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The International journal of analytical and experimental modal analysis ISSN NO:0886-9367
IMPACTS OF COVID 19 ON E-COMMERCE IN INDIA
V. Nivethitha01,S.Manjula02,V.Mallika03
Assistant Professors01,02,03,
Sri Ramakrishna College of Arts and Science for Women, Coimbatore, Tamil Nadu, India
nivethithamaths@srcw.ac.in01, manjulamaths2srcw.ac.in02, mallikamaths@srcw.ac.in03
Abstract : The worldwide unfold of the COVID 19 pandemic has discontinuous how persons
get merchandise and services and the way they understand E-commerce. The standardized rules
across Asian country and therefore the growing hesitation among shoppers to travel and outside
and buy essential merchandise have tipped the nation towards e-commerce. In this paper
determined the impacts of corona virus in ecommerce predicament as well as how at hand
progress in e commerce that may have an effect on client behaviour in future. E commerce is
become a substitute supply and thought of high during this condition and e retailers provides
product that typically customers bought in superstore historically.
Key words: COVID 19, E Commerce
INTRODUCTION
E-Commerce stands for electronic commerce and caters to exchange of merchandise,
services and data via internet. Electronic commerce is over simply shopping for and
commercialism products on-line. It includes the whole online method of developing, marketing,
selling, delivering, serving and paying for products and services. It includes any endeavour that
takes place directly between a business, its partners, or its customers through transmission and
digital scientific discipline technology. E-Commerce may be a trendy business methodology
that addresses the requirements of the organisations, merchants and shoppers to chop prices
whereas up the standard of products and services and increasing the speed of service delivery.
India has shown tremendous growth in the E-Commerce segment. E-Commerce has become a
vital tool for tiny and huge businesses worldwide. Though the transition from ancient buying to
on-line purchasing was very slow in Indian market attributable to less range of net users due to
lack of internet facility and awareness in public. However currently the case has modified and
therefore the e-commerce business is growing apace in our country.
CLASSIFYING ECOMMERCE BUSINESS BASED ON NATURE OF PARTICIPANTS
The two most common participants in ecommerce are businesses and consumers. Based
on these participants we can divide into four primary ecommerce types:
1. Business to Business Ecommerce (B2B Ecommerce)
In this type of ecommerce, both participants are businesses. As a result, the volume and
value of B2B ecommerce can be huge.
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2. Business to Consumer Ecommerce (B2C Ecommerce)
In this type of ecommerce, most people think of B2C ecommerce. Example is
Amazon.com comes in mind for most discussions about this type of ecommerce. But the
complexity and cost of logistics can be a barrier to B2C ecommerce growth.
3. Consumer to Business Ecommerce (C2B Ecommerce)
In C2B consumers create value and business consume that value. For example, when a
consumer writes, reviews or when a consumer gives a useful idea for new product development
than consumer is creating value for the business if the business adopts that inputs.
4. Consumer to Consumer Ecommerce (C2C Ecommerce)
C2C ecommerce eBay.com comes to mind. That is because it is the most popular
platform that enables consumers to sell to other consumers.
E COMMERCE IN INDIA
Online business in India is still in beginning stage, yet even the most-cynical projections
show a blast. India's internet business industry is on the development bend and encountering a
spurt in development. The Online Travel Industry is the greatest fragment in e-commerce and is
blasting due to a great extent to the Internet-clever urban populace. Different fragments, sorted
under online nontravel industry, incorporate e-Tailing (online retail), online classifieds and
Digital Downloads (still in an early stage). The online travel industry has some private players,
for example, Makemytrip, Cleartrip and Yatra just as a solid government nearness regarding
IRCTC, which is an effective Indian Railways activity. The online classifieds portion is
extensively isolated into three segments; Jobs, Matrimonial and Real Estate. Portable Commerce
is additionally developing quickly and ending up being a steady and secure enhancement to
ecommerce because of the record development in versatile client base in India, as of late.
