Significant Impactsof eCommerce inRural IndiaEcommerce is the word ruling the business for the last fewdecades. Thousands of businesses have moved online to utilize the potential of theInternet for reaching a wider audience. Further, this translates intoanadditional revenue stream that gets you an increased ROI withlessinvestment cost and time. Today, e-commerce has enveloped our livesinsuch a way that it has become a necessity rather than a passion. Fromthebusiness perspective, it comes ahead as a massive opportunity andevenestablished brick-and-mortar brands are exploring this territory today. Moreover, as the COVID-19 pandemic has hastened the adoption of onlineshopping, eCommerce has positively impacted rural populations as well. In this post, we explore the significant impacts of eCommerce inrural India. So, as an eCommerce entrepreneur, if you’re looking to reach out torural people, this article will make you aware of the impacts, challenges andopportunities associated with eCommerce in rural India.
Is Ecommerce Only an UrbanPhenomenon in India? The Indian economy is dominated by the rural population because a major chunk of the population resides in rural areas. Conversely, those livinginurban settings are better educated, tech-savvy, and have a higher propensity to spend. In these circumstances, eCommerce, or any industryfor that matter needs to strike a balance between both segments of thepopulation. The big question here that sellers in this domain come acrossis whether eCommerce is only an urban phenomenon in India, or it hasscope in the rural areas as well. To start with, you need to understandthechallenges and hindrances that may influence their outreach in rural areas. What Makes Ecommerce a GrowingTrend in Rural India? Successful eCommerce website development is a win-win situationfor both the consumers and the merchants. The consumers are spoilt withchoices of brands, fashion, comfort, and all at competitive pricingtoo. If we consider the merchants, they are able to sell goods and earnmoreprofit in less time with or without a warehouse, as they can get connectedwith the production center directly for shipping. This eliminates the need for managing and maintaining a warehouseof their own which accounts for massive investment in terms of rentals, manpower, and labor costs. All these costs have been greatly reducedfor them, all thanks to the online selling channel. Also, this mode of sellingenables the merchants to get connected with more customers ascompared to their physical store. Challenges Faced by EcommerceOperators in Rural India Below are some of the major challenges that eCommerce companies facein rural India: The product portfolio is critical to the success of a seller that wantsto target the rural market because these markets are hyper-local.
Customers may be apprehensive because of the lack of on-groundpresence in their area. Concern related to the security of online payments is another reason that they may be dissuaded from shopping online. Language is the key barrier as a majority of e-commerce websitesuse English as the language. To snag customers, firms will needtoconsider eCommerce website development with vernacular languages so that they can communicate with the target audiencein their local language. Being available on the mobile channel is equally important as therural residents may not have access to desktops and laptops andeven if they do, they may be more comfortable with mobileshopping. Access and transport infrastructure matters too because this will have a far-reaching impact on supply chain efficiencies. Presently, only 18% of the rural population has internet access. While this percentage is likely to increase in the next fewyears, right now, this is one of the greatest challenges for eCommercebusiness owners. In rural areas, people are still unaware of online shopping. Hence, there should be a way to make people aware of the benefitsof shopping for products online. Trust issues are common in rural areas. Rural consumers aremorehesitant to purchase products online due to the chances of defects, the hassle of returns or refunds, and many other concerns. Therefore, eCommerce companies must work on buildingtrust before reaching out to the rural population. Despite these barriers, e-commerce operators and brands are keenonexploring the opportunities in this segment. Moving further, we shall seethe impact of eCommerce website development in the rural areas of India. Recently, the technology has touched the rural parts effectively andhaschanged the general thinking that e-commerce companies may not reachthe rural region of India. How Ecommerce Businesses AreMovingAhead in the Rural Setups
It is a known fact that the postal service has the power to connect everycorner of the world. The Indian Postal Service has a long history andhasevolved over the years. Evidently, today it has reached all the villages andremote locations in India successfully. Moreover, the last fewyears havewitnessed a dramatic change in the Indian Postal service as it is gettingcollaborated with more than 400 e-commerce websites. Amazon andFlipkart are the major names that are included in this list. Today, more than 1,55,000 post offices in remote areas are connectedtodeliver the goods to the customers, irrespective of the far-flung locations. It is a welcoming scenario where e-commerce industries are involvedinhelping our country to become digital through logistics channels. TheeCommerce stores may even explore the option of having their owndelivery system for these locations, or they may use third-party serviceslike the postal services and other small agencies. Impacts of Ecommerce on Various Sectors of Rural India Ecommerce played an effective role in various sectors of rural India. It hasalso led to a change in the lifestyles of people. Below are the major sectors, in which eCommerce is prevailing on a high scale: Agricultural Products Agro-based products are now being sold online which is makingasignificant difference in the way of rural business. Nowadays, seedsof different crops, fertilizers, and various other products are available online. It makes the lives of farmers and rural people. Household Products The consumption rate of household products by the rural populationishigher than in urban areas. As per the data, Amazon had covered around90% of rural villages for order delivery. Since the number of returnsinrural areas is less in comparison to urban areas, the cost of logistics for eCommerce business owners is lower for rural regions.
