According to Statista, India has one of the fastest growing e-commerce markets in the world. It’s predicted that could exceed $52 billion by 2022. Considering that total online sales in India totalled just over 16 billion in 2016, that’s an astonishing growth rate.
Considering that the global market overall is projected to be worth over $4 trillion in 2021, India is becoming a serious player in the e-commerce scene.
This makes this an exciting time to get into e-commerce in India. The growth rate in online sales has been attributed to the fact that Indians are now able to access cheaper internet connections through mobile.
Online sales today still only account for about 4.4% of the total retail sales for the country, so there is enormous potential for growth. So, if you’re planning on getting into the e-commerce game, now’s the time.
How Easy is it to Run an E-Commerce Store?
Running an online store is very different from running a brick and mortar store. There are a ton of books out there telling you how you can build a massive income overnight online. It’s not quite as simple as just setting up a website, though. Let’s look at some of the pros and cons.
There are advantages in terms of reduced overheads and staff costs. There is no need to pay rental for a physical store or to pay for staff to man that store.
There is also a big advantage in that your website will be out there operating for you twenty-four hours a day. It will be your hardest working employee and one that won’t require a salary or benefits. So, you can make money while you sleep and let the business run largely on autopilot.
You have access to a much wider market base as well. People from all over India, and even the world will be able to order from your store. An online business can also be easier to scale up, especially if you are acting as a retailer for other people’s products.
There are challenges as well, though. First off, there’s very little in the way of personal contact with the client. Establishing trust online can be difficult.
Secondly, the internet is a big place – setting up your site is easy, getting traffic to it is more difficult. There is a lot of competition for eyes on the screen, and also a lot of indirect competition from other sites. You will have access to a bigger market, but the same holds true for potential clients – they have access to a lot more stores.
Finally, clients won’t be able to touch and feel things before they buy. In some cases, this can be a problem. How do you tell a client how soft and silky your pashminas are online? If they could feel for themselves, they’d be easier to convince.
All this means that creating a successful e-commerce store is going to take some dedicated effort. In one respect, those people that compare an e-commerce store to a goldmine are correct. You can make a lot of money, but the ‘gold’ doesn’t just jump out at you – you have to work for it.
That said, if you’re willing to put the time in, you can create your own hugely successful business empire for a fraction of the cost in the ‘real world’.