Insights into the ECommerce Industry in India and Related GOI Policies

Online shopping is on its verge in today’s date. Availability of every small to big commodity at doorsteps is the convenience no one is willing to give up now. When it comes to online shopping the very first thing that comes to mind is E-Commerce Websites.

India has the largest consumer market and is the second-largest in terms of smartphone users. No doubt, ECommerce Websites in India are meant to rule. In fact, the Indian eCommerce market is expected to touch $200 billion benchmark by the end of 2026 from $39 billion in 2017.

In this tech-driven era, an eCommerce website triggering the second-largest population of India is anybody’s best bet. The market is vast, open to all, and highly competitive (with users cruising through multiple websites for best deals and satisfactory user experience).

Indian ECommerce Market Size

Thanks to the ever-increasing smartphone penetration and the launch of 4G and unlimited WiFi access, India has become the most potential market for E-Commerce businesses. Serving every age group from teenagers to Millenials, adults and old, E-commerce websites have successfully reserved a grand position in the Indian market.

Giant eCommerce Investments in India

A couple of years ago, several domestic and foreign firms chose to invest in ECommerce tangents who are playing in shedloads today. The well-known names among them are Amazon, Flipkart, Reliance and Myntra. 

Here are some noteworthy investments by these giants:

Amazon - In 2017, Amazon became the leading ECommerce business in India followed by other prominent players like Flipkart and Myntra. In November 2020, Amazon announced its collaboration with Hindustan Petroleum, under which the customers got to book and pay for LPG cylinders online without hassles.

Flipkart - In Oct 2020, Flipkart thought of outreaching its premises and acquired 7.8% stakes in Aditya Birla Fashion and Retail for the whole shedload of Rs. 1500 Cr. Flipkart also partnered with Paytm to facilitate the “Big Billion Days Sale” event in Oct 2020.

Reliance - In Nov 2020, Reliance Retail Ventures - a Reliance Subsidiary acquired minor stakes of Urban Ladder Home Decor Solutions in lieu of Rs. 182.12 crore.

Indian market is never saturating for ECommerce Websites. As per the survey conducted in May 2020, the majority of the respondents voted for letting eCommerce platforms deliver goods in India after coronavirus lockdown too. So clearly the ECommerce businesses remain unharmed by the pandemic aftermath. 

Government Initiatives to Promote ECommerce In India

Paying heed to the accomplishments and investments done by the eCommerce giants, the Government of India has opened doors for many like businesses to enter and trade on Indian grounds. 

Here are some noteworthy perks are given by GOI to Ecommerce traders: 

1. In an effort to channelize sales on E-Commerce platforms Department for Promotion of Industry and Internal Trade (DPIIT) is hiring the services of Open Network for Digital Commerce (ONDC) to set protocols for product cataloging and price locks.

1. In 2019, Government e-Marketplace (GeM) signed a Memorandum of Understanding (MoU) with the Union Bank of India to facilitate cashless transaction of money all over the country.

1. In an effort to encourage foreign investments in ECommerce tangents, GOI hiked the limit of FDI for ECommerce business models by 100%.

1. The non-stop endeavor of GOI in rolling 5G in India is all set to boost eCommerce sales in the country.    

Takeaway

No doubt India is a highly competitive market with several domestic and foreign companies striving to possess a major chunk of the ECommerce revenue but one can still stand firm by giving its users the best and personalized shopping experience (through feature-rich and advanced mobile-friendly websites). 

Get started on the right foot by outsourcing your requirements to an experienced and well-versed ECommerce Website Development Company in India- who knows the Indian market and can visualize the scope of your business to render you the best results.

More info: https://www.vervelogic.com/e-commerce-website.html