E-Commerce Faces Logistical Challenges in Rural India: Yielding the Benefits of AI and Automation
DOI:
https://doi.org/10.53983/ijmds.v15n03.012Keywords:
Rural Consumer, E-commerce, Artificial Intelligence, Logistics, Dark WarehouseAbstract
Background: According to Kishore Biyani, founder and CEO of Future Group, the mantra to ‘Think Digital’ has started gaining traction in rural India. The region now presents a significant opportunity for the expansion of e-commerce platforms. The growing penetration of e- commerce in rural areas has become a focal point of discussion. However, numerous challenges persist for consumers, sellers, and the government, particularly in achieving effective ‘last-mile' connectivity. It investigates how emerging technologies and government initiatives can transform the rural e-commerce experience, especially for consumers and sellers. Methods: The research adopts a qualitative case study methodology based on semi-structure interviews conducted in the Gurugram District of Haryana. Respondents include rural consumers, small scale sellers, and local officials, providing multi-stakeholder insights into the operational, logistical, and infrastructural aspects of rural e-commerce. Results: These study reveals that although rural regions like Gurugram are showing increased interest in digital commerce, significant challenges remain in logistics, delivery reliability, and trust- building. However, initiatives such as Drone Didi, AI automation, and the implementation of dark warehouses have strong to improve last mile delivery efficiency, reduce delays, and enhance overall consumer satisfaction. Conclusion: The paper contributes original insights into the rural e-commerce landscape by focusing on a specific and understudied region. It also appreciates the use case of AI and Automation in today’s and future world. It highlights localized government schemes, offering practical suggestions for marketers, platform developers, and policymakers aiming to scale operations in rural India.
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