A few weeks back, I was working on a proposal for marketing of an e-commerce portal. One look at the stats showed that the e-tailing in India never took off. While categories like travel (led by IRCTC, and the OTAs) and Hotel bookings has taken of in a big way…it has been a dismal performance, when it comes to e-tailing.
e-tailing can be defined as a business to consumer transaction through direct sale of limited quantity of goods or services..
The industry experts have been talking about the rise of e-commerce in India, but what is being missed out is that most of these e-com transactions are done on the B2B space. The data shows that the B2C industry size of ecommerce in India is around INR 11,000 crores*. About 80%* of the B2C e-com transaction is from the Online Travel Industry, followed by online classifieds
The e-tailing pie is only about 9%*. While the numbers and growth might be encouraging, it is nothing great to make a big noise about
(* Guesstimates by classical extrapolation of data from IAMAI report of 2006/07)
The experts also point out the various reasons for B2C ecommerce not taking off to issues like:
Infrastructure:
- Low bandwidth/connectivity
- Limited penetration of credit cards
Customer behaviour:
- Apprehension of using credit cards online (security)
- Not sure of the product quality
- Waiting period in terms of delivery
- No real-time bargains available
- Miss the touch and feel of the product
(Most points comes from i-cube report 2006)
Digging deeper into the type of products that is being e-tailed, one gets to see that the most popular are the technology related products – software, hardware, computer accessories, mobiles, cameras etc along with books (you can never go wrong over here :))…
While the above reasons are valid enough barriers to arrest the effective growth of e-tailing in India…but, are these the only ones??
Step back into the real world, how does this channel looks like, with different stakeholders involved in the chain
Company>>Distributor>>Dealer>>Retailer>>Customer (with Govt. involved with their excise, duty, taxes etc)
Predominantly, e-tailing is an activity that would be directly happening from Company>>Customer or Retailer>>Customer – where does that leave the other stake-holders in the system – I’d say that they are in a state of disappointment :|
Traditionally, we have been an economy which was dominated by traders and middlemen. In fact, even today middleman plays a crucial role in almost all the industries to facilitate the smooth flow of goods and services from the company to the market… Also, as the chain is longer, there are a lot of allied and dependent industries that flourishes and has a share of the revenue pie. For example, if a company has a direct connection with its customer base – then a lot of the middleman would disappear. Allied industries like promotion, logistics, C&F agents, advertising all would play a smaller role…
A typical Indian customer however is driven by price. Even today, you will find people bargaining with the street vendor to an automobile salesman. Bargaining from the customer is the act of getting the perceived benefits that has been assured at the start of the deal…but at a lower cost than mentioned. Hence if a company can pass on all the commission benefits that gets seeped into the selling price due to various stakeholder be passed on to the customers…the customer would be most happy
While in the best interest of the customer e-tailing would be more beneficial, as the customer not directly deals with the company and hence is eligible for all the price benefits that would occur – there are a lot of stakeholders involved in the traditional channels and they would do everything in their power to see that they do not lose control of their share of business…
Unless, unless companies take a drastic approach in terms of bringing the benefits (of price) and take the brunt of rubbing the existing stakeholders in the chain wrongly…. E-tailing would lag how much ever the technology infrastructure increases…
As long as there are a lot of people involved in bring the pie from the kitchen to the dining table… the diners would have to pay more…
Cheers
Santosh
Tampilkan postingan dengan label Ecommerce. Tampilkan semua postingan
Tampilkan postingan dengan label Ecommerce. Tampilkan semua postingan
Senin, 24 Mei 2010
What else affects E-commerce in India?
A few weeks back, I was working on a proposal for marketing of an e-commerce portal. One look at the stats showed that the e-tailing in India never took off. While categories like travel (led by IRCTC, and the OTAs) and Hotel bookings has taken of in a big way…it has been a dismal performance, when it comes to e-tailing.
e-tailing can be defined as a business to consumer transaction through direct sale of limited quantity of goods or services..
