous country in the world, and it is the home of 1.2 billion people.

It is true that India’s per-capita purchasing power is low, but still, the country is the most attractive emerging market for the eCommerce industry.

The major problem is that eCommerce businesses or retailers are facing various challenges in the Indian market, and it is not easily possible for them to stud their legs in the market and do business.

Below, you can find the top 5 challenges faced by eCommerce businesses in India:

1st Challenge – In India, Cash on delivery is the preferred payment mode

In India, most people prefer to pay cash on delivery due to the low credit card diffusion and low trust in online transactions. Not like electronic payments, manual cash collection is quite perilous, expensive, and laborious.

2nd Challenge – Internet Penetration is Low

In India, Internet penetration is quite low as compared to several western countries like the USA, UK, France, and more. Still, the country is a small fraction of what other countries are getting.

Moreover, the quality of connectivity is low in various regions. However, these both problems are slowly disappearing. In the next few years, the connectivity problems will disappear from the list of challenges to eCommerce in India.

3rd Challenge – Indian Customers Return Much of Their Products They Buy Online

It is true that eCommerce in India has lots of first-time buyers. It means, they are still not sure about what to expect from eCommerce websites; thus, purchasers fall prey to hard sell. Finally, when the product is delivered, they started feeling regret and return the goods.

Therefore, customers’ regret is the biggest problem majorly in India. For eCommerce retailers, returns are extremely expensive as it shows some unique challenges and it becomes more difficult in cross-border eCommerce.

4th Challenge – Many Times, Postal Addresses are not consistent

Once if you place an online order, you will get a call from the company, asking about your exact location. The given address is not enough because there is always a little standardization while writing post addresses. It is also one of the biggest challenges faced by eCommerce in India. consultation

5th Challenge – Features Phones Rule The Roost

When it comes to the total number of users of mobile phones in India, it is extremely high as various people still use feature phones, not smart-phones.

The consumer group is still unable to make eCommerce purchases on the move while the country is still away from the scales tipping in favor of smart-phones. With the increasing number of smart-phone users, the demand for online shopping also goes up automatically.


Get Started in 3 Seconds