Indian E-commerce sector Free from Amazon’s Control: India intends to break free from Amazon’s control of the e-commerce sector.
Indian E-commerce sector Free from Amazon’s Control: He co-founded the software behemoth Infosys Ltd, became a billionaire, and oversaw a large government effort to produce biometric identities for India’s almost 1.4 billion inhabitants.
Nandan Nilekani, the 66th, now has another lofty goal. The high-profile businessman is assisting Prime Minister Narendra Modi in the development of an open technology network aimed at levelling the playing field for small sellers in the country’s fragmented but quickly rising $1 trillion retail market.
Its claimed goal is to provide a free internet marketplace where merchants and customers may buy and sell everything from 23-cent detergent bars to $1,800 airline tickets. However, its ambiguous aim would eventually lead to Amazon.com Inc. and Walmart Inc. Flipkart, whose online dominance has frightened small merchants and the country’s millions of local mom-and-pop stores known as kiranas. backbone of retail
Kirana stores dread an uncertain future as the two global behemoths invest a combined $24 billion in India and capture 80 percent of the online retail sector through aggressive discounts and preferred seller promotions. Despite accounting for roughly 6% of the entire retail sector, they are concerned that they will be wiped out, following in the footsteps of many family-owned firms in the United States and elsewhere.
The Open Network for Digital Commerce, or ONDC, is a non-profit system that aims to address these concerns. It intends to allow small merchants and retailers to hook in and acquire the access and economies of scale of giants, which has never been attempted before. Essentially, the government would develop its own ecommerce ecosystem for all, with the goal of weakening the grip of businesses like Amazon, which control which brands get access to critical consumers and on what conditions. Is.
“It is an idea whose time has come,” Nilekani remarked recently in his personal office in Bangalore’s Koramangala’s Billionaires Row neighbourhood, which is home to some of the country’s top IT tycoons. “We owe millions of small sellers thanks for demonstrating how simple it is for us to participate in the new, high-growth industry of digital commerce.”
The non-profit, state-owned network will launch a pilot programme for select consumers in five cities next month. An Amazon spokeswoman stated that the business is attempting to better understand the model in order to determine if it may play a role. Flipkart did not react to a comment request.
Some global retail behemoths, either located in China or struggling to compete with local rivals, have turned India into a battleground. With roughly 800 million smartphone users, the South Asian country has become a perfect testing ground for several corporations, including domestic behemoths such as Google, Meta Platform Inc, and billionaire Mukesh Ambani’s Reliance Industries Ltd.
Nilekani previously assisted the government in developing the Aadhaar biometric ID system, which is roughly the digital equivalent of the US Social Security programme. This is the first indication of their existence for the vast majority of Indians. Officials claim that this reduces fraud and ensures that welfare payments reach the intended recipients. Nilekani also assisted in the establishment of a payment backbone known as the United Payments Interface, or UPI. It was utilised by Google and WhatsApp, and it reached 5 billion transactions last month.
Indian E-commerce sector Free from Amazon’s Control
The salt-and-pepper-haired, moustachioed tech Caesar, who was appointed as an advisor to ONDC last summer, wants to accomplish for e-commerce what UPI did for digital payments.
Their most difficult task, however, will be to ensure that the network meets its objectives. Amazon and Flipkart are industry leaders because their tried-and-true technology attracts merchants and shoppers to their platforms. According to Anil Kumar, CEO of Redseer Management Consulting Pvt Ltd, if the government wants to overtake the leading e-commerce platform, it must construct something equivalent – or better.
“Everything is dependent on the network bringing in a broader range of buyers, vendors, payment logistics, and warehouse providers,” said Kumar, who is located in Bangalore.”The goal is to standardise and streamline the return and refund-like experience for buyers and sellers, as well as to create an open network where everyone wins.”
Nilekani will also face pressure to avoid the scandals that have plagued his prior enterprises. Aadhaar has been dogged by worries about data privacy, security, and identification. The Supreme Court of India is now investigating a UPI case after a lawmaker accused Amazon, Google, and Meta’s WhatsApp of engaging in systems without conducting an inquiry and allegedly breaking guidelines.
If it is successful, the e-commerce grid might enable millions of tiny businesses to get online while being less concerned about global behemoths. Kausar Cheruvantodi, 42, one of the owners of a five-store baby-product chain in Bangalore, is one of many eager to give it a shot. It never sold online, but the 30% decline in sales during the epidemic was unexpected.
“ONDC has the ability to change the game,” Cheruvantodi remarked.”I’m willing to compete with Amazon and others on a discount-for-discount basis.”
Despite the hurdles, Hemant Taneja, managing partner at Palo Alto-based venture capital company General Catalyst, believes Nilekani is the ideal man for the position.
“Nandan is recognised for his long game, with very deliberate thinking to set up mechanisms for long-term transformation, which components of the economy should be digital public goods and which should be capitalism-inspired,” Taneja continued. Taneja stated this.
The possibilities of an open model excite entrepreneurs like Kumar Vembu. His company, GoFrugal, supplies enterprise software to over 30,000 small businesses and quick service eateries. He is now assisting in the integration of hundreds of them into the new network.
“Up until today, small shops had to bring knives at gunpoint,” Vembu explained.”At long last, we’ll be able to furnish them with competitive equipment.”
According to CEO Thampi Koshy, a former senior partner at Ernst & Young, Open Network plans to expand to 100 cities in the coming months.
