A chapter to be included very soon in the history books! The Indian ecommerce market looks aggressive, and considering its performance in the last 1-2 years, it is predicted that we’re not far from the day it will hit the $850 Billion mark.

1. State of Ecommerce in India
A chapter to be included very soon in the history books! The Indian ecommerce market
looks aggressive, and considering its performance in the last 1-2 years, it is predicted
that we’re not far from the day it will hit the $850 Billion mark.
Growing internet users, convenient payment options and hardcore marketing strategies
are a few aspects that have played a greater role in the ecommerce explosion.
Currently, 10% Indians shop online and spend 5.4% more time online as compared to
last year. Moreover, the internet penetration in India also remains close to 10% and
shows a promising growth in the coming years, which has led to a strong drift towards
online retailing with more investors and businesses joining the bandwagon. It is
expanding with a growth rate of 40%-45% CAGR.
About 50%-80% of online retail sales are believed to have generated from the Cash on
Delivery option. Similarly, Assured Delivery, No-questions-asked replacement policy,
Zero cancellation fee, free shipping, EMI option and regional language preferences are
driving extreme sales and engagement while unique offerings like freebies, discounts
and coupons are already eating into the profits of offline retail.
Major Players
Three top players seem to have emerged from this bubble burst, Amazon India,
Snapdeal & Flipkart. Though it is too early to predict their success and penetration in the
Indian ecommerce market, it is likely that they will be retaining their positions in the
coming years as competitors.
According to Harminder Sahni, founder and managing director of Wazir Advisors,
“Ecommerce players either try to kill competition or merge with each other- to reduce
consumers’ options so as to ultimately leave them with only one option and force them
to be loyal”.

2. Major Categories
Among all the categories, Fashion and Apparel Category topped the charts leaving
behind the all-time forerunner ‘Mobile & Technology’. After a fabulous year, Fashion
category is expected to grow 400% in the next 3 years and a $2811 Million GMV is
projected by the end of 2016.
All the major categories suggest a favorable incline in online sales and are expected to
grow exponentially. Categories like Consumer electronics, FMCG, Toys, baby products,
Books, Sports, Home Furnishing, and Retail Food & Movies etc. are slowly embarking
towards the Multi-billion Dollar market but are still under average penetration in
comparison to global trends. Factors which remain influential in market performance
like User base, Engagement, Capital influx, lifestyle, Technology, Market adoption,
Demography, Fulfillment and disposable income are critical to the overall growth and
drive a larger portion of online retail.

3. Source: Accel
To conclude, ecommerce in the last 12 months has seen explosive growth. The path of
social media has helped online retailers and marketplaces to generate high traffic and
engagement. It is definitely a learning curve for India’s ecommerce market and it seems
that we are riding it the right way.
Ecumen consultancy is a leading ecommerce marketing and development services
provider company in Ahmedabad, India. Find more information to
http://www.ecumenconsultancy.com/development/