Challenges and Opportunities of E-Commerce Adoption Among Local Entrepreneurs in Chitradurga

E-commerce and digital marketing have reshaped retail ecosystems in India by expanding market reach, lowering transaction costs and enabling small firms to compete beyond local boundaries. Recent estimates suggest that India has become the world’s second-largest e-retail market with about 270 million online shoppers in 2024, and e-commerce now accounts for roughly 8% of total retail sales, projected to reach 14% by 2028. Within this national transformation, the experience of entrepreneurs in smaller cities such as Chitradurga remains underexplored. This paper examines the challenges and opportunities of e-commerce adoption among local entrepreneurs in Chitradurga district of Karnataka, based primarily on secondary data and a review of relevant literature, supported by contextual statistics on India, Karnataka and Chitradurga. The study highlights key drivers of adoption, including growing internet penetration in Karnataka now exceeding 100 million users and contributing over 15% to the state’s GSDP through its digital economy as well as increasing social media usage among youth in Chitradurga. At the same time, it identifies major constraints such as limited digital skills, inadequate logistics and payment infrastructure, language barriers, and low awareness of formal e-marketplace policies among micro and small enterprises. The paper argues that targeted capacity-building programs, improved digital infrastructure and localized support schemes under initiatives like the Karnataka Digital Economy Mission can help local entrepreneurs integrate e-commerce into their business models. The findings carry implications for policymakers, local industry associations and development practitioners seeking inclusive digitalization of tier-III districts.