In India, Ecommerce phenomenon started with services side,
people bought railway tickets, airline tickets, concerts ticket passes, Cricket
Match ticket, Deals, Mobile recharge etc. Out of these the volume of online
ticketing is huge. Things have changed and now people are buying books,
apparel, electronics, home accessories and anything you can think of. It’s all
about convenience and good deal what people generally quote. Current trend shows that E-tailing to grow 4 times as fast as
online travel.
Data shows that Books are the first choice for buying online
followed by online tickets, electronics and local deals.
Goods Vs Services: Buying
services online haven’t face much
problems compare to buying online products . Goods generally give a feeling to our
senses like touch , feel and experience while
for services you can only experience. Delivery of services are instant while
delivery of goods take times. To overcome these shortfalls, E-commerce companies
have built couple of good practices to serve their customers better.
- Trust is being built by extensive marketing as well as offering fraud proof options like COD (Cash on Delivery ).
- Electronics and Books doesn’t require much touch and feel and they are the top selling items online
- Companies are offering close to 30% discount to grab market share
- Major costs are logistics and Inventory management. Barrier to entry is less.
Source: Avendus Report; Morgan Stanley Research; Comscore;
Zinnov Primary Survey