The Indian Economy has been one of the fastest developing economies in the world. This has been proved through the increased usage of Smart Mobile Phones and Internet Usage. Currently the Mobile Phone Users are expected to grow by 25 Million Every year and there are more than 1.19 Billion Mobile Phone users today. Out of Them 600 Million have access to Smartphones. 700 Million and more people use Internet on a daily basis. Also given the telecom industry’s competitive environment the companies have stated providing 1.5 GB minimum Packages per day for internet usage. This has taken the digital presence of users at another level.
Today everyone is using Whatsapp for chatting and business purposes. Facebook, Instagram, and Snapchat have become a part of every person’s life. YouTube is reaching every internet user who wants to learn more about everything. Alongside this there are numerous applications making the education seem very easy. Not only this, the digital era is coming soon and people are overcoming the boundaries set by limited infrastructure presence. This is why the digital marketing field is seen to have endless scope along with supply chain management and having skills to sell products on online marketplaces.
As noticed so far the world was totally dependent on the traditional mode of shopping and buying products. Not to forget from a brush to a refrigerator everything was bought after proper reviews and visiting 4 to 5 Shops to get the best price. Due to the internet, customers get the same facilities but this time they don’t have to roam around. All they need to do is open Amazon or Flipkart and search for their products. This way they get a list of endless suppliers having the product they want to use. This way it has become easy to connect the customers and suppliers and even prohibit the customer exploitation.
However the trust on online selling has not yet developed so far. However the online marketplaces have been constantly changing the way people used to shop for products before. It’s not only about finding products but also finding manufacturers and wholesalers for business purposes. Alibaba and Indiamart are supporting the same purposes. Thus digital presence is becoming essential for every customer and online marketplaces are fulfilling this need by providing the platform at no cost.
Online Marketplace Types
As per a layman’s language there are three major branches of the marketplaces available online. The first one is the one which connects the customers to direct sellers so that they can buy less quantity or even single quantity of goods at a fair and discounted price. This is even known as the B2C market.
The second type is for the business to get a manufacturer or wholesaler or traders who can supply, provide or even buy goods and services in large quantities. This is known as the B2B market.
The third one is referring to the creation of your own website and getting away from competition and supplying the customer’s twitch their needs. This is a subpart of B2C business. However these are the major important online marketplaces present today. Even B2G is a type and vice versa, which includes government and businesses but it is not referred to so much for understanding the development of dominance from the online marketplaces.
Examples of Websites and their Dominance
If we compare the online marketplaces on a world level, then no one can surpass the dominance of Amazon in current times. Amazon is the biggest online platform for buyers and sellers to connect with each other. Alongside this Ebay is also a major marketplace. These platforms offer both B2C and B2B marketplaces so that they can increase their customer and supplier portfolio. The presence of these website is seen in almost every part of the world. They work on a simple commission structure wherein they take a cut form the dealings happening between the customer and the seller.
Let’s consider the Indian Domain. Here we have Flipkart (Shopsy), AJIO, Myntra, Meesho etc. who are providing outstanding customer reach to the suppliers. They have been successful in connecting the Indian people who are less digitally aware to the suppliers. The dominance of these portals has been increasing with time. This is the result of increased digital presence among the Indian customers. However the Indian population is close to 1.38 Billion People. Out of this number only 700 people have internet access and more than 600 people use smartphones. This is simple proof that the dominance of such marketplaces is improving at a rapid pace.
There are various companies with their own websites as well to crack into the digital era. Some of them are Lenskart, Indiamart etc. Hence the market is just starting to grow and it has a growth aspect of more than 100% in the further course of time.
Stocks to Watch
The companies with their own business module. Some of the famous stocks to watch out for are Indiamart, Infoedge, Reliance Retail, Future Retail, IRCTC, JustDial, Cartrade, One97 communications, Zomato, Policybazaar, Nayka etc. The goal is to not only look at the companies having a good marketplace to share all products at one place. The idea is to watch every company who is supplying products online in one way or assisting in it. For instance Info Edge is not into direct selling but has multiple investments across companies who sell.