6 Ecommerce Myths Busted!
India is one of the fastest growing segments for ecommerce in the Asia Pacific region. Statistics show that there were around 190 million Internet users in India as of Jun 2013, and the number is expected to grow at around 40% annually in the coming years. With Internet penetrating deeper in Indian consumers, scope of ecommerce in India has widened. Along with the potential of growth, there is another factor that is driving the ecommerce bandwagon in India. This factor is the amount of global capital investment options available in the form of venture capital, private equity and others. Availability of capital has given a boost to entrepreneurs, and it explains the growing number of ecommerce businesses that have come up in last few years.
Though ecommerce is the latest buzz among consumers as well as businesses, it is still a subject of apprehension among several people. To understand the true nature of ecommerce businesses, it is important to bust myths surrounding online selling. Here are top myths surrounding online selling –
Myth 1 – It is very easy to persuade people to purchase online.
Truth – Even though ecommerce is gaining ground in India, persuading consumers to leave traditional shopping methods and adopt online shopping is challenging. Also, buyers have become more smart and savvy, and they have learnt how to get the best deal online.
Myth 2 – Only ecommerce stores that sell goods from popular categories are profitable.
Truth – Ecommerce market for popular goods like apparels, gadgets, accessories and others are already facing cut-throat competition. So, opting for other less popular categories or niche segment products for online store seems a smarter idea.
Myth 3 – ‘Price’ is the only factor that influences buying decision.
Truth – One of the prime advantages of online selling is that consumers can research and get the best deal. But, price is not the only factor that influences purchasing decision. Online shoppers look for value and trust, easy shipping and added benefits or deals available with products.
Myth 4 – Ecommerce business does not require business experience.
Truth – Many entrepreneurs are under the illusion that ecommerce businesses ensure quick money and that it does not require experience. This belief is completely wrong. For running an ecommerce business effectively, a person needs to have business experience and should be capable of making decisions related to the business.
Myth 5 – The only requirement for starting an online business is a website.
Truth – Website is the point of interaction between the seller and consumer, and hence it is very important to have a clean, appealing and functional website. But, it is not the only requirement for business and in fact, website is the easiest part of business setup. From marketing efforts to planning sale strategies, there are several steps involved in an online business.
Myth 6 – Not all type of products can be sold online.
Truth – As Indian ecommerce market is still evolving, variety of products and goods available online are increasing slowly. There is no barrier to type or niche of products that can be sold online, only constraint is cost and mode of shipping. From utensils to grocery, fresh farm produce to jewelry, you will be amazed to find the list of products Indian consumers are purchasing online. So, whether your business involves niche products or general consumer products, it can all be sold online.
For a faster and more dynamic development of online shopping in India, it is important to clear all misconceptions held by sellers as well as buyers. By believing these myths, sellers can hurt their ability to sell and create their space in the market.
To get a better understanding about behavior of Indian ecommerce consumers and variety of products sold online, read our article on Why do Customers buy online?
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