# 2811

Why eCommerce Startup Will Grow From 2017 – Reason 1

eCommerce giants has started struggling, Opportunity for small scale eCommerce startups. This is a time to bring specialise stores with personal attention to every customer. Big player are facing problem…

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In Short

eCommerce startups can grow when large e-commerce players lose focus, face capital pressure, and fail to deliver consistent customer care. The article frames this shift as a structural opening for small and mid-sized startups, especially in India, where online shopping awareness is already established and still rising in double digits each year. Large players carry heavy infrastructure, automation, and profit burdens. They also face rising friction from poor customer support and a growing number of fraud claims, which leads them to treat many complaints negatively.

📚 Archival Research — Originally Published 2016

eCommerce giants has started struggling, Opportunity for small scale eCommerce startups. This is a time to bring specialise stores with personal attention to every customer. Big player are facing problem with funds, infrastructure and profit pressure. The eCommerce awareness is well established and growing in double digit every year so It’s grand opportunity for small to mid level eCommerce Startups

E-commerce in India has started a decline cycle for large projects from July 2015,it’s time for eCommerce Startups. The growth graph has suddenly converted into downtrend due to multiple reasons and competition killing business strategies by serval big e-commerce giants. The primary reason behind sales decline are

ecommerce startup growth and consultantPoor customer support – The customer support policy of all Indian e-commerce players goes against the customer’s expectation, the primary cause of the change of rude behaviour by e-commerce player are doubt on every customer complaint. In last few year, the eCommerce portals faced tremendous growth in fraud claim as respects to same the e-commerce companies started treating every consumer complaint negativiely.

The anti-consumer policy by large e-commerce player now a significant opportunity for the start-ups, as with the manageable number of order the startups can quickly identify the genuine customer problem or the fraud claim. The kind of case rational response can add the most loyal customer to the startup which is a significant capital for the startups.

The big player is facing significant issue with their automation system, technology as everybody is overclocking their internal infrastructure capacity.

Plus, the big stable and big e-commerce venture backed by various fund already lost their ground, and it is tough for raising more capital in the current scenario. The big e-commerce companies earlier more focused on small ticket sales to increase the awareness of online shopping, whereas the new start-ups not needed to invest toward consumer awareness.

We advice to initiate your eCommerce startups with some mentor having knowledge of retail industry or your can explore our ecommerce consultant

Frequently asked

Why do large e-commerce players create space for smaller startups?
Large players create space when scale becomes a burden. The article points to funding stress, infrastructure strain, profit pressure, and weaker customer handling. Smaller startups can move with fewer orders, identify real customer issues faster, and build loyalty through direct response rather than volume.
How does poor customer support affect the market opportunity for startups?
Poor customer support pushes customers away from large platforms and opens room for startups that handle complaints more carefully. The article says large companies often treat complaints negatively because of fraud claims, while startups can judge cases more rationally and keep genuine customers.
What is the difference between big e-commerce automation and startup customer handling?
Automation at large scale can turn customer service rigid when internal systems are already stretched. Startups have fewer orders, so they can review issues more personally and respond with judgment instead of relying only on automated filtering. That difference matters when customer trust is fragile.
When does the article say the decline cycle for large e-commerce projects began?
The article states that the decline cycle for large projects in India started from July 2015. It presents that point as the start of a downtrend shaped by competition and business strategies used by large e-commerce giants.
Why is customer complaint handling a strategic advantage for startups?
With fewer orders, a startup can separate genuine problems from fraud claims more quickly. That creates a more precise response process and can turn a serious complaint into customer loyalty. The article treats that loyalty as a valuable form of capital for a young business.
How does market awareness change the startup equation?
The article says eCommerce awareness is already well established and growing in double digits each year. That means new startups do not need to spend as heavily on basic consumer education, because large players already helped build the market.
What role does capital pressure play in the article's argument?
Capital pressure weakens large, fund-backed companies when the market turns. The article says several big e-commerce ventures have already lost ground and now face difficulty raising more capital. That constraint makes room for smaller startups that can operate with tighter structure.
Why does the article mention retail industry mentors?
The article recommends starting with a mentor who knows the retail industry because startup ideas need structure before execution. In the article's logic, experience in retail improves judgment on what to build, how to validate it, and how to avoid weak business design.
What is the risk if a startup copies the large-player model too closely?
The article implies that copying large-player habits can be costly because large firms are already under pressure from infrastructure, automation, and customer-service failures. A startup that scales the wrong way may inherit the same problems without the reserves that large firms once had.
Does the article suggest that startup growth depends on more advertising?
No. The article argues the opposite. It says earlier large companies spent more on creating online shopping awareness, while new startups enter a market where awareness already exists, so the main task is structure, not broad awareness building.
What kind of startup is the article favoring: generalist or specialised?
The article favors specialised stores with personal attention to each customer. That is a different model from broad, high-volume e-commerce. The logic is that a focused offer and direct customer handling can outperform size when large players become distant and overloaded.
How should a founder interpret the article's view of business model design?
The article treats business model design as a prerequisite, not an afterthought. It suggests that founders should evaluate retail knowledge, customer handling, and market conditions before building, because structure before execution is safer than speed without validation.

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