According to India’s Digital Leap – The Multi Trillion Dollar Opportunity report issued by investment bank Morgan Stanley, this growth in ecommerce will help grow market penetration to 12% in the next nine years, versus 2% today.
India had 60 million online shoppers in 2016, which is 14% of the Internet user base of the country. This will rise to over 50% by 2026, the report said.
People with less than 2 years experience on th Internet don’t transact on the web (including mobile banking). They are engaging in basic activities like messaging, social media, and search, that don’t involve a monetary transaction.
Once a consumer has been online for more than five years, they are more likely to buy online. Right now, that’s only 30% of India’s 432 million Internet users.
Several years ago, cash-on-delivery was over 60% of ecommerce sales which has now come down to 55-60%. Looking at UPI and digital wallets, their share has increased to 4-7%. Hoewever, the growth will still be led by the “horizontal” ecommerce players, including Amazon India and Flipkart.
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