e-ISSN: 2582-5208 International Research Journal of Modernization in Engineering Technology and Science Volume:03/Issue:05/May-2021
Impact Factor- 5.354
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THE FUTURE OF E-COMMERCE IN INDIA Abhilash Chandra*1 *1Assistant Professor, Department of Commerce & Management Vidhyaashram First Grade College, Mysore 570012, India.
ABSTRACT The Vijayanagara and Mughal Empire rose high-flying in the world of Commerce. With an emerging competition, the ancient past signifies the spectrum view of trade and commerce that implies the present world likewise. From the failed method of Tughlaq, till the emergence of imperial rule, India has seen leaps and bounds in the field of commerce. This research will explain how commerce has currently advanced in the dawn of technology explaining the current state and challenges of systems, their architecture, modernization, and the innovation of cyber systems in eCommerce. With the usage of software in commerce at the core of every business today, the overlook of how Omnichannel transactions operate is awe with the 5th industrial revolution (5IR) and its societal impact. It further explicates the application of Omnichannel systems in communication through the fifth-generation network, in a transaction through blockchain, and in composition through the Social Internet. This study will definitely benefit all stakeholders in commerce from the public sector, private sector, internal-external trade, supply chain organizations, and consumers to understand the beginning of an era of Omnichannel systems in the 5th industrial revolution (5IR), its prospects, and their anticipated challenges. Keyword: The industrial revolution, Omnichannel, eCommerce, dropshipping business model, 5IR, Pandemic, Supply Chain.
I.
INTRODUCTION
ECommerce is that the process of shopping for and selling goods or services with the main motive to earn profit via the net, and therefore the transfer of cash and data to finish the sales. It’s also called electronic commerce or internet commerce. Today, questions on eCommerce usually focus on which are the simplest and reliable channels to execute business online. With the usage of software in commerce at the core of every business today we can see a bright future.
II. TYPES OF E-COMMERCE Commerce continues to evolve, so do the ways in which it’s conducted. Following are the foremost traditional kinds of eCommerce models: 1) Business to Consumer (B2C): B2C is eCommerce which is the most popular model among other eCommerce. Business to the consumer implies that the sale is taking place between a business and a consumer, like once you buy a shirt from a web retailer. 2) Business to Business (B2B): Business to business eCommerce isn’t consumer-facing, and typically involves products like raw materials, software, or products that are combined. Manufacturers also sell on to retailers via B2B eCommerce. B2B eCommerce refers to a business selling goods or services to a different business, for example, sort of a manufacturer and wholesaler, or a wholesaler and a retailer or the other way around. 3) Direct to Consumer (D2C): Direct-to-consumer eCommerce is that the newest model of eCommerce. D2C sells their end customer without enquiring about the retailer, distributor, or wholesaler. Subscriptions are a well-liked D2C item, and social selling via platforms like Instagram, Pinterest, Facebook, Snapchat, etc. are popular platforms for direct-to-consumer sales. 4) Consumer to Consumer (C2C): C2C eCommerce refers to selling goods or services to a different consumer. Consumer to consumer sales occurs on platforms likes OLX, eBay, Etsy, etc. 5) Consumer to Business (C2B): Consumer writes reviews or when a consumer gives a useful idea for brand spanking the new product then that consumer is creating value for the business if the business adopts the input. Consumer to business is when a consumer sells his product or services to a business.
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e-ISSN: 2582-5208 International Research Journal of Modernization in Engineering Technology and Science Volume:03/Issue:05/May-2021
Impact Factor- 5.354
www.irjmets.com
III. Techniques of e-Commerce Everyone from independent freelancers to small businesses to the most important of corporations can enjoy the power to sell their goods and services online at scale. a) Retail: The sale of products to a consumer without an intermediary. b) Dropshipping: is a new retail business technique where they don’t keep the products which they want to sell. They purchase the item from a 3rd party and then it will be delivered to the customer directly. Because of its unique technique, the vendor doesn’t have to handle the merchandise directly. Dropshipping is a great business model for aspirant entrepreneurs. c) Digital products: Downloadable items like templates, courses, e-books, software, or media that has to be purchased to be used. Whether it’s the acquisition of software, tools, cloud-based products, or digital assets, these represent an outsized percentage of eCommerce transactions. d) Wholesale: Wholesale products are bought and sold in bulk. Wholesale products are usually sold to an agent or many retailers, who then sell the products to consumers. e) Services: These are skills like coaching, writing; influencer marketing, etc., that are purchased and acquired online. f) Subscription: Subscription is a well-liked D2C model, subscription services are the recurring purchases of products or services on an everyday basis. g) Crowdfunding: Crowdfunding allows sellers to boost startup capital so as to bring their products to the market. Once consumers have purchased the item, it’s then created and shipped. Today