How Indian e-commerce can leverage local data centres

The Indian e-commerce market is the fastest-growing e-commerce market in the world. An IBEF report in October 2018 pegged the market to hit the $200 Billion mark by 2026, growing from the $39 Billion mark in 2017. That is a growth rate of more than 20% per annum for an eight-year tenure.

E-commerce Growth Drivers in India

Millennials are the first digital generation and the primary driving force behind the e-commerce industry in any country. India boasts of the largest millennial population in the world. With the recent digital initiatives and growing internet penetration, this population is a leading factor in the e-commerce growth story in India.

Other than millennials, the growth of local content is also helping B2C e-tailers find new customers and expand their reach into tier 2 and lower-tier cities.

Other factors contributing to the growth of internet-based business activities are the availability of 4G networks across the country and growing smartphone penetration.

Setting Your Channel Apart

The new online consumer prioritises convenience above anything else. While the decision process involves reading reviews, checking social channels for third party opinions, and much else, ultimately, the experience on the channel turns the visitor into a customer for e-commerce players.

Convenience in online shopping refers to accessibility, speed, navigation, and appearance, along with the ability to personalise communication. The rise in smartphone penetration is opening opportunities for the e-commerce businesses to expand to tier II and III cities as Metros and tier I markets reach saturation.

Connectivity and network compatibility play an essential role in giving e-tailers an upper hand in the new regions, while established regions expect an omnichannel experience.

Leveraging Local Data Centres

Data has been adding to the business value these days. The capability to collect, analyse, and draw insights out of disparate consumer data has become a vital arsenal for modern businesses.

Online retail has become a more data-driven operation than any other traditional business. Today’s leading e-commerce companies process a massive amount of data every day for which they leverage data centres and cloud computing to optimise their online operations. Local data centres offer an unprecedented boost to data capabilities of e-commerce operations along with improved user experience and compatibility with upcoming regulations. Plus, the data centre environment offers multiple other benefits, some of which are critical for the business, such as the following:

1. Enhanced Reliability – Lower Downtime
   Downtime in e-commerce operations can cause significant loss of revenue, brand image, and customer loyalty.
   To beat the odds, data centres offer high uptime levels through SLAs. Take the case of the majority of modern colocation data centres in India, which provide an SLA for the availability of 99.982%. This is at par with global data centres.
   They are designed with multiple layers of redundancy for power, cooling, and network availability, which is essential to ensure business continuity critical for e-commerce operations.
2. Hi-tech On-premise Security to Ensure Data Safety
   Colocation DCs in India have the best-in-class IT infrastructure as per industry best practices and compliance norms. The physical security of the data centres is maintained in terms of its structural design, round-the-clock CCTV surveillance, and specialized security teams. Plus, there is restricted access inside DC.
3. Compliance with PDPB Legislation
   E-commerce businesses in India must comply with the changing norms and legislations to ensure sustainable growth. As per the recent Personal Data Protection Bill, all personal data of Indian Citizens need to be stored in India only. Furthermore, in case the data needs to be processed outside Indian geographical boundaries, it needs to be anonymized, keeping the personal information safe.
   With the help of local data centres, e-commerce companies can store and process their customer’s data in India only.
4. Scalability for Big Billion Days
   E-commerce globally, including India, has been thriving on the big billion days sale. The traffic to the website and apps increases multi-fold on such occasions, and so the infrastructure must be capable of handling the surge without challenges.
   For instance, a leading Indian e-commerce company found an unexpected surge in the number of sellers signing up for the big billion days. Total product sellers signing up in each category went up by more than five times their estimates.
   With more than 100 million visitors accessing the platform, a downtime of even 0.5% could lead to a loss of more than 500,000 visitors crashing out.
   The traffic surge also means that the data centres must be capable of handling the increased traffic.

The Bottom Line

The changing consumer behavior while making a purchase decision online has a significant impact on the e-commerce industry in India. Whether it is about maintaining minimum downtime, high security, or scalable operations, diverse e-commerce companies in India can ensure next-level growth by teaming up with local data centres.

As a helping hand to the e-commerce market, STT GDC India provides secure and reliable colocation services to diverse big and small e-commerce players in India. Our Rated 3-compliant state-of-the-art facilities are known for their operational excellence, security, and energy-efficient measures.