What are the challenges faced by smaller e-commerce players in India
PM Modi seeks a level-playing field for smaller e-commerce players.
- 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.
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a year ago