E-commerce has transformed the way business is done in India. With attractive and convenient shopping options at the core of the consumer facing business, the e-commerce industry offers the power to create innovative, sustainable, consistent and seamless shopping experience across all channels.
India's e-commerce market was worth about $3.9 billion in 2009, it went up to $12.6 billion in 2013. In 2013, the e-retail segment was worth US$2.3 billion. About 70% of India's e-commerce market is travel related. According to Google India, there were 35 million online shoppers in India in 2014 Q1 and is expected to cross 100 million mark by end of year 2016. CAGR vis-à- vis a global growth rate of 8–10%. Electronics and Apparel are the biggest categories in terms of sales.
According to a study conducted by the Internet and Mobile Association of India, the e-commerce sector is estimated to reach Rs. 211,005 crore by December 2016. The study also stated that online travel accounts for 61% of the e-commerce market.
By 2020, India is expected to generate $100 billion online retail revenue out of which $35 billion will be through fashion e-commerce. Online apparel sales are set to grow four times in coming years.
Many of things said that the Demonetisation will cut down the growth speed of E-commerce market in India. The extent it affects the e-commerce business as well but that doesn’t mean it will slows down the growth speed. Why is it so? Let’s see; in the year 2016 in the nine months to September, the ecommerce sector pulled in just $1.4 billion in fresh funding. Big-ticket deals have become a thing of the past. Grocery e-tailer BigBasket, ticketing platform Bookmyshow and eyewear e-tailer Lenskart were the only three firms that pulled in serious money. BigBasket raised $150 million in March from an investor consortium led by Dubai’s Abraaj Group; Bookmyshow closed a $81.5 million growth round in May from a group of investors led by New York-based private equity firm Stripes Group, and Lenskart raised $60 million from International Finance Corp., TPG Growth and other investors. Another potentially large deal this year was e-commerce marketplace Shopclues’ growth round in January. The company didn’t disclose the size of the round, but it is estimated at between $100 million and $140 million.
Although the demonetisation has impacted on Cash on Delivery policy of many of big giants likes Amazon, Flipkart, Snapdeal,etc. but they all agree that demonetisation is good for e-commerce industry. To tackle the after-effects of demonetization, e-commerce platforms have added credit card on delivery as one of the payment options to put customers running out of cash at some ease. Amazon witnessed 10 times growth in credit card delivery mode. Websites like Snapdeal and Flipkart have also been offering more discounts on online payments and zero cost EMI schemes. CCAvenue company got 40% increase online transaction while Paytm has more 7 million transactions per day claiming more than $1.2 billion. Mobile payment transaction value in India is also likely to register over 150 per cent CAGR and cross Rs 2,000 trillion by FY 2021-22 from just over Rs 8 trillion as of FY 2015-16, the study titled Indian M-wallet market said.
The major factor driving e-commerce growth in India is the country's huge uptake of mobile phones. India is the world's biggest consumer of mobile phones, with the price of data plans running two times cheaper than in China and three times cheaper than in the United States. As the country's middle-class switches over to 3G and 4G networks, both offered at affordable prices, India is expected to see more mobile shopping, especially amongst millennials. Young people shopping via smartphones are already responsible for sharp increases in India's online spend; and with70 per cent of the population below the age of 35, millennials are expected to continue driving rapid digitisation even further.
To position their business for future success, merchants must recognise not only India'senormous potential for e-commerce growth but also its unique payment preferences. Transfers and cash currently dominate the online payment landscape, with 27 per cent of the market preferring bank transfers, followed by cash on delivery at 22 per cent. However, as the country's payment infrastructure develops, new methods are expected to rise in popularity. E-wallets, the most popular payment method worldwide, are slated for rapid growth in India. Although just eight per cent of India's online shoppers use an e-wallet today, the country's mobile wallet market is projected to reach $5.1 billion in 2020, according to Worldpay.
India's e-commerce market was worth about $3.9 billion in 2009, it went up to $12.6 billion in 2013. In 2013, the e-retail segment was worth US$2.3 billion. About 70% of India's e-commerce market is travel related. According to Google India, there were 35 million online shoppers in India in 2014 Q1 and is expected to cross 100 million mark by end of year 2016. CAGR vis-à- vis a global growth rate of 8–10%. Electronics and Apparel are the biggest categories in terms of sales.
According to a study conducted by the Internet and Mobile Association of India, the e-commerce sector is estimated to reach Rs. 211,005 crore by December 2016. The study also stated that online travel accounts for 61% of the e-commerce market.
By 2020, India is expected to generate $100 billion online retail revenue out of which $35 billion will be through fashion e-commerce. Online apparel sales are set to grow four times in coming years.
Many of things said that the Demonetisation will cut down the growth speed of E-commerce market in India. The extent it affects the e-commerce business as well but that doesn’t mean it will slows down the growth speed. Why is it so? Let’s see; in the year 2016 in the nine months to September, the ecommerce sector pulled in just $1.4 billion in fresh funding. Big-ticket deals have become a thing of the past. Grocery e-tailer BigBasket, ticketing platform Bookmyshow and eyewear e-tailer Lenskart were the only three firms that pulled in serious money. BigBasket raised $150 million in March from an investor consortium led by Dubai’s Abraaj Group; Bookmyshow closed a $81.5 million growth round in May from a group of investors led by New York-based private equity firm Stripes Group, and Lenskart raised $60 million from International Finance Corp., TPG Growth and other investors. Another potentially large deal this year was e-commerce marketplace Shopclues’ growth round in January. The company didn’t disclose the size of the round, but it is estimated at between $100 million and $140 million.
Although the demonetisation has impacted on Cash on Delivery policy of many of big giants likes Amazon, Flipkart, Snapdeal,etc. but they all agree that demonetisation is good for e-commerce industry. To tackle the after-effects of demonetization, e-commerce platforms have added credit card on delivery as one of the payment options to put customers running out of cash at some ease. Amazon witnessed 10 times growth in credit card delivery mode. Websites like Snapdeal and Flipkart have also been offering more discounts on online payments and zero cost EMI schemes. CCAvenue company got 40% increase online transaction while Paytm has more 7 million transactions per day claiming more than $1.2 billion. Mobile payment transaction value in India is also likely to register over 150 per cent CAGR and cross Rs 2,000 trillion by FY 2021-22 from just over Rs 8 trillion as of FY 2015-16, the study titled Indian M-wallet market said.
The major factor driving e-commerce growth in India is the country's huge uptake of mobile phones. India is the world's biggest consumer of mobile phones, with the price of data plans running two times cheaper than in China and three times cheaper than in the United States. As the country's middle-class switches over to 3G and 4G networks, both offered at affordable prices, India is expected to see more mobile shopping, especially amongst millennials. Young people shopping via smartphones are already responsible for sharp increases in India's online spend; and with70 per cent of the population below the age of 35, millennials are expected to continue driving rapid digitisation even further.
To position their business for future success, merchants must recognise not only India'senormous potential for e-commerce growth but also its unique payment preferences. Transfers and cash currently dominate the online payment landscape, with 27 per cent of the market preferring bank transfers, followed by cash on delivery at 22 per cent. However, as the country's payment infrastructure develops, new methods are expected to rise in popularity. E-wallets, the most popular payment method worldwide, are slated for rapid growth in India. Although just eight per cent of India's online shoppers use an e-wallet today, the country's mobile wallet market is projected to reach $5.1 billion in 2020, according to Worldpay.
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