India’s e-commerce retail sector faces cash crunch – is it really profitable?

Becoming a key player on the e-commerce industry in India is not easy. Via Nymex Consulting, avoid become part of the 80% of the e-commerce operators that close after 2 years.

The e-commerce industry in India suffers of a lack of profitability. Big or small, the cash flow is the main reason why most entrepreneurs see their e-commerce business close after 2 years.

Competition in the market is high and factors such as low brand loyalty, price sensitivity and consumer’s affinity towards significant discounts makes the competition even more severe.

Nevertheless the e-commerce market has enjoyed phenomenal growth of almost 50% in the last five years. Indeed, the appropriate ecosystem has now started to fall in place. The considerable rise in the number of internet users, growing acceptance of online payments, the proliferation of internet-enabled devices and favourable demographics are the key factors driving the growth of e-commerce in India. The number of users making online transactions has been on a rapid growth trajectory, and is expected to grow from 15 million in 2013 to 38 million by 2015.

Nymex Consulting provide our clients with a dedicated approach to design a e-commerce model that works to generate profitability. Our extensive knowledge of the Indian e-commerce industry allows us to be efficient to provide viable advice and designing solutions that works.