Ecommerce: Online Travel Vs Online Retail

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