Today, a few clicks can bring your desired product to your doorstep within hours. But have you ever wondered how many Indians have access to this convenience or how extensive e-commerce truly is in India?

Let's delve into India’s E-commerce Industry and uncover some lesser-known facts about it.

In this blog, we'll cover:

1. Important parameters to understand E-commerce

2. Illuminating India’s E-commerce Terrain: Key Insights

3. E-commerce Expedition: Navigating India's E-Commerce landscape

4. Discovering Challenges in the Indian E-commerce Sector

5. Recent Developments in India's E-commerce Landscape

6. In Summation: Key Takeaways and Future Endeavors

7. Propel Your Business: Join the E-commerce Revolution with Unistack.ai

Important Parameter’s to understand E-commerce

Several factors, such as internet accessibility, smartphone penetration, government regulation, and support, are crucial for e-commerce analysis. Let's focus on a few key ones:

• Internet penetration: With over 881 million active users, India ranks second globally, according to telecomviewaisia.com India is set to reach over 87% of households by 2025, thanks to the internet evolution post-2016.

• Access to smartphones: India boasts over 1 billion smartphone users, according to Statista reports.

• Access to digital transactions: India has developed best-in-class digital payments infrastructure and has over 300 million UPI users actively engaged.

• Serviceable Areas: Top-tier logistics companies like Shiprocket, Delhivery, Bluedart, Ekart, etc., have established a deep pan-India presence covering 25,000+ pincodes.

• Disposable Income: According to the Ministry of Statistics and Programme Implementation India's total combined disposable income reached a record high of 297,059,026.70 INR million in 2023, enabling Indians to explore and spend on e-commerce facilities.

All the above-mentioned analytical factors directs us into the rapidly growing E-commerce sector of India.

Illuminating India’s E-commerce Terrain: Key Insights

India’s Impressive Retail Market

India's retail market contributes 10% to the GDP, employs over 8% of the population, and is growing at a staggering rate of 10%, projected to reach $1.1 trillion by 2027. However, only 12% of this market is organized.

Role of e-commerce in India's mega retail

The market size of India’s E-Commerce sector is USD 70 billion (GMV, 2022), expected to reach $350 billion by 2030 with a 23% CAGR. E-retail accounts for approximately 7% of total retail in India, significantly less compared to countries like the US and China with over 35% and 24% share of e-commerce in retail, respectively.

Demographics of India’s e-commerce

Initially driven by Urban India, e-commerce's major growth is now observed in rural India. The number of online shoppers in India is projected to increase at a CAGR of 22% to 88 million in rural India between 2019 - 26, compared to a CAGR of 15% to 263 million across urban India in the same period. From 2020 to 2030, Tier 2+ cities will contribute 88% of new online shoppers and $150 billion in cumulative incremental online retail GMV.

E-commerce Expedition: Navigating India's E-Commerce landscape

Here are some major companies operating in various segments of Indian E-commerce:

Discovering Challenges in the Indian E-commerce Sector

India faces unique challenges in its e-commerce landscape. The top six challenges for Indian e-commerce sellers are:

1. Intense Competition: Navigating and differentiating in India's highly competitive marketplace poses a significant challenge.

2. Cybersecurity and Fraud Prevention: Safeguarding customer data and transactions from escalating cyber threats and fraud is imperative.

3. Cost of Customer Acquisition: Managing the expenses associated with attracting and acquiring new customers is crucial for controlling overall costs and ensuring sustainable business growth.

4. Cart Abandonment: Addressing the issue of users abandoning their shopping carts before completing purchases is a significant concern.

5. Returns and Refunds Policies: Formulating clear and customer-friendly policies for returns and refunds is essential for maintaining customer satisfaction.

6. Meeting Customer Expectations: Ensuring that customer expectations regarding service, quality, and support are met is a key aspect of e-commerce success.

Recent Developments in India's E-commerce Landscape

The e-commerce landscape is ever-evolving, marked by transformative developments that shape the industry's trajectory. Here are some noteworthy recent advancements:

1. ONDC Initiative:

   The Open Network for Digital Commerce (ONDC) is an open protocol-based network facilitating the discovery and engagement of local commerce in various sectors, including mobility, grocery, food delivery, and travel. Initiated by the Indian Government’s DPIIT, ONDC seeks to empower micro, small, and medium enterprises, as well as small traders, by providing opportunities and making digital commerce unbundled and interoperable.

   
   

2. Subscription-Based Models:

   Subscription-driven e-commerce is on the rise, offering convenience to consumers and ensuring recurring revenue for businesses. Amazon Prime's success exemplifies this model, providing customers with benefits like fast delivery and streaming services, fostering loyalty, and generating consistent revenue for Amazon, making it a win-win for both.

   
   

3. Sustainability Initiatives:

   A growing emphasis on sustainability is evident, with giant e-commerce companies like Flipkart incorporating eco-friendly practices in packaging, supply chain, and overall operations.

   
   

4. Drone Delivery Trials:

   Logistic companies like Amazon and Bluedart are actively experimenting with drone delivery trials to expedite and revolutionize the last-mile delivery process.

   
   

5. Augmented Reality (AR) Shopping:

   Integrating AR in e-commerce enables customers to virtually experience products before buying, providing an immersive and personalized shopping encounter. This is demonstrated by IKEA's AR app, allowing customers to visualize furniture in their homes, enhancing the overall shopping experience.

   
   

Conclusion: Key Takeaways and Future Endeavors

In wrapping up our journey through India's bustling e-commerce scene, we've uncovered key factors driving its growth—like lots of people using the internet and having smartphones. Despite challenges, the industry keeps growing with cool stuff like ONDC and subscriptions. It's not just about buying and selling; it's about changing how we do things. The story doesn't end here; it's a tale of change, resilience, and opportunity. Opportunities are big, and if you're curious and excited, there's more to discover in the world of Indian e-commerce, especially with ONDC. Explore, learn, and be part of this exciting e-commerce journey!

Propel Your Business: Join the E-commerce Revolution with Unistack

Unistack provides the complete suite of tools and services necessary for businesses to thrive on the Open Network for Digital Commerce (ONDC). As a leading solution provider, we empower sellers, brands, and enterprises to fully harness the potential of ONDC, propelling growth and extending their digital commerce reach.. Level up your e-commerce game by joining a $300 billion opportunity with a buyer base of 500 million. To join or know more about ONDC, visit https://unistack.ai/.