Contributed by:
Varun Manglik
12DM-158
I am currently involved in some research work on e-commerce, its trends and growths in India for some personal assignment.
Would love to contribute by adding some interesting facts and findings that you could some time use on comparison basis.
This issue, there are two things covered that i came across this week.
1.
The major issues which the ecommerce companies face are as follows:
1. The challenge of having a good distribution network but many ecommerce giants are developing their own distribution networks as delivering charges form a major component of the product cost – ranging between USD1.0–4.0 per item.
2. The huge investment made in ecommerce ventures has the potential to give beneficial returns in the long run only if the customer base increases.
3. The turn around time for delivering a product can be reduced to 1-2 days only if the distribution system is improved and this also will help retain old customers and add to the list of new customers.
4. Retaining an existing customer is more profitable for a company since acquiring a new customer; on average costs USD15.0–20.0.
5. Only the ones who can face these issues and retain customers and survive online can get a piece of the pie of the online market as fundamentally weaker companies would lose out to established players . Hence a focus on improving the distribution system and retaining the existing customers is the key to ecommerce success.
1. The challenge of having a good distribution network but many ecommerce giants are developing their own distribution networks as delivering charges form a major component of the product cost – ranging between USD1.0–4.0 per item.
2. The huge investment made in ecommerce ventures has the potential to give beneficial returns in the long run only if the customer base increases.
3. The turn around time for delivering a product can be reduced to 1-2 days only if the distribution system is improved and this also will help retain old customers and add to the list of new customers.
4. Retaining an existing customer is more profitable for a company since acquiring a new customer; on average costs USD15.0–20.0.
5. Only the ones who can face these issues and retain customers and survive online can get a piece of the pie of the online market as fundamentally weaker companies would lose out to established players . Hence a focus on improving the distribution system and retaining the existing customers is the key to ecommerce success.
2.
On an average day on eBay in India:
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