7/29/2019 India Has an Internet User Base of Over 121
Million
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Indiahas an internet user base of over 121 million[1]users. The
penetration ofe-commerceislow compared to markets like theUnited
Statesand theUnited Kingdombut is growing[2]ata much faster rate
with a large number of new entrants.
Increasingbroadband Internet(growing at 20%[5]MoM)
and3Gpenetration. Risingstandards of livingand a burgeoning,
upwardly mobile middle class with
high disposable incomes Availability of much wider product range
(includinglong tailandDirect Imports)
compared to what is available at brick and mortar retailers Busy
lifestyles, urban traffic congestion and lack of time for offline
shopping Lower prices compared to brick and mortar retail driven
bydisintermediationand
reduced inventory and real estate costs Increased usage of
online classified sites, with more consumer buying and selling
second-hand goods
Market Size & Growth Indias e-commerce market was worth
about $2.5 billion in 2009. About 75% of
this is travel related (airline tickets, railway tickets, hotel
bookings, online mobilerecharge etc.). Online Retailing comprises
about 12.5% ($300 Million as of 2009).India has close to 10 million
online shoppers and is growing at an estimated 30%CAGR vis--vis a
global growth rate of 8-10%. Electronics and Apparel are the
biggest categories in terms of sales. The India retail market is
estimated at $470 Bn in 2011.
Infrastructure for eCommerce in India
eCommerce Site Development
eCommerce Hosting Service Provider
There are many hosting companies working in India but most of
them are not efficient andgood for eCommerce hosting purpose.
Because they are providing much less secure andthreat protected
shared hosting. eCommerce demand highly secure, stable and
protectedhosting.
Marketing
There could be various methods of eCommerceMarketingsuch asBlog,
Forums,SearchEnginesand some online advertising site likeGoogle
adwords.
Funding
Indian E-commerce companies are funded by venture capital firms
such asAccel Partners.
Costs Involved
Website development and maintenance cost
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Hosting and Data Security Cost Marketing Costs Warehousing Cost
Product delivery cost Payment Gateways charges Trust Building costs
Customer Acquisition
Unique to India
Some of the aspects of Indian e-commerce that are unique to
India (and potentially to otherdeveloping countries) are:
Cash on Deliveryas a preferred payment method. India has a
vibrant cash economy asa result of which 80% of Indian e-commerce
tends to be Cash On Delivery (Cash onDelivery).
Direct Importsconstitute a large component of online sales.
Demand for internationalconsumer products (includinglong-tail) is
growing much faster than in-countrysupply from authorized
distributors and e-commerce offerings.
Social shoppingis picking up as a trend, with communities
likeKoolkartintegratingwithFacebook[14].
Top eCommerce Websites in India
Online Shopping Websites1. Infibeam.com2. Indiaplaza.in3.
Tradus.in4. Flipkart.com5. Myntra.com6. FutureBazaar.com7.
Bookmyshow.com8. IndiaTimes9. Rediff
Shopping10.Homeshop18.com11.20north.com12.Yebhi.com13.SnapDeal.com14.Dealsandyou.com15.Dell.co.in16.Fernsnpetals.com17.
IndianGiftsPortal.com18.Talash.com19.Zoomin.com20.Snapfish.in21.Picsquare.com22.Mithaimate.com23.Yatra.com
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