it’s almost unimaginable that a corporation wouldn’t be using digital space to drive sales and bottom lines. Top-rated and largest eCommerce Companies by its revenue Amazon is an American multinational technology company. It is the largest eCommerce retailer in the world that had changed the face of retail online shopping. The burning question for many retailers is a way to beat Amazon. In 2020 the company became the largest eCommerce company by its revenue. In 2019 amazon generated 280.5 billion USD focuses mainly on eCommerce, digital streaming, artificial intelligence, and cloud computing. JD.com ranks number 2 also known as Jingdong founded in 1998 which is a Chinese eCommerce company headquartered in Beijing formerly called 360buy. It is China’s biggest online retailer and leading overall retailer, as well as the country’s leading Internet Company by revenue. Alibaba ranks number three which was launched in 1999 by Jack Ma. The Chinese multinational technology company is the world’s most successful eCommerce company and retailer. Alibaba is specialized in the internet, technology, retail, and eCommerce. There was a time in 2015 when Amazon and Walmart combining couldn’t match the profit of Alibaba. Suning.com is a non-government retailer in China founded in 1990. After JD.com and Alibaba, Suning.com is the top eCommerce platform in China with a market cap of 83.13 billion USD and generates over 38.06 billion USD. Rakuten ranking 5th on the list of top eCommerce companies in the world by revenue. It is a Japanese online retailing and electronic commerce company based in Tokyo with revenue of 11.6 billion USD and an estimated market cap of USD 12.46 billion in 2020. eBay, is an American multinational eCommerce corporation based in California is ranking 6th on the list of top eCommerce companies in the world by revenue which facilitates C2C and B2C sales through its website. eBay founded back in 1995 was one of the first and most notable eCommerce platforms generating 10.8 billion USD and has a current market cap of 35.75 billion USD in 2020. Wayfair is an American eCommerce Company that sells furniture and home goods ranks 7th in the largest eCommerce companies in the world by revenue 9.13 billion USD last year with a current market cap of 19.11 billion USD. Zalando in 2019 generated 7.26 billion USD and has a current market cap of 15.72 billion USD. It is a European eCommerce company based in Germany deals with fashion and lifestyle products to customers in European markets. www.irjmets.com
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e-ISSN: 2582-5208 International Research Journal of Modernization in Engineering Technology and Science Volume:03/Issue:05/May-2021
Impact Factor- 5.354
www.irjmets.com
Coupang is a South Korean eCommerce Company founded in 2010 generated 6.23 billion USD last year ranking 9th on this list. In South Korea, Coupang is the largest online retailer providing the best qualitative and fast services to its customers across the country. It also claims that 99.6 % of its orders are delivered within 24 hours which makes Coupang the best eCommerce service provider in South Korea. Flipkart, an Indian eCommerce company based in Karnataka, India. Rounding out on the list of the top 10 largest eCommerce companies in the world. Flipkart in 2019, generated revenues of 6.1 billion USD. It mainly focuses on providing consumer electronics, books, home essentials & groceries, fashion, and lifestyle products.
eCommerce Companies by Revenue Amazon JD.com Alibaba…
Reve nue USD billio ns
Suning.com Rakuten eBay Wayfair Zalando Coupang 0
30
60
90 120 150 180 210 240 270 300 Figure1
Ten Topmost eCommerce sites in India 2020 Amazon India: Amazon has become the uncontested global leader of eCommerce – Projected monthly traffic: 200 Million visits. Flipkart: Flipkart is the countrywide leader of eCommerce in India. Projected monthly traffic: 157.5 Million visits. IndiaMart: IndiaMart is an Indian company that deals in B2B bazaar. Projected monthly traffic: 52.2 Million visits. Myntra: Myntra is a dedicated online lifestyle, home, fashion, and retailer in India. Projected monthly traffic: 14.2 Million visits. Snapdeal: Snapdeal is an expanded online shopping platform. Projected monthly traffic: 12.9 Million visits. Firstcry: Firstcry is a dedicated eCommerce platform for kids’ clothes, baby care products, and toys. Projected monthly traffic: 12.5 Million visits. 1mg: 1mg is an online healthcare and pharmacy info website. Projected monthly traffic: 9.05 Million visits. BookMyShow: BookMyShow is the foremost retailer and shows ticketing portal in India. Projected monthly traffic: 7.2 Million visits. Nykaa: Nykaa is a beauty retailer selling clothes, cosmetics, and wellness merchandise to Indian customers. Projected monthly traffic: 5.35 Million visits. 2GUD: 2GUD is an eCommerce shop deals with mobile phones and electronics refurbished goods. Projected monthly traffic: 4.65 Million visits. www.irjmets.com
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e-ISSN: 2582-5208 International Research Journal of Modernization in Engineering Technology and Science Volume:03/Issue:05/May-2021
Impact Factor- 5.354
www.irjmets.com
ESTIMATED MONTLY TRAFFIC IN INDIA Myntra - 3% Snapdeal - 3% Flipkart 32%
IndianMart 11%
Firstcry - 3% BookMyShow 1% Nykaa - 1%
Amazon 41%
2GUD - 1% 1mg - 2% Others - 2% Figure2
