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India to be the 2nd largest eCommerce market in the world

Growth in the eCommerce Market :-

The eCommerce industry is one of the fastest-growing channels in India. The global payment firm Worldpay predicted in 2016, that in less than two decades India would overtake the US and become the second largest eCommerce market in the world.  But, as per the reports now, India is ranked as the second-largest eCommerce market within three years of the prediction.

The Indian eCommerce market is expected to grow more by 2026 to US$200 billion from US$48.5 billion that was in 2018. This growth is triggered by the increase in smartphone and internet penetration.  This continuous digital transformation in India is expected to increase the total internet user base to 829 million by 2021. By 2020, India’s internet economy is expected to grow from the current US$125 billion to $250 billion.

While the eCommerce revenue is expected to jump from US$39 billion in 2017 to US$120 billion by 2020. We observe here, that eCommerce revenue would grow at a 51 percent annual rate, which is highest in the world.

Ecommerce-market-sales-in-2019

Latest Trends in eCommerce Market:-

Ecommerce retailers like Amazon, Flipkart and Paytm Mall are ruling the industry. The companies experienced a 31 percent growth in 2018. Electronics is among the biggest retail sales category online with a share of 48 percent. Then apparel is in the second position with a share of 29 percent.Due to the latest technology, such as a cloud-based multi-channel inventory and order management system, it has become easier for top American brands to reach every Indian customer. The eCommerce Market latest trends have made possible the cross-border trade of both goods and services.

The digitally connected Indian shoppers are keener to buy international brands. Due to increased income levels of Indians and awareness of different brands people know where to shop and which marketplace offers the best product and price.

You get everything online these days, even the movie tickets and music can be purchased online, just sitting at the comfort of your home.

Ecommerce industry in India is categorized into:

Various technological innovations such as digital advertisements, digital payments, hyper-local logistics and others have enabled the industry to grow in India at a much faster rate. While Government initiatives like Skill India, Digital India, Make in India and Start-up India are also contributing to the growth of the Indian eCommerce Market.

Major Indian eCommerce sector developments:

To support the eCommerce Market , the Government of India has taken various initiatives and is also providing support to small and medium enterprises by means of finance, technology and training. The Department of Promotion of industry and Internal Trade under the Ministry of Commerce (the “DPIIT”) has introduced stringent guidelines for eCommerce Foreign Direct Investment (FDI).