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 y The cutting edge for business today is e- commerce. The travel industry has benefited hugely through the growth surge in e-commerce. According to IDC. Most people think e commerce means online shopping. y Providing a quick and convenient way of exchanging goods and services both regionally and globally. . and hotel reservations make the travel industry one of the strongest e-commerce markets in existence today. online sales of airline tickets. car rentals. e-commerce has boomed.

E-Commerce transactions in India Year Total E Commerce Transactions (Rs Crores 131 450 1200 B2C (Rs Crores) B2B ( Rs Crores) 1998-1999 1999-2000 2000-2001 12 50 100 119 400 1100 .

And it actually happened. more than 75 per cent of revenues of Internet business-to-consumer business would come from transactions y Analysts also believed that one of every four nonresident Indians (NRIs) would make some form of purchase from India-based web sites by 2003. .y . It is expected that by 2003.

Is e-commerce happening in India? y The Internet has created a new economic ecosystem. and it has become the virtual main street of the world. the e-commerce marketplace. .

YearTotal ecommerce transactions B2C B2B . the Indian industry will reach online penetration of 5 per cent by 2003.Growth of E Commerce in India y It is being stated that in the case of business-to- business transactions.

Barriers to the growth of E Commerce in India  Some of the barriers to e-commerce adoption in India include the following: y Limited Internet access among customers and SMEs (current level of internet usage is low among businesses and users) y Poor telecom and infrastructure for reliable connectivity (Internet connectivity slow. access costs are high and connections are unreliable) .

security and confidentiality of data not in place) .y Multiple gaps in the current legal and regulatory framework y Multiple issues of trust and lack of payment gateways (privacy of personal and business data connected over the Internet not assured.

electronic gadgets. . and movie tickets to groceries. Many sites are now selling a diverse range of products and services from flowers. and computers.How can we make a Successful E Commerce Transaction? y To make a successful e-commerce transaction both the payment and delivery services must be made efficient. greeting cards. Major Indian portal sites have also shifted towards ecommerce instead of depending on advertising revenue. y There has been a rise in the number of companies' taking up e-commerce in the recent past.

y 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. .

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