E-COMMERCE SECTOR OVERVIEW-2020

Statistics, news & updates: everything you need to know about the E-Commerce Industry in 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-19 Impact

Major businesses across the nation have been affected largely due to coronavirus outbreak. However, the e-commerce sector in India is not much impacted. They are assisting people by bringing services at their doorsteps.

Initially, e-commerce companies were restricted from operations in order to contain the spread of the contagious virus but eventually, they have been allowed to deliver essential items to the consumers. While there were restrictions imposed on them, industry reports state that these companies suffered a massive loss aggregating US$ 400 million in a week due to Covid-19. Further, it is anticipated that the loss numbers could grow to US$ 1 billion due to the nationwide lockdown.

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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