Barriers to the growth of

E-commerce in India

Presented By:-Faahim Zubair

Sadaf
Faisal
Fathimah
Abu Bakr
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 B2C (Rs B2B ( Rs
Commerce Crores) Crores)
Transactions
(Rs Crores

1998-1999 131 12 119

1999-2000 450 50 400

2000-2001 1200 100 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 non-
resident 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 e-
commerce 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 e-commerce 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.