The War of Drones, A New Delivery Mode in E-commerce

Drone Delivery System, the much hyped Amazon's dream of 2013 has now been shattered with Alibaba, the Chinese giant finally testing the service while Amazon is still looking for test in US.

So how this drones are going to affect the e-commerce market dynamics? Let's have the SWOT

STRENGTHS

• Faster Delivery
• Larger Volume of delivery with lots numbers of drones
• Reduced Delivery Cost 

WEAKNESS

• Technology

OPPORTUNITIES

• Huge market  for local by delivery option 

THREATS

• Regulations
  

So the market dynamics will see a paradigm shift once the regulations are set up, and civil drone operations are allowed on large scale, till then finger crossed. 

Digital Sales Presence, is it the end of Brick & Mortar Retailers

The heavy discounts on online retail has once made the multi-nation giants to literally ban warranty  or after sales services to check the fall in price of these commodities, they even went ahead to issue consumer advisory mails to refrain them from purchasing online. But the tide is with on-line marketing, the recent trends of exclusive e-commerce launch is the exact opposite in the nature of what these giants had done earlier. They now have come to the terms that rather then ignoring India's potential as an e-commerce market, their benefit lies in adopting the change. And there comes "Digital Sales Presence"

So what is the "Digital Sales Presence"? The digital sales presence is the expansion of sales network of these giants over the digital space, ie- online. Amongst the market place and inventory led model, India fits best for the first one, and these adopting players are now consciously tying up their retailers with the e-commerce players, as for instance Sony has tied up with Snapdeal, and more such development will happen in the near future. This new strategy will enable the stakeholders to have larger, untapped consumer base, but at the cost of marginal decrease in profit per unit. 

But what about the Brick & Mortar retailers, is this just the beginning of their downfall. Because obviously they would find themselves at constrained margin levels or even that quantum may further decrease. So what should be their answer to this?  

INDIAN POST Going on-line, Impact On The Indian E-commerce Market

The Indian E-commerce segment is growing like anything, and it will continue to be the same, but the growth has been confined to major cities or as of now you can count Tier- II & III cities, but what about the rural consumers. 

China, the arch rival of India is now focusing on this untapped potential consumer base their.

And as per the recent news Indian Post, is in the pilot phase of going on-line which definitely would have the edge over others through its robust deliver y network. 

Hence its time for the major players to get alarmed and formulate new strategy.