Impact Of E-Commerce In The Indian Economy In 2021

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Impact Of E-Commerce In The Indian Economy In 2021

What is E-Commerce?

In simple terms, e-commerce means buying and selling goods online. E-Commerce includes Online Marketing, Advertising, Sales, Delivery, billing, and payments.
Majority of the small business will suffer because people are more comfortable in placing an order online rather than going to a store.
Indian economy is growing big. E-commerce plays also an important role in the economy. And the contribution of the E-Commerce industry to the economy is increasing at a great pace. The Indian internet economy is around 125 billion dollars.
In India, the e-commerce market is about to touch $84 billion in 2021. Benefits of the e-commerce industry in India.

  • The E-Commerce industry will create more job opportunities in India. It can decrease unemployment is in most cases.
  • E-Commerce will increase the production of goods and services that will lead to growth in the country’s GDP.
  • An E-Commerce platform will help small stores to grow and to reach out to more people.
  • E-Commerce can provide many kinds of goods and services to all kinds of places where it is difficult to get like in rural areas.
  • E-Commerce platforms create an identity and brand because of that the company can interact with its customer.

Major factors for the growth of E-Commerce in India

  • India has the second-largest population in the world and because of that, it has the largest internet user. According to recent data India has around 430 million internet users and it is expected to be double in the next couple of years up to 830 million users.
  • The second most important reason is the availability of the internet and mobile phones. All companies can make these devices and internet plans cheaper.
  • Due to covid-19, the people were forced to stay at home and a majority of things were shut down because of that people had to trust these online goods and services. Then they became comfortable with the e-commerce platform.
  • M-Commerce (mobile commerce) – Today it is possible to buy and sell things directly from your smartphone. It is much faster, cheaper, and scalable.

How small business can go online and collaborate with big E-commerce company

If you run a small business or store and you to scale it then you can go online. All you need is a website whose rent is much lower than your offline store.
If you have services to sell, like courses, sessions, or therapies then it’s not a big deal to go online. But if have a store and you want to sell your goods on a large scale then you need transportation service and some manpower for technical kinds of stuff too.
Small business does not have enough budget to advertise and distribute products on a large scale. I will tell you about some methods with which you can advertise and distribute your products on a very low budget.
Don’t worry if your business is small and you can’t afford the transportation of goods, there are lots of options available for you

  • Dropshipping – There are companies like Shopify, FedEx, etc. That runs a business of transportation of goods. A customer will place an order on your online store then your store sends the order to your dropshipping supplier. Then your dropshipping supplier will handle your packaging and delivery to your customer.
  • You can also register your store on a big e-commerce company like Amazon where the customer will buy your products from that e-commerce website and deliver it to your customer.

Here comes the next part

Advertisement

  • Online advertisement is much cheaper than offline advertisements. You can create ads through Google AdSense, Facebook, and Instagram at a low price and you will be able to reach out to your target audience.
  • You can create your social media pages where you can showcase your products. Make interactive posts to engage your audience.
  • You can pitch bloggers and social media influencers to advertise products. They will post about your products on their pages.

Going online is the most necessary thing for the upcoming generations. You will not only create too many opportunities for yourself but even for others. It will create too many jobs.
An entire growth of a country is possible just by shifting online. Governments are also focusing on going digitally.