5 Challenges for e-Commerce startups in India
Many feel that e-Commerce has lost its sheen in India. But the internet boom and making e-Commerce transactions is a very good innovation.
Online businesses are here to stay and they are not going to go away in a hurry. Revenues from e-Commerce transactions are growing quickly and reports suggest that the e-Commerce industry will hit 1 trillion dollars in a few years.
The e-Commerce industry currently has a few big players like Flipkart, Snapdeal, Myntra, etc. that make up for a large share of the market in India. There is enough room in the market for the startups to set up and prosper along with the big players.
However these startups will have to overcome some important challenges. Here are 5 key challenges that Indian e-Commerce startups will face:
1) To find a Niche:
To find a niche in e-Commerce means to find people who are willing to make e-Commerce transactions with payment gateway india - {{ http://www.direcpay.com }} for specific products. In contrast, there could be portals that go for full out assortment and having all they can sell on their online catalog. The second approach needs a lot of funding and is a nightmare for investors. A niche e-Commerce site is something that startups should ideally go for. But the key here is to find a big enough market that is willing to buy and make transactions online.
2) To acquire customers
Advertisements and marketing play a big part for an e-Commerce site to get people to come to the site and make an e-Commerce transaction. It is reported that the cost currently stands between Rs. 500 and Rs. 1,000 per customer. To get this cost down (per customer) is the next biggest problem that e-Commerce startups face.
3) Reliable Logistics and Supple Chain
Technically, having a problem with logistics and supply chain is supposed to be a good problem, this is an indication that transactions are happening. However, this problem needs to be kept in ropes as it can have detrimental damage to the image and the future of the startup if it persists. The Indian customers any which ways have trust issues when it comes to e-Commerce transactions. Getting this right is a big challenge, and experts who know how to solve the problem are rare to find.
4) Good Customer Service
In India, customer service has conveniently been overlooked for some or the other reason. However, good quality customer support can make a big difference in the cluttered market. Reassuring customers of a situation or telling them the status of a process is sometimes all that is needed to keep customers calm and going berserk on social media.
5) To Raise Funds
Once the e-Commerce start up has got its e-Commerce transactions going, getting the brand right is going to be of utmost importance. All e-Commerce big-wigs have got their branding right. This will require funds – a lot of funds. A large majority of them have failed in this phase. So even if you’ve got your act right, past record in the industry is working against the early stage startup on the brink of scaling.