The industry experts have been talking about the rise of e-commerce in India, but what is being missed out is that most of these e-com transactions are done on the B2B space. The data shows that the B2C industry size of ecommerce in India is around INR 11,000 crores*. About 80%* of the B2C e-com transaction is from the Online Travel Industry, followed by online classifieds
The e-tailing pie is only about 9%*. While the numbers and growth might be encouraging, it is nothing great to make a big noise about
(* Guesstimates by classical extrapolation of data from IAMAI report of 2006/07)
The experts also point out the various reasons for B2C ecommerce not taking off to issues like:
Infrastructure:
- Low bandwidth/connectivity
- Limited penetration of credit cards
Customer behaviour:
- Apprehension of using credit cards online (security)
- Not sure of the product quality
- Waiting period in terms of delivery
- No real-time bargains available
- Miss the touch and feel of the product
(Most points comes from i-cube report 2006)
Digging deeper into the type of products that is being e-tailed, one gets to see that the most popular are the technology related products – software, hardware, computer accessories, mobiles, cameras etc along with books (you can never go wrong over here :))…
While the above reasons are valid enough barriers to arrest the effective growth of e-tailing in India…but, are these the only ones??
Step back into the real world, how does this channel looks like, with different stakeholders involved in the chain
Company>>Distributor>>Dealer>>Retailer>>Customer (with Govt. involved with their excise, duty, taxes etc)
Predominantly, e-tailing is an activity that would be directly happening from Company>>Customer or Retailer>>Customer – where does that leave the other stake-holders in the system – I’d say that they are in a state of disappointment :|
Traditionally, we have been an economy which was dominated by traders and middlemen. In fact, even today middleman plays a crucial role in almost all the industries to facilitate the smooth flow of goods and services from the company to the market… Also, as the chain is longer, there are a lot of allied and dependent industries that flourishes and has a share of the revenue pie. For example, if a company has a direct connection with its customer base – then a lot of the middleman would disappear. Allied industries like promotion, logistics, C&F agents, advertising all would play a smaller role…
A typical Indian customer however is driven by price. Even today, you will find people bargaining with the street vendor to an automobile salesman. Bargaining from the customer is the act of getting the perceived benefits that has been assured at the start of the deal…but at a lower cost than mentioned. Hence if a company can pass on all the commission benefits that gets seeped into the selling price due to various stakeholder be passed on to the customers…the customer would be most happy
While in the best interest of the customer e-tailing would be more beneficial, as the customer not directly deals with the company and hence is eligible for all the price benefits that would occur – there are a lot of stakeholders involved in the traditional channels and they would do everything in their power to see that they do not lose control of their share of business…
Unless, unless companies take a drastic approach in terms of bringing the benefits (of price) and take the brunt of rubbing the existing stakeholders in the chain wrongly…. E-tailing would lag how much ever the technology infrastructure increases…
As long as there are a lot of people involved in bring the pie from the kitchen to the dining table… the diners would have to pay more…
Cheers
Santosh
e-tailing can be defined as a business to consumer transaction through direct sale of limited quantity of goods or services..
The industry experts have been talking about the rise of e-commerce in India, but what is being missed out is that most of these e-com transactions are done on the B2B space. The data shows that the B2C industry size of ecommerce in India is around INR 11,000 crores*. About 80%* of the B2C e-com transaction is from the Online Travel Industry, followed by online classifieds
The e-tailing pie is only about 9%*. While the numbers and growth might be encouraging, it is nothing great to make a big noise about
(* Guesstimates by classical extrapolation of data from IAMAI report of 2006/07)
The experts also point out the various reasons for B2C ecommerce not taking off to issues like:
Infrastructure:
- Low bandwidth/connectivity
- Limited penetration of credit cards
Customer behaviour:
- Apprehension of using credit cards online (security)
- Not sure of the product quality
- Waiting period in terms of delivery
- No real-time bargains available
- Miss the touch and feel of the product
(Most points comes from i-cube report 2006)
Digging deeper into the type of products that is being e-tailed, one gets to see that the most popular are the technology related products – software, hardware, computer accessories, mobiles, cameras etc along with books (you can never go wrong over here :))…
While the above reasons are valid enough barriers to arrest the effective growth of e-tailing in India…but, are these the only ones??
