E-commerce, E-commerce Business, Indirect Taxes

E- Commerce is all about… Growing Fast… or Dying Slow…!!

Author: CA Vikram Jain

E- Commerce is all about… Growing Fast… or Dying Slow…!!

Series 1, Lesson 1: 

E- COMMERCE BUSINESS IN INDIA

With the advent of online e-Business-2-Consumer (e-B2C) business in India… we have all been an important part of the spur in the e-Commerce business. The NexGen Entrepreneur, who have started to sell their products on these websites, namely- Flipkart, Amazon, Snapdeal, Paytm, etc. have tasted the sweet scent of success. They have discovered a new market place for their goods across a National platform where prospective buyers meet several intending sellers at the most competitive prices.

However, as per Industry Sources, India’s e-commerce players would witness very tough competition in the next one to two years, and a section of them including biggies may shut shop unless they create a sustainable business model. Majority of the e-tailers are using their capital to subsidise consumers to give deep discounts and grow the topline because the moment they withdraw the discounts, the topline falls. Also, in many product segments, the margins have drastically come down to 10%-15% (after deducting Commission to e-Com websites, Service Tax, Sales Tax, packing, courier & delivery charges, etc.).

A question arises in our mind… What next?

Answer: Lets go… Global…!! (… to be continued)

Author: CA Vikram Jain

In case you have any query, kindly feel free to contact the author at his email: jainvikram.ca@gmail.com

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