Ecommerce – Is India following the footsteps of US?

Ecommerce – Is India following the footsteps of US?

In the US, Ecommerce is a huge market and is one of the few segments which did not witness any drastic slowdown despite the financial crisis. The reason is the convenience it provides to the buyers and the sellers. The buyers can shop from the comfort of their homes. The seller finds it extremely cost effective to host a virtual store than a brick-and-mortar one. Although industry analysts have cut growth estimates for Ecommerce in 2009 compared to 2008, most of them believe that ecommerce growth will return in 2010 in the US. A recent Forrester Research report has indicated that total US online sales is expected to touch $176.9 Billion in 2010 compared to the projected $156.1 Billion in 2009.

Compared to the US, currently India’s e-commerce market is painfully limited with a slow growth rate. Ecommerce is a tough nut to crack in India. Approximately 50 million people in India have access to Internet but just two million have broadband connections. And ecommerce needs broadband to thrive. With credit cards being forced into the hands of customers by banks, yes, there are tremendous possibilities. And with broadband penetration increasing every day and computer prices going down, one cannot help but be optimistic about the growth of Indian ecommerce market. But the biggest hindrance in the ecommerce uptake is perception. Indians are so used to touching and feeling the thing before making the purchase that despite having some of the best ecommerce portals we still prefer the old way of buying. This is a cultural thing which takes quite some time to overcome. But still it will be worthwhile for businesses in India to take a serious view of the nascent ecommerce market. The scenario is improving albeit slowly and increasing your company’s online visibility can yield significant results. So that when the tide turns you are ready to sail!