Effect of E-Commerce in the Retail Trade in India: A Study in the District of Darjeeling

The rapid growth of e-commerce has significantly impacted the retail landscape in India, presenting both opportunities and challenges for retailers. This study aims to examine the factors influencing retailers’ adoption of e-commerce and evaluate its impact on their business performance in the district of Darjeeling, West Bengal, India. A mixed-methods approach was employed, utilizing a structured questionnaire and interviews with store owners and managers. The sample consisted of 75 retailers from various business sectors. The findings reveal that factors such as fast and reliable delivery, efficient settlement processes, user-friendly applications, and competitive pricing are critical drivers of e-commerce adoption. Retailers reported overwhelmingly positive impacts on their business performance, with 93.4% indicating an overall positive effect, particularly in terms of expanding customer base and increasing profit margins. Hypothesis testing revealed significant differences between e-commerce adoption factors and demographic variables, as well as between the impact of e-commerce and demographic variables. Furthermore, a significant association was identified between overall adoption factors and the overall impact on business performance. The study highlights the strategic importance of e-commerce for retailers in Darjeeling and suggests that prioritizing operational excellence, enhancing user experience, and focusing on digital marketing are key to maximizing its benefits. These findings have important implications for retailers, policymakers, and business leaders in developing strategies to support and promote e-commerce adoption in similar markets.