The Internet and Mobile Association of India (IAMAI) has reported an annual increase of 32.63% in online retail in India last year with sales of $12.6 billion (Rs 62,967 crore). Indicating significant progress since 2012, when sales from online retail was $9.5 billion (Rs 47,349), it also expects further growth as government policies and FDI regulations may be relaxed in addition to improvement of logistics services.
With over one million online retailers, online sales in India today constitute the sales of product categories like electronics, books, apparel, accessories, footwear, jewellery, etc. The presence of increasing numbers of online sellers indicates the benefits of selling online like-
Apparel and jewellery brands are increasingly turning to online sales channels, with apparel contributing to majority of sales from east and south India. Whereas, leather and consumer items are more in demand in the north and the west.
India’s online retail scenario is developing along a global trajectory and is providing a sustainable and profit-centric marketing and distribution model for sellers. While technology platforms are generally operated from the major cities, most of the logistical management like storage and deliveries are handled from tier 2 and 3 cities as well if that works out to be more cost-effective.
Opportunity for Indian Online Seller
The growth of the online retail sector indicates increase in the number of people turning to online purchases. 2013 saw the conversion of many skeptical customers into loyal customers and the introduction of many new product categories. Growth of the sector also indicates better opportunities for sellers.
After dwindling with her family business, into travel and hospitality, for more than 3 years, Pooja Vishant found her true love in writing. Happy-go-lucky and cheerful, she loves pink; so pink is the way to go if you want to get into her good books. The Associate Editor keeps track of even a leaf that has moved in the ecommerce world!
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