Fourth, the deals and discounts. With eCommerce companies flush with funds and in a ‘customer grab’ mode, 2011 has been a buyer’s delight. From books to phones, everything seems to be available to less than what you would get to a nearby store. With free shipping thrown in. So, click and order.
Fifth, the cash on delivery option was a game-changer. With credit and debit cards usage still limited and a desire by consumers to pay in cash, the eCommerce companies have been increasingly open to collecting cash on delivery. This has also taken away the risks of ordering on the Internet. (On the flip side, one problem that eCommerce companies have to deal with is the rate of returns from customers who change their minds.)
Finally, a liberal flow of venture capital funds into the sector has helped create many companies who could invest in awareness creation via media on the benefits of eCommerce. This has also helped drive usage.
Put it all together, and the stage was set for a big boom in the eCommerce sector. The ecosystem has finally come together.
Continued tomorrow.