The E-commerce showcase in India was to a great extent overwhelmed by the online
travel industry with 80% piece of the overall industry while electronic retail (E Tailing) held
second spot with 6.48% market share.11 E-Tailing and computerized downloads are required to
develop at a quicker rate, while online travel will keep on administering the significant extent of
piece of the pie. Because of expanded e-commerce activities and mindfulness by brands, e-
Tailing has encountered conventional development. As indicated by the third release of eBay
India registration 2010 directed across 28 states and seven association domains, India's main
five country online business centres are Ambalapuzha, Sajiyavadar, Adala, Abdalipur and
Kangayampalayam. The digital transformation within the country is probably to extend India‟s
total internet user base to 829 million by 2021 from 636.73 million in FY19. India‟s internet
economy is also expected to double from US$ 125 billion as of April 2017 to US$ 250 billion
by 2020, by the usage E-commerce. India‟s E-commerce revenue will also cross over from US$
39 billion in 2017 to US$ 120 billion in 2020, growing at an annual rate of 51%, absolutely the
best within the world. The top e commerce companies in India are listed below
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Amazon: Amazon is an American based E Commerce web portal founded by Jeff Bezos in
1994. Amazon.com started as an online bookstore, later diversifying to sell DVDs, Blu-rays
CDs, video downloads/streaming, MP3 downloads/streaming, etc
Flipkart: Flipkart is an Indian based E Commerce web portal founded by Sachin Bansal and
Binny Bansal in 2007. It has launched several digital products as well as household items.
Myntra: Myntra is an India based E Commerce web portal founded by Mukesh Bansal and
Vineet Saxena in 2007. Later, Myntra was part of Flipkart in 2014.
Paytm: Paytm is an India based E Commerce online payment app founded by Vijay Shekhar
Sharma in 2010.
SnapDeal: SnapDeal is an India based E Commerce web portal founded by Rohit Bansal and
Kunal Bhal in 2010.
First Cry: Brainbees Solutions Pvt Ltd was founded in the year 2010. It is headquartered in
Pune, India. Today the company has become a leading online store for baby products.
BookMyShow: BookMyShow is the leading show ticketing portal and retailer in India. Since its
launch in 2007, BookMyShow has expanded to sell millions of tickets every month for movies,
sports events, plays, and more. .
ShopClues: ShopClues is an India based E Commerce web portal founded by Sanjay Sethi,
Radhika Aggarwal, and Sandeep Aggarwal in 2011.
Nykaa: Nykaa is another Indian founded brand which bucked the norm beginning as a pure e-
commerce platform. Founded in 2012, Nykaa started as an online store selling beauty items in
categories including makeup, skin, hair, appliances, personal care, fragrance, and LUXE.
IndiaMart: Founded in 1999, IndiaMart is an online B2B marketplace for Indian companies. A
competitor of Alibaba, IndiaMart allows manufacturers, suppliers, and exporters to propose
their products directly through the platform to get contacted by its visitors.
INVESTMENTS/ DEVELOPMENTS OF E COMMERCE:
Some of the major developments in the Indian e-commerce sector are as follows:
In August 2020, Reliance Industries (RIL) acquired 60% stake in Netmeds, an online
pharmacy, for Rs 620 crore (US$ 84.61 million). This acquisition gives RIL‟s retail unit,
Reliance Retail, entry into a vertical e-commerce space.
In January 2020, Divine Solitaires launched its E-commerce platform.
In February 2020, Flipkart set up a „Furniture Experience Center‟ in Kolkata, its first offline
presence in eastern India.
In April 2020, Reliance Industries (RIL) started home delivery of essentials in partnership
with local Kirana stores in Navi Mumbai, Thane and Kalyan.
In April 2020, Swiggy received an additional US$ 43 million funding as part of its ongoing
Series I round.
In May 2020, PepsiCo India partnered with Dunzo for its snack food brands that include
Lay‟s, Kurkure, Doritos and Quaker.
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In May 2020, chocolate maker Hershey India partnered with Swiggy and Dunzo to launch
their flagship online store in order to increase reach.
In Union Budget 2020–21, Government has allocated Rs 8,000 crore (US$ 1.24 billion) to
BharatNet Project to provide broadband services to 150,000-gram panchayats.
In August 2019, Amazon acquired 49% stake in a unit of Future Group.
Reliance will invest Rs 20,0000 crore (US$ 2.86 billion) in its telecom business to expand its
broadband and E-commerce presence and to offer 5G services.
In September 2019, PhonePe launched super-app platform 'Switch‟ to provide a one stop
solution for customers integrating several other merchants apps.
