There is no doubt, e-commerce has come a long way since its inception, enduring slow dial up connections as well as customer apprehensions along the way. Companies like Napster forced companies to transform their traditional business models and Amazon built the biggest bookstore in the planet. Even after the dot com bubble burst, a rebound was sure to happen.
The release of Web2.0 enabled innovators and entrepreneurs to connect to their customers like never before. They saw the potential for e-commerce to open new opportunities for overseas markets. They also saw cost efficiencies through lower internet transaction costs and disintermediation. Not to mention the instant access to customer data and insights that can be incorporated into the product and marketing strategy.
Consider in India where e-commerce is growing at a fast pace, even though internet penetration is low as compared to other countries. In early 2000, just a few names in the e-commerce business were operating – Fabmart, Rediff, Sify, apnaloan and some others. Now there are companies like Shopnix which allow individuals to set up an e-commerce website in minutes. Shopnix is proud to enable more than 300 stores ranging from mass e-tailers to city focused online stores such as SapnaOnline, Kiranawalla and Freshbazaar.
Also worth mentioning is the Indian version of Cyber Monday – "Great Online Shopping Festival (GOSF)". In December 2012, Google India partnered with major e-commerce players like Myntra, Jabong, Snapdeal, MakemyTrip and Flipkart to offer tremendous offers and discounts for a single day. It proved to be successful with Myntra realizing 150% jump in sales; traffic grew by 300% for Homeshop18 but majorly GOSF succeeded in creating a buzz for online shopping.
The latest trend in India is that of local e-commerce and m-commerce. With Justdial going in for an IPO and Quickr expanding rapidly, merchants are looking into the local e-commerce space with much zeal. According to a study by SAP, 97 percent of consumers are asking for more mobile interactions with banks, telcos, retailers, utilities, and other businesses, which imply a steady shift towards mobile commerce. The opportunity is huge and the barriers immense. It is just a matter of time to see where businesses will be heading in the coming years.
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