What Is The Future Of E-Commerce In India?

Hemraj Infocom
Sep 8, 2018 · 4 min read
Future Of E-Commerce In India

WHAT IS E-COMMERCE?

E-commerce refers to the commercial transactions that are conducted over electronic network.

E-commerce stands for Electronic Commerce and it simply means buying and selling of goods and services, or the transmission of funds or data over the Internet.

The business transactions can take place between either business-to-business (B2B), business to consumer (B2C), Consumer to consumer (C2C) or consumer to business (C2B)

GROWTH OF E-COMMERCE IN INDIA

The e-commerce industry in India is expected to grow at a rapid pace in the coming years. India has a population of over 1.2 billion people and despite the innumerable challenges it faces, there is a great potential for growth in e-commerce in which can offer billions of opportunities to people.

The rise of e-commerce in India has caught the eye of many domestic players like Snapdeal, Flipkart and also giant multinational corporations like Alibaba, Amazon, and Walmart. The online retail was worth $38 billion in 2016 and is expected to generate revenue of about $100 billion by 2020.

E-COMMERCE TRENDS IN INDIA 2018

• The e-commerce industry in India is expected to exceed the US to become the second largest e-commerce market in the world by 2034.

• The e-commerce market in the country is expected to reach US$ 64 by 2020 and US$ 200 billion by 2026 from just US$38.5 billion as of 2017.

• The number of internet users in India is expected to rise from 481 million as of December 2017 to 829 million by 2021.

• The rise in internet penetration will lead to the growth of e-commerce in India

• The internet economy in India is expected to double from US$125 billion as of April 2017 to US$250 billion by 2020, backed mainly be e-commerce.

• India’s retail e-commerce CAGR is projected to reach 23% from 2016 to 2021.

• By 2020, nearly 329.1 million people are projected to buy goods and services online in India

INVESTMENTS/DEVELOPMENTS IN E-COMMERCE SECTOR:

Some of the major developments that took place in this sector are as follows:

• After getting acquired by Walmart for US$ 16 billion, Flipkart is expected to launch more offline stores in India to promote private labels in segments like garments and electronics.

• Paytm has launched its bank called Paytym Bank. It is India’s first bank with zero charges on online transactions, free virtual debit card and no minimum balance requirement.

  • Indian e-commerce industry has witnessed 21 private equity and venture capital deals worth US$ 2.1 billion in 2017 and six other deals worth US$ 226 MILLION IN January-April 2018.

KEY CHALLENGES FOR E-COMMERCE BUSINESS IN INDIA

In spite of immense opportunities, the e-commerce industry in India also poses certain challenges which can be difficult to handle especially by the startups

Some of the major challenges faced by E-commerce industry in India are:

• Online Security

• Cash On Delivery

• Less Knowledge and Awareness

• Tax Structure

• Logistic and Shipment Services

• Cash On Delivery

• Fear Factor

• Online Transactions

SCOPE AHEAD

The Indian e-commerce industry is directly going to impact the micro, small & medium enterprises (MSME) by means of financing, technology and training etc. Tech-based innovations like digital payments, hyper-local logistics, analytics-driven customer engagement and digital ads will likely support growth in this sector. With the increase in the number of electronic payment gateways and mobile wallets, it is expected by the year 2020, cashless transactions will constitute 55% of all the online sales.

The growth in the e-commerce sector will boost employment, increase export revenues, increase tax collection by ex-chequers and provide better and wide range of products and services to customers in the long-term.

WANT TO START YOUR E-COMMERCE BUSINESS?

Here at Hemraj Infocom , we help startups and companies get the bottom-line benefits of the latest technology solutions that solve real-life problems. We are the one-stop IT Service provider for developing powerful and high performance mobile apps, websites and customized software for all platforms with on-time delivery.

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