Impact of Advanced Technology on the Growth of E-Commerce Sector in Indian Market in Recent Years | APN News

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Impact of advanced technology on the growth of e-commerce sector in the Indian market in recent years

Posted on January 20, 2022

By Utkarsh Gupta, General Manager, Ramagya Mart

According to data from NASSCOM, India’s e-commerce market continues to grow at a rate of 5% year-on-year, despite Covid-19 and other economic challenges.

Consumer demand for goods in the FMCG (fast moving consumer goods) sector, as well as electronics and appliances, has increased, even digitally. No wonder India has the “third largest number” of online shoppers in the world after China and the United States, and is the “fifth largest” global retail destination. For this reason, many foreign companies have invested in the Indian e-commerce space since last year. Online shopping experiences have driven the development of the retail market and, in turn, e-commerce and retail markets.

Technological advancements are both a reason and a consequence of the development of e-commerce platforms in the Indian market. B2C businesses have been further empowered by the advent of e-commerce and online retail. Customer migration to virtual and digital methods has increased by 45% when it comes to digital purchases.

The paradigm shift to online markets has been possible thanks to simple digital payment ecosystems powered by the UPI (Unified Payment Interface) model and BHIM (Bharat Interface for Money) mobile wallet applications. They have made shopping online faster, easier and more convenient. Through Digital India, this has resulted in the virtualization and digitization of marketplaces and payment methods enabling services such as contactless cards, tap-&-go and QR code scanning methods which have appealed to customers over the past two years.

Artificial intelligence uses customer analytics, providing personalized and targeted offers to customers using their searched products, previous purchases, and browsing habits, thereby growing the virtual retail businesses. Customer service and complaint resolution mechanisms have been simplified through the use of chat-bots and NLP (Natural Language Processing) applications technology that understands and interprets voice.

AI has made it easier to manage warehouses as well as operate physical stores. Whether it’s logistics, order management, shipping, returns, exchanges or payments, all procedures have been revolutionized by the use of AI robots. Be it running sales campaigns, email campaigns, advertising, or building social media strategies, all of them are executed by artificial intelligence.

Supply chains in e-commerce are easily managed by artificial intelligence, making decisions related to suppliers, buyers, market requirements, shipping, delivery, etc. transparently. The customer experience has been enriched and improved, constantly reducing the gap between the in-store experience and the virtual experience thanks to the on-screen mode.

Blockchain is another great technological advancement that e-commerce platforms use extensively. Blockchain is a technique that records transactions on encrypted databases distributed over many computer networks, very similar to physical ledgers, but digitally. It is used to develop a decentralized business model for buying and selling on e-commerce platforms. It has advantages over cloud computing regarding multi-party authentication, and also regarding data anti-theft. This saves much of the system overhead.

The e-commerce and e-retail sectors faced many obstacles such as transparency, efficiency, security and trust. Blockchain technology solves almost all these problems by improving payment mechanisms, security of supply chains and automation of work.

Between the pre- and post-Covid periods of 2020, e-commerce revenues grew by 19% globally. Online demand for personal care products, food, groceries, apparel, accessories, electronics and many other consumer goods grew 26% as consumers turned to social media channels. selling online due to the pandemic and restrictions on travel and physical purchases. It is estimated that India’s e-commerce sector will grow and overtake its American and Chinese counterparts by 2033-2034.

Consequently, rising living standards, urbanization, smaller nuclear families, and most importantly, the growth of digital literacy, consumption of Internet services, and increased use of smartphones over time, coupled with technological advancements, have contributed to the growth of e-commerce. sector lately.