E-Commerce Industry In India November 30, 2018

What Is The Future Of E-Commerce Industry In India?


E-Commerce stands for Electronic Commerce and it simply means buying and selling of goods and services, or the transmission of funds or data over the Internet. The business transactions can take place between either business-to-business (B2B), business to consumer (B2C), Consumer to consumer (C2C) or consumer to business (C2B). E-commerce industry in India has been showing an upward growth graph. Moreover, In this blog, we will further discuss the scope and future of e-commerce industry in India.


India has a population of over 1.2 billion people and despite the innumerable challenges it faces, there is a great potential for growth in e-commerce which can offer billions of opportunities to people.  Significantly, the rise of e-commerce in India has caught the eye of many domestic players like Snapdeal, Flipkart and also giant multinational corporations like Alibaba, Amazon, and Walmart.


  • The e-commerce industry to become the second largest e-commerce market in the world by 2034.
  • The e-commerce market in the country is expected to reach US$ 64 by 2020 and US$ 200 billion by 2026 from just US$38.5 billion as of 2017.
  • In India by 2021 the number of internet users is expected to rise from 481 million to 829 million .
  • Furthermore, the rise in internet penetration will lead to the growth of e-commerce in India the internet economy in India is expected to double from US$125 billion as of April 2017 to US$250 billion by 2020. All backed mainly be e-commerce.
  • By 2020 over 329.1 million people are projected to buy goods and services online

E-Commerce In India


Some of the major developments that took place in this sector are as follows:

  • Flipkart would be launching more offline stores in India. Hence, it promotes private labels in segments like garments and electronics.
  • Additionally, Paytm has launched its bank called Paytym Bank. It is India’s first bank with zero charges on online transactions, free virtual debit card and no minimum balance requirement.
  • Indian e-commerce industry has witnessed 21 private equity. Not to mention, the venture capital deals worth US$ 2.1 billion in 2017 and six other deals worth US$ 226 MILLION in January-April 2018.


In spite of immense opportunities, the e-commerce industry in India also poses certain challenges. This can be difficult to handle especially by the startups

Some of the major challenges faced by E-commerce industry in India are:

  • Online Security
  • Cash On Delivery
  • Less Knowledge and Awareness
  • Tax Structure
  • Logistic and Shipment Services
  • Cash On Delivery
  • Fear Factor
  • Online Transactions


The Indian e-commerce industry is directly going to impact the micro, small & medium enterprises (MSME) by means of financing, technology and training etc. More so, Tech-based innovations like digital payments, hyper-local logistics, analytics-driven customer engagement and digital ads will support growth in this sector. Making cashless transactions constitute 55% of all the online sales.

To summarize, the growth in the e-commerce sector will boost employment, increase export revenues, increase tax collection by ex-cheques. It would also provide better and wide range of products and services to customers in the long-term.

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This post was written by HIPL

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