It took Aadhaar nine years to achieve one billion people on the network, whereas UPI took five years to make four billion monthly transactions. Nilekani expressed optimism that the ONDC will be implemented quickly because India has previously taken this step.
“We’re developing a new curriculum with the purpose of changing the rules of the e-commerce game,” he explained.
What exactly is e-commerce?
The buying and selling of goods and services through the Internet is known as ecommerce. Ecommerce is the most popular alternative for online selling because it is a billion-dollar market with an infinite number of online store owners and online buyers. It can be attributable to a variety of factors. The general populace has easy access to the Internet. They can easily conduct a comparative analysis of the things they wish to purchase without leaving their homes. Furthermore, individuals obtain fantastic deals when they shop online.
Ecommerce or online stores allow you to see what is on sale even if you are on the other side of the planet. What makes E Commerce a superior sales choice is that you don’t have to leave your house, which is very convenient given everyone’s hectic lifestyle these days.
Sellers benefit greatly from ecommerce as well. The biggest advantage of having an ecommerce business for online selling is that the investment required is far lower than that of a brick and mortar store. When you open a store, you must invest in interior design, rent, staff, energy, water, and other expenses.
Again, Internet marketing for your online store is a low-cost option.Furthermore, there are numerous strategies for marketing online, including direct mail, online commercials, social networking sites, banner advertisements, PPC marketing, and others. This approach allows you to reach out to your customers, keep them up to date on the latest deals, and significantly enhance your profitability.
Ecommerce may be used for virtually any form of sale or business. It can be used for both virtual and physical goods. Ecommerce can be either business-to-business (B2B) or business-to-consumer (B2C) (B2C). In B2B, commodities are typically exchanged between corporations or business groups, but in B2C, business is conducted with individual clients.
E-tailers are retailers who offer their products online. The sale can be of everyday commodities, services, knowledge transfer, and so on. With the advent of Ecommerce, one can now buy practically anything available online. Ecommerce is used in our daily life through email, instant messaging, online banking, online shopping, teleconferencing, and electronic tickets. There are, nevertheless, some government restrictions governing E-Commerce activity. The FTC governs these practices in the United States. This body keeps an eye on online advertising, commercial emails, and consumer privacy.
With software programmes that come with ready-to-use Ecommerce shop coding, designs, and all functionalities, setting up an Ecommerce Store is now quite simple.They are a quick, low-cost, and easy solution to set up your own online store.
How Does E-Commerce Work?
The first thing you need to know is how e-commerce works: A consumer or potential customer connects to the Internet and visits your website. If you own a physical store, you’ll want to put important information on your Web site so that clients can find you; this would be a static Web site. This could contain current specials as well as other product listings that persuade customers that your business is where they want to make their purchase and is both enticing and a fair value to the customer.
Indian E-commerce sector Free from Amazon’s Control
Similarly, if you run an internet business, you’ll want to persuade potential consumers or website visitors to buy the things you’re selling on your website. When customers are ready to make a purchase, they must be directed to an online transaction or secure Web server where you can collect their personal and payment information using a safe encryption method. It is feasible to build a Website that can accept credit card and other sensitive data without encrypting it; nevertheless, most discerning shoppers will never enter credit card information into a non secure Website. As a result, we strongly advise against attempting to build a basic shopping cart that does not incorporate secure socket layer encryption of personal or sensitive data. Running a website without encryption for personal or credit card data is a recipe for catastrophe and loss of potential clients.
To allow e-commerce on your website, you must install and set up your products in a shopping cart. It is critical to understand the components of a credit card transaction: your Web site contains the product pricing, description, and photographs, and the shopping cart is embedded in your Web site and holds dynamic data about your product. When a customer is ready to “check out” from a Website store, he or she typically hits a “checkout” button and is directed to the encrypted version of the corporate Website. Typically, the customer will proceed with the checkout process by calculating shipping charges, inputting personal information such as credit card information and a shipping address, and securely completing the transaction.
As an overhead fee for using their credit processing services, all credit card firms charge a percentage of the sale. A transaction service or gateway service is the additional service layer that exists between your credit card processor and your website. This layer detects an e-commerce transaction, immediately authorises credit cards, and completes the transaction. While this service is not unusual, it does add a layer of expense to the operation of your website.
There are two separate possibilities for how your order will be processed: after the order is placed, all relevant information is routed through a private gateway into the “transaction/gateway processing network. ” This processing network is where the transaction gets authorised or denied, based on the consumer’s credit history and available funds.” Although this appears to be a lengthy procedure, it just takes a few seconds to finish. Offering an e-commerce service is an added service with an added price for the business owner.
Another low-cost approach is to do away with the transaction/gateway processing network entirely. Many website owners prefer to manually “run” credit card payments via their desktop credit card processing/authorization systems and simply utilise the shopping cart as an order processing and retrieval system, with the credit card being handled manually once the online session is complete. This low-cost option avoids the cost of middle-tier permission and has no effect on what the customer sees after completing the checkout process. With either choice, the consumer should receive an email confirmation of their order.
Indian E-commerce sector Free from Amazon’s Control
As previously said, depending on how many transactions you average in a day, you will be able to use a variety of payment systems to meet your online transactions. Whatever payment option you use, you must ensure that it is encrypted and safe so that your clients’ privacy and personal information is never jeopardised. As a reminder, never operate a Website that collects personal or financial information unless it provides a secure and encrypted connection.