The ecommerce industry has been directly impacting the Indian SMEs, increasing employment, growth in export revenue, products and services quality to customers and tax collection by exchequers, indiatimes.com reports. The increasing Internet and smartphone penetration are expected to boost expansion of ecommerce sector in tier-II and tier-III cities across the country, the report said.
The main challenges to the industry`s growth have surfaced primarily in areas of taxation, logistics, payments, internet penetration and skilled manpower, according to a study titled e-Commerce in India: A Game Changer for the Economy, conducted by Confederation of Indian Industry (CII) and Deloitte, the source cites.
The number of online shoppers in the country grew 95% between 2013 and 2015, and is expected to reach 140 million by 2018 and 220 million by 2020, the report said. The number of online shoppers in India as a percentage of total internet users grew to 11% in 2015 from 9% in 2013 and it is expected to reach 36% by 2020.
From an investment perspective, considerable funding in the ecommerce ecosystem has led to emergence of new business models across B2B, B2C, logistics service providers, payment wallets, