Indian e-commerce: rough road ahead

In the second of a two-part series, we look at the huge logistical and infrastructure challenges for e-commerce in India and why investors are still putting in big money.

India is often touted as the next mega technology play after China. But a series of problems stand in the way of a homegrown version of Alibaba or Amazon.

In Part One, FinanceAsia looked at the people who are helping to build India's e-commerce sector and the challenges of turning a country where cash is still king into one that buys products online.

But the challenging financial landscape is only one issue. Poor and costly distribution networks represent another big challenge for India’s e-commerce aspirations.

On Alibaba’s marketplace, the logistical costs are borne by merchants and buyers. In the US,...

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