Reality of the Size of Indian E-Commerce
India’s E-commerce section has lately been in the spotlight and all over the news due to heavy funding from renowned international firms and retailers. However contrary to what the speculations and news headlines make you believe the numbers of the Indian e-commerce are pretty disappointing.
Indian retail market
According to the recent estimate organized by the US-based research firm eMarketer, the Indian e-commerce is assessed to be around thirty-three billion dollars. This proposes that the Indian e-commerce will be representing only 2.9 percent of the sum of the Indian retail market in 2018. However, it is estimated that according to the growth rate it will bypass 50 million dollars with a growth of fifty percent.
Indian e-commerce is involved with several other investors
A month ago Walmart announced the purchase of a huge stake in Flipkart for 16 billion dollars and the deal was valued at around twenty-two billion dollars. While keeping in mind that the Indian e-commerce is also involved with several other investors worth billions of dollars, the reality of the 33 million dollars does not seem to be a huge deal.
According to recent reports, Amazon is willing to invest a further amount of two billion dollars aside from the five billion dollar investment that the CEO of the company Mr. Jeff Bezos has already promised to India. The reason behind these heavy investments seems to be the hope that the increase in the scope and interest that has been shown in online marketing will lead to a great growth rate in the e-commerce. This can be backed by the fact that around a quarter of the Indian population is most probably going to be using a smartphone by the end of the current year. This will lead to around twenty-five percent of the Indian population utilizing means of online shopping by the end of this year and eventually raising this percentage to forty-two percent by the end of the year 2022.