India’a eCommerce market is growing at 70 percent y-o-y and has grown over 500 percent since 2007. In 2010, all online purchases (in India) put together were worth $ 6.79 billion. The chart below reveals the growth of the online-industry since 2007.
More and more Indians are making online purchases through ecommerce websites. In the coming couple of years, this trend will see exponential growth; thanks to credit card & banking industry for providing easy and secure means for online payments and to logistic industry for offering affordable and reliable product delivery channel.
Currently, the eCommerce market in India is dominated by the online travel industry with over 78 percent market share while online retail of goods and products enjoys 6.48% market share.
Here onwards, India will see boot in availability of technology & support framework for building and running ecommerce business profitably. More and more technology companies will build the ecommerce websites at affordable price using open source frameworks like Virtuemart, Magento, Ubercart etc. On the other hand, retailers will have option to use readymade s-a-a-s ecommerce platforms like Martjack to build their ecommerce sites. There will be ample number of digital marketing companies that will help retailers promote their ecommerce site on internet. Such promotion may include SEO, SEM, SMO. Thus, availability and affordability of technology for building and running ecommerce business will not be a big problem for retailers and manufacturers.
On the other hand, the next generation of Indian retailers and manufacturers will be tech savvy and with calculated risk, they will certainly try our ecommerce or e-tailing for their business. Vis-à-vis, mindset and buying capacity of Indian consumer will rise. This will directly impact the positive growth of ecommerce.
In short, eCommerce industry in India has bright future.