ECOMMERCE SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Ecommerce Industry in India
Summary/Snapshot
Ecommerce Industry
The e-retail market in India is projected to surpass US$ 160 billion by 2028. In 2023, the market is estimated to be valued between US$ 57-60 billion, marking a significant increase from previous years. This growth equates to an annual addition of US$ 8-12 billion since 2020.
The Indian e-commerce industry is projected to reach US$ 300 billion by 2030, experiencing significant growth. Third-party logistics providers are anticipated to manage approximately 17 billion shipments within the next seven years.
In FY23, the Gross Merchandise Value (GMV) of e-commerce reached US$ 60 billion, increasing 22% over the previous year. In FY22, the GMV of e-commerce stood at US$ 49 billion.
India’s Business-to-Business (B2B) online marketplace would be a US$ 200 billion opportunity by 2030.
With over 821 million users, India was the second-largest internet market in the world with 117.6 billion UPI transactions in 2023.
- In the marketplace model of E-commerce, 100 percent FDI through the automatic route is authorized under the new guidelines on FDI in E-commerce.
Growth Drivers
- High internet penetration, falling internet prices, an increase in the number of smartphones, product localization.
- E-Commerce provides benefits like 24/7 shopping, price comparison, time savings from physical store visits, and a greater selection of items.
- Other considerations, such as avoiding crowds, checkout queues, and the ability to purchase items without a physical barrier.
Sub industries
- Building Equipment
- Glass & glazing products
- Highways, Street & Bridge Construction
- Mechanical, Electrical & Plumbing equipment
- Residential remodelers
- Structural steel & pre-cast steel contractors
- Roofing & Flooring products
- Engineered wood & equipment
Opportunities
Technology-enabled innovations like digital payments, hyper-local logistics, analytics-driven customer engagement and digital advertisements will likely support the growth in the sector.
India has gained 125 million online shoppers in the past three years, with another 80 million expected to join by 2025, according to a report by Kantar.
- The Indian e-retail market is expected to reach nearly 300 – 350 million shoppers over the next five years.
- Increasing popularity in Tier-1 and Tier-2 cities with a target audience of more than 200 million.
Challenges
- The top three issues affecting e-commerce enterprises are cybersecurity, competition, and order fulfillment.
- E-commerce sites have a conversion rate of less than 3%, bringing relevant visitors to your site is critical.
- E-commerce has grown so rapidly, there is now more stiff competition than ever before.
How we can help you:
– Product-Pricing analysis
– Strategies for – product/service localization
– Market research to sell effectively
Key Investment Opportunities
- India’s online shopper base to be the 2nd largest globally by 2030, with nearly 500-600 mn shoppers.
- The penetration of retail is expected to be 10.7% by 2024, compared to 4.7% in 2019.
- Over Calendar Year 2020-2030, tier 2+ cities will contribute 88% of new online shoppers and $150 bn in cumulative incremental online retail Gross Merchandise Value.
Recent Developments
- India is also planning to introduce an Open Network for Digital Commerce (ONDC).ONDC will enable e-commerce platforms to synchronize search results on all the e-commerce platforms and display products and services from every platform. This will further boost business for MSMEs and help fuel India’s e-commerce growth.
- Technology-enabled innovations like digital payments, hyper-local logistics, analytics-driven customer engagement and digital advertisements will likely support the growth in the sector.
- Over the next five years, the Indian e-retail industry is projected to exceed ~300-350 million shoppers, propelling the online Gross Merchandise Value (GMV) to US$ 100-120 billion by 2025.
Key Players in India
National
- Flipkart
- Paytm
- Myntra
- Yepme
- ShopClues
- IndiaMART
- Nykaa
- Alibaba
International
- Ebay
- Amazon
- The Home Depot
- JD.com
- PayPal
- Walmart
Map Clusters
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