What are the challenges faced by smaller e-commerce players in India

PM Modi seeks a level-playing field for smaller e-commerce players.
The challenges faced by smaller e-commerce players in India are as follows:
  • Limited financial resources: Smaller players often struggle to compete against larger e-commerce giants due to limited financial resources for marketing, technology infrastructure, and expanding operations.
  • Fierce competition: The Indian e-commerce market is highly competitive, with several big players dominating the sector. Smaller players find it challenging to gain visibility and attract customers amidst this intense competition.
  • Supply chain and logistics: Setting up an efficient supply chain and logistics network can be a hurdle for smaller e-commerce players. Timely deliveries and managing inventory can be a challenge, impacting customer satisfaction.
  • Regulatory compliance: Complying with various regulations, such as tax obligations, intellectual property rights, and data privacy, can be complex and expensive for smaller e-commerce players.
  • Limited bargaining power: Smaller players often face challenges in negotiating favorable terms with suppliers, service providers, and online marketplaces. The dominance of larger players can limit their bargaining power and profitability.
Prime Minister Modi's call for a level-playing field seeks to address these challenges and create a fair ecosystem for smaller e-commerce players, allowing them to compete effectively and contribute to the growth of India's e-commerce sector.
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