The Indian ecommerce market has not reached its full potential. With it still in the growth stage, it’s safe to say we’ve seen nothing yet! Our ecommerce segment is making around $30 billion in revenue this year. According to a joint study paper from ASOCHAM and Forrester, the country’s ecommerce revenues are expected to reach $120 billion by 2020. The study also says Indian ecommerce has an annual growth rate of 51%.
Indian ecommerce compared to international ecommerce
India may have a tiny ecommerce consumer base compared to ecommerce giants China and Japan, but in terms of growth it is way ahead, according to the joint study.
What’s contributing to the increasing growth rate?
The growth of Indian ecommerce is driven by the:
- Young demographic
- Increased internet penetration
- Improved economic performance
Annually Indian internet users increase by 25 million. The country has secured an internet user base of 400 million in 2016. Out of this 400 million 75% fall in the age group of 15-35 years. Given the fact that India has one of the youngest demography in the world, it is not unusual that in the last 12 months all categories focused on youngsters have grown exponentially. Most of the online shoppers in India are around 15-24 years old.
The availability of internet has increased with mobile penetration and the acceptance of online payments. Indian ecommerce has acquired a unique opportunity with a favorable demographic. Around 60-65% of ecommerce sales are generated through mobile devices and tablets. Which has forced many etailers to believe m-commerce could lead to almost 70% of their ecommerce revenues.
What sells best?
The retail category gets at least 65 million unique visitors in a month, which means online retail has an annual growth of 55%. Apparel is the fastest growing online retail category with a reach as high as 24% online users.
Branded goods like footwear, apparel, and accessories are major money makers in Indian ecommerce. They move quickly on mobile phone apps, which show you just how popular these categories are.
Online retailers like Bluestone and Amazon are expecting promising sales numbers for diamond and gold jewelry, especially with Akshaya Tritiya approaching. Despite the rise in precious metal prices, online retailers are pretty confident people will buy from them. If not extravagant pieces at least small and simple items like bracelets and chains.
It’s a good time to be an online seller, especially on eBay?
While offline retail revenue streams are running dry, etail seems to be doing fine, like we’ve just seen. That is despite FDI rulings and constant mishaps in online retail. Investors are focusing on ecommerce growth and you should too.
It’s time you reconsidered you thoughts about online marketplaces like eBay because for some, marketplaces are the ticket to online retail success. Recently three of eBay India’s online sellers were honored with awards by the honorable president of India, Pranab Mukherjee, for their contribution to the international market of retail exports. They received their awards at the 15th FIEO (Federation of Indian Export Organizations) “Niryat Shree” and “NiryatBandhu” Awards.
The federation is a representation of Indian entrepreneur’s spirit of entrepreneurship at the global level. The FIEO recognizes exporters, service providers, best performing banks and export promoting organizations, with accolades like the “Niryat Shree” and “NiryatBandhu” Awards for maximum foreign exchange contribution to the country’s Forex reserves. All three eBay sellers were presented with awards by the FIEO, under their ecommerce category.
The deserving winners
- Gold Award
The Gold Award was presented to ‘Gopali Arts’ from Jaipur, for their extraordinary performance in textile and home furnishing on the global platform. Gopali Arts is popular on a national level for vibrant and royal vintage textiles, cushion covers, bed linens and other home furnishing products.
- Silver Award
“Silver Organization” another organization from Jaipur was awarded the Silver Award, for their traditional, antique and silver jewelry exports.
- Bronze Award
Finally, the Bronze Award was received by ‘Sankriti India’, a Delhi based exporter. They were presented with the award for the ‘Indianess’ they expressed through Indian fabrics, handicraft and saris.
eBay is proud of its sellers
Navin Mistry, the head of retail exports at eBay India said with regards to the awards,
“We are extremely proud that our sellers have been recognized and awarded by FIEO, the apex body of export promotion organization in India. Understanding the important role played by exports in the growth of our economy, we are proactively engaged in assisting our sellers to reach more buyers across the globe. We hope that these stellar achievements will inspire many other entrepreneurs who wish to benefit from the power of e-commerce.”
eBay has gone through some pretty rough weather as a result of unhappy customers and sellers. The marketplace may be in trouble at the moment but it still seems to be helping its sellers flourish on the global level. So could it be that eBay’s Indian operations and planning are faulty?