In November 2019, Nykaa opened its 55th offline store marking success in tier II and tier III
cities.
IMPACTS OF COVID 19 ON E COMMERCE
The Coronavirus intensely transformed the world wide trends. These variations causative
to the high inadvertent and secondary funds that reflected for this virus. Furthermore, at the
present time 205 countries are infected with this virus and their economies. It is a challenging
situation for nation and it effects the e-commerce. Coronavirus drastically changes the global
trends. A rapid change has occurred in every business. It has changed the behaviour of human,
nature of trading, business and even the way of life. It spread the scares among people they
avoid to interact with others.
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Coronavirus effects different on different nature of products, means the impact of
COVID-19 on several product is extremely high and on some product less impact. Overall sale
of e-commerce increases because of this COVID 19, people avoiding to go out, keeping social
distance and buying from home, working from home such as Walmart grocery e-commerce
increases 74%. Moreover, the media usage also increased in this time and Facebook, Google
update their features to connect more people in single time such as Facebook introduce
messenger which is competing to Zoom.
COVID-19 has vital impact on e-commerce of the world and in some cases negative
impact however overall e-commerce is growing quickly. Coronavirus compelled the purchasers
to use internet and make it as habit in their daily routine. Furthermore, several challenges facing
by retailers in e-commerce, appreciate extend the delivery
time, issue face throughout movement control, social distance and lockdown . The process of
shipment and supply is quite slow now, however still individuals shopping for as a result of they
are doing not have another alternative. Hence, people are moving towards technology due to
Coronavirus. Furthermore, some products are terribly high in demand in market. Even retailers
cannot fulfil the customer‟s demands appreciate hand sanitizers, bathroom papers, disposable
gloves, grocery, and dairy farm products. On the opposite hand, negative result of COVID-19
on business enterprise industry, flights are in loss, international mercantilism is incredibly slow
and stuck in their position.
Enter the novel Coronavirus which causes a extremely infectious disease (COVID-19) that
has infected more than 4 lakh people worldwide. Since it spreads through contact with an
infected person (once they cough or sneeze) or once they touch the surface that has the virus on
it, the best way to guard against it is to remain safe at home. This has exaggerated online
shopping usage, globally. In India, it has led to a increase in the number of first time users or
first-time-ecommerce-users in India, who had been so far inhibited to shop online. The COVID
19 breakout has dramatically modified the people‟s shopping habits as they were terrified to
shop outdoors. BigBasket - a key online grocery player in India had the subsequent message
“We'll be back soon! We are currently experiencing new demand.
In lightweight of this we have a tendency to are proscribing access to our website to
existing customers only. Please try again in a few more hours.” So overwhelming was the
response that it faced a breakdown due to a steep increase in demand amid COVID-19. Amazon
– one of the leading ecommerce players in the country, and the world, has proclaimed on its site
that the customers are relying on them like never before in their social distancing and self-
quarantine efforts. Hence Amazon is temporarily prioritizing its available fulfilment and
logistics capacity to serve essentials such as household staples, packaged food, health care,
hygiene, personal safety and other high priority products. Globally too Amazon has seen a surge
in orders and is raising overtime pay for associates operating in its warehouses, throughout the
Coronavirus outbreak.
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This spike in B2C ecommerce in India is of course due to existing online shoppers
stocking up on essentials given the Coronavirus outbreak and the lockdown imposed by the
Government (to check its spread). However it also consists of perhaps two more segments –
apart from the one that buys online, regularly.People are hesitant to go back to their working
places and resume the work from where they left it because the number of active corona cases
are inclining. The fear of getting sick is the ground reason behind the switching of people
towards online shopping and this is in fact the reason why the E-commerce sector is making
progress by leaps and bounds.The pandemic has rendered a kind to great favor and service to E.
Commerce business community by offering them great business opportunities.
Since it's officially announced by WHO that COVID-19 may be a global pandemic, the
lock down and restrictions are made more strict and severe within the active hotpots and hardly
hit areas thanks to which all local markets also as worldwide business is closed and other people
are performing from home that's again a tough nut to crack. Although, E-Commerce business
has become the simplest option for all the business owners since nobody is for aware about the
long lasting impacts of this pandemic and there's no assurance about when it'll end. this is often
the rationale why people are choosing online buying and selling of products, accessories,
appliances and services that has influenced the earnings and dealing of E-Commerce business.
