It is also believed that the eCommerce market is expected to be 501.6m (approx.) users, by 2029. As of 2024, the e-commerce penetration in India is 22.1% (approx.), which will reach 34% (approx.) by 2029. **
This is what we call as eCommerce revolution and the imputes behind this revolution is the development of necessary infrastructure supporting the e-commerce industry in India. This article will look into all such reasons for the development of the e-commerce industry and the future trends that we must keep tabs on.
Reasons Behind E-Commerce Development
UPI
UPI system was launched in 2016 and it revolutionized the way the common public made digital payments. A UPI ID meant that you could pay money from your bank account to any other bank account, instantly & effortlessly, via a payment app (popularly, Gpay, Paytm, PhonePe, etc. working in the Indian space). This development in the digital payment sector played a pivotal role in the growth of the e-commerce sector in India.
Source: NPCI
Tech-savvy Population
It is believed that India is the second largest consumer of the internet, globally. There are about 700 million active internet users in India (as of 2023) *** and this number is only growing. This shows that a majority of the Indian population is tech-savvy and does not shy away from using e-commerce websites to buy products & services online.
Internet Connectivity
It was in 2016 when Jio launched its services, which brought a major shift in the way people could use the internet in India. Before 2016, the general population was required to spend Rs 225 per 1GB of data. After Jio entered this market, it offered free voice calls, high-speed internet (4G), and a substantial cut in the cost of using the internet; Jio optimized Internet usage for the Indian public, which again was one of the major reasons for the growth of the e-commerce industry in India.
Raising Disposable Income
When the disposable income within an economy grows, it directly leads to an increase in the consumption of goods and services within the country. With the rise in disposable income, it was easy for the Indian population to spend more on e-commerce websites.
Rise of Couponing Aggregators
Shifting to e-commerce shopping took a lot of learning on the part of Indian shoppers and a lot of work on the part of initial players who pioneered the concept of online shopping in India. Coupons aggregators played an important role in helping people get used to online shopping with their lucrative digital coupons. Currently, people look up to some known coupon aggregators like CouponzGuru to find lucrative promo codes and discount deals, before buying goods & services online.
Future Trends of the E-commerce Industry in India
Newer technologies are changing consumer behavior in India and we can see a major growth in the e-commerce industry. With the growing technology, online shoppers are keener on providing enhanced online shopping services to their customers by providing more variety and value for money.
Virtual Trial Rooms
With the development of AI, you will have access to virtual rooms where you will be able to virtually see the look and feel of any product (and also use it virtually), before actually buying the product. This will enhance your shopping experience to the next level.
Personalization
Businesses are investing heavily in gathering consumer data so that a consumer is provided with personalized product & service offerings. This also leads to a higher sales conversion rate.
Social Commerce
Social media channels have become very important in driving sales; especially, if you are new in the market, you can easily promote your brand online and gain a customer base for your business (without spending extravagantly on marketing).
Hyperlocal Delivery
You are no longer required to wait for days to get your delivery nowadays. This has become possible because major e-commerce platforms are shifting to hyperlocal delivery systems. This means that a product is picked from a local supplier and is delivered directly to the customer.
Rural E-commerce
E-commerce is now spreading its wings into rural India and making it possible for the rural population to buy their essentials online. This is a major development that we will witness in the coming years, within India.
Conclusion
Currently, India is a $3.7 trillion economy, and it is all set to hit $5 trillion in the coming years. Growth in the e-commerce sector will play a pivotal role in reaching these numbers. We will also see a growth in SMEs that would target the rural population and increase the penetration of e-commerce to rural India. In short, this is definitely positive news for the e-commerce industry and great news for all the online shoppers out there; we as consumers can only expect an enhanced online shopping experience, impeccable product & service quality, and value offerings, in the coming years.
(This article is part of IndiaDotCom Pvt Ltd’s Consumer Connect Initiative, a paid publication programme. IDPL claims no editorial involvement and assumes no responsibility, liability or claims for any errors or omissions in the content of the article. The IDPL Editorial team is not responsible for this content.)
