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E-Commerce in India

Paper Type: Free Essay Subject: Marketing
Wordcount: 2634 words Published: 12th Jul 2017

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Marketing environment in India is changing. The trend of marketing by the consumers has changed drastically from past 10 years till date. The local environment has changed in both infrastructural ,social,economic terms in india. This paper shows the increase of the e-commerce market and internet marketing in india. Our findings show that the trend of internet marketing is on the rise among the various section of people of different age groups. This paper also refers to the various causes of the emergence of these markets along with the steps that can be used to enhance it’s development in Indian market. E-commerce is emerging as a new market which can help in the economic growth. This paper also shows the types on material available on the internet and how it is used as an medium for marketing.

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E commerce or electronic commerce is defined as the sale and purchase of goods and services through internet as the medium through the different sites on the internet. Electronic commerce refers to expansion of the buisness market and maintaining the relationship with the customers by using telecommunication networks . E commerce has led to a shift in the buisness environment in the world including india.india ia still a developing nation. The growth and development of e commerce will be vital for the growth and develpment of nation. In india the users of computers and internet have increased drastically from 1995 to 2013. Now the entire buisness scenario has changed as everything has become online now. Most of the buisness activities are related to internet e.g. internet commerce,virtual commerce,cyber commerce. All these have been possible due to the use of internet. As we say that the world is a global village has been possible due to advancement in the communication services

Internet growth has been regarded as the main cause of the new developments, such as decreased margins for companies as consumers turn more and more to the internet to buy goods and demand the best prices. E-commerce provides various benefits to the consumers as goods are available at lower cost, variety of choices are available and the tie of buyer is also saved. People can buy goods and services at a mere click of the mouse button without moving out of their houses or offices. Similarly online services such as banking, ticketing (including airlines, bus, railways), bill payments, hotel booking etc. have been proved a boon for the customers. Online businesses like financial services, travel, entertainment, and groceries are all on the verge of expansion.

In the e commerce process the customer browses through internet to get the information about the desired product/services.when the customer is completely satisfied by product’s features,its advantages after comparing it with other products then the order is placed for the desired product/services. Online transaction is done and then the selling company informs the customer about the payment and the delivery date is given.

Some of the features of e commerce process are:

  • E commerce enables the companies to expand them globally. Everything can be sold on internet even if the product is for smaller markets.
  • It is time saving, delivery is done at a faster rate,reduces the cost of transportation.
  • There is no time constraint.
  • Consumer can easily compare pice and product effectively and efficiently.
  • Consumer interaction with the company directly is also improved by quick feedback and comment forms.
  • E commerce refers to better and quick customer services. Due to the absence of intermediaries, buying procedure is generally quicker.
  • E commerce is also boosted by electronic fund transfer throughout the world.
  • Because of all these features the e commerce industry in india has flourished at a high rate,


During the past decade the no. of internet users has increased at a explosive rate. According to times of india, India had about 121 million internet users by December 2011,. Out of 121 million, 97 million are expected to be active Internet users, who access Internet at least once in a month. a study by internet and Mobile Association of India (IAMAI) and IMRB said “A 100 million internet users is considered a critical landmark for the country. With this internet use in India is expected to enter a critical period of growth with the possibility of becoming the largest internet using country in the world in this decade,” .

The economic times also stated that according to the Internet World Stats, India has achieved a 10.2% internet penetration at about 12.1 crore users as of December 2011. E:SSS.jpg E:internet-usage-statistics-india-500-809.jpg

According to the data given in this chart, the internet users in india is increasing year by year and in 2012 the number of internet users were 150 million. These show that the use of internet in on a high among Indian masses.India has 13% of internet users in Asia and 7.36% that of the world. 70% of people who know computer have used internet which is a healthy sign.

According to the surveys of india in 2011, the following facts were the main findings :

  • According Census 2011 of India there are 15.54 Million households (6.3% of total population) in India who have computer/laptops in their homes. 
  • However Only 7.6 Million households  (3.1% of total population) have laptops/ computers with internet.
  • Maharashtra is the biggest Indian Internet market with 18% of Total Internet households followed by Tamil Nadu with 10%, Karnataka 8.27% , U.P (Noida inclusive) 8.18%, Delhi 7.68% and Andhra Pradesh with 7.15%.
  • Delhi/NCR inclusive of Noida and Gurgaon would however have much higher numbers.


In the ancient times the buying and selling of things was done by barter system. Barter is a system in which exchange goods and services are directly exchanged for other goods or services without using a medium of exchange, such as money. now in this generation the marketing with the help of internet is on the rise.Most people can use the Web since it is affordable and easy to access. Internet is a fast and flexible means for marketing.

Shopping on the Internet is convenient as there is no time restriction, it is comfortable since it is in a user friendly environment and there is also an instant satisfaction of ordering, paying and delivering. A one-to-one basis, as well as, a two way communication with customers through the Internet is possible. Enhancing brand image, creating awareness and providing customer service are more important than just selling the products or entertaining customers. With better technologies, companies can create a stronger brand image and thus increase sales. On the other side, it is easier for customers to receive a kind of acknowledgement; feeling that they did not waste their time . Nowadays, people live a busy life and shopping online is time consuming for them. The company also saves time since whenever a customer uses his/her credit card to purchase a product.E-marketing is seen as a promotional as well as informational tool. This new era of commerce is beneficial for marketing logistics, a global presence, to establish and maintain a competitive edge, shorten components of supply chains, for cost savings and research advantage in india.

