Growth of E-Commerce Online in India
India is on the course to become most powerful e-commerce hub, considering the current growth projections. Rapid increase in the internet users and the superfluity of investors in this sector has defined the glory of growth. From year 2007 to 2014, there has been robust increase in the number of internet users. It has shoot up from 50 million to 300 million. And now when smartphones are introduced, it has opened plenty of other avenues for users to get in touch with e-commerce platforms.
According to the geographical distribution of Indian users that are availing e-commerce services, there have been 99 million users from urban areas and 38 million from rural areas in year 2012. In 2013, the number has bounced to 130 million in urban areas and 60 million in rural regions. The estimated boost in year 2015 is 216 million in urban areas and 138 million in rural regions. Share of Indian eTail in retail by year 2014 was 91.6%.
With a consistent growth in the sector, investors aggressively invested in building their strong online presence in 2014. Beside the conventional formats, many new niche platforms have tapped in the industry such as: real estate, grocery, healthcare, classified, etc. Given the financial forecasts of e-commerce in India, it will lure interest of many other high end investors in 2016. There were multiple India’s blue-chip firms who evaded the idea of investing in e-commerce business earlier. But now, they are in look of an opportunity in this sector.
Here are some of the prospects of accelerating growth from 2013-2014:
- Influence of Mobiles: With the development of mobile apps, PC’s are rapidly being replaced by smartphones for shopping. 2013 experienced only 10% of users with smartphones. 2015 has got 50% of online orders being placed by smartphone users. Industries like entertainment, online bill payment, mobile recharge, music download, etc are enjoying more sales than others via mobiles.
- More Locations Targeted: With a potential growth in e-commerce, more cities are being added to the assortment, for delivery of online goods.
- Bigger Partnerships: Bigger partnerships are trending at online realm between eTailers and established boutiques. Fashion and Lifestyle industry brands have been joining hands with e-models to reach their customers.
- Enhanced Shopping Experience: Thanks to the wider range of brands getting add up in the list, the user shopping experience has been subtly enhanced.
Websites such as Amazon, Flipkart, Ebay, Snapdeal, etc are the absolute inspiration for the budding web portals. These websites has set an indispensable benchmark in the industry.
- Flipkart with its brand value, network reach and huge product portfolio has made tremendous growth in online industry. From the revenue of $100 million in 2012, the sales of the website have gone up to $1 Billion in 2015.
- After commencing the business in 1999, Amazon has raised the array of revenue from $1 Billion to $17.7 Billion in 2015.
- Likewise, the revenue of Ebay has gone up to $18 Billion in 2015 starting with the business of $9.2 Billion in 2010.