Step back into the real world, how does this channel looks like, with different stakeholders involved in the chain
Company>>Distributor>>Dealer>>Retailer>>Customer (with Govt. involved with their excise, duty, taxes etc)
Predominantly, e-tailing is an activity that would be directly happening from Company>>Customer or Retailer>>Customer – where does that leave the other stake-holders in the system – I’d say that they are in a state of disappointment :|
Traditionally, we have been an economy which was dominated by traders and middlemen. In fact, even today middleman plays a crucial role in almost all the industries to facilitate the smooth flow of goods and services from the company to the market… Also, as the chain is longer, there are a lot of allied and dependent industries that flourishes and has a share of the revenue pie. For example, if a company has a direct connection with its customer base – then a lot of the middleman would disappear. Allied industries like promotion, logistics, C&F agents, advertising all would play a smaller role…
A typical Indian customer however is driven by price. Even today, you will find people bargaining with the street vendor to an automobile salesman. Bargaining from the customer is the act of getting the perceived benefits that has been assured at the start of the deal…but at a lower cost than mentioned. Hence if a company can pass on all the commission benefits that gets seeped into the selling price due to various stakeholder be passed on to the customers…the customer would be most happy
While in the best interest of the customer e-tailing would be more beneficial, as the customer not directly deals with the company and hence is eligible for all the price benefits that would occur – there are a lot of stakeholders involved in the traditional channels and they would do everything in their power to see that they do not lose control of their share of business…
Unless, unless companies take a drastic approach in terms of bringing the benefits (of price) and take the brunt of rubbing the existing stakeholders in the chain wrongly…. E-tailing would lag how much ever the technology infrastructure increases…
As long as there are a lot of people involved in bring the pie from the kitchen to the dining table… the diners would have to pay more…
Cheers
Santosh
What else affects E-commerce in India?
A few weeks back, I was working on a proposal for marketing of an e-commerce portal. One look at the stats showed that the e-tailing in India never took off. While categories like travel (led by IRCTC, and the OTAs) and Hotel bookings has taken of in a big way…it has been a dismal performance, when it comes to e-tailing.
e-tailing can be defined as a business to consumer transaction through direct sale of limited quantity of goods or services..
The industry experts have been talking about the rise of e-commerce in India, but what is being missed out is that most of these e-com transactions are done on the B2B space. The data shows that the B2C industry size of ecommerce in India is around INR 11,000 crores*. About 80%* of the B2C e-com transaction is from the Online Travel Industry, followed by online classifieds
The e-tailing pie is only about 9%*. While the numbers and growth might be encouraging, it is nothing great to make a big noise about
(* Guesstimates by classical extrapolation of data from IAMAI report of 2006/07)
The experts also point out the various reasons for B2C ecommerce not taking off to issues like:
Infrastructure:
- Low bandwidth/connectivity
- Limited penetration of credit cards
Customer behaviour:
- Apprehension of using credit cards online (security)
- Not sure of the product quality
- Waiting period in terms of delivery
- No real-time bargains available
- Miss the touch and feel of the product
(Most points comes from i-cube report 2006)
Digging deeper into the type of products that is being e-tailed, one gets to see that the most popular are the technology related products – software, hardware, computer accessories, mobiles, cameras etc along with books (you can never go wrong over here :))…
While the above reasons are valid enough barriers to arrest the effective growth of e-tailing in India…but, are these the only ones??
Step back into the real world, how does this channel looks like, with different stakeholders involved in the chain
Company>>Distributor>>Dealer>>Retailer>>Customer (with Govt. involved with their excise, duty, taxes etc)
Predominantly, e-tailing is an activity that would be directly happening from Company>>Customer or Retailer>>Customer – where does that leave the other stake-holders in the system – I’d say that they are in a state of disappointment :|
Traditionally, we have been an economy which was dominated by traders and middlemen. In fact, even today middleman plays a crucial role in almost all the industries to facilitate the smooth flow of goods and services from the company to the market… Also, as the chain is longer, there are a lot of allied and dependent industries that flourishes and has a share of the revenue pie. For example, if a company has a direct connection with its customer base – then a lot of the middleman would disappear. Allied industries like promotion, logistics, C&F agents, advertising all would play a smaller role…
A typical Indian customer however is driven by price. Even today, you will find people bargaining with the street vendor to an automobile salesman. Bargaining from the customer is the act of getting the perceived benefits that has been assured at the start of the deal…but at a lower cost than mentioned. Hence if a company can pass on all the commission benefits that gets seeped into the selling price due to various stakeholder be passed on to the customers…the customer would be most happy
While in the best interest of the customer e-tailing would be more beneficial, as the customer not directly deals with the company and hence is eligible for all the price benefits that would occur – there are a lot of stakeholders involved in the traditional channels and they would do everything in their power to see that they do not lose control of their share of business…
Unless, unless companies take a drastic approach in terms of bringing the benefits (of price) and take the brunt of rubbing the existing stakeholders in the chain wrongly…. E-tailing would lag how much ever the technology infrastructure increases…
As long as there are a lot of people involved in bring the pie from the kitchen to the dining table… the diners would have to pay more…
Cheers
Santosh
e-tailing can be defined as a business to consumer transaction through direct sale of limited quantity of goods or services..