Now companies like myntra, flipkart are providing cash on delivery to the customer which was not done before. This is a strategy which aims at payment only after the complete satisfaction of the customer. In this strategy the customer first receives the ordered product and he/she pays. This has been found quite successful in India. If any problem is found in the product ordered,then it gets replaced within a few days. Earlier the customers had to do advance payment which was not favourable in the interest of the customer as many complaints were reported in the goods which they ordered. So in this way the companies are trying to attract the customers towards themselves to increase their sales. Cash on delivery is done by Credit Cards, Debit Cards, Netbanking, ITZ Cash Cards, Cheques, Demand Drafts or cash.


The low cost of computers in india, a increase in the number of computer users,and a growing isp market are the main causes for the emergence of e copmmerce market in india.there has been a rise in number of companies taking up e commerce in india. The companies like ebay,myntra,flipkart,quikr,olx are some of the companies which have established their name in the indian e commerce market. All these sites are selling varieties of products,movies tickets,electronic gadgets,accessories,household items and much more. Now the stock exchange has also become online now. Delivery of goods to consumers by couriers at a faster rate,moreover the quality of product delivered is satisfactory.Many indian banks are also using internet banking facilities.

India’s economic industry is on a growth curve and is undergoing a spurt in growth.The Online Travel Industry is one of the biggest segment in ecommerce in india and is booming due largely to the Internet-savvy urban population. The online travel industry inclused some private firms such as Makemytrip, Cleartrip and Yatra. The government has also started IRCTC, which is a successful Indian Railways initiative. The online classifieds segment is also increasing. It is broadly divided into three sectors; Jobs, Matrimonial and Real Estate. Mobile Commerce is also growing rapidly and proving to be a stable and secure supplement to eCommerce due to the record growth in mobile user base in India, in recent years[10].

The online classifieds segment is broadly divided into three sectors; Jobs, Matrimonial and Real Estate. Mobile Commerce is also growing rapidly and proving to be a stable and secure supplement to eCommerce due to the record growth in mobile user base in India, in recent years.

A report by the Internet and Mobile Association of India has stated that India’a E-commerce market is growing at an average rate of 70 percent annually and has grown over 500 percent since 2007. E-Tailing and digital downloads are expected to grow at a faster rate, while online travel will continue to rule the major proportion of market share. According to the third edition of eBay India census 2010 conducted across 28 states and seven union territories, Gujarat has emerged as one of the top five online shopping markets in the country. Gujarat which was ranked 7th in 2009,is now ranked 4th in after Maharashtra, Delhi and Tamil Nadu.

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Technology related products dominate India’s domestic eCommerce, contributes 44% of totals eCommerce transactions according to the latest eBay Census.. Whereas, lifestyle product category dominates in the global trade contributes for 35% for online shopping. India is showing tremendous growth in the Ecommerce. Rival tradeindia.com has 700,000 registered buyers and it has the growth rate of 35% every year. The travel portal MakeMyTrip.com has attained Rs 1000 crores of turnovers which are around 20% of total e-commerce market in India.

These facts also show that the e commerce market in india is also increasing per year. In 2012 the e commerce market size was about 50000 crores in india as compared to 1 billion in 2011.Apparently, more online users in India are willing to make purchases through the Internet. Overall e-commerce industry is poised to experience a high growth in the next couple of years.

The e commerce industry has the following major sectors

  • Travel- 51%
  • E-Retailing-40%
  • Cothiers-09%

These are 3 major categories of e commerce market, travel being the largest among them.

For online marketing the websites also play a vital role. The websites should be informative, entertaining and unique. the attention of the customer must be captured as soon as possible. They should be understandable and easy to search information needed. Moreover, it must continuously be up-to-date for most recent information about the company.

Companies also use different types of strategy to know what are the wants and needs of customers.

Some of them are :

Product Strategy – Brand recognition is made clear on the Internet but the number of purchase is not there yet. Sometimes the products are not available on the Web site and consumers hesitate before getting this particular product. To increase their confidentiality, recognized vendors should be mentioned on the Net. Authenticity is important for both sellers and products.

Pricing Strategy – In the long run, it will be better for the firms,if they can concentrate on offering products with the unique characteristics at the most suitable cost. Online shoppers differentiate the products/services by the benefits and quality . A low price strategy should rely on cost advantage and high volume to be able to compete.

Distribution Strategy – There is a necessity of a direct-to-customer process. The industry has to be the first providing unique services to always be ahead of competitors as fast as possible to make a mark in the mind of customers.

Promotional Strategy – This depends on the marketing research and consumer preferences. It deals as how to companies want to promote their product. FAQ questions should be provided on the websites along with the advertisements on various sites such as you tube which is most widely used by the people.


The Internet network is a marketing channel used by advertisers, marketers, and society to find the right combination of marketing mix to suit the customer’s needs. It is important for a company of this age to have access to the Internet to be more successful. Internet marketing targets consumers and Internet advertisements client marketers from companies. People always find themselves under stress of working long hours and they do not have enough time for social activities or even shopping. Thus E-commerce becomes an everyday thing and routine for them. E-mail is also famous for direct marketing in supporting E-commerce activities. Internet should be used with other media for a more effective marketing tool. Internet marketing will become even more important in the future. As more companies will have access to the Internet, they will start doing business over the Internet.

Increase in the e commerce’s economy in india will be in another dimension where customer focus, responsible business practices and innovation are the determinants of success and not only customer relationship. Security will not be an issue anymore because software companies, banks and credit card institutions are working hand in hand to improve Internet security. Companies need to protect themselves in three areas: data integrity, confidentiality of data and authenticity by installing firewalls or routers. Customers will look for a business on the internet since there are unique opportunities for marketing a company’s service, selling products and gathering information on the Net. This is the new era of innovation; where everyone will be interacting on the Web. Live video session will be available and a prospective customer may be able to talk to a customer representative directly over the internet in the future will be more beneficial in the interest of customers.


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