Raise in Penetration of E-Commerce – What to expect?
The E-commerce market in India is on the rise with users increasing by the day. The number of internet users in India by end of 2014 was approximately 350 million and the number of E-commerce users in them was only meagrely 55 million which is quite low when compared to more advanced economies such as France where the number of internet users is 80 million of which nearly 72 million are E-commerce buyers. This penetration of E-commerce in India is expected to rise gradually and by 2020, it is expected to hit the 850 Billion $ against a 470 Billion $ of 2011 with cumulative average growth rate of 10%.
This growth and the positive speculations about the future of the E-commerce are making more buyers to sign up on E-commerce stores and marketplace to buy goods online because the growing trend has brought more assurance in the mind of an average buyer in India. Till 2015, nearly 70% of E-commerce contribution in the Indian market was from the tourism and travel industry. This shouldn’t come as much of a surprise given the scope of tourism in India and the fact that buying tickets online is more feasible when we compare the assessment of an average Indian buyer. The convenience of booking travel tickets online is what makes them initiate an online booking process against their scepticism of buying online. This trend is however changing with time and buyers now prefer buying more than travel and movie-tickets online as evident with the growing success of E-sellers like Myntra and Amazon!