Constraints and Challenges of eCommerce in Pandemic As the Pandemic hit the world, the choice of buyers suppressed in lockdowns and limited the movements of goods and services which ignited the assigning factors of shopping through e-commerce platforms. The COVID19 Pandemic has been marching on for close to a year and a half now, it's high time that we look at how it has impacted our livelihood. COVID-19 has paralyzed businesses, commerce, and industries around the globe along with our daily lives dealing with the severe impacts of the Pandemic. Usage of online technology at the workplace, educational institutions, and business organization is the only choice for many and even for basic household necessities. By operating on an omnichannel system or implementing a standalone system could actually benefit them to meet the demand of the customers on e-Commerce platforms. We have been seeing the customer's attributions in the 21st century slowly shifting purchasing behaviors, even there are people who rely more and more on eCommerce for their daily essentials but due to government rules, pandemic and lockdown, we can see that eCommerce has marked a significant growth over the years. However, with the Pandemic here to remain for the foreseeable future, eCommerce demand will still grow and demand will reach all-time highs by 2022. This section elaborates on the present eCommerce system challenges through its innovations in software architecture, development, compatibility of technologies, security that illuminated during the pandemic, and the way organizations can mitigate them. Top Challenges for eCommerce Businesses amid & Post-Pandemic 1. Managing the Supply Chains The global scale market for Supply Chain Management has been completely disrupted due to the central and state government imposing lockdowns as a means of controlling the pandemic. The Pandemic has had significant impacts at the core of the Global value chains (GVC's) hub regions, including the US, Europe, and China. Industrial Production in china witnessed a fall of 25%-30% in the 9 months of the Pandemic. China is not the only country being affected, if you analyze the production activity across GVC's countries, all have marked declines in goods production. What might be done? We must look for other supply chain options. Research and find other suppliers from developing countries to continue the eCommerce operations. Below is a list of top products and goods imported from China and now we need to find an alternative country that can supply the products to the business: www.irjmets.com
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e-ISSN: 2582-5208 International Research Journal of Modernization in Engineering Technology and Science Volume:03/Issue:05/May-2021
Impact Factor- 5.354
www.irjmets.com
• India, Brazil, and Colombia can render their service to the entire world with Optical, medical and surgical instruments. •
India, Colombia, and Chile can take care of Automotive Spare Parts.
•
Canada and Brazil can serve the needs and wants in the Apparel & Clothing Accessories
•
Can depend on Mexico for furniture & Parts.
•
Brazil and Japan can be trusted for Electrical Machinery or Equipment
2. Consumer Demand & Stock Fluctuations Due to the government's unpredictable decisions and lockdowns both by central and state government raised a panic situation which makes them go from store to store in order to purchase goods in excessive quantities. The government order of ‘stay-at-home’ mandate has increased the consumers to order more essentials than they would be consumed. The irregular purchase patterns have led to unpredictable demand creating shortages in the supply across the world. What might be done? Dropshipping Business Model Yes, effectively using a Dropshipping method for eCommerce store typically and especially in times of crisis can do wonders to grow the bottom line. Implementing it will enable to be free from maintaining and managing inventory allowing focusing only on growing online sales. 3. Peak in Website Traffic During the lockdown phase, eCommerce stores that sold daily necessities products witnessed never-beforeseen website traffic. Many physical and traditional stores that didn’t effectively manage their online porter, website, or web applications have suffered tremendously. Their e-store didn’t do well in handling the customer needs and wants which led to a surge in traffic and they couldn’t provide smooth customer services to customers. Even a lack of digital marketing process across the country has affected the qualified traffic.
IV. CONCLUSION E-commerce systems are the driver of future software development. The eCommerce industry in India has been directly influencing MSME in India by providing means of technology, training, and financing has a favorable spilling effect on other industries as well. The Indian eCommerce industry has been on a skyward growth line and is expected to surpass the US market to become the second-largest eCommerce market in the world by 2030. As a software-intensive system, taking into consideration the design principles of the 5th industrial revolution i.e. interconnection, information transparency, technical assisting systems and decentralized decision making, e-commerce systems are integral in the evolution of the way humans work as well as enhances global trading services. Over the next four years, the Indian electronic retail industry is anticipated to exceed 280-320 million shoppers.
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REFERENCE
Binswanger, H.C.: The Difference between MARKET and Barter: Money and the Making of Markets. Springer Feldman, A.M.: Welfare Economics and Social Choice Theory, 2nd edn. Springer Science + Business Media, Inc Herrman, J.: Amazon’s big breakdown. Newyork Times Magazine, May 2020. Cheung, M., Yang, C.F.: The e-commerce revolution: Ensuring trust and consumer rights in China. Noon.com moves to cashless payments in UAE to curb Covid-19 spread. Arabian Business/Industries (2020).
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