Reasons for the Growth of E-Commerce
India is slowly shifting from physical stores or markets towards virtual shopping due to an increase in the number of smartphones, changing lifestyles, online banking facilities, tech-savvy generation, the boom of IT companies, avoidance of traffic jams, and mental stress on the roads.-
Increase in the number of internet users
As per the latest figures, the current number of internet subscribers in India has reached across 243.2 million and has been increasing at a healthy rate. A rise in the number of internet users has ultimately resulted in prospering the e-commerce industry since a large number of Indian consumers are now connected to the e-commerce marketplaces by using their internet-enabled handheld and desktops. -
Rise in the middle-class consumers having disposable income
Rise of small and medium enterprises, foreign direct investment, multinational corporations have created a new generation of globally-minded Indian consumers since it has bought with itself a plethora of employment opportunities. This increase in employment opportunities has had a direct impact on the income and the purchasing power which has inclined the middle class to resort to e-commerce as the primary outlet for sophisticated consumer products and services. -
Provision of cash on delivery
Provision of lucrative facilities such as cash on delivery by e-commerce websites such as Flipkart, Amazon, Snapdeal, and Jabong to the Indian consumers has helped in the growth of this industry. This is because the customers get a chance to inspect the purchased product before paying for it which has eased the process of purchasing the product or service. -
Growth of mobile commerce
Approximately 168 million users in India do electronic transactions by using their smartphones loaded with advanced 3G/4G and wifi technologies. Thus, the ease of accessibility and secure operating systems of smartphones has led to an increase in web access to e-commerce services. -
Multiple products at cheap prices
The consumers have a choice to choose from a varied range of options that are available for a single product as a result of which they get the best deals with minimal prices. Maintenance of rich graphical users by the e-commerce websites which is further enhanced with appropriate and useful product graphics which lead to the growth of online shopping. This is because the websites display the product with its pictures, varying sizes, product color that makes it easy for the consumers to choose.
