Ecommerce is the word ruling the business for the last few decades. Thousands of businesses have moved online to utilize the potential of the Internet for reaching a wider audience. Further, this translates into an additional revenue stream that gets you an increased ROI with less investment cost and time. Today, e-commerce has enveloped our lives in such a way that it has become a necessity rather than a passion. From the business perspective, it comes ahead as a massive opportunity and even established brick-and-mortar brands are exploring this territory today. Moreover, as the COVID-19 pandemic has hastened the adoption of online shopping, eCommerce has positively impacted rural populations as well. In this post, we explore the significant impacts of eCommerce in rural India.
So, as an eCommerce entrepreneur, if you’re looking to reach out to rural people, this article will make you aware of the impacts, challenges and opportunities associated with eCommerce in rural India.
Is Ecommerce Only an Urban Phenomenon in India?
The Indian economy is dominated by the rural population because a major chunk of the population resides in rural areas. Conversely, those living in urban settings are better educated, tech-savvy, and have a higher propensity to spend. In these circumstances, eCommerce, or any industry for that matter needs to strike a balance between both segments of the population. The big question here that sellers in this domain come across is whether eCommerce is only an urban phenomenon in India, or it has scope in the rural areas as well. To start with, you need to understand the challenges and hindrances that may influence their outreach in rural areas.
What Makes Ecommerce a Growing Trend in Rural India?
Successful eCommerce website development is a win-win situation for both the consumers and the merchants. The consumers are spoilt with choices of brands, fashion, comfort, and all at competitive pricing too. If we consider the merchants, they are able to sell goods and earn more profit in less time with or without a warehouse, as they can get connected with the production center directly for shipping.
This eliminates the need for managing and maintaining a warehouse of their own which accounts for massive investment in terms of rentals, manpower, and labor costs. All these costs have been greatly reduced for them, all thanks to the online selling channel. Also, this mode of selling enables the merchants to get connected with more customers as compared to their physical store.
Challenges Faced by Ecommerce Operators in Rural India
Below are some of the major challenges that eCommerce companies face in rural India:
- The product portfolio is critical to the success of a seller that wants to target the rural market because these markets are hyper-local.
- Customers may be apprehensive because of the lack of on-ground presence 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 websites use English as the language. To snag customers, firms will need to consider eCommerce website development with vernacular languages so that they can communicate with the target audience in their local language.
- Being available on the mobile channel is equally important as the rural residents may not have access to desktops and laptops and even if they do, they may be more comfortable with mobile shopping.
- 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 few years, right now, this is one of the greatest challenges for eCommerce business owners.
- In rural areas, people are still unaware of online shopping. Hence, there should be a way to make people aware of the benefits of shopping for products online.
- Trust issues are common in rural areas. Rural consumers are more hesitant 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 building trust before reaching out to the rural population.
Despite these barriers, e-commerce operators and brands are keen on exploring the opportunities in this segment. Moving further, we shall see the impact of eCommerce website development in the rural areas of India. Recently, the technology has touched the rural parts effectively and has changed the general thinking that e-commerce companies may not reach the rural region of India.
How Ecommerce Businesses Are Moving Ahead in the Rural Setups
It is a known fact that the postal service has the power to connect every corner of the world. The Indian Postal Service has a long history and has evolved over the years. Evidently, today it has reached all the villages and remote locations in India successfully. Moreover, the last few years have witnessed a dramatic change in the Indian Postal service as it is getting collaborated with more than 400 e-commerce websites. Amazon and Flip kart are the major names that are included in this list.
Today, more than 1,55,000 post offices in remote areas are connected to deliver the goods to the customers, irrespective of the far-flung locations. It is a welcoming scenario where e-commerce industries are involved in helping our country to become digital through logistics channels. The eCommerce stores may even explore the option of having their own delivery system for these locations, or they may use third-party services like 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 has also led to a change in the lifestyles of people. Below are the major sectors, in which eCommerce is prevailing on a high scale:
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Agricultural Products
Agro-based products are now being sold online which is making a significant difference in the way of rural business. Nowadays, seeds of different crops, fertilizers, and various other products are available online. It makes the lives of farmers and rural people.
