Transforming India's Urban Vs Rural E-commerce System

Introduction:

The rise of e-commerce has brought about significant changes in the global business landscape, impacting both small businesses and local markets. While e-commerce has undoubtedly offered convenience and accessibility to consumers, it has also posed challenges to traditional brick-and-mortar stores, particularly in developing countries like India. This article explores the current state of India's e-commerce system and proposes a comprehensive strategy to address the challenges faced by small businesses and local markets.

E-commerce Business Models: Urban vs. Rural

In urban areas, shops selling quality products are found every few hundred meters, while in rural areas, the distance between such shops can be several kilometers. Despite this, e-commerce companies continue to focus on urban and city customers, neglecting the needs of rural communities.

This disparity in e-commerce services between urban and rural areas is due to several factors, including:

Infrastructure:

Rural areas often lack the necessary infrastructure, such as reliable internet connectivity and transportation networks, to support e-commerce.

Demographics:

Rural areas tend to have older populations and lower income levels compared to urban areas, which makes them less attractive to e-commerce companies.

Logistics:

Delivering goods to rural areas can be more expensive and time-consuming than delivering to urban areas, due to the greater distances involved.

As a result of these challenges, rural residents often have limited access to quality products and services, and they may have to pay higher prices for the goods they do have access to.

To address this issue, e-commerce companies need to develop innovative business models that are tailored to the unique needs of rural communities.

These models could include:

Mobile commerce:

Leveraging mobile technology to reach rural customers who may not have access to traditional computers or laptops.

Rural hubs:

Establishing physical locations in rural areas where customers can pick up their orders or return items.

Partnerships with local businesses:

Partnering with local businesses to provide e-commerce services to rural customers.

By developing these types of innovative business models, e-commerce companies can help to bridge the digital divide and ensure that rural residents have equal access to the benefits of e-commerce.

Call to action:

If you're an e-commerce business owner, I encourage you to consider developing a business model that targets rural customers. By doing so, you can help to level the playing field and give rural residents the same access to quality products and services as urban residents.

E-commerce Policy Strategy:

1. International Policy Amendment against E-commerce Businesses:

   - Revise existing policies to ensure fair competition between e-commerce giants and local businesses.

   - Implement regulations to prevent predatory pricing and unethical business practices by e-commerce companies.

2. Compensation to International and Domestic E-commerce Companies:

   - Provide financial incentives and tax breaks to encourage e-commerce companies to invest in local infrastructure and support small businesses.

   - Establish a compensation mechanism to mitigate the losses incurred by small businesses due to e-commerce competition.

3. Improve Product Quality of All Small and Street Businesses Equal to Urban Shops:

   - Launch skill development programs to enhance the production and quality standards of goods from small businesses.

   - Provide access to technology and resources to enable small businesses to compete effectively with online retailers.

4. Interstate Transport Policy Amendment:

   - Review and amend interstate transport policies to reduce logistics costs for small businesses and facilitate seamless movement of goods.

   - Implement measures to ensure fair competition in transportation services, preventing monopolies by e-commerce companies.

5. Re-align FDI against Domestic E-commerce Companies:

   - Revise foreign direct investment (FDI) policies to prioritize investments in domestic e-commerce companies over foreign players.

   - Encourage domestic e-commerce companies to collaborate with small businesses and local markets for product sourcing and distribution.

6. Inter-ministerial Cooperation against E-commerce Project Commissions from E-commerce Companies:

   - Establish a cross-ministerial task force to monitor and regulate e-commerce activities and prevent corruption.

   - Implement strict penalties for government officials involved in corrupt practices related to e-commerce projects.

7. Provide Interest-free Loans to MSME, Low-income, and Street Businesses for Digitalization and Business Development:

   - Offer financial assistance to small businesses to adopt digital technologies and enhance their online presence.

   - Provide training and support to enable small businesses to effectively utilize e-commerce platforms.

8. Increase GST Rate to Every Product Purchase from Online for Urban Areas Compared to Rural Places:

   - Implement a differential GST rate to incentivize consumers to purchase from local businesses in rural areas.

   - Provide tax incentives to small businesses operating in rural areas to encourage economic growth and job creation.

9. Provide Incentives and Product Offer Codes, Promo Codes to Increase Sales in Rural Places Only, Not for Urban Areas:

   - Introduce special discounts, offers, and promotions exclusively for consumers purchasing from rural areas.

   - Collaborate with e-commerce companies to create targeted campaigns to boost sales in rural markets.

Problem to Solve:

The primary challenge lies in motivating small-scale, low-income, and street businesses to embrace e-commerce tools and cater to rural customers. Despite the potential benefits of online platforms, many small businesses lack the knowledge, resources, and infrastructure to effectively participate in the digital economy. Additionally, the prevalence of illiteracy and limited access to technology among street businesses and low-income individuals further exacerbates the digital divide.

Unfortunately, the voices of these marginalized groups often go unheard, as they lack the means to advocate for policy changes that would support their interests. Instead, it is the wealthy and powerful, including politicians and billionaires, who exert influence over policymaking to further their own business interests.

Financial strategies: 

1 - digital infrastructure in rural place - 10 Million Rs 

 

2 - Free computers , Internet connections , broadband services , call center support , customer care support to all rural small scale business - 24 Million Rs 

3 - Transport incentives, fuel allowance for ecommerce business who are making or selling products from rural to rural areas - 30 Million Rs 

Conclusion:

The challenges faced by India's small businesses and local markets in the face of e-commerce require a comprehensive and empathetic approach. The proposed e-commerce policy strategy aims to address these challenges by creating a more level playing field for small businesses, promoting fair competition, and empowering rural communities. By implementing these strategies and giving a voice to the marginalized, India can foster inclusive economic growth and ensure that the benefits of e-commerce reach all segments of society.

Alternative approaches: 

Let pray God to make unexpected floods , earthquakes, landslides, tsunamis and asteroid collision everywhere, every year until all electronic, electric products to be destroyed .