The Internet is changing the way consumers shop and buy goods and services, and has rapidly evolved into a global phenomenon. Many companies have started using the Internet with the aim of cutting marketing costs, thereby reducing the price of their products and services in order to stay ahead in highly competitive markets.
Companies also use the Internet to convey communicates and disseminate information, sell product, take feedback, and also to conduct satisfaction surveys with customers. Customers use the Internet not only to buy the product online but also to compare prices, product features, and after-sale service facilities they will receive if they purchase the products from a particular store. Many experts are optimistic about the prospect of online business.
In addition to the tremendous potential of the E-commerce market, the Internet provides a unique opportunity for companies to more efficiently reach existing and potential customers. Although most of the revenue of online transactions comes from business-to-business commerce, the practitioners of business-to-consumer commerce should not lose confidence. It has been more than a decade since business-to-consumer E-commerce first evolved. Scholars and practitioners of electronic commerce constantly strive to gain an improved insight into consumer behavior in cyberspace.
Exclusive Partnerships With Leading Brands
Over the year or so, there has been a trend of exclusive tie-ups between eTailers and established boutiques, designers, and high-end lifestyle and fashion brands. For instance, in 2014, Jabong added international fashion brands such as Dorothy Perkins, River Island, Blue Saint, and Miss Selfridge, along with local fashion brands through Jabong Boutiques. Similarly, Myntra benefited from exclusive tie-ups with brands such as Harvard Lifestyle, Desigual, and WROGN from Virat Kohli.
Expanding The Product Basket
There is a recent trend of relatively newer products such as grocery, hygiene, and healthcare products being purchased online. Similarly, lingerie and Indian jewelry has also been in great demand among customers outside India. Export comprises 95% of cross-border eCommerce, with the US, UK, Australia, Canada, and Germany.
Certain eCommerce players and industry observers have raised concerns that deep discounts, free shipping, intense competition, and higher rejection rates due to cash on delivery (CoD) have impacted online eTailing adversely. Some of these concerns are specific to India and are more difficult to overcome than issues such as internet penetration and getting more people to shop online. Some of the key concerns are listed below
- Generation and sustenance of traffic: Competition from established eCommerce players is making it difficult for private-label brands to generate traffic on their white-label websites.
- High customer acquisition cost: Customer acquisition costs have been rising due to intense competition by the relatively better-off companies with more funds.
- Last-mile delivery: Poor last-mile connectivity, especially in remote areas with larger populations, is another problem faced by Indian eTailers.
- High payment cost: CoD services impose substantial financial costs. In India, unlike in
developed markets, CoD continues to be a preferred route of payment.
- Low profitability: Profitability is negatively impacted by high customer acquisition costs, free
shipping and high rejection rate of CoD orders.
- Regulatory barriers: Regulatory barriers in the Indian eCommerce market are higher as
compared to more mature markets.
- Skilled manpower: Lack of talent availability and high attrition are causing manpower crunch,
which is fast becoming a hurdle.
Title – A Project Report On The Study On Emergence Of Snapdeal In Internet Marketing- Origin, Needs, Challenges, And Opportunities
Author – Divyansh Jain
College – Amity Global Business School, Hyderabad
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