Introduction:

E-commerce stands for electronic commerce. It means dealing in goods and services through the electronic media and internet. The rapid growth of e-commerce in India is being driven by greater customer choice and improved convenience with the help of internet the vendor or merchant who sells products or services directly to the customer from the portal using a shopping basket system or digital cart and allows payment trough debit card, credit card or electronic fund transfer payments.

In the present scenario e-commerce market and its space is increasing in demand as well as an impressive display or range of a particular type of services. E-commerce is already appearing in all areas of business, customer services, new product development and design. E-commerce business is growing in India because of wide range of product with minimum price wide range of suppliers and customers internet. In this modern era every business units want to join online business because increasing ratio of internet users in India. E-commerce in India is still in growing stage but it offers considerable opportunity.

OBJECTIVES OF STUDY:

The objectives of present study are:

1 To analyze the present trends and opportunities of e-commerce in India.

2 To examine the barriers of e-commerce in India.

3 To find out the growth factors of e-commerce in India.

RESEARCH METHODOLOGY:

The study is based on secondary data which is collected from various books, National and International journals and from various websites which focused on various aspects of

E-Commerce in India.

E-COMMERCE ADVANTAGES FOR CUSTOMERS:

Convenience:

Every product is at the tip of your fingers on the internet, literally. Type in the product you are looking for into your favorite search engine and every option will appear in a well-organized list in a matter of seconds.

Time saving:

With e-commerce there is no driving in circles while looking and digging in hopes of finding what you need. Stores online offer their full line as well as use warehouses instead of store fronts—products are easy to locate and can be delivered to your door in just days.

Options, options, and options:

Without driving from store to store the consumer can easily compare and contrast products. See who offers the best pricing and have more options to choose from. While a physical store has limited space, the same store on the internet will have full stock.

Easy to compare:

Side by side comparisons are readily available and easy to do. When products are placed online, they come with all the specifics, and they want you to compare them with others, know they have the best options and come back for more!

Easy to find reviews:

Because the competition is high, companies’ online want you to look at other consumer reviews. Good and bad reviews are on every site, not only can you see if the product is liked, you can also see the reasons behind the thumbs up or down.

Coupons and deals:

With every online business wanting you, more and more coupons and deals can’t be avoided, which are totally great for customers. With major sites that act as department store, you may find items up to 80% off. Take advantage of the competition and find the best price available.

E-COMMERCE ADVANTAGES FOR BUSINESSES:

Increasing customer base:

The customer base is every business’s main concern, online or off. When online, a business doesn’t have to worry about getting the best property in town, people from around the world have access to their products and can come back at any time.

Rise in sales:

By not managing a storefront, any business will have more sales online with a higher profit margin. They can redistribute money to make the consumer shopping experience faster and more efficient. While being available to international markets, more products will sell.

24/7, 365 days:

If it’s snowing and the roads are closed, or it’s too hot and humid to even step outside in the summer, or a holiday that every store in town closes, your online business is open for consumers 24/7 every day of the year. The doors never close and profits will keep rising.

Expand business reach:

A great tool on the internet is translation! A business online does not have to make a site for every language. With the right marketing, every consumer around the globe can find the business site, products and information without leaving home.

Recurring payments made easy:

With a little research, every business can set up recurring payments. Find the provider that best suits your needs and billing will be done in a consistent manner; payments will be received in the same way.

Instant transactions:

With e-commerce there is no more waiting for the check to clear or a 30-day wait for certain other types of payment. Transactions are cleared immediately or at most two to three days for the money to clear through the banking system.

E-COMMERCE DISADVANTAGES FOR CUSTOMERS:

Privacy and security:

Before making instant transactions online, be sure to check the sites certificates of security. While it may be easy and convenient to shop, no one wants their personal information to be stolen. While many sites are reputable, always do your research for those with less than sufficient security.

Quality:

While e-commerce makes everything easily accessible, a consumer cannot actually touch products until they are delivered to the door. It is important to view the return policy before buying. Always make sure returning goods is an option.

Hidden costs:

When making purchases, the consumer is aware of the product cost, shipping, handling and possible taxes. Be advised: there may be hidden fees that won’t show up on your purchasing bill but will show up on your form of payment. Extra handling fees may occur, especially with international purchases.

Delay in receiving goods:

Although delivery of products is often quicker than expected, be prepared for delays. A snow storm in one place may throw off the shipping system across the board. There is also a chance that your product may be lost or delivered to the wrong address.

E-COMMERCE DISADVANTAGES FOR BUSINESSES:

Security issues:

While businesses make great efforts to keep themselves and the consumer safe, there are people out there that will break every firewall possible to get the information they want. We have all seen recently how the biggest and most renowned business can be hacked online.

Credit card issues:

Many credit card businesses will take the side of the consumer when there is dispute about billing—they want to keep their clients, too. This can lead to a loss for e-commerce business when goods have already been delivered and the payment is refunded back to the consumer.

Extra expense and expertise for e-commerce infrastructure:

To be sure an online business is running correctly, money will have to be invested. As an owner, you need to know transactions are being handled properly and products are represented in the most truthful way. To make sure you get what you need, you will have to hire a professional to tie up any loose ends.

Needs for expanded reverse logistics:

The infrastructure of an online business must be on point. This will be another cost to the business because money will need to be invested to ensure proper handling of all aspects of buying and selling, especially with disgruntled consumers that want more than a refund.

Sufficient internet service:

Although it seems that everyone is now on the internet all the time, there are still areas in which network bandwidth can cause issues. Before setting up an e-commerce business, be sure your area can handle the telecommunication bandwidth you will need to run effectively.

