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Abstract
The e-commerce has transformed the way business is done in India. The Indian e-commerce market is highly potential segment and is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Much growth of the industry has been triggered by digital penetration facilitated by internet and smart phone. The exploded increasing internet and smartphone penetration. India will have some 1.2 billion mobile phones by 2030 The ongoing digital transformation in the country is expected to increase India’s total internet user base to 829 million by 2021 from 604.21 million as of December 2018. Ecommerce is highly competitive and potential industry. Due to tough competition maintaining profit margins and pricing products is one of the great areas of concern for the ecommerce industry. The aim of this research is to study the various strategies to optimize the cost in the ecommerce industry. Based on the Extensive review of literature and interaction with the marketing professionals, the cost optimization strategies in ecommerce industry has been segregated in three categories i.e. pricing strategy, Sales boosting strategies and cost reduction strategies. There is a huge potential in India for the growth of ecommerce industry due to digitization. Base on the primary discussion and review of literature the research has designed the Ranking matrix for the cost optimization strategies and ranked the various cost optimization strategies which will help the ecommerce companies in boosting their revenues and profit margins.