Handicraft One of the main sources of income in rural India is handicrafts. Manyrural people, especially women are making different forms of handicrafts usingvarious agro-based materials. They have made handicrafts as a sourceof their income. Ecommerce in rural India has helped rural people tosell handicrafts online and increase their customer base. The eCommercepenetration is not high; however, it will soon increase in the future. What’s the Scope of EcommerceinRuralIndia? Over the last few years, there has been tremendous growth in the digital India campaign. Through this program, every village is nowconnectedviaoptical fiber, making the internet accessible to rural people. The presence of the internet enabled rural people to purchase productsand services online. This has changed their lifestyle and also createdasource of income for them. The availability of the internet has createdahuge scope of eCommerce in rural India. People are gettingtheir household products delivered at their doorsteps and retailers can alsosell their products online and grow their customer base. Following are some specific areas of rural in which eCommerce has agreat scope.New Opportunity Ecommerce in rural India has created a new opportunity for retailers andsmall-scale industries such as handicrafts to sell their products onlineandgenerate more revenue. By presenting the products and services online, retailers can create demand for their offerings and grow their customer base. Ecommerce website development offers a great opportunity for thosewhowant to take their business online and showcase their products online.
Availability of Household Products Internet access in rural areas has helped people to purchase householdproducts online and get them delivered to their places. This has further helped people to change their lifestyles and eCommerce companiestogain more customers by meeting rural people’s needs. Social Reform in Society Ecommerce has brought social reform to society, especially in rural areas. The netizens in rural regions are mostly 25 years old or below. So, thereis a new scope of getting products according to the needs of the youth. It will also change their lifestyle and also help them groom. Ecommerce Exploring NewFrontiersinRural India The eCommerce giants like Myntra, Jabong, Voonik, Amazon, Shopclues, Flipkart, and others are getting appreciable revenue coverage fromthevillages. The villagers are gaining benefits from the online delivery system. And with the penetration of the Internet and smartphones, most of thevillagers are using mobile applications and computers to order their goods. These companies say that the products like electronic items, utensils, grinders, baby products, mixers, and, etc., are the main goods in demand. And, the fascinating thing about the orders from remote locations is that there is a lesser likelihood of returns of the goods as they order onlythemost essential goods. This is saving cost on logistics for the company, asthey are less investing for taking the delivered goods back. Certaincompanies like Ipay, StoreKing, eDabba, etc., are completely workingfor rural locations and they have innovative web design and development andwork in view of the consumer expectations and Internet connectivitylimitations of the rural areas. Conclusion Certainly, it is high time for the retailers to achieve profit in their onlinebusiness by tapping the rural population. However, there is also theneed
to understand the challenges of selling to consumers who lack tech-savviness and may not really be comfortable with the concept of makingpayments online. The best approach is to focus on the parameters suchasa simple design, intuitive navigation, secure payments, and seamlessexperiences irrespective of the connectivity-related challenges. Additionally, they should also work on strengthening the operational aspects of the business. Partnering with one of the best eCommercedevelopment companies, you can build an eCommerce website that issimple, easy to navigate, and highly secure. We, at OrangeMantra excel in eCommerce web design and development as per the internet range limitations and other shortfalls to reach andsell in rural India. We have a team that can understand these challenges andassist you in overcoming them as well. If you’re looking tohireeCommerce developers, you may get in touch with us for web and mobileapplication development requirements and explore the untapped regionfor your online business.