All the sectors like food, health care, garments, jewelry even entertainment are
developing online websites and facilitating applications to assist the consumers in buying the
specified products and availing the specified services during a quicker and easier manner. The
influx of daily consumers of grocery and food is very noticeable because these are the elemental
essentialities that are linked to each person so going out and risking one's own health isn't a far
better choice to consider and no-one is prepared to try to to that happily that's why most are
preferring to travel digital and avail the useful services being offered by E-Commerce business.
And developing ecommerce mobile apps designed to be one among the very high demand
service requirements during this pandemic, as many small business owners were really checking
out an honest mobile app development company to develop an ecommerce app that suits their
business model.
It is seen that the impact of COVID-19 on E-Commerce it is evident that number of the
sectors are earning huge profit it are often described by the very fact from the month of March,
when the lock down started, the demand for apparels, both casual and festive, increased to a
high percentage thanks to which the concerning sectors earned tons . One proof of this earned
profit is that the practice of putting the demanded items on sale. The trend of sale has highly
increased after the pandemic of COVID-19 and other people are enjoying every moment of it. If
only the sale percentage of the style industry is evaluated it's noted that there's 21% within the
profit form the month of March to April.
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As the people are observing time in self-isolation they need an ample amount of your
time to spend in their own way in order that are naturally attracted towards the skin care and
wonder products to remain fit and active that's why these products are on rise which is directly
helping the E-commerce to flourish as compared to other businesses. The increased number of
food apps that are being introduced widely are the simplest example of individuals using the E-
commerce industry to urge their favourite food items.
BARRIERS OF E-COMMERCE IN INDIA:
Poor Internet Facilities: Internet is considered tp be the backbone of the e-commerce. But
the internet facilities in India especially in rural area is very less. Speed of Internet is
additionally the main challenge in our country.
Feeling Unsecure: Feeling unsecure by customer is one of the major and continuing
challenges for e-commerce in our country. Customers should be confident about the integrity of
the e-dealers and payment process before making any purchase order online. Risk of hacking
and cyber crimes also are there. Privacy has also become a major concern for consumers with
identity theft and impersonation. Security challenges are not restricted to consumers only in e-
commerce, corporate firms also face security challenge as their vital information, records and
reputation is at stake.
Logistic and Supply Chain: Logistics and supply chain has been the major challenge to
the e-commerce companies. To reach the buyer within the village may be a big challenge. The
e-commerce companies‟ needs to invest more on setting up warehouse and signing up more
suppliers across the country to ensure customers get order delivered by nearest suppliers.
Cash on Delivery (COD): Cash on delivery is another big problem for e-commerce
companies. In the era of digital payments, cash on delivery is still the most favoured mode of
payment used by the consumers. This mode is very expensive for e-commerce companies.
Sometime courier companies will take 30-40 days to return the cash collected from customers to
dealers.
High Competition: There's a cut throat competition among the player within the e-
commerce market. With intense competition, the profitability of the business decreases as they
use aggressive pricing strategy and offer huge discounts and commissions.
Tax Structure: Tax structure is another factor for lesser growth of e-commerce sector in
India in comparison to other developed countries like USA and UK. In India there are different
types of taxes and these taxes create accounting problems to online business. In some states,
they are charging for separate tax on e-commerce transactions. Government has implemented
the GST Act, which is predicted to unravel this problem to great extent.
Physical Purchase: Most of Indian customers are easier in buying product physically.
They want to ascertain and touch the merchandise before buying. So they don't like better to buy
product online.
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CONCLUSION
The impacts of COVID-19 pandemic are not one-sided; they are in fact double-sided. On
one hand E-Commerce is experiencing a boom in production and earning unimaginable profit
while on the other hand these businesses are facing new tax impositions that is a great hurdle for
them to tackle as it will reduce the selling rate. Then the problems that are causing great troubles
in the normal running of E-Commerce business is the delay in delivering the products to the
customers and the process of shipping is also badly affected because of the restrictions on
vehicles. Government should take steps to provide a proper legal framework so that hurdles in
the growth of e-commerce are reduced to minimum.
.
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