Online shopping has become a new craze and has entered the level 3 of Indian market. Now it is also penetrating into tier 3 cities of India. It is difficult to distinguish between the tiers of the cities in India. Today as we see the demographics of India we find that most of the people are educated, young and hardworking. They are also resorting to entrepreneurship which generates employment opportunities to the people. Eventually the working class and the educated class are changing the way Indians used to shop in the past. They mostly were fond of traditional shopping methods.
Largely, because shopping is considered to be once in a lifetime experience by most people. Nobody wants to miss out on the fun. It is usually a family saga with the whole family gets together and goes to shop for weddings and festivals. This was one of the main reasons for the failure of e- commerce when it first started in India. There was no personal touch. No Salesman. No discounts. The early innovators then started to analyze the world most complicated market - India. India is a country with so many cultures, traditions and shopping patterns, it was hard to decode a single reason as to why e- commerce model is not working. Nevertheless, they came prepared for their second innings in India.
The online shopping websites that you see today are 80% indigenous. The most difficult task was to induce a personal feeling to the customer. They came with an idea of navigating the whole website with a call center personnel, chat with a salesman so that you can easily find whatever stuff you want to buy and easy navigation through the site. The second issue was discounts. For this they had to devise a method in which they could cut down their costs. They started employing just in time costing practices. This method suggests that goods are brought only just in time for any production or delivery. This reduced the probable costs on warehousing, storing and carriage of the products. They also assured that there are direct dealings with the manufacturers thereby also avoiding all middlemen and their commissions.
Along with this, they also provided free shipping and all the extra costs as discounts. This made the consumers more than happy. Today, more than 60% of the internet users on Online Electronics Shopping websites either are there to make online purchases or to research about the products that they can buy online.