Problem relating to payment: Payment problem is one significant element of commercial problems. Apart from the legal dimension, there is a commercial dimension to the payment problem. The No 1 malady is the low density of credit cards, debit cards and smart cards in India. Added to this, in India even those who have such cards cannot make online payment though their cards to international sellers. The regulations in vogue constrain Indians in transacting through credit cards with suppliers in foreign countries.
Confidence in the system is low:
Another problem is that confidence in the system on the part of the potential uses is still low. The absence of legal framework already highlighted is one aspect. Corporate and household consumers alike seem to be still skeptical about the efficacy of the process. Surveys indicate that even those who are considered as prospects as for system are not happy to buy on the net they feel that they cannot be sure if the quality of the products bought or their timely delivery. Marketers on the web in India obviously have along way to go. They have to create the necessary confidence among the potential customers and persuade them to see web marketing as a perfectly normal way of doing business and they have to make them comfortable with the innovation.
Problem of hacking: The possibility of hackers misusing e-commerce is another issue, though it is a not peculiar to India. Luckily, of late improved software is providing the remedy to a good extent. Encryption is also being tried out to ensure safety of data in transit. Yet, the problem is not fully resolved.
Points below summarize the problems which Web marketing faces in India:
* Legal/regulatory problems
E- documentation is not yet legally admissible;
Absence of an overall legal framework covering cyber transaction and payment;
Absence of taxation law;
* Infrastructural problems
Low density of telephone PVCs and internet access Band width limitation;
Infrastructural bottlenecks at the delivery end;
* Commercial problems
Problem relating to payment;
Low density of credit cards;
Inability to pay foreign suppliers online (in foreign currency);
* Other problems
Confidence in the system is low;
Problem of hacking;
Government is trying to remove the Roadblocks>
In recent times, the government has initiated certain moves that will facilitate the growth of e-commerce and web marketing n the country. The New Telecom policy, 1999, is one major move. The New internet Policy, allowing private Internet service providers (ISPs) to offer internet service is another. These policies will help develop connectivity, which is a part of the infrastructure needed for the spread of e-commerce. The opening up to private operators, for example, will lower the rates and enlarge the number of Internet subscribers/ surfers. And this will be one main driver for the spread e-commerce.
Indian Firms taking to Web Marketing:
Notwithstanding, these limitations, several companies in India have already made a beginning in e-commerce especially in B-to-B. In B-to-C, however we notice only very few endeavors as of now. Even in B-to-B e-commerce, money does not flow over the net yet; but all other transactions – requests, orders, amendments, schedules, delivery instructions, receipts, invoices, payment terms and clarification – certainly flow over the net.
As for business-to-consumers web marketing, we see that firms in service industries such as banking, airlines and entertainment (cinema halls) have made a beginning. We also see a few independent web marketers selling products like books and music records.
Banking industry: While almost all major banks in India have set up websites, only a handful of them have moved towards real net banking. ICICI Bank, IndusInd Bank, Citibank, and HDFC Bank are among the early birds.
Entertainment industry: Cinema halls in metros like Delhi and Mumbai permit customers to book seats through the net. Delhi’s premium cinema hall, PVR Anupam is an example. Customers can book seats at Anupam online.
Information services: Information is another service where some advancement in web marketing has taken place in India. Kotak Mahindra is an example. Kotak markets an online information service with the brand name, Matrix. Selling information products on the web is the business. Matrix also facilitates payments through the net. When a subscriber decides on the information/article he would like to download, he pays for it keying in his credit card number.