scope of ecommerce business in india


E-commerce allows consumers to electronically exchange goods or services with no barriers of time or distance. Electronic commerce has expanded rapidly over the past five years and is predicted to continue at this rate, or even accelerate.

There are six basic types of ecommerce:

1. Business-to-Business (B2B)
Business-to-Business type of e-commerce consists of all electronic transactions of goods or services conducted ​​between companies. Producers and traditional commerce wholesalers typically operate with this type of electronic commerce.

2. Business-to-Consumer (B2C)
The Business-to-Consumer type of e-commerce is distinguished by the establishment of relationships between businesses and consumers. It is the retail section of ecommerce where traditional retail trade normally takes place. This type of commerce has developed due to the advent of the web and there are many virtual stores and malls on the Internet which sell all kinds of consumer goods such as: computers, software, books, shoes, cars, food, financial products, digital publications etc.

3. Consumer-to-Consumer (C2C)
Consumer-to-Consumer type of e-commerce encompasses all electronic transactions of goods or services ​​between consumers. Generally, these transactions are conducted by a third party, which provides an online platform where the transactions are been carried out. Example-, etc.

4. Consumer-to-Business (C2B)
In Consumer-to-Business ecommerce it is a complete reversal of the traditional sense of exchanging goods. A large number of individuals make their services or products available for purchase for companies seeking precisely these types of services or products.

5. Business-to-Administration (B2A)
Business-to-Administration type of e-commerce encompasses all transactions conducted online between companies and public administration. This is an area that involves a variety of services, particularly in areas such as fiscal, social security, employment, legal documents and registers etc. These types of services have increased considerably in recent years with investments made in e-government.

6. Consumer-to-Administration (C2A)
The Consumer-to-Administration type of ecommerce model encompasses all electronic transactions conducted between individuals and public administration.
Examples of this include:

Education – Distance learning.
Taxes – Filing tax returns.
Health – Appointments, information about illnesses, payments for health services etc.


40000 35142
30000 26263
20000 19249
2009 2010 2011 2012
E-commerce market
Source:IAMAI, 2013
The ecommerce industry of India is one of the fastest growing segment in the Asia Pacific region with a staggering CAGR of 34.58% from 2009 to 2012, the industry has expanded from INR 19249 Crore to INR 47,349 Crore in a matter of 3 years. This expansion can be mainly attributed to the decrease in the price of personal computers, growth in the number of active internet users and the extremely competitive Internet Service Provider (ISP) market.
Analysis of the e-commerce market:-
Strengths and opportunities:
There is a rise in the disposable income of the customers.
Competitive pricing of the goods sold online has led to an increase in demand for the goods.
Demand for internet banking and cards (both debit and credit) is high.
The cash-on-delivery mechanism, an innovation in the ecommerce space has increased the confidence of customers.
The scope of ecommerce business is turning out to be more famous day by day according to the market demand. Another significant contributor to the growth of ecommerce in India in the future is the e-tailing industry which largely deals in providing jewelry, apparel and kitchen appliances online. Websites like Flipkart, Myntra, Amazon, Snapdeal, Jabong etc., are all examples of the enormous success of ecommerce in India. Due to these firms, India is one of the fastest growing ecommerce markets.
India is developing rapidly and if development is to be measured, how can we ignore the role of ecommerce in it. The internet user base in India might still be a mere 100 million which is much less when compared to its penetration in the US or UK but it’s surely expanding at an alarming rate. The number of new entrants in this sphere is escalating daily and with growth rate reaching its zenith it can be presumed that in years to come, customary retailers will feel the need to switch to online business. Insights into increasing demand for broadband services, rising standards of living, availability of wider product ranges, reduced prices and busy lifestyles reveal this fact more prominently thereby giving way to online deals on gift vouchers. Going by the statistics, the e-commerce market in India was worth about $2.5 billion in 2009. It rose to $8.5 billion by 2011 thus, depicting a definite surge in the last two years. To understand this scenario, we can divide E-commerce into three broad categories which include physical services, physical goods and virtual goods; Another category that is gradually making its mark is the local commerce (couponing, yellow pages, classifieds etc.) which offers significant overlaps with ecommerce. The 1st category of physical services is definitely the major contributor which includes travel ticketing, jobs, matrimonial and event management websites with travel sites accounting for 75% of all E-commerce industries.

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