3 things you could learn from India’s ecommerce industry

The news hit this week that India’s ecommerce market is expected to be worth $20 billion by 2015, according to a report by Motilal Oswal, but what can we learn from this burgeoning online industry?

To put that number into context, consider this: India’s entire ecommerce industry was worth only $11 billion in 2013, which equates to an expected increase of more than 80% over two years.

India is a relatively new player in the ecommerce game, which is seeing substantial growth, so what can the UK’s online businesses learn from this country?

1. Forget profitability

Indian e-marketeers are not even thinking of profitability yet. According to the report, they are just interested in market share and penetration at the moment. But this isn’t too much cause for concern as Amazon, recognised as an industry pioneer, still hasn’t achieved healthy profitability after two decades of dominance.

This is something ecommerce newbies should focus on too – penetrability rather than profit. The internet is a vast space with new businesses popping up (and disappearing) faster than you can imagine. Our Magneto development team are dedicated to making sure you have an online store that’s future-proofed and capable of matching and exceeding the competition’s market share.

2. Good logistics are a must

Indian ecommerce businesses are losing a significant chunk of their money on support services such as warehousing, logistics and payment gateways. This logistical inadequacy needs to be addressed for India to thrive as an online market space.

This is an important lesson for any online business; you must be able to match your customer’s expectations with a robust and quick infrastructure.

3. Remote locations mean big business

Ecommerce demand spans across 4,000 to 5,000 towns and cities in India, but there is no significant physical retail presence in almost 95% of these areas, mainly due to high real estate costs in the country.

Although the UK has a very different geography to India, it’s important to make sure you can offer the same services to those in more remote locations – particularly as they will probably need to shop online more than consumers in busy towns and cities.