{"id":3413,"date":"2022-12-01T21:39:14","date_gmt":"2022-12-01T16:09:14","guid":{"rendered":"https:\/\/www.chitrangana.com\/?p=3413"},"modified":"2022-12-01T21:39:15","modified_gmt":"2022-12-01T16:09:15","slug":"why-indian-ecommerce-startups-fails","status":"publish","type":"post","link":"https:\/\/www.chitrangana.com\/Consultant\/why-indian-ecommerce-startups-fails\/","title":{"rendered":"Why so many Indian e-commerce startups fail and what can be done about it"},"content":{"rendered":"
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India, which has approximately 658 million Internet users and the largest market for online shopping, should already be the global leader in terms of eCommerce.<\/h5>\n
According to a recent survey done by the International Data Corporation (IDC), India is the world’s fastest-growing smartphone market, with an annual growth rate of 19% in 2022 and a total shipment of 37 million devices. In addition, even rural India has witnessed a meteoric rise in mobile Internet commerce.<\/h5>\n
Furthermore, the Government of India’s latest proposed eCommerce legislation is tailor-made for start-ups to prosper and effectively dethrone existing behemoths like Amazon, Flipkart, and Reliance..<\/h5>\n
Despite a recent national economic crisis, India’s eCommerce business experienced a modest increase in consumption demand.<\/h5>\n
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Despite working with such advantages, most Indian eCommerce start-ups fail to cash in, and inevitably shut shop within six months of their launch. So, why exactly has India failed to position itself as the world\u2019s No. 1 eCommerce player? In this article, we dive into common mistakes made by most start-ups:<\/h5>\n<\/div>\n
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a consultation paper by chitrangana.com<\/p>\n<\/div>\n

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Lack of readiness:<\/strong> Most start-ups ignore the process of conducing prelaunch training for its staff, while also failing to collect adequate information and consumer response, with necessary market research. According to industry experts, it is essential for start-ups to test market waters so they can make needed adjustments post launch and manage expectations accordingly. Most Indian start-ups try to make inroads into the industry without a clear-cut business model or product line.<\/p>\n<\/div>\n

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Can\u2019t differentiate product with business: <\/strong>According to industry experts Chitrangana, most Indian start-ups try to offer \u201ctrending and fashionable products\u201d but fail to establish \u201ca real business\u201d that will draw customers to return again and again. \u201cThis is a classic case of confusing product with business,\u201d says Nitin Lodha<\/strong>, the father of the O2O model and a specialist in helping eCommerce start-ups. Lodha, who represents Chitrangana.com, believes start-ups expect quick returns from their investments and therefore don\u2019t follow through with a game plan. \u201cStart-ups should not alter product line based on market trends, they should stick to a clear-cut business plan,\u201d adds Lodha.<\/p>\n<\/div>\n

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Underrating importance of technology:<\/strong> This is one of the most common and biggest mistakes made by Indian eCommerce start-ups. They underestimate the importance of technology, by failing to invest in proper IT infrastructure, which is essential to deliver a user-friendly experience. \u201cMost of them feel eCommerce is just about creating a functional website. There\u2019s a lot more to it,\u201d says Vishal Shah<\/strong>, senior eCommerce mentor, Chitrangana.com, with more than 15 years of experience. \u201cSince more than 75% users browse using smartphones, it is important for Indian start-ups to deliver mobile-friendly experience. But I have observed that they rarely meet the Google-offered guidelines,\u201d adds Shah. According to Shah, a number of amateur software firms, mislead start-ups in the name of \u201cResponsive Mobile Design\u201d and the na\u00efve clients buy the myth that their websites are mobile-friendly.<\/p>\n<\/div>\n

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