4 Major Challenges That Every Indian E-Commerce Company Is Facing Nowadays!

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E-commerce advents have opened gates of options for the consumer in India, but on the contrary, the industry is more aggressive than ever today. It is going through a regular change and every day is a new day for an e-commerce company. The challenges are evident and let’s dig into them to know how difficult it is to run and operate an e-commerce firm!

Here are the 4 major challenges that most of the Indian e-commerce  companies are facing nowadays:

1.Winner takes it all-No room for small players

Flipkart, Amazon and Snapdeal are deep-pocketed major players making it tough for the small players to survive in the market. The mortality rate in Indian e-commerce is rising day by day as the small retailers are choking to attract investors or customers alike.
Some of the e-commerce portals like Babyoye, Zipdial, Tastykhana, Indiaplaza have failed in making it big and have made a tragic exit whereas star players like Flipkart, Bookmyshow, Zomato, MakeMyTrip are becoming household names as they could instil confidence in the investors and took risks from the inception and have gained popularity.

2.Succumb to hurdle in Indian e-commerce value chain

Reminiscing from one of my experiences, I was trying to send a gift to my friend studying in Raebareli (a small district in UP), but was shocked to see that it declined to send the item and it surely made me believe that what e-commerce retailers boast holds untrue.

Big players are facing issues in delivery, personalisation, cybersecurity and payment issues which have made their chain of command weak and fragile. It is seen that the plethora of e-commerce value chain is posing as counterproductive for free-flow of e-commerce delivery.

The delivery boys are pricey and there are reliability issues during COD which undermines the profit. Also, many companies in online marketplaces rely on fees from sellers and not own sales.

They do not hold inventory and rely on the distributors for it and which leads to falling in standards.

3.Digital Literacy and Consumer Connect

With Narendra Modi’s digital India campaign, e-commerce market is showing signs of a boom but when we compare it with the digital literacy of the consumers it fails to show the same sign.

There is a major chunk of population i.e 147 million who are still using feature phones. The stalwarts of the online marketplace should try and tap this sector by bringing out easy access to websites and helping in digital literacy.

Also try to fix the loopholes like fast customer service, return policies, payment security and to lure more customers to the website

4. No profits in sight

Flipkart, Snapdeal and others have infused immense capital from investors and are burning them with customer acquisition and heavy discounts.

As projected in a recent nationwide report, the amount of loss incurred by top players and the gap between the valuation and the funds raised in the market. So the profits which are not in sight will pose threat to the overall business model if the break-even is not met.