This study will help in retailers to understand the customer perspective with exploring opportunity & challenges and bracing themselves up as they were enter into this territory which is showing a lot of promise. From this study we concluding timing is changing & to get succeed we need to adopt the changes around us. We should prepare us properly to upcoming challenges & should try to understand the both customer and retailer perspective so to bridge the gap.

1. PREPARED BY: PRASHANT VERMA
BBA – LOGISTICS MANAGEMENT
PRESENTED AT
INTERNATIONAL CONFERENCE ON
MANAGEMENT OF INFRASTRUCTURE
(ICMA)

2. OUTLINE OF PRESENTATION
 Introduction
 E- History To E-Future
 Objectives
 Research Methodology
 Opportunities
 Challenges
 Finding
 Suggestions

3. INTRODUCTION
 E-commerce refers to the use of electronic means and
technologies to conduct commerce (sale, purchase, transfer, or
exchange of products, services, and/or information), including
within business, business-to-business, and business-to-consumer
interactions (Whinston, Choi, & Stahl, 1997).
 E-commerce has revolutionized the entire process of business &
given us to the new dimensions to explore an existing traditional
market.

4. INTRODUCTION (CONT’D)
 Tier II Cities
Tier II cities basically smaller cities, statistically one million in
population and are usually regional hubs such as state capitals or
industrialized centres. Some examples include Pune, Cochin,
Mangalore, and Dehra Dun.
 Tier III Cities
Tier III includes minor cities like Nasik, Baroda, Trichy, Madurai,
etc. Tier III consist of cities with a population of less than a
million. (Nair, 2007)

5. E-HISTORY To E-FUTURE
 Earlier we trade-in by using Barter system, Haats ,Mandis,
Fairs(Melas).
 As the time evolved , PDS & mom & pop Store came into picture.
 In India Raymond , Bata Shoe & Reliance Vimal were first to enter
into organized retail
 The present valuation of E-commerce market in India is $17
billion (2013-2014). (ET,2014)
 In coming future expected worth of e-commerce industry will be
around $45 billion till 2020.(ET, 2015)

6. OBJECTIVES
 The Main objective of the study is :-
• To identify issues & challenges that might come up while implementing e-
commerce in tier II & tier III cities
 Sub Objectives are :-
• To identify Internet Related Issues while Implementing E-Commerce and the
level of scope of success of E-commerce in Non- Metro.
• It also studies the awareness and preparedness of the consumers regarding E-
commerce.

7. RESEARCH METHODLOGY
 Research Design :- This is an exploratory study which tries to
identify the variables which would might help or hinder the
growth.
 Literature review was also conducted to explore different
dimensions of e-commerce.
 Data collected was qualitatively analyze to come to conclusion.

8. OPPORTUNITIES
 Age factor - Young generation plays a very pivotal role in building & growing
brand value by using it. Young generation is account for 60% of online retail transaction.
 Working women - Population of working women has increased from 26% in
2001 to 36% in 2014
 Socio-economic factor - Quality of living increase. E.g.. Traditional to Organise
retail
 Income factor - Constant economic growth has fuelled the increase in personal
income in India.

9. CHALLENGES
 Payment issue - About 60% of the online user abandon their in-cart purchase .
 Securities issues - Online retail website is more vulnerable to Scam, fraud & hacking.
 Legal issues - IPR & ETA should be followed while using implementing e-commerce
 Internet connectivity - According to World Bank low & middle income countries such as India,
for every 10% increase in broadband penetration could increase GDP by 1.4%.
 Logistics Issue - The logistics challenge in India is not just limited to lack of standardization in
postal addresses
 Payment gateway have high failure rate. - A long & confusing checkout process, deviate many
prospected customer from buying online.

10. FINDINGS
 India is the largest untapped e-commerce market in the world.
 This study will help in retailers to understand the customer perspective
with exploring opportunity & challenges and bracing themselves up as they
were enter into this territory which is showing a lot of promise.
 Major E-commerce giants have shifted his focus to tier II & tier III cities
because a lot of traffic & transactions are expected to come.

11. SUGGESTIONS
 In India, internet bandwidth is very low as compare to other nations.
Internet connectivity & bandwidth should be provided at reasonable
rate with appreciable speed.
 Awareness program or awareness advertisement should be carryout in
order to aware customer
 Goods collection centre should be setup at initial stage when there is no
proper transportation facility available in tier II & tier III.