India has an internet users base of about 475 million as of July 2018 and that is about 40% of the population. Despite being the second largest user base in the world, the penetration of e-commerce was very low until a few years before. But it is growing at an unprecedented rate, adding around 6 million new entrants every month. This brief statistics opens up an interesting discussion of the global market, Indian market, Made in India initiative and trends so far. The explosive growth in the last few years has already catapulted the big e-commerce players in this multi-billion dollar territory. Industry analyst projects the industry growth seven to ten times over the next five years.
The global e-commerce market is growing exponentially every day, big enterprises either open a new venture or they acquire or do investment in small e-commerce player. Most of the global e-commerce expansion are in logistics, infrastructure or geographical. The recent acquisition of 70% of the stake in Flipkart by Walmart show global e-commerce market expanding their base in India. If we go by statistics, global e-commerce market growth projection is all set to increase by more than 200% by 2021.
E-Commerce is usually of two types- E-Merchandise & E-Finance. Many companies and organizations in India are doing business using e-commerce and it’s showing exponential growth from the various dimension. Increasing internet users base adding into online buyers and seller bucket every single day. The traditional way of commerce was highly influenced by domestic need, pace and colonial period, needless to mention it was serving the need to people. Challenges were there in that era as well and the solution moreover lay in local business only.
In its present state, the contribution of e-commerce industry into India GDP is approximately 0.4% which is expected to grow more than 20 times to around 3% by 2019. The impact is so huge that the present wave of demonetisation could have not been thought if e-commerce did not exist. E-Commerce has had helped even current government demonetisation to a large extent in terms of absorbing the shocks to common people. E-Commerce not only helped the country GDP but also the citizen by scaling their small-scale business and make the entry barrier so low that today even with one or two products you can enter into the market. By 2030, the contribution to GDP by e-commerce is expected to reach to around 300 billion dollars.
Initially, essentially e-commerce market was all about B2C however now B2B segment is gaining a lot of traction. As per Nescode research, more than 95% of the B2B business sector is still unorganised and e-commerce will help by use of technology and other support function. At Nescode, our expertise in e-commerce solution right from conceptualization to implementation and scaling is customized to serve your specific business objective. Continuous growth of commerce is expected to have a deep impact on the structure and functioning of economies at various levels and overall impact on macroeconomics.
Transaction cost is one of the most important factors in running a business and essentially that make the business profitable. The traditional way of setting up the business need more investment and most of the investment goes in infrastructure and manpower. Whereas in the case of e-commerce, physical infrastructure and manpower cost reduce almost by 60% since its moreover driven by online sales. Today, there are several open source e-commerce platform is available to start with and business owner can scale by custom development on top of it once business grow. Nescode, offer open source e-commerce platform development and implementation using industry standard practice to maximize the ROI.
E-Commerce platform reduces the transaction cost significantly since user explore and select the product/services on online portal rather than in the physical store. One important reason for the lowest cost of the product on the online store is they don’t need to maintain the physical store. Usually, the cost/month of maintaining physical store goes to the customer itself, therefore, the transaction cost of the product on e-commerce used to be lesser. E-Commerce giant like Amazon and Flipkart has grown up in this business in such a short span of time reason being of lesser transaction cost
E-commerce platform has given an ease to buyer and seller due to trends leaning towards smartphones. In a purchase process, the user starts exploring the products as the look and feel, product descriptions and reviews in much lesser time compare to store footfall. Even most of the e-commerce platform offers a sell and purchase assistance to their users through online chat/call which reduces the transaction time significantly. The most important side of e-commerce is, it allows users to buy and sell from anywhere and anytime.
Coming back on the logistic side of e-commerce, one vehicle carries the goods of many customers that help the customers save logistic cost. Even, an e-commerce company save huge logistic cost. Payment toward sale and purchase is even easier nowadays due to various payment gateway channels. Most of the e-commerce platform offers the multi-currencies option to users and they can pay from a bank account, credit card, debit card or payment bank with zero transaction charges.
Being an Internet Engineering Company, since inception, we have given an adequate amount of time to understand how Internet works and expertise need to develop the internet based product. The Internet gives an easy way to reach out to your prospective customers worldwide therefore, it becomes utmost important to optimize the strategies and platform according to need business need to get most out of it. At Nescode, we use the structured methodology, modern framework and tools to develop an e-commerce platform. Our e-commerce platform can help you be online with one product or thousands of products.
Our python and Django based e-commerce platform can showcase your product in a unique way. Our solution is moreover like an All-in-One solution since we offer a connected experience of CRM, Marketing campaign, Inventory management, Billing, Accounting, Shipping on a single dashboard. Modules are crafted in a way that you can offer a user level permission to manage the whole business with an ease. And on top of it, if your business needs custom development, we are there to build it.
India’s e-commerce and the global market are booming like never before, it’s high time to make the business online with one complete solution. Almost every sector offering their products and services online. But, there are many crucial elements to consider before you go online. We offer a complete e-commerce business blueprint on how to build, launch, and grow a profitable online store.