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Everything about India’s Ecommerce Market

Create Date: 2019-06-19 10:38:21

Market size and growth

One of the most critical markets for e-commerce, India is a very large and rapidly growing market for online shopping. The Indian e-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Much growth in the industry has been triggered by increasing internet and smartphone penetration. Even though India is still a low-income country, Indians are rapidly getting used to e-commerce and its convenience, and they primarily use mobile devices to access the internet and shop online for a growing array of goods and services.

The ongoing digital transformation in the country is expected to increase India’s total internet user base to 829 million by 2021 from 560.01 million as of September 2018. India’s internet economy is expected to double from US$125 billion as of April 2017 to US$ 250 billion by 2020, majorly backed by e-commerce. India’s E-commerce revenue is expected to jump from US$ 39 billion in 2017 to US$ 120 billion in 2020, growing at an annual rate of 51 percent, the highest in the world.

The Indian internet and e-commerce landscape already counts hundreds of millions of users but it is still far from being mature. With a staggering 560 million internet users, Indian internet users are still only 41% of the total population of 1.36 Billion.

Even though Amazon has taken the lead, Indian companies, especially pure e-commerce players, are holding their ground and fighting to expand their presence in this fast-growth market. And during 2018, electronics is currently the biggest contributor to online retail sales in India with a share of 48 per cent, followed closely by apparel at 29 percent.

Market traffic

Indian e-commerce companies have primarily focused on increasing traffic to their domains to grow sales and revenue. Although this is largely true for any business in any country, it makes a lot of sense for e-commerce in India, where only a quarter of the population shops online.

In 2018, roughly 80% of the traffic to Indian e-commerce websites was a combination of direct traffic (42.3%) and referral traffic from search (36.4%), with social media making up 9.3% and other sources covering the rest, according to an internal study by Adobe’s Digital Strategy Group.

Mobile phones emerged as the greatest source of website traffic in 2018, comprising close to 75% of total visits, the study showed. Brands leveraged deep user engagement and retention on apps for growth, with Indian shoppers spending between 2.5 minutes to 3.5 minutes on average per session.

Market payment methods

60% of the market payments is COD, and digital payment is being promoted, which will reach 85% in 2020 without trust payment. The major players are Paytm, PhonePe, QuikWallet, ZestMoney, etc.


There are many start-ups companies and e-commerce backward logistics development. The business covers self-built logistics and third-party carriers, etc. Inter-city express delivery is relatively mature, but inter-city roads are backward. C2C express need to be developed, the main players are Flipkart-ekar, Delihivery, Shadowfax, Rivigo, Porter, Blowhorn, TransportEG.com, Grab.in, Locus, Cogoport, ElasticRun, GoBolt, etc.

Major platforms in all fields

Top 5 E-commerce Platforms

Top 1 Amazon India

Amazon which was founded in the US in 1994, started as an online bookstore that later diversified to products including media, electronics, apparel, furniture, food, toys, and jewelry. Having expanded to many countries, including India, Amazon has become the uncontested global leader of e-commerce and developed further into brick-and-mortar retail with the acquisition of Whole Foods Market, as well as publishing, electronics, cloud computing, video streaming, and production.

Website: amazon.in – Estimated monthly traffic: 365.5 Million visits

Top 2 Flipkart

Flipkart is the national leader of e-commerce in India. Founded in 2007, Flipkart was initially selling books, before it expanded to other popular categories including mobile phones, electronics, fashion and lifestyle products. 

In 2018, Walmart, one of the largest American companies and leading platforms of e-commerce in the US, acquired 77% of Flipkart for 16 Billion US $. Market analysts expect that after the acquisition of Flipkart by Walmart, the market equation would be changed soon.

Flipkart is leaving no stone unturned to leapfrog Amazon in India eCommerce market by 2023. This insight is based on the curated data from Edge by Ascential that was sent to Business Insider Intelligence for research purposes.

Flipkart’s all-new online grocery business and enhanced digital transformation would strengthen its market presence and soar up in the business.

Website: flipkart.com – Estimated monthly traffic: 221.5 Million visits

Top 3 Snapdeal

Snapdeal is a diversified online shopping platform, offering products ranging from electronics and fashion to home and appliances. Founded in 2010, Snapdeal has received several rounds of funding from famous investors, including Alibaba Group, Foxconn and SoftBank, to fuel its growth and compete for the top spots in India’s e-commerce landscape. It is India’s one of the largest online marketplace, giving you access to not just what you need, but to all that you desire.

Website: snapdeal.com – Estimated monthly traffic: 83.5 Million visits

Top 4 IndiaMart

IndiaMart founded in 1999 is an online B2B marketplace for Indian companies. A competitor of AliBaba, IndiaMart allows manufacturers, suppliers, and exporters to propose their products directly through the platform to get contacted by its visitors. Since 2014, IndiaMart has launched its e-commerce retail platform, Tolexo. You can search for Products, Buyers, Sellers, Resellers, Wholesalers, Manufacturers & Retailers on it and millions of buyers & sellers can connect with each other to fulfill their business requirements.

Website: indiamart.com – Estimated monthly traffic: 42.8 Million visits

Top 5 BookMyShow

BookMyShow is the leading show ticketing portal and retailer in India. Since its launch in 2007, BookMyShow has expanded to sell millions of tickets every month for movies, sports events, plays and more. With the company’s success, BookMyShow has also expanded to other, opening subsidiaries in Indonesia, the United Arab Emirates, Sri Lanka, and West Indies. It is definitely a one-stop destination for all your ticketing and entertainment shows. Over the years, Bookmyshow has catered to millions and have strived in becoming India’s number one online entertainment portal.

Website: in.bookmyshow.com – Estimated monthly traffic: 43.4 Million visits

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