GOVERNMENT INITIATIVES TO PUSH E-COMMERCE ACTIVITY

Announcement of the Information Technology Act 2000 Announcement of the ISP policy for the entry of private Internet service providers in November 1998. Permission of Internet access through cable TV infrastructure. 100 percent FDI has been allowed in B2B ecommerce.

4 Reasons E-Commerce Is Set To Boom In India

Report by Internet and Mobile Association of India, 2011 reveals that India's e-commerce market is growing at an average rate of 70 percent annually. 1. Critical mass of Internet users 2. Rising middle class with disposable income 3. Payment gateways & logistics 4. User Experience

1. Critical mass of Internet users

More than 100 million Internet users in 2011, the country is beginning to achieve a critical mass of users who are familiar with web services. Online Travel Agents (OTAs) such as MakeMyTrip which started turning these initial Web users into Web consumers have dominated Indian e-commerce.

2. Rising middle class with disposable income

With the rise of small and medium enterprises, foreign direct investment, and Indias MNC creating millions of new jobs, a new generation of globally-minded Indian consumers has been created. Access to many global and domestic brands is limited to metropolitan regions. Therefore, this growing middle class is turning to e-commerce as the primary outlet for consumer products and services.

3. Payment gateways & logistics

Challenges to e-commerce in India is the lack of infrastructure to support new businesses. Indians aversion to credit cards is estimated to be 2 percent of the nation. However, the new breed of domestic logistics companies recognize the importance of reliable delivery and technology investment, and a number of new payment gateway companies such as CC Avenue have sprung up to service the growing e-commerce ecosystem. Alternative payment methods such as netbanking and cash on delivery are now mandatory offerings for leading e-commerce platforms and can drive as much as 75 percent or more of transactions, and sophisticated technical integrations make the experience seamless.

4. User Experience
Of course, the primary driver for e-commerce anywhere is the user experience. Customers prefer a trusted relationship with an ecommerce brand, and the conveniences and reliability of ecommerce businesses have to outweigh the benefits of traditional retail outlets. Because there have been a relatively small number of successful consumer Internet companies in India, there has been less competitive pressure to force implementation of global best practices. However, as the number of e-commerce companies has grown, companies have started to place more emphasis on investing in the user experience. Best practices that have driven ecommerce globally are now a key focus of successful Internet companies, including merchandising, customer service, user interface design, and guaranteed delivery and return policy. In this competitive drive to differentiate via user experience, the ultimate winner is the Indian online consumer.

FACILITATORS OF E-COMMERCE IN INDIA

1. INFORMATION DIRECTORIES: Portals like trade-india.com and indiamart.com maintain directories giving trade details on almost any topic, whether it is from apparel to toys, from gems to heavy machinery, or from food to employment. Allied services provided-- Message boards, chat rooms, forums, etc. 2. BANKS: a. Netbanking/phone banking: This is an online banking facility available for savings account holders as well as current account holders. Some of the special Netbanking services are: Demat accounts for sale/purchase of stocks and shares Foreign Exchange services Direct/Instant payment of bills on the account-holders behalf

b. Credit/Debit Cards: Banks facilitate E-commerce by providing the most vital trade instrument, namely the Credit or Debit Card, without which E-commerce would be impossible. Some of the major Indian players in this field are: HDFC Bank, ICICI ank and SBI.

E-COMMERCE IN INDIA TODAY

Today E-commerce is a byword in Indian society and it has become an integral part of our daily life. There are websites providing any number of goods and services. Then there are those, which provide a specific product along with its allied services.

A) MULTI-PRODUCT E-COMMERCE:
Some Internet portals provide all categories of goods and services in a single site; hence, they target buyers of every possible product/service. The most popular examples are indiaplaza.com, thebestofindia.com, khoj.com, sify.com, rediff.com, indiatimes.com. These Indian E-commerce portals provide goods and services in a variety of categories. To name a few: Apparel and accessories for men and women Health and beauty products Books and magazines Computers and peripherals

B) SINGLE-PRODUCT E-COMMERCE
1) AUTOMOBILES: Examples are: indiacar.com and automartindia.com On these sites we can buy and sell four-wheelers and two-wheelers, new as well as used vehicles, online. Some of the services they provide are: Car research and reviews Online evaluation Technical specifications Vehicle Insurance

2) STOCKS AND SHARES AND E-COMMERCE: In India today, we can even deal in stocks and shares through e-commerce.Some of the sites are: http://www.equitymaster.com/ and www.5paisa.com/. Some of the services offered to registered members are: Online buying/delling of stocks and shares; Market analysis and research Company information Comparison of companies

8) EMPLOYMENT AND E-COMMERCE: Two major portals like www.Monsterindia.com and www.naukri.com (meaning job.com in Hindi) are instrumental in providing job seekers with suitable employment at the click of a mouse. They have directories categorized under the headings Employers and Job Seekers. The service for job seekers is free and for Employers they charge a nominal fee. Jobs are available online in fields ranging from secretarial to software development, and from real estate to education. The opportunities offered are unlimited.

 4) TRAVEL & TOURISM AND E-COMMERCE: India has a rich history and heritage and e-commerce is instrumental, to a large extent, in selling India as a product, encouraging Indians as well as foreigners to see its multifaceted culture and beauty. A major Government of India portal, http://www.tourisminindia.com/, has a vast variety of information for a potential tourist. The tourist destination sites are categorized according to themes like: Adventure - trekking, mountain climbing etc Eco-Themes pertains to jungles, flora and fauna Beaches of India Architectural attractions