E-COMMERCE SECTOR OVERVIEW-2020

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

E-Commerce India

Snapshot

  • Summary
  • COVID-19 Impact
  • Industry Clusters
  • Growth Drivers
  • Key Players
  • Market Stats

Summary

The E-commerce Industry in India has recently seen huge growth. This is major because of the increasing penetration of the internet and smartphones across the country. Other factors are rise in the number of urban households combined with the convenience of purchasing online. In fact, it is estimated that 330 billion people will buy goods and services online in India in 2020. India emerges as a preferred online retail destination. Because many domestic companies and major global players have established businesses in India. Besides, the Government’s initiatives are also contributing to the growth of the e-commerce industry. These include Digital India, Skill India, Start-up India and Make in India.

Moreover, companies in 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.

COVID Impact

The spread of the COVID pandemic has changed how Indians buy goods and services, as well as how they view e-commerce. The standardized lockdown rules in India, as well as consumers’ growing reluctance to go outside and shop for essential goods, have pushed the country toward e-commerce. The Indian eCommerce industry has seen a significant increase as a result of COVID-19, and there is significant room for future growth. India’s e-commerce industry will grow 84% to $111 billion by 2024 as a result of the coronavirus pandemic’s impact.

The statistics below are taken from Industry data available pre-Corona virus impact.

Map – Industry Clusters

E-Commerce Industry in India

Growth Drivers

  • India is expected to reach an Internet user base of 829 million by 2021 from 604.21 million as of December 2018.
  • Electronics is currently the largest segment in e-commerce retail. It had a share of 48 per cent in 2018.
  • Government allows 100% FDI owned e-commerce marketplace.
  • The reach of online retailers to deliver products in remote locations is set to increase. This is because of the estimated investment of $ 2 billion in logistics and warehouses by 2020.
  • India is the fastest growing retail e-commerce industry worldwide. In addition, it is expected to reach US$ 200 billion by 2027.

Key Players in India

International

  • Ebay, Amazon, Alibaba, PayPal, Rakuten

National

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

Market Stats

  • Indian e-commerce market stands to increase at a CAGR of 30% for gross merchandise value.
  • The online retail market in India is expected to grow to US$ 73 billion by 2022. This will be at a CAGR of 29.2 per cent.
  • India’s internet economy is expected to touch around $ 500 billion by 2022.
  • The online travel segment comprises about 61% of the e-commerce industry.
  • The Indian (B2B) e-commerce market is estimated to reach $ 700 billion by 2020.
  • Overall, online shoppers in India are expected to cross 220 million by 2025.
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