Ecommerce is an activity in which a person buys or sells goods and services on the internet. Many Ecommerce websites allow people to do this. This is the largest sector of the Electronics Industry and is driven by technological advances.
India, which has the second-largest user base of the internet in the world, is only behind China now. There were around 696.77 million internet users as of May 2020 which is about 40% of the total population.
Despite all this, the emergence and effect of e-commerce are not as much as compared to other countries like the United States or France but it is continuously growing. The Information Technology Act 2000 governs the applicability of e-commerce.
The Indian e-commerce market is somewhat different from other countries. Here people take time to get comfortable with getting products online.
Indian people believe in the touch of the product, communication with the salesman, and security which is the most important than all. Due to all these factors and mainly the security of their payments, around 75% of the e-retail activities are in the form of cash on delivery.
It is the most preferred form of payment in India. Through the years, the market size of e-commerce has grown in India. The types of products and services offered and the number of websites for e-commerce has increased. With the help of some numbers, we can confirm that.
In 2009 the Indian e-commerce market was valued at $3.9 billion which increased to $6.3 billion in 2011. In 2017 it was estimated at $24 billion and was recognized as the fastest growing industry in the country. The market grew to $38.5 billion in 2018 and is estimated to reach the $99 billion mark by 2024.
This growth is because of the e-commerce companies knowing and understanding what the people of this country need. As Indian people have always preferred the traditional brick-and-mortar way of shopping, this was something new for them. It took some time for the people to get accustomed to it.
But after they did we saw the rise in the market share of this industry. So what did the companies do that people started to recognize their presence and started to use e-commerce as a platform?
They made necessary changes in their business models which made the people comfortable. The change in the security system which has enabled more trust for the customers is one of the reasons that digital payments are also increasing.
When people understand the advantages of this they happily accept it. Even the sellers are increasing on these platforms as they realize that when being online they can cater to a larger audience and can earn more profit.
In India, we can see all three kinds of e-retail.
B2C – Business to Consumer (Flipkart)
B2B – Business to Business (IndiaMart)
C2C – Consumer to Consumer (Olx)
Due to the covid-19 pandemic, this industry took a rise as people started to order products, groceries, services, etc. from these platforms. The world went online and so did the shopping.
In India, due to some government guidelines some of the companies had to face problems but they overcame this situation by collaborating with other companies. For instance, Myntra collaborated with Wildcraft to sell protective face masks.
All the niche retailers who faced many problems now have a platform to sell their products worldwide. The spread of e-commerce is increasing and as a result, almost 1,06,086 websites are registered daily and more than 25% are for niche businesses. India is going digital and this is the proof for that.
The e-commerce industry has been growing and will continue to grow in the coming years. People need to understand how these platforms work and make the most out of them.
E-commerce has its disadvantages but its advantages are much greater in number that can help the people of India and also the economy of India.
Written by: Bhavish Doshi
Edited by: Gourav Chowdhury
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