“eCommerce websites in India has shown significant growth in terms of visitors and their conversion rate. Now, visitors, do visit shopping portals buy the products and not just check product prices and key features. Though eCommerce portals were not doing good business in the past certain factors did help them to be a profitable business model today. Online shopping business was a failure in the past but is a success in the present, but the big question is, what the future of shopping websites business is.
List of factors that made eCommerce success and how they will affect the business in the future:-
1) Technology – With the enhancement in Technology, low operational cost and customized software have been a major reason for the growth in a number of shopping websites. There are various customized software’s like Magento, OScommerce, Opencart, Ubercart, etc makes it so easy developing an eCommerce portal that even a person with no coding knowledge can get the website up and running within a short span of time. The cost of domain registration and Webhosting has also reduced compared to what they were a decade ago. There will be a constant improvement in Technology in the future which will further help in the growth of online shopping websites.
2) Lack of Space – India has almost 17% of the world population but only 3% of the world land. This has resulted in high real estate price and high operation cost. The profit margins on FMCG products are low, so investing and running a local retail store has become a challenging task for the owner. Online shopping site provides a perfect alternative and solution to this problem. Since it is a virtual world, there can be millions of products for sale on a single portal.
3) Convenience – eCommerce Sites provide the convenience of shopping round the clock and you don’t need to travel to the store. You can ship products anywhere in the world just at the click of the mouse. So if you have to send gifts to your friends or family anywhere around the globe, online shopping sites are the most convenient option.
4) Brand Awareness – There is a lot of brand awareness now among customers. For example, if a customer wants to buy a digital camera, he is well aware of the brand that he wants to buy and the approximate price of the product, all he does is goes online and gets it. Companies are spending a great amount on branding and marketing and will continue to do so in the future, which will make it easier for the customer to decide what he wants to buy.
These were some of the major reasons for the business growth of various Indian Shopping Websites like FutureBazaar, Flipkart, Homeshop18, etc there are other factors like Easy Payments, Logistics, and Better Pricing.”