Basket Case

There has been a lot of talk in the Indian media recently about the lack of profitability of major Indian e-commerce players. Many of them are also trying out different strategies to manage finances while maintaining growth. While Flipkart has been tweaking discounts and raising limits for free shipping (a move that was quickly followed by almost everyone), IndiaPlaza has excused itself out of the discount race by saying that they want to be the " only money making e-commerce company " out of the top 3-4 players and not the biggest. However HomeShop18 seems have sensed an opportunity here and has put almost the entire books category on unprecedented discounts! I was hard pressed to find any title that has less then 29-30% discount. Most of the titles are as highly discounted as 35-40%. This includes even the titles which they might be importing from outside. In all my searching, I came across one title which was at 10%. This is insane! And if this was not enough, they have...

It has been long since e-commerce made its debut in India but it is still to catch on in a major way. The absence of Amazon from Indian market is a major indication that it is not yet considered a lucrative enough market by big players. A lot has been said about it, tons of research papers written, lots of  workshops/panels have probably discussed it to death. I have not read any of them and so pardon me if what I am going to say sounds very amateurish. As somebody who is betting on a business model that has Internet distribution at its core, it is very important for me to understand why e-commerce has not caught on in India and what would it take? There is a first obvious bunch of reasons that comes to mind - lack of broadband penetration, lack of good online payment mechanisms ( which includes lack of widespread credit card use and absolutely pathetic state of Indian payment gateways), lack of good logistic providers ( some are way too costly while others are simply not ...