Latest Reports on the E-commerce Market in India

21/06/2021

Choose language:

The last decade has seen rapid and sweeping changes in the e-commerce sector. Online business has never looked better and it has even modified the marketing strategies that have been in conventional use. For instance, the traditional way of buying and selling goods has been altered – the buyer and the seller cannot see the products physically, yet purchases are made smoothly. Did we imagine even a few years back that this was possible? Most likely, no.

Today, the e-commerce scene is very different. India has a dynamic e-commerce ecosystem, with startups having the potential to make it big rather quickly.

Latest Reports on the E-commerce Market in India

E-commerce for Existing and New Entrepreneurs

In online business, customers influence buying habits and product searches through ratings, reviews. This makes it easier for sellers to know which items are doing well.
E-commerce introduces new ways of marketing, payments, order placements that are faster, easier and carried out digitally.
Online shopping is easy and convenient where you can browse through products, place orders and make payments around the clock. Online bookings and checkout processes are quick and simple.
In online selling, you can widen your range of services, products and potentially earn more revenue.

Current industry structure

ndia has the second largest e-commerce consumer base globally, but the industry still has to make an impact with six million new entrants annually. But, India is described as a fast moving, emerging e-commerce sector.

Mobile shopping is a big plus point for the Indian e-commerce industry. Consumers prefer using smart applications to shopping online as it is faster and more convenient. More Indians today have access to smartphones, tablets, computers and cheap 3G/4G level internet plans. Along with this, three crucial factors are helping the e-commerce ecosystem grow quickly.

Logistics: There has been an influx in today’s logistics and courier system. It is easier for sellers to deliver orders to their customers. In fact, they can choose from overnight deliveries, speed express deliveries and arrangements for the buyer to pick up packages from contact centers. Moreover, there is reverse logistics, whereby companies pick up orders from customers for returns.
FinTech: Government policies had been changed enabling payment banks and UPIs to conduct only wallet payments. As a result, millions of online shoppers were able to use digital wallets to buy the things they love online.
Mobile internet: Mobile internet plans are better than before. We have 3G and 4G internet that offers high speed and low latency, making online shopping easier. It is also more secure and affordable.

Recent Developments

Many developments are taking place and e-commerce is growing aggressively. Today, we have a basic idea of how to shop online, make payments, receive the order or return it. This is something that everyone can do, and you just need a smart device in the form of a laptop, tablet, mobile and a good internet connection.

Now it is up to the sellers to delight these eager customers. Sellers can potentially boost their sales by offering customers loyalty programs, customer care numbers, discounts and special prices and other value-added services.

One smart way to approach buyers is to register on online marketplaces as a seller. What is an online marketplace? An e-commerce site lists or displays products from many third-party sellers. This type of online shopping site allows you to sell items with “post-selling” fees. They are popular today because of these reasons:

It is more affordable for the seller than setting up a separate site.
It already has many customers registered as buyers.
It streamlines delivery, order placement, payment handling and other tools for selling and buying products.
It lets you create product listings, as you like.

Other benefits might include easy advertising, processing of orders managed by the online marketplace operator, processing orders by wholesalers or retailers. Online marketplaces offer a wide selection of products; have higher availability of items, many price points and many choices. They offer general interest and consumer specific items. Smaller brands can use such launch pads to find their customers.

On a bigger scale, there are Government initiatives, such as Make in India, Digital India, Startup India, etc. that have supported growth in the ecommerce sector.

In February 2019, a draft National E-commerce Policy was introduced to encourage FDI in the e-commerce marketplace model.
In October 2019, the Government e-Marketplace and Union Bank of India signed the Memorandum of Understanding for a transparent, paperless and cashless payment system for many services.
In the Union Budget of 2018-19, more than INR 8,000 crore was awarded to the BharatNet Project to give 150,000-gram panchayats access to broadband services.
In August 2018, the Government of India started developing the e-commerce policy draft to add various industry stakeholders’ inputs.
The Indian Government increased the FDI limit to 100% for the e-commerce marketplace to encourage foreign players.
The Indian Government is making heavy investments to develop the 5G fiber network for better connectivity.

Immediate Future

Slow and steady wins the race – and the same can be said for the e-commerce sector here in India. A new report says that India’s e-commerce market will reach an approximate value of $84 billion in 2021.

The sector is booming right now and will continue growing exponentially in the near future. There are many more customers for sellers to approach, as an online store will help them reach people living in not only Tier I cities but also Tier II and III locations.

Evolving logistics make sellers expand their reach across the country. Mobile devices and apps are the future, as apps stay on smartphones that are with the customer always. It provides instant reach to the shopping app of their choice.

Sellers and top operators are testing out new technology. Contactless deliveries are now possible where the delivery agent uses a barcode scanner. As a result, you do not have to sign for your order. Many new apps and websites have voice assistants and chat boxes that help you search for your favorite items.

Conclusion

There will be many more good things for ecommerce in the future. That is why so many people are starting to sell online. Are you looking for a smarter way to sell your product? Be a part of ecommerce development and register on Amazon today.

Disclaimer: Whilst Amazon Seller Services Private Limited ("Amazon") has provided on a best-effort basis and suggests ways to enhance your business, and has used reasonable endeavours in compiling the information provided, Amazon provides no assurance as to its accuracy, completeness or usefulness or that such information is error-free. In certain cases, the blog is provided by a third-party seller and is made available on an "as-is" basis. Amazon hereby disclaims any and all liability and assumes no responsibility whatsoever for consequences resulting from use of such information. Information provided may be changed or updated at any time, without any prior notice. You agree to use the information, at your own risk and expressly waive any and all claims, rights of action and/or remedies (under law or otherwise) that you may have against Amazon arising out of or in connection with the use of such information. Any copying, redistribution or republication of the information, or any portion thereof, without prior written consent of Amazon is strictly prohibited.