With the year 2016 starting, there are many reasons to cheer how the E-commerce sector in India has grown rapidly, despite the fact that this is just the beginning of the E-commerce era in the country.
The last year(2015) gone by has so far been the best for the sector, with investors showing tremendous confidence in the potential of E-commerce companies and pumping in big money that has changed their valuation overnight and put them in the big league.
As 2016 approaches, the outlook for the sector looks even better, with eTailing India, a leading E-commerce research and advisory company, suggesting that the E-commerce market will hit the $25 billion mark, a huge 50% jump over the $12-13 billion revenues for 2015.
Some important aspects that need to be looked into include:
Government regulations for the E-commerce industry
Government regulations play a vital role in determining the fate of any industry. Repeatedly issues have cropped up because there is so far no regulatory framework in place for the E-commerce sector, which has been in existence for quite a few years now.Revamping the IT infrastructure
The IT infrastructure in the country is currently not comparable with that of advanced countries where E-commerce is popular and thriving. In addition, though Internet penetration has increased rapidly in recent years in India, it still stands at just about 25% as per an estimate by The Internet and Mobile Association of India (IAMAI).Winning the customers’ trust
Last, but not the least, the E-commerce game rests on customer’s trust. Customers visit a particular portal to order a product based on the website’s credibility, with little to do with the actual sellers on that portal.
