ECOMMERCE IN INDIA INTRODUCTION Electronic commerce or ecommerce

E-COMMERCE IN INDIA

INTRODUCTION Electronic commerce (or e-commerce) encompasses all business conducted by means of computer networks. �

STAKEHOLDERS � 3 main flows in e-commerce

HOW THE MARKET EVOLVED IN INDIA First wave: advent of online Naukri and Shaadi Second wave: Online travel, Online retail

FIRST TO SECOND WAVE: FUNDAMENTAL ENABLERS FALLING IN PLACE

INTERNET PENETRATION

PAYMENT LANDSCAPE The number of cards per capita in India is a mere 0. 2 and is among the lowest in the world.

CHALLENGES e-Commerce laws in India � � � There are no specific e-Commerce laws in India. The sector is governed by the IT Act 2000, which regulates the legal obligations of sellers and buyers of goods and services in cyberspace. e-Commerce companies also need to comply with banking and financial laws, where applicable. The lack of law firms or lawyers specializing in e-Commerce laws compounds the problem. Low entry barriers leading to reduced competitive advantages � � The rapid growth of the e-Commerce sector is attracting new players. The initial investment required to start an online venture is as low as a US$10, 000– 20, 000. This enables new companies to easily replicate the existing business models and, thereby, increases competition in the sector

CHALLENGES FOR ECOMMERCE SECTOR Urban phenomenon � India’s e-Commerce market is mainly restricted to urban areas, with the bulk of the business being restricted to cities. Internet usage in � rural areas is limited. This could be due to several reasons including low internet speed and internet user base (20 million out of a total of 121 million in 2011), though rural areas account for 70% of the country’s population.

CONCLUSION • India being pioneer most countries to adopt EDI (early adoption) • General and widespread acceptance • Innovation and Updations • Migration from Manual to Electronic • Rules and Regulatory Framework from supportive Governments migration and structured Framework environment • Emergence of multiple EDI service providers.