06 February 2014

Challenges faced by E-Commerce companies

Some of the challenges faced by E-commerce companies are common in nature, these challenges are faced by anyone in any industry. Competition is the simplest example.
Maximization of profit is the basic motive of any organization. Producing best quality products at cheapest cost is important. If someone innovates something, people are ready to copy the concept and come up with similar products to reduce the profit margin for all.
However, not many E-commerce companies are manufacturers themselves. Eg: www.dell.co.in is an exception to this rule.
www.flipkart.com , www.ebay.in , www.myntra.com etc all act as resellers, they procure products from wholesalers and deliver them to consumers.
However, since the goods are couriered to customers, sometimes goods get damaged during delivery. Also, misuse of credit card details is another problem, as per recent newspaper reports, a customer was wrongly billed and products were delivered when he had not asked for it. Resolution to such complaints is taking time. Our courts take lot of time to settle disputes.  After sales service is another issue. Sometimes, products do not get serviced as service providers claim they are not a part of the official purchase route and were sold evading local Taxes. Plus not many of the big names in E-commerce industry are running in profit.
Touch and Feel’ factors: Indian customers are more comfortable in buying products physically. They tend to choose the product by touching the product directly. Thereby, Indian buyers are more inclined to do ticketing and booking online in Travel sectors, books and electronics. Companies dealing with products like apparel, handicrafts, jewelry have to face challenges to sell their products as the buyers want to see and touch before they buy these stuffs.

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