Migration of consumer from physical market to online shopping, resulting a tremendous growth in India’s online sale. The e-commerce market of India is expected to grow by 3 times, setting a milestone of USD 12 Billion (Rs.78000 Crore) by end on this year. During year 2014, industry summed to USD 4.5 billion (Rs.28000 crore).
The industry giants like Amazon, Flipkart and Snapdeal has increased choices by adding sellers to the platform. Alone Amazon has seen its sales in India grown four times in this year, whereas has tripled the number of sellers on its platform. The another e-commerce giant Flipkart has sold more than 5 million products, which is worth USD 300 million during Big Billion Day Sale continued for five days. Similarly, Snapdeal’s has jumped to next level with product delivery time as low as 4 hours in number of cities.
More than 80 percent of e-commerce market of India is tapped by Amazon, Flipkart and Sanpdeal. However, the growth is not limited to these market leaders and even smaller e-commerce platform are also deriving benefits from the changing trends.
Nitin Bawankule, Head of E-Commerce at Google India said “The overall ecosystem is growing. The good part is that many small guys are also growing rapidly with an increase in their shopper base and GMV. Even a niche e-commerce firm in furniture or baby goods is growing three to four times a year”.
The e-commerce industry as a whole is expected to witness their combines GMV tripled over last last year to USD 12 billion by the end of year 2015, says Google. By the end of 2016 e-commerce industry is projected to be worth USD 18 – 20 billion. The Indian shopper base, majorly shopping through Smartphones, would increase to 60 million in this year, compared to 40 million of last year.
Brian T Olsavsky, Chief Financial Officer, Amazon said in a conference last week “We are encouraged with what we are seeing, both in terms of customers and sellers. On the customer side, active customer accounts have risen 230 per cent over a year ago. We are in the middle of the Diwali season, which is going well. Sales this season have been four times as much as the year-ago period”.
Growth is also coming on the back of increased investment by firms like Amazon, Flipkart and Snapdeal, to expand the market. EBay, another global e-commerce marketplace that has lost its share to Amazon in several geographies, says it could emerge as a serious contender in the Indian market.
Nearly 40 per cent of India’s retail consumption takes place during the holiday season starting from September and ends on December. Flipkart, which has shifted its focus on the mobile app to get more consumers to buy within its walled environment, says this year the business will surpass that in 2014 in terms of both value of transactions and growth in volume.
“Compared to last year, we have seen much better numbers for growth and transactions this year,” Saurabh Chandra, head off apps at Flipkart, had said over the weekend without giving details.