Growth of E-commerce in India - An Overview
                     Growth Of E-Commerce In India: An Overview
Anita Ray
Writer at Marvist consulting and writes for
 Marvist Digital Marketing's blog.
In India, the growth of the e-commerce industry has been phenomenal in the last 
decade. With international giants like Amazon already establishing their presence, 
several indigenous firms have shown impressive performance in terms of growth. 
Most importantly, digitization in India has taken place rapidly in the last couple of 
years. Being one of the fastest developing economies in the world, the e-commerce 
segment in India looks promising.
However, the penetration of e-commerce in India is relatively low, at 28%. 
Considering the massive population that the country has, along with slower growth 
in infrastructure as compared to the West, this figure is impressive enough. In 2019, 
the e-commerce market in India is likely to generate revenue of around $32 billion 
or Rs.2.24 Lakh crores.
Which Segments Are Performing Well In The Indian E-Commerce Market?
In terms of sales, the fashion segment has performed outstandingly well, in 
comparison to other segments. Companies like Flipkart, Snapdeal, Shopclues, 
Koovs and others are enjoying an increment in their market share over the 
years. Besides, the sale of electronic goods online is also notable in India. Being 
experimental and strategic with the marketing policy, the e-commerce 
companies operating in India have thrown up mega sales and discounted prices 
from time to time. This has further increased the popularity of e-commerce in 
India.
As of 2018, the Indian internet user base stands at 475 million or 47.5 crores. This 
is around 40% of the Indian population. The penetration of e-commerce in the 
Indian market has remained relatively low, as compared to other nations like 
France and the US. However, the sector is growing rapidly, with close to 6 million 
(60 lakh) new companies entering the e-commerce sector every month.
Things To Know About The Indian E-Commerce Sector
 The largest e-commerce companies operating in India, as of 2017, were 
Amazon, Flipkart, Paytm, Myantra and Snapdeal. Flipkart was the largest e-
commerce company in Indian till 2018. However, Amazon overtook Flipkart in 
terms of sales volume and revenue.
 Walmart has acquired Flipkart for $ 16 billion (Rs 1,12,000 crore). Therefore, it 
is expected to come up with a greater number of offline stores in India. This will 
give a stiff competition to Amazon and other e-commerce players. Particularly, 
Flipkart is expected to promote segments like electronics and fashion. Flipkart, 
in 2018, had acquired Upstream Commerce, an analytics startup based in Israel. 
This is likely to provide the company with a better direction amidst the 
competition in the industry.
 Paytm, on the other hand, has launched Paytm Bank. This is the first bank in 
India that does not charge any money for online transactions. Besides, the users 
get a free virtual debit card and no minimum balance requirement has been 
announced.
 Google, too, has penetrated the e-commerce industry in India. Google Shopping 
is presently gaining popularity. The company has also collaborated with Tata 
Trust for the ‘Internet Saathi’ project, which will encourage a greater number of 
rural women to use internet.
Presently, an increasing number of companies are shifting to the virtual business 
space, and several startups and launching their e-commerce businesses. The 
upcoming years are likely to witness a boom in the e-commerce industry in India.
Note: US Dollar to Indian Rupee exchange rate assumed at Rs.70/- for each US 
dollar
About Marvist
Marvist Digital Marketing, a 14 years old premium company, has established a 
special niche for their high-end professional service to the small and medium 
enterprise market segments in US & UK. Over the years, Marvist served nearly 1000+ 
medium firms with its expertise and innovative approach that offered true economic 
value to the customers.
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