The industry experts have been talking about the rise of e-commerce in India, but what is being missed out is that most of these e-com transactions are done on the B2B space. The data shows that the B2C industry size of ecommerce in India is around INR 11,000 crores*. About 80%* of the B2C e-com transaction is from the Online Travel Industry, followed by online classifieds
The e-tailing pie is only about 9%*. While the numbers and growth might be encouraging, it is nothing great to make a big noise about
(* Guesstimates by classical extrapolation of data from IAMAI report of 2006/07)
The experts also point out the various reasons for B2C ecommerce not taking off to issues like:
Infrastructure:
- Low bandwidth/connectivity
- Limited penetration of credit cards
Customer behaviour:
- Apprehension of using credit cards online (security)
- Not sure of the product quality
- Waiting period in terms of delivery
- No real-time bargains available
- Miss the touch and feel of the product
(Most points comes from i-cube report 2006)
Digging deeper into the type of products that is being e-tailed, one gets to see that the most popular are the technology related products – software, hardware, computer accessories, mobiles, cameras etc along with books (you can never go wrong over here :))…
While the above reasons are valid enough barriers to arrest the effective growth of e-tailing in India…but, are these the only ones??
Step back into the real world, how does this channel looks like, with different stakeholders involved in the chain
Company>>Distributor>>Dealer>>Retailer>>Customer (with Govt. involved with their excise, duty, taxes etc)
Predominantly, e-tailing is an activity that would be directly happening from Company>>Customer or Retailer>>Customer – where does that leave the other stake-holders in the system – I’d say that they are in a state of disappointment :|
Traditionally, we have been an economy which was dominated by traders and middlemen. In fact, even today middleman plays a crucial role in almost all the industries to facilitate the smooth flow of goods and services from the company to the market… Also, as the chain is longer, there are a lot of allied and dependent industries that flourishes and has a share of the revenue pie. For example, if a company has a direct connection with its customer base – then a lot of the middleman would disappear. Allied industries like promotion, logistics, C&F agents, advertising all would play a smaller role…
A typical Indian customer however is driven by price. Even today, you will find people bargaining with the street vendor to an automobile salesman. Bargaining from the customer is the act of getting the perceived benefits that has been assured at the start of the deal…but at a lower cost than mentioned. Hence if a company can pass on all the commission benefits that gets seeped into the selling price due to various stakeholder be passed on to the customers…the customer would be most happy
While in the best interest of the customer e-tailing would be more beneficial, as the customer not directly deals with the company and hence is eligible for all the price benefits that would occur – there are a lot of stakeholders involved in the traditional channels and they would do everything in their power to see that they do not lose control of their share of business…
Unless, unless companies take a drastic approach in terms of bringing the benefits (of price) and take the brunt of rubbing the existing stakeholders in the chain wrongly…. E-tailing would lag how much ever the technology infrastructure increases…
As long as there are a lot of people involved in bring the pie from the kitchen to the dining table… the diners would have to pay more…
Cheers
Santosh
Rabu, 29 Oktober 2008
What makes Web shoppers click “Buy” or “Bye”?
There’s big money being spent in the Internet marketplace. Last year, more than $175 billion passed through the Internet in the form of airline tickets, insurance premiums, online bill payments and paperback books, among thousands of other items. But for many consumers, at some point in the process, the online transaction came to a screeching halt. Perhaps, the customer became frustrated with the typing in their shipping information. Maybe the person got cold feet just as it came time to type in a credit card number. Maybe the customer was never able to find the right product in a vast catalog of products.
