Addressing Ecommerce Challenges In 2022
Ecommerce platforms have transformed the way business is done in India. The massive growth of this ecosystem is triggered by increased internet and smartphone penetration across the country. Apart from this internet revolution, the Covid-19 induced restrictions have also played an important role where these platforms have become a preferred marketplace for Indian households. Giving credence to Grant Thornton, ecommerce in India is expected to be worth USD 188 Bn by 2025.
However, for marketers, the sector still grapples with multiple challenges- weak distribution networks in Tier 2 and Tier 3 cities, preference for cash on delivery as the preferred payment mode, emergence of new platforms, channelling products on the right platform, protecting consumers’ data and more.
Mohit Jain, Co-Founder and Head of Ecommerce, mCaffeine elaborates on the challenges associated with penetration in Tier 2 and Tier 3 cities, “The buying power is quite high in tier 2 and tier 3 cities. Some government assistance can help ecommerce giants expand their reach outside metro cities. State governments should help Amazon and Flipkart to setup warehouses or strong supply chain systems in these cities which will ensure strong penetration and reduce the dependency on offline channels.”
Digital payments across the country have increased due to the UPI ecosystem. However, for Sudhir Shukla, CMO, CARS24, the adoption rate has to go up. “The biggest challenge is inducing trial, which essentially means how to get somebody on the platform and get them to buy because India remains a 'cash on delivery' market. This is a challenge and an opportunity where we can explore the scope of digitisation on a massive scale. It is happening but it can happen ten times more. The return rate on deliveries also increases the cost for players,” he says.
Expounding on the challenges posed by the emergence of new platforms, Kartik Iyer, Practice Lead – Ecommerce, Publicis Group India agrees that the proliferation of channels is probably one challenge that is overlooked. “Every second month, there is a new platform, a new channel due to which the audience keeps migrating. The question for the marketeer is where do I put in my brand dollars, which channels do I continue to be invested in, and what channels deliver the return on investment? All of this comes at a huge cost; you need a lot of workforces to interact and engage with all of these channels and platforms,” he adds.
Vanda Ferrao, Head-Marketing, FreshToHome, dwells on the debate around privacy and data protection and states that “As marketers, it is always a challenge for us to reach consumers in accordance with the rules and regulations being drafted around privacy. I think we will have to get innovative about how we can go about reaching consumers and creating awareness, and simultaneously balancing privacy."
*The speakers were present at BW Marketing World's Golden Cart Awards 2021
