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A succinct insight into E-commerce Scenario in India

The E-Commerce scenario in India, has witnessed a remarkable growth of almost 50% in recent years. Although, the trend of E-Commerce has proactively been making rounds in India, since 15 years now, however, the appropriate ecosystem has now started to take on character.

The substantial increase in the number of internet users, growing confidence in online payments, propagation of web-enabled gadgets/devices, and favorable demographics are some of the crucial components accentuating the success story of E-Commerce in the country.  The numbers of users, indulging into online transactions, have been on a rigorous growth trajectory, and it is anticipated to expand exponentially, in near future.

The online retail segment has evolved and grown expressively over the past few years. Cash-on-delivery has been one of the main growth drivers and, is touted to have accounted for 50% to 80% of online retail sales. Players have adapted to new business models including stock-and-sell, consignment and group buying; however, concerns regarding inventory management, warehouse location and in-house logistics capabilities, are posing teething issues.

Services Under E-commerce

E-Commerce transactions can be fragmented into three general categories or modes, based on type of transaction made –

  • Business-to-Consumer (B2C)

The B2C market in India generates the bulk of revenues, across the consumer-facing modes of E-Commerce. Moreover, though online travel has typically held a major share of the B2C market, online retail is also growing promptly and is projected to significantly increase its share.

  • Consumer-to-Consumer (C2C)

India’s C2C market, though currently trifling, is documented to grow with the entry of several players. These entrants are attracting VC investments. Their online portals are also garnering significant traffic. We can expect the C2C segment to show rapid growth in coming years.

  • Business-to-Business (B2B)

The most common users of B2B online classifieds are micro, small and medium enterprises (MSMEs). These small-scale enterprises lack the required financial resources and, thus, find it problematic, to market their products and services to potential clients, through conventional media for instance, newspapers, banners and television. Trade through online B2B portals, upsurges the visibility of MSMEs in the marketplace and helps them break-through the barriers of time, communication and geography.


E-commerce in India has been experiencing remarkable growth, successfully changing the way people transact. The online market space in the country is burgeoning in terms of offerings, ranging from travel, movies, hotel reservations and books to the likes of matrimonial services, electronic gadgets, fashion accessories and even groceries.

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