Ecommerce in Rural India-A Road To Success

  The ecommerce industry saw a boom in the past years. It has spread its wings to various sectors. It has fully utilized the internet facility and reached out to the least possible areas of the country. The ecommerce sector is a massive opportunity for business purposes. It is the best way to grow your business. There is a great hike in ecommerce growth, post covid. It not only spreads its branches in urban areas but in rural areas as well. Ecommerce in rural India is spreading at a rapid pace.

India is a diverse country worldwide with 70% of villages. Rural areas are an important section of our society when it comes to contributing to a nation’s growth. Almost 25%-30% Contribution to GDP is from rural areas only. There is less number of active internet users in the village. Apart from internet facilities, there is a digital divide b/w urban and rural areas which is a barrier in rural areas that stop them from being aware of the trend going on in the country. They are lagging behind while we talk about growth whether it is socially, financially, or digitally. Ecommerce is not available to them in rural India.

Ecommerce in rural India has come up with an aim to serve rural areas for their upliftment in society. The government also has started many programs to stabilize rural areas digitally like the Digital India program. The E-Commerce industry by using this government program is working in rural sectors to successfully make them businessmen.

Sectors Where E-commerce in Rural India is Penetrating.

1. Handmade products: Handmade products are the main source of income for the people of rural areas. This process generally involves a large number of women. Nowadays these handicrafts products are available online in high demand which creates a customer base for rural people. Although the reach is not that high, it can reach a wider audience in coming years. They can also spread their art to the world. Their products are welcomed by ecommerce in rural India, enabling them to flourish.

2. Agricultural Products: As we all know that the rural areas are rich in agriculture, they have the best business products which are seeing an increased number online. Products like seeds of particular fruit or vegetable, fertilizers easily available online which benefited rural living or farmers of India. The ecommerce in rural India utilizes these products to improve their livelihood.

Challenges Faced By E-commerce in Rural India

Just as a fall is certain to happen while learning to walk, similarly any new beginning is bound to be hindered. This new initiative of ecommerce also has some challenges & barriers.

1. Literacy

Literacy rates are quite high in rural areas. This is becoming the biggest barrier in their growth in the ecommerce business. Because they are illustrated , they are lagging behind in adapting new technologies. They don’t have enough knowledge to understand the tactics of selling on ecommerce in rural India.

2. Security Issues

Rural areas lack the development necessary to comprehend the online payment system. . Cash on delivery systems are not available in all the villages, you have to pay online for your products. There is a concern related to payment security that arises as they are not literate enough to do so. This is another barrier of ecommerce in rural India which is stopping them from moving forward in the ecommerce industry.

3. Transportation & Infrastructure

Another barrier in the road to success of ecommerce in rural India is that they are lagging behind in good transportation & infrastructure. Their livelihood is based on daily earning & daily expenditure. They don’t have enough money to build good infrastructure to successfully produce their product and store it. The roads in the villages are not so well constructed that their product will be delivered safely to customers. To grow ecommerce in rural India, transportation and infrastructure is a must.

4. Dialect

The language barrier is the vital challenge for the ecommerce in rural India . As the website is built in the English language, rural people are not able to understand it. To grow ecommerce in rural India, website should be developed in regional dialects so that they can understand it properly.

5.Trust Issues

It is obvious to have trust issues in rural areas . They are not well aware about the services that’s why they fear purchasing online. They are scared about what if the product they ordered will have a defect. How they will return /refund it. Their fear has to be removed by developing trust among them then only they can grow.

The ecommerce in rural India Campaign has to analyze these points carefully to remove the business & growth barrier.

Initiatives taken by Ecommerce In Rural India

The E-commerce Industry is whole heartedly working for the upliftment of the rural section of society. They are constantly moving forward to serve rural areas so that they can improve their livelihood. Ecommerce Platforms like Amazon & Flipkart started various programs to empower rural people by providing facilities of ecommerce in rural India.

1. Amazons’ Saheli Program: An initiative taken by Amazon in 2017 to empower Womens. A program to make women lead business strongly in the market. It has uplifted the women’s status in the area of business. Amazon Saheli made available a large customer base for their products and placed their products in a special store. It is an initiative which supports ecommerce in rural India.

2. Flipkart Samarth Program: A breakthrough Program launched by Flipkart in 2019 with aim to help the self help group. It provides space to peasant & artisans, weavers to showcase their product to the national market. The aim is to provide knowledge about business & upgrade their livelihood.

Scope of Ecommerce in Rural India

1. E Commerce is actively penetrating in rural India. Over the last few years there is a massive growth in digital India Campaign. Now the digital divide is disappearing continuously. This growth paved the way for rural people to improve their livelihood.
Ecommerce in rural India provides an opportunity to retailers and sellers to sell their handicrafts in online markets and pave the way to grow business.

2. Rural areas benefit from online assistance provided by ecommerce because of the internet’s ubiquitous nature. They have provided full assistance to them related to their seller accounts online. This hinders the knowledge barrier of ecommerce in rural India . They provide full support till the end.

3. The largest network connecting services of India, Indian Postal Services is becoming the gear of this journey. The Ecommerce sector appreciates its extensive services. Over 400 e-commerce websites have collaborated with Indian Postal services to successfully run the logistics in rural India. Indian Postal service is becoming another tier in the journey of ecommerce in rural India.

Final Words

To formulate ecommerce in rural India , firstly understand the consumer of Rural India. There is a need to look deeply into the circumstance. The challenges they have been facing, the resources they have to run their business. It is important to understand the market shift to successfully plan the strategy to hit the target.