Supply based development strategies in Indian e-commerce industry

Abstract

Growing at 27% CAGR the Indian e-commerce sector poised to overtake the U.S. to becomt; the second largest e-commerce market in the world. With the exponential growth in internet and online infrastructure in India, it was no surprise that theE-commerce market experienced the boost. Increasing rates of internet penetration, along with an increasing share of the organized sector within retail markets created the strong foundation that ecommerce needs. Moreover, the policies from the government had strengthened the market. This was propelled by government policies that allow 100 percent foreign direct investment in B2B e-commerce. Current framework developed by Indian government expect FDIs for ecommerce in the marketplace model and ensured a level playing field for all companies. Various e-commerce companies such as Flipkart and Amazon provide platform to various sellers to sell their products online. In the competitive domain of online shopping where customer's switching cost is very low, it becomes highly important to ensure high quality standards along with competitive pricing of the products being sold on the platform. To ensure this, these platform companies draft contracts with these sellers. l. this project, we aim to study contracting with sellers in the e-commerce domain. Moreover, the E-commerce industry has been directly impacting Micro, Small & Medium Enterprises (MSME) in India by providing means of financing, technology and training and has a favorable cascading effect on other industries as well.