In 2015, e-commerce grew a lot in size to $8 billion from $5 billion. It spread through all the aspects of our lives. This year, it will grow further and pervade deep in our lives in a different form. The field of e-commerce is all set to become more mobile penetrating to m-commerce. This means, more users that will help the companies build scale. However, they will require a few changes to the e-commerce companies. The companies will become profitable instead of woo customers with high discounts that means losses.
Cash on Delivery is the mode of payment that is preferred by many customers. They will decline many people familiarize with the usage of payment wallets to pay bills and shop.
In 2015, there were 50 million users transacting, and this year, it is expected that 75 million users will transact. More users are likely to come via smartphones. For instance, in China, people browse on the desktop and purchase via smartphones as it facilitates quick linkage to the payment gateways.
The e-commerce companies will be occupied with more users on board and they will be keen on serving the needs of their customers. This will result in the emergence of new service categories including delivery of water and milk. Vijay Shekhar Sharma, the Founder of Paytm stated that the e-commerce companies will replace the stores in the neighborhood as you do not have to stop out to shop anything. It does not mean that the brick and motor stores will vanish, but there will be a fusion between both offline and online services.
The companies need to focus strongly on the profitable customer acquisition, margin and revenue. Only those companies that are the fittest will survive. The e-commerce will make the inroads into the rural areas of the country as well.
