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Desi E-commerce: Transformation from local store to online business

August 2, 2018
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The Indian E-Commerce market has grown very well since its beginning and all set to uplift all the local market to the online market. The time has gone when a user needs to wander through streets for their desired products, now all this can be done by sitting at home with their electronic devices.


Credits: AxonLabs


What is E-Commerce:

What is e-commerce

Credits: Direct Packaging Solutions


E-commerce is an online business and marketing. Let’s keep it simple, it is putting your commercial business via electronic sources such as world wide web. Nowadays there are many online shopping websites available and these sites can be accessed by the user as per their preferences. The online market has grown so well that the variety in E-commerce sites is tremendous. Today we have a range from a local street store to the original genuine merchandises.

The Initial Step:

Evolution of e-commerce

Credits: SimiplyNotes

In 1989 the access to the internet was granted publicly and a new path toward many successful ideas has opened. E-commerce became possible in 1991 when the Internet was opened to commercial use. Since that date, thousands of businesses have taken up residence at websites [1].


How it works:

working of e-commerce

Credits: Dazeinfo

Electronic commerce operates in all four of the major market segments: business to business, business to consumer, consumer to consumer, and consumer to business. It can be thought of as a more advanced form of mail-order purchasing through a catalog [1]. The working process of online shopping can break down into three essential steps:

  1. Publication of product
  2. Audience Reach
  3. Final Transaction

Publication of product:

The initial and the uttermost step online shopping is the online publication of products by the seller. In this process, the seller has to upload the product details to the desired online shopping website.

Audience reach:

After the uploading of the products on online websites the process moves towards the user, now the product is visible online to the user. Through which the customer could have reached by the promotion that the online shopping website has done on the various social networks. Through the online shopping website, user can order any desired product.

Final Transaction:

Logistics will deliver the product to the customer after order placement. After the user receives the product and made the payment, that payment profit would be provided to the seller after reducing the cut of the online shopping website.


Benefits of E-commerce:

benefits of ecommerce

The listed points are the main factors of popularity of E-commerce business:

  • Easy to use and no hesitation in checking out product repeatedly.
  • The range of customer has increased to the national level and in some cases it’s international.
  • The retailers can easily keep a constant eye on consumers buying habits[3]
  • The availability of the product to the customer is 24*7/365.


Impact of e-commerce on Indian Economy:

E-Commerce is a growing sector in India. The growth of IT industry in India has done through the 1990s,the growth of E-commerce industry has done in 2010. In its present state, the contribution of E-Commerce to GDP is around 0.2% which is expected to grow 15 times to around 2.5% by 2030 [4]. India has an internet users base of about 470 million as of July 2017, about 40% of the population. Despite being the second-largest user base in world, only behind China (650 million, 48% of population), the penetration of e-commerce is low compared to markets like the United States (266 million, 84%), or France (54 M, 81%), but is growing at an unprecedented rate, adding around 6 million new entrants every month [5].

Economy Graph

Credits: Quora




[1] “History of Ecommerce,” E commerce-land, [Online]. Available: [Accessed 02 August 2018].
[2] “Electronic Commerce (e-commerce),” [Online]. Available: [Accessed 02 August 2018].
[3] B. Wills, “18 Major Benefits of e-commerce Business for Retailers & Customers 2018,” Medium, 15 December 2014. [Online]. Available: [Accessed 02 August 2018].
[4] R. Sharma, “What is the impact of ecommerce on the Indian economy,” Quora, 07 January 2017. [Online]. Available: [Accessed 02 August 2018].
[5] “E-Commerce in India,” Wikipedia, 31 July 2018. [Online]. Available: [Accessed 02 August 2018].


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