TeaLeaf, a San Francisco startup that analyzes online consumer behavior, has released a study that looks closely at e-commerce stop points - the place in the online process where a potential customer “walks away” from the sale. Clearly, TeaLeaf has reason to commission such a study - but it was interesting that the company looked beyond the stop-points of a sale - which is its sweet spot of data. Instead, it broadened its research to dive deeper into behavioral patterns - not just why they stopped but what they did after the lost sale. The survey found that 58 percent of consumers who experienced a problem with an online transaction said they would be less likely to buy from the company offline.
That’s a big number but an even bigger - and scarier - number is the 84 percent who have problems with a transaction are likely to share that experience with someone - think Yelp, Yahoo message boards, Facebook and Epinions.
This is valuable information, right? After all, if you’re running an e-commerce business, you probably want to know that, after Web site security, ease of completing the transaction is what’s most important to customers, followed by ease of navigation. According to TeaLeaf, the biggest problem experienced by customers
is difficulty with navigation.
The company ought to know - it tracks consumer behavior for some of the biggest names in online sales: walmart.com, hotels.com, esurance, priceline.com and others.
But more important than knowing what’s important to customers, isn’t is just as important to know what’s wrong with your e-commerce site? It might be time for a re-design.
The actual article appeared here
TeaLeaf, a San Francisco startup that analyzes online consumer behavior, has released a study that looks closely at e-commerce stop points - the place in the online process where a potential customer “walks away” from the sale. Clearly, TeaLeaf has reason to commission such a study - but it was interesting that the company looked beyond the stop-points of a sale - which is its sweet spot of data. Instead, it broadened its research to dive deeper into behavioral patterns - not just why they stopped but what they did after the lost sale. The survey found that 58 percent of consumers who experienced a problem with an online transaction said they would be less likely to buy from the company offline.
That’s a big number but an even bigger - and scarier - number is the 84 percent who have problems with a transaction are likely to share that experience with someone - think Yelp, Yahoo message boards, Facebook and Epinions.
This is valuable information, right? After all, if you’re running an e-commerce business, you probably want to know that, after Web site security, ease of completing the transaction is what’s most important to customers, followed by ease of navigation. According to TeaLeaf, the biggest problem experienced by customers
is difficulty with navigation.
The company ought to know - it tracks consumer behavior for some of the biggest names in online sales: walmart.com, hotels.com, esurance, priceline.com and others.
But more important than knowing what’s important to customers, isn’t is just as important to know what’s wrong with your e-commerce site? It might be time for a re-design.
The actual article appeared here
What makes Web shoppers click “Buy” or “Bye”?
There’s big money being spent in the Internet marketplace. Last year, more than $175 billion passed through the Internet in the form of airline tickets, insurance premiums, online bill payments and paperback books, among thousands of other items. But for many consumers, at some point in the process, the online transaction came to a screeching halt. Perhaps, the customer became frustrated with the typing in their shipping information. Maybe the person got cold feet just as it came time to type in a credit card number. Maybe the customer was never able to find the right product in a vast catalog of products.
TeaLeaf, a San Francisco startup that analyzes online consumer behavior, has released a study that looks closely at e-commerce stop points - the place in the online process where a potential customer “walks away” from the sale. Clearly, TeaLeaf has reason to commission such a study - but it was interesting that the company looked beyond the stop-points of a sale - which is its sweet spot of data. Instead, it broadened its research to dive deeper into behavioral patterns - not just why they stopped but what they did after the lost sale. The survey found that 58 percent of consumers who experienced a problem with an online transaction said they would be less likely to buy from the company offline.
That’s a big number but an even bigger - and scarier - number is the 84 percent who have problems with a transaction are likely to share that experience with someone - think Yelp, Yahoo message boards, Facebook and Epinions.
This is valuable information, right? After all, if you’re running an e-commerce business, you probably want to know that, after Web site security, ease of completing the transaction is what’s most important to customers, followed by ease of navigation. According to TeaLeaf, the biggest problem experienced by customers
is difficulty with navigation.
The company ought to know - it tracks consumer behavior for some of the biggest names in online sales: walmart.com, hotels.com, esurance, priceline.com and others.
But more important than knowing what’s important to customers, isn’t is just as important to know what’s wrong with your e-commerce site? It might be time for a re-design.