Constant upkeep:

When a business has started as e-commerce, they must be ready to make changes to stay compatible. While technology grows, the systems that support your business must be kept up to date or replaced if needed. There may be additional overhead in order to keep data bases and applications running.

Growth in Terms of Returns for the E-Commerce Industry in India

· In 2009 the market value of e-commerce in India was worth about 3.9 billion and that figure grew to 12.6 billion in 2013.

· The retail segment alone was worth 2.3 billion in 2013.

· According to figures from Google India, there were 35 million people in India shopping online and that figure is bound to rise to 100 million by the end of 2018.

· Electronics and Apparel are definitely the winners that contribute to a large chunk of this growth trajectory in terms of sales

· The Internet and Mobile Association of India conducted a study that predicts that the e-commerce industry is estimated to reach 211,005 crore rupees by the end of 2018.

· Estimations for future growth continue to be encouraging even after 2018 with the e-commerce industry set to generate an estimated figure of about $100 billion with $35 billion of the total amount being generated by the fashion industry online.

· Growth in the sales of apparel is set to spike four times the current estimate by 2020.

Key drivers in Indian e-commerce are:

· Large percentage of population subscribed to broadband Internet, burgeoning 3G internet users, and a recent introduction of 4G across the country.

· Explosive growth of Smartphone users, soon to be world's second largest Smartphone user base.

· Rising standards of living as result of fast decline in poverty rate.

· Availability of much wider product range (including long tail and Direct Imports) compared to what is

· Available at brick and mortar retailers.

· Competitive prices compared to brick and mortar retail driven by disintermediation and reduced inventory and real estate costs.

· Increased usage of online classified sites, with more consumers buying and selling second-hand goods.

· Evolution of Million-Dollar startups like Jabong.com, Saavn, Makemytrip, Bookmyshow, Zomato Flipkart, Snapdeal Etc.

Reasons for This Growth Trajectory:

· The first and primary reason for the growth of the e-commerce industry is the spike in number of broadband users and those that use 3G services. The introduction 4G services have further fueled this growth.

· India’s general economic growth and better living standards have a direct effect on the growing number of internet users and buying power. The quick decline in poverty rates have also contributed in a big way.

· Research suggest that one of the points of impetus that fuels the growth in e-commerce is the consumers search for a wider range of products and services that is effectively being met online.

· Figures support the fact that the growth in e-commerce is also directly related to competitive pricing that e-commerce platforms offer the consumer.

· Million dollar startup firms like Flipkart, Snapdeal and Jabong further fuel this growth.

Key developments in 2018:

· Mobile to be the most influential aspect of e commerce

· More business coming from smaller towns

· Enhanced shopping experience

· Exclusive partnership with leading brands

· Expanding the product basket

1. Fig one shows the reason why people in India prefer E-commerce

The low prices are the topmost reason that people cite for shopping online, shopping convenience comes very close second.

Source: Deloitte-online retail in India.

2. Fig two shows the retail e-commerce volume in India from 2016 to 2020 in million US $

Volume in e–commerce is rising from 2016 to 2020 and is estimated to rise further.

3. Fig three shows the factor that will fuel the growth of e commerce in terms of internet users (in millions)

It is evident that in absolute terms Indias internet users are short by only 36 million as compared with 279 million in the US higher than that of Japan

4. Fig four shows the share of payment system in India.

Yet another feature of E-commerce is Cash on delivery which is the top most preference of Indian customers.

Source: IAMAI/Deloitte-Future of E-commerce.

5. Fig five showing the Geographical distribution of Indian users.

Most of the Indian users of e commerce belong to age group of 25-34.

Source: IAMAI/Deloitte-Future of E-commerce.

CONCLUSION:

E-commerce is changing the way of buying and selling of product and services in India. E-commerce is future of shopping. Due to E-commerce the gap has been reduced between manufacturer and consumer. According to Indian population their vast scope for e-commerce because currently in India only 19% people using internet for selling and buying goods and services so remaining percentage we can considered that we having scope in Indian Market. There is weak Cyber security Law in India that is why Indian People are facing challenges toward e-commerce. The future of e-commerce e in India would be bright in the upcoming years if all essential factors would be implemented, by establishing cyber and have their benefits as per people wish. The role of government is to provide a legal framework for e-commerce so that while domestic and international trade are allowed to expand their horizons, basic right such as privacy, intellectual property, prevention of fraud, consumer protection etc. are all taken care of. The expansion of e-commerce has been developed in rural as well as urban area in reign able cost for consumption, because of that more people are getting linked with e-commerce and the ratio of that is getting increase day by day.

REFERENCE:

1. Mitra, Abhijit. "E-commerce in India-A Review." International Journal of Marketing, Financial Services and Management Research 2. 2 (2013): 126-132.

2. Kothari, CR Research Methodology: Methods and Techniques New Delhi: rakashan, 2003.

3. Chakraborty KD, Chatterjee D. E-Commerce BB. Kundu Grandsons, Kolkata, 2011, 32-56.

4. E-Commerce in India: Drivers and Challenges a The PwC India Proposition (2015, Nov 11) Retrieved from https://www.pwc.in/assets/pdfs/technology/ecommercein- india-drivers-and-challenges.pdf

5. E-commerce in India (2015, Nov 10) Retrieved from https://www.en.wikipedia.org/wiki/Ecommerce_ in_India

Received on 24.03.2018 Modified on 25.04.2018

Asian Journal of Management. 2018; 9(3):1152-1156.

DOI: 10.5958/2321-5763.2018.00186.5