E-commerce market Likely To Cross $50 Bn In 2018: Study
The digital commerce market in India is likely to exceed USD 50 billion by the end of 2018 from the current USD 38.5 billion, on account of a growing internet population and increased online shoppers state a recent study by Assocham-Deloitte.
The digital commerce market in India has grown steadily from USD 13.6 billion in 2014 to USD 19.7 billion in 2015, highlights the study. The increasing mobile and internet penetration, m-commerce sales, advanced shipping and payment options, exciting discounts and the push into new international markets by e-business are the major drivers of this unprecedented growth, it said.
However, the study noted that the Indian e-commerce sector is heavily dependent on the cash on delivery (CoD) mode of payment as it is the choicest one of the Indian consumers due to lack of trust on online transactions, limited adoption of credit and debit cards, and security concerns among others.
“More than 50 per cent of online transactions are done on cash on delivery method and it is available across 600 cities and towns of India,” the study said.
The study further states that, on the increase in preference of mobile transactions, one in three buyers currently makes transactions through mobiles in tier-1 and tier-2 cities. In 2017, 82 percent of shopping queries were made through mobile devices, compared to 76 percent in 2016, the study said, pointing to the increasing mobile transactions.
As per the survey, 28 percent of regular shoppers are in 18-25 age group, 42 percent in 26-35, 28 percent in 36-45 and 2 percent in the age group of 45-60. While 65 percent of online shoppers are male, 35 percent are female. “The products that were highest sold in 2017 included mobile phones, apparel, food items and jewelry, among others,” it said.
There would be more than a seven to ten-fold increase in revenue generated through e-commerce as compared to last year with all branded apparel, accessories, jewelry, gifts and footwear available at cheaper rates and delivered at the consumer’s desired address.
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