BENGALURU: The good old saying, “Old is gold” seems to prove right in the battle of e-Commerce sites vs traditional suppliers in India. Though the online retailers like Snapdeal and Flipkart are trending, traditional retailers will dominate the domestic market, as per a report by Pricewaterhouse-Coopers, an audit and consultancy firm.

As per the survey, in 2020 only 3 percent of India’s overall retail market will be covered by the online stores, which was only 0.4 percent in 2014, reports the ETI.

The factors affecting the online market and weighing in for the retailers may be lack of connectivity within far off areas, high cost, low profitability and above all a big loss for the skilled manpower.

Firstly in India, theCash on Delivery costs a lot to the retailers because of the sudden and frequent cancelling of the orders and also for offering the free delivery option. Moreover India is such a country where relations are built during business conversations. Customers negotiate with the shopkeeper over petty prices, which facility is not available during the online shopping.

Lack of internet facility is another big roadblock for the online retailers in India. India’s has a population of 1.2 billion people, but only 16 percent of them use internet and not so surprisingly only 28 million customers go for online shopping, says, Forrester Research India.

Though Indian e-Commerce market has grown rapidly at the compound annual growth rate of 56 percent from 2009 to 2014, and only travel bookings have covered 70 percent of India’s overall e-Commerce market.

It has been calculated that the Indian e-Commerce will reach $6 billion in 2015. Among those products that are sold the most are books, apparels, accessories and electronics. As per the estimate by the research firm, e-Commerce in Europe, the U.S., the UK and China together accounted for 57 percent of the world’s total business-to-consumer ecommerce sales in 2013.
Also Read: 4 Careers That Surprisingly Demand Tech Knowledge
10 Countries That Dexter Finest Education Systems