OVERVIEW OF THE SECTOR E-COMMERCE

Statistics, news & updates: everything you need to know about the E-Commerce Industry in India

 

  • Summary
  • Industry Clusters
  • Growth Drivers
  • Key Players
  • Market Stats

Summary

The increasing penetration of internet and smartphones across the country, rise in the number of urban households combined with the convenience of purchasing online, the E-commerce Industry in India has recently seen a huge growth. It is estimated that 240 million people will buy goods and services online in India by 2019. India emerges as a preferred online retail destination as many domestic companies, and also major global player established business in India. The Government’s initiatives like Digital India, Skill India, Start up India and Make in India are also contributing to the growth of the e-commerce industry.

The companies in the E-commerce retail are continuously working to introduce innovative business models and technology-driven approaches. Convenient payment options, customer-friendly policies, quick deliveries and easy returns drive customers to online channels.

Map- Industry Clusters

Growth Drivers

  • India has an Internet user base of 440 million people
  • Electronics is currently the largest segment in e-commerce retail, projected to grow at a CAGR of approximately 43% till 2020
  • Government allows 100% FDI owned e-commerce marketplace
  • With an estimated investment of $2 billion in logistics and warehouses by 2020, the reach of online retailers to deliver their products in remote locations is set to increase
  • India is the fastest growing retail e-commerce market worldwide and is expected to reach $64 billion by 2021

Key Players in India

International

  • Ebay, Amazon, Alibaba, PayPal, Rakuten

National

  • Flipkart, Snapdeal, Paytm, Myntra, Yepme, Yebhi, ShopClues, Limeroad, Infibeam, Jabong

 

 

updated in May 2017

Market Stats

  • The retail e-commerce market in India was estimated at $28 billion in FY2016
  • India’s internet economy is expected to touch $250 billion by 2020
  • The online travel segment comprises about 61% of the e-commerce industry
  • India’s business to business (B2B) e-commerce market is expected to reach $ 700 billion by 2020