The actual article appeared here
TeaLeaf, a San Francisco startup that analyzes online consumer behavior, has released a study that looks closely at e-commerce stop points - the place in the online process where a potential customer “walks away” from the sale. Clearly, TeaLeaf has reason to commission such a study - but it was interesting that the company looked beyond the stop-points of a sale - which is its sweet spot of data. Instead, it broadened its research to dive deeper into behavioral patterns - not just why they stopped but what they did after the lost sale. The survey found that 58 percent of consumers who experienced a problem with an online transaction said they would be less likely to buy from the company offline.
That’s a big number but an even bigger - and scarier - number is the 84 percent who have problems with a transaction are likely to share that experience with someone - think Yelp, Yahoo message boards, Facebook and Epinions.
This is valuable information, right? After all, if you’re running an e-commerce business, you probably want to know that, after Web site security, ease of completing the transaction is what’s most important to customers, followed by ease of navigation. According to TeaLeaf, the biggest problem experienced by customers
is difficulty with navigation.
The company ought to know - it tracks consumer behavior for some of the biggest names in online sales: walmart.com, hotels.com, esurance, priceline.com and others.
But more important than knowing what’s important to customers, isn’t is just as important to know what’s wrong with your e-commerce site? It might be time for a re-design.
The actual article appeared here
What makes Web shoppers click “Buy” or “Bye”?
There’s big money being spent in the Internet marketplace. Last year, more than $175 billion passed through the Internet in the form of airline tickets, insurance premiums, online bill payments and paperback books, among thousands of other items. But for many consumers, at some point in the process, the online transaction came to a screeching halt. Perhaps, the customer became frustrated with the typing in their shipping information. Maybe the person got cold feet just as it came time to type in a credit card number. Maybe the customer was never able to find the right product in a vast catalog of products.
TeaLeaf, a San Francisco startup that analyzes online consumer behavior, has released a study that looks closely at e-commerce stop points - the place in the online process where a potential customer “walks away” from the sale. Clearly, TeaLeaf has reason to commission such a study - but it was interesting that the company looked beyond the stop-points of a sale - which is its sweet spot of data. Instead, it broadened its research to dive deeper into behavioral patterns - not just why they stopped but what they did after the lost sale. The survey found that 58 percent of consumers who experienced a problem with an online transaction said they would be less likely to buy from the company offline.
That’s a big number but an even bigger - and scarier - number is the 84 percent who have problems with a transaction are likely to share that experience with someone - think Yelp, Yahoo message boards, Facebook and Epinions.
This is valuable information, right? After all, if you’re running an e-commerce business, you probably want to know that, after Web site security, ease of completing the transaction is what’s most important to customers, followed by ease of navigation. According to TeaLeaf, the biggest problem experienced by customers
is difficulty with navigation.
The company ought to know - it tracks consumer behavior for some of the biggest names in online sales: walmart.com, hotels.com, esurance, priceline.com and others.
But more important than knowing what’s important to customers, isn’t is just as important to know what’s wrong with your e-commerce site? It might be time for a re-design.
The actual article appeared here
TeaLeaf, a San Francisco startup that analyzes online consumer behavior, has released a study that looks closely at e-commerce stop points - the place in the online process where a potential customer “walks away” from the sale. Clearly, TeaLeaf has reason to commission such a study - but it was interesting that the company looked beyond the stop-points of a sale - which is its sweet spot of data. Instead, it broadened its research to dive deeper into behavioral patterns - not just why they stopped but what they did after the lost sale. The survey found that 58 percent of consumers who experienced a problem with an online transaction said they would be less likely to buy from the company offline.
That’s a big number but an even bigger - and scarier - number is the 84 percent who have problems with a transaction are likely to share that experience with someone - think Yelp, Yahoo message boards, Facebook and Epinions.
This is valuable information, right? After all, if you’re running an e-commerce business, you probably want to know that, after Web site security, ease of completing the transaction is what’s most important to customers, followed by ease of navigation. According to TeaLeaf, the biggest problem experienced by customers
is difficulty with navigation.
The company ought to know - it tracks consumer behavior for some of the biggest names in online sales: walmart.com, hotels.com, esurance, priceline.com and others.
But more important than knowing what’s important to customers, isn’t is just as important to know what’s wrong with your e-commerce site? It might be time for a re-design.
The actual article appeared here
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