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Household Products
The consumption rate of household products by the rural population is higher than in urban areas. As per the data, Amazon had covered around 90% of rural villages for order delivery. Since the number of returns in rural areas is less in comparison to urban areas, the cost of logistics for eCommerce business owners is lower for rural regions.
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Handicraft
One of the main sources of income in rural India is handicrafts. Many rural people, especially women are making different forms of handicrafts using various agro-based materials. They have made handicrafts as a source of their income. Ecommerce in rural India has helped rural people to sell handicrafts online and increase their customer base. The eCommerce penetration is not high; however, it will soon increase in the future.
What’s the Scope of Ecommerce in Rural India?
Over the last few years, there has been tremendous growth in the digital India campaign. Through this program, every village is now connected via optical fiber, making the internet accessible to rural people.
The presence of the internet enabled rural people to purchase products and services online. This has changed their lifestyle and also created a source of income for them. The availability of the internet has created a huge scope of eCommerce in rural India. People are getting their household products delivered at their doorsteps and retailers can also sell their products online and grow their customer base.
Following are some specific areas of rural in which eCommerce has a great scope.
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New Opportunity
Ecommerce in rural India has created a new opportunity for retailers and small-scale industries such as handicrafts to sell their products online and generate 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 those who want to take their business online and showcase their products online.
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Availability of Household Products
Internet access in rural areas has helped people to purchase household products online and get them delivered to their places. This has further helped people to change their lifestyles and eCommerce companies to gain more customers by meeting rural people’s needs.
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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, there is 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 New Frontiers in Rural India
The eCommerce giants like Myntra, Jabong, Voonik, Amazon, Shopclues, Flipkart, and others are getting appreciable revenue coverage from the villages. The villagers are gaining benefits from the online delivery system. And with the penetration of the Internet and smartphones, most of the villagers 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 only the most essential goods. This is saving cost on logistics for the company, as they are less investing for taking the delivered goods back. Certain companies like Ipay, StoreKing, eDabba, etc., are completely working for rural locations and they have innovative web design and development and work in view of the consumer expectations and Internet connectivity limitations of the rural areas.
Conclusion
Certainly, it is high time for the retailers to achieve profit in their online business by tapping the rural population. However, there is also the need to understand the challenges of selling to consumers who lack tech-savviness and may not really be comfortable with the concept of making payments online. The best approach is to focus on the parameters such as a simple design, intuitive navigation, secure payments, and seamless experiences 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 eCommerce development companies, you can build an eCommerce website that is simple, 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 and sell in rural India. We have a team that can understand these challenges and assist you in overcoming them as well. If you’re looking to hire eCommerce developers, you may get in touch with us for ecommerce website design and ecommerce app development requirements and explore the untapped region for your online business.
FAQs
Q.1. What are the plans for eCommerce in rural India?
Ans. To reach out to the rural population, eCommerce business owners need to consider eCommerce website development in local or vernacular language to communicate with customers in their local languages. Moreover, they also need to focus on access and transport infrastructure because this will greatly impact supply chain efficiencies.
Q.2. Is it worth building an eCommerce website or a mobile app to target the rural audience?
Ans. Being one of the trusted eCommerce development companies, we recommend you build a mobile-responsive website or a progressive web app if you wish to manage your retail business through a website. However, building an eCommerce mobile app is the most effective option as more and more using mobile apps for online shopping. Mobile apps provide the ease of shopping online from anywhere.
However, your decision to build a website and mobile app depends on your needs, target audience, internet connectivity, budget, timeline, etc. Whether you’re looking to build a mobile-friendly website or a mobile app, you can hire eCommerce developers at OrangeMantra to build the right solution for your eCommerce business.
