What is the 21st-century trend of business? E-commerce.
We can buy everything ranging from a pen to an aeroplane online in this generation of technology! E-commerce is increasing its popularity with every part of the industry that it takes in. The cloud of suspicion over a lot of people regarding online shopping is slowly drifting away, giving way to the growth of this new-age marketplace
Especially in these times of Covid, where going outside the house even for buying basic essential goods has become a challenge, e-commerce came to the rescue for a lot many of us. Getting food and other essentials delivered to our footstep was the need of the hour for humanity to survive. The knight of technology, e-commerce, fulfilled all our requirements, big and small, without us having to leave the safety of our homes.
Although e-commerce was gaining popularity for a long time now, it became especially relevant during the Covid times. Even the people who were unsure of the safety of e-commerce platforms and the ones who never ordered anything online were left with no other option than to resort to online shopping. And now, it doesn’t seem to be going anywhere!
E-commerce in India started thriving long before 2020. And now that people have become so used to shopping on their phones instead of supermarkets and malls, e-commerce industry growth is just expected to increase.
E-commerce India Statistics
What does the ecommerce market in India currently look like?
- The total market size of e-commerce in India is expected to reach a total value of USD 188 billion by the year 2025.
- Ecommerce India statistics shows by 2025, India is expected to have 220 million online shoppers, among a total number of 974 million users who use the internet.
- Various industries are now joining the online marketplace with their e-commerce platforms. E-commerce is expanding due to the various sectors of the industry moving online.
- From the above point, most of the industries are on their way to significant growth. Fashion, groceries, and pharma are some of the most sought-after categories on the major e-commerce platforms. Food delivery is also booming in the e-commerce world.
- Experts estimate higher online shopping penetration opportunities for many industries in the coming years. The auto market is especially expected to reach new heights with the growing e-commerce in India.
The online marketplace and e-commerce platforms are changing the way people shop in today’s world. Malls and Kirana stores are closing or moving their services online. The growing popularity of e-commerce is also making room for more digital advertising. The mom-and-pop shops are closing and are being taken over by the online market.
Trends to expect
Wondering what the future might look like? Well, you’d know what to expect from the following trends being seen:
- As the influence of technology grows in our lives, more and more people have started depending on gadgets for their day-to-day life. From work and education to entertainment, gadgets have become an inseparable part of our lives today.
- Cyber Media Report (MCR) has shown an increase of 25% in India’s average usage of smartphones. On average, people spend nearly 7 hours a day on their gadgets.
- India e-commerce shows progress as the government e-payment platforms are rapidly moving up the ladder of rankings owing to its advancements. As compared to the 36th rank in 2011, the e-payments reached the 28th rank in 2018 in Government E-payments Adoption Ranking (GEAR).
- After 2018, a significant increase has been reported in the total value of transactions on the mobile payment app Bharat Interface For Money (BHIM).
- The banks are also in favor of the growing e-commerce. Efficient payment gateways and a large customer base have become the key advantages of the big e-commerce platforms in India like Amazon and Flipkart. Relying on the capitalization of these platforms, the banks are helping to improve the supply chain of these big players.
- The supply chain is further backed by the delivery and fulfillment companies, enhancing their businesses.
- The e-commerce industry is paying more attention to the small towns and districts in India. Companies’ strategy is focused on making the best out of the hyperlocal market by reaching the remotest of places in India.
- Great growth is also being seen in the online car trade market.
- E-commerce platforms are thriving towards excellence by improving their online purchase paths. Extensive search mechanisms, filtering, and personalization are helping e-commerce to bring the best user experience to the masses.
- Technological innovations such as safe and secure payment methods and data analytics driver audience targeting and advertisements are helping e-commerce platforms reach their customers faster and more easily.
All the above trends are pointing at a larger eCommerce industry growth soon. Auto, grocery, pharma, and education sectors are expected to dominate e-commerce in the coming days, given their huge profitability and compatibility with the online ways of shopping.
Despite desperately trying to become every day, e-commerce industry India is facing a lot of issues in its operation. There still exist people who do not believe the online payment portals and are stuck to the cash-on-delivery option.
New and first-time customers are usually not sure enough of what they are purchasing online and happen to return the delivered goods. This adversely affects the profitability of the e-commerce platform.
The lack of a consistent addressing system throughout the country often becomes a hurdle for the e-commerce platforms to deliver the goods at the exact location. This often creates confusion between the logistics and the customer and results in delayed deliveries or canceled orders.
But even after all of that, e-commerce is trying to reach at least one new remote area every day with its services. The distrust in e-commerce is slowly exiting the minds of online shoppers in India. E-commerce shall have the answer to all our needs in the future.