Growth of E-Commerce In India and Why E-commerce Popular in India?

Here we describe the growth of E-commerce in India. E-commerce is the platform where we can sell and buy any products and services over the Internet. It is conducted over computers, mobiles, tablets, or other smart gadgets. We can purchase anything on the internet like from grocery, vegetables, clothes, or everything that we use in our daily lives. After the pandemic, this E-commerce business has been a lifesaver in our lives. E-commerce become popular because in this we don’t need a physical presence. The main reason behind the growth of E-commerce in India is the growing number of internet users and smartphone users.

Growth of E-commerce in India:

According to Forrester Research, growth of E-commerce in India has risen by 7-8% in 2020. India became the 8th E-Commerce, the largest market in the world.

In India, approximately 19000 companies are working in the E-Commerce Sector. Amazon India is the biggest company for E-Commerce in India If we talk about today’s scenario E-Commerce has increased by 30% per year. It becomes like an unstoppable thing. The market in India is ranked 2nd worldwide whereas China is ranked as No1.

If we will discuss the revenue of the E-commerce industry you will be surprised to know that it increased from US $39 billion in 2017 to US $120 billion in 2020 which shows almost 5% of the annual growth. As per the survey E-commerce market of India could reach up to US $200 billion by 2026.

We have seen unexceptional growth in the e-commerce sector in India in the last few years. This growth is happening because of the easy availability of the internet and smartphones.

Here are some points why E-commerce has become so popular in India:

• The main reason for the growth is the availability of smartphones and the Internet which that it become too easy to access.
• Our government also takes so much initiative to increase the market of E-Commerce in India. They announce various initiatives like Digital India, Make In India, Start-Up India, Skill India, and many more.
• The convenience of shopping anywhere at any time for anything like food, clothing, groceries, or medicine is the major reason for the popularity of E-commerce.
• Smartphones and digital payments are the main reasons behind the growth. There is a massive growth in the use of digital payments. The reasons behind the growth of digital payments are that these are secure platforms for payments.
• Apparel, electronic goods, and books are the major sectors of E-commerce but we can see growth in other sectors also as food delivery, FMGC, and grocery. The home delivery option is the main reason behind the growth of these sectors.
• There are so many factors that lead to the growth of E-commerce in India such as the increased rate of smartphones, easy availability of the internet, and the busy working schedules of people.

Top E-Commerce companies in India:

1. Flipkart
2. Amazon
3. Make My Trip
4. Pay U Money
5. Myntra

Other benefits of E-Commerce:

As far as the market of E-commerce in India increases it will also increase employment in society. It will also increase the tax collection and revenue from exports and products. It also provides better services to consumers in the long term.

Why there is so much potential in the E-commerce industry In India?

All the facts and data show the unbelievable boom in the E-commerce sector in the past few years. The current pandemic situation is also a major reason for its expansion.  In that tough, all the daily needs things are available for us just because of this sector. Many companies like Amazon, Flipkart, Netmeds, Zomato, and many others make it possible.

In the last two years, so many companies have enabled E-commerce in India. India is the second-highest populated country in Asia. This was also a big reason for the expansion of E-commerce in India. Bharat Pay, Pay U Money, and Paytm are some companies that make payment methods so easy.

Otherwise, earlier you have to make your payments in cash, by cheque, or through a debit card. Still, there are so many opportunities that are underrated but have the potential for growth but bypassing years we can see key growth in those sectors also. The spokesperson of Google India says that web content search in Hindi has had a whopping growth of 155% in past years we can see traffic growth in other languages is also quite impressive.

Future of E-Commerce:

India is a developing country and E-commerce plays a vital role in its development. As per a survey, there were more than 100 billion active users in India in 2021 and that is also increasing day by day. Increasing demand for broadband services, easy availability of products with its substitute, and increase in the standard of living are also major reasons behind its development.

We can divide the E-commerce sector into three categories which are physical services, physical goods, and virtual goods.

• Physical Services: Physical services are those services that include matrimonial sites, travel sites, hotel booking sites, jobs, and event management. These sites also provide you so many offers or deals.

• Physical Goods: Physical goods are the second category in which we include Amazon, Flipkart, and Meesho where we can get almost everything from laptops to footwear.

• Virtual Goods: Virtual goods lie in the third category which includes gift vouchers, free holidays, free movie downloads, or software downloads.

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Prospectus of E-Commerce in the Indian market:

1. Opportunities for retailers: In this pandemic, E-commerce comes like a lifesaver for retailers. He can save his existence in the market using E-commerce. Facebook lives are the biggest example of this.

2. Opportunities for the wholesalers or distributors: E-commerce becomes that much popular so that a producer and a consumer can easily ignore their existence he can directly sold their goods or services to the consumer. So, the wholesalers can take advantage only when they can establish better contracts with the producers and link their business to the E-commerce platform.

3. Opportunities for the wholesalers: Producers can also take advantage of E-commerce by linking themselves online providing better information about their products and linking them with the related business chain and can create their own identity in the market.

4. Opportunities for the consumers: E-commerce is also so much useful for consumers also. They just need an internet connection and a smartphone to access everything that they need. With a single click, so many options of their choice are available there.
   

Conclusion:

It is very difficult to predict the future of E-commerce in India.  There are so many sectors of E-commerce that have a bright future in India like the Travel and tourism sector, electronics sector, hardware sector, and fashion industry.

There are also some factors that can contribute to the boom in the sector of E-commerce: like replacement services, refund policies, payment methods, and easy accessibility to each and every place.

In today’s scenario if a business has to survive in the market then they have to provide its consumer’s products as shown on its portal, provide them various payment methods, and attractive deals.

However, the availability of online shopping has created an educated consumer base in which there is no need for their physical presence and saves time also.

The industry is seeing monstrous growth. There are so many factors that contribute to the growth of this sector. The Indian E-commerce market is ranked 10th in cross-border growth in the world. There are so many new sectors that are going to open so we can say that E-commerce growth keeps climbing.

In short, E-commerce has not only opened new doors for the consumers but also for the producers and wholesalers and this is a win-win situation for both the consumers and producers which gives benefits to both.