All About E-commerce in India

By | August 16, 2017

E-commerce sector became very popular and exciting space on Internet. Around 40% of internet users across the world do online shopping. However, ecommerce sector of India is little behind of China and Japan but the growth rate is much more ahead, where in India the e-commerce growth rate is about 51% compared to China (18%), Korea (10%) and Japan (11%).

India became second highest in internet usage and top in mobile data consumption across the world. According to report by, currently India has approximately more than 450 million of internet users, out of that in rural India 48% (around 78 million) use internet daily, and about 140 million (83%) are estimated to use Internet once or twice a month. And interesting fact is 75% of online users are between 15 to 34 years of age.

With the increase in smartphone adoption, retail sector penetration has also increased where 65 million new visitors are adding per month. Apart fromwebsite monitoring online shopping, another most popular category in ecommerce is travel sector that includes cab booking (OLA, Uber), car rental (zoom cars), airlines, hotels (Makemytrip, Yatra) and on an average one in every 5 online users visits IRCTC website.

As mentioned before, the number of internet users has exceeded 40% over the past year to about 450 million, and according to the KPCB (Kleiner Perkins Caufield Byers) report, Amazon India is most likely to be on the top and dominate the country’s online retail market.

Currently there are many ecommerce companies like Snapdeal, Paytm, Jabong, Voonik, Mantra etc but the major contest is between Amazon India and Flipkart. As of now Flipkart was ruling the Indian market, with average of five lakh shipments daily, whereas Amazon India is delivering nearly 4.5 lakh shipments every day.

Reason why E- Commerce is Getting Popular in India

Massive growth of Internet users in India – Thanks to JIO
The livemint report states that 77% of urban users and 92% of rural users like to use mobiles as the primary device for accessing the Internet. The increase in mobile companies, better interface & user experience and reduce in phone prices are some of the reasons for preferring smartphones.
Thanks to Reliance Jio, huge contributions for making India top country in mobile data consumption that includes approximately 100 crore gigabytes of data per month, approx. 3.3 crore of GB per day. Today, 60 to 65% of total e-commerce sales are done by mobiles or tabs.

Flexibility of payments – People prefer Cash on delivery (COD)
Now almost every ecommerce company provides an option for cash on delivery (COD). Flipkart an Indian ecommerce company was the first among all to provide a COD payment option which was later followed by others like Snapdeal, Amazon etc.
Cash on Delivery (COD) is the most common and popular method used for payment. As per the report by Nielsen’s Global Connected Commerce Survey, approximately 83% of customers select COD option for online purchase

Some Ecommerce Websites in India
Flipkart has large market share among all e-commerce companies in India. Flipkart is launched in Oct 20017 by Sachin Bansal and Binni Bansal, with headquarters in Karnataka. It is the first ecommerce company which offered COD payment option. Flipkart offers various products under the categories like electronic, toys, footwear and all others. It also focuses more on app transactions and provides several discount offers through website.

Amazon is another popular ecommerce company across world. Amazon is American electronic commerce company founded by Jeff Bezos in 1995. For Indian users, was launched in 2013, six years after the FlipKart launch. Today it holds 2nd position with around 33% of Indian market share little behind Flipkart.

Snapdeal is another popular Indian e commerce company, headquarters in New Delhi, launched in 2010 by Kunal Bahl. Though it’s not as popular as Amazon and Flipkart, it holds good percentage of market share.

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