Although India’s purchasing power per capita is low, the country remains the most attractive rising eCommerce industry. However, the main issue is that eCommerce enterprises or retailers in India face numerous hurdles, making it difficult to establish themselves in the market and do business.
Here is a list of challenges to know about before launching an eCommerce business in India:
Supply Chain Challenges
Timely delivery is frequently tricky due to infrastructure, location, and inevitable bottlenecks during transitions that cause orders to be canceled. If the goods are not delivered on time, an irritated consumer is a lost cause.
This time-consuming process necessitates extensive R&D on all e-commerce platforms when deciding on a supply chain strategy. So, these were the fundamental problems that eCommerce enterprises in India encountered. However, it’s also worth noting that India’s eCommerce behemoths are growing, as are numerous cross-border eCommerce businesses.
Cash on delivery is the preferred payment method in India
Due to the low use of credit cards and low trust in online transactions in India, most customers choose to pay cash on delivery. Manual cash collection, unlike electronic payments, is risky, expensive, and time-consuming.
Many of the products purchased online by Indian customers are returned
There are many first-time buyers in India’s eCommerce market. People are still unsure what to anticipate from eCommerce websites, making them vulnerable to brutal sell tactics. Finally, after receiving the merchandise, they expressed sorrow and returned it.
As a result, the biggest issue in India is customer remorse. Returns are incredibly costly for eCommerce sellers because they present some particular problems, and they become even more difficult in cross-border eCommerce.
Postal addresses are frequently inconsistent.
If you place an online order, the company will phone you to inquire about your exact location. However, there is always a little standardization when writing post addresses, so the address is insufficient. It is also one of the most significant issues that eCommerce in India faces.
Security and privacy are two of the most urgent challenges in e-commerce these days. But unfortunately, there is no protection provided by the site or by independent watchdogs against the dangers of compromising one’s privacy.
Internet Access is Limited
Compared to some western countries such as the United States, the United Kingdom, France, and others, India has a low Internet penetration rate. Nonetheless, the government receives a minuscule fraction of what other countries do.
Furthermore, the level of connectivity varies by region. However, both of these issues are gradually dissipating. Therefore, connectivity issues will be removed from the hurdles to eCommerce in India in the following years.
Phones Have Taken Over the World
The total number of mobile phone users in India is extremely high, as many people still utilize feature phones rather than smartphones.
While the country is still far from tipping the scales in favor of smartphones, consumers can still make eCommerce purchases on the go. The desire for online shopping grows in lockstep with the growing number of smartphone users.
So, these were the fundamental problems that eCommerce enterprises in India encountered. But, it’s also worth noting that India’s eCommerce behemoths are growing, as are numerous cross-border eCommerce businesses.
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