Why do Indian e-commerce companies fail?

Abstract

Indian e-commerce firms are failing at an alarming rate. Reports suggest that less than a third of e-commerce firms backed by venture capital will survive into their second year. Half of e-commerce firms set up in the first 10 months of 2012 have already ceased to exist1. E-commerce companies which were predicted to revolutionize the way Indians shop are all closing down due to lack of continuous funding and heavy losses. This CCS aims to find out the major reasons behind the failure of these Indian e-commerce companies that started off with big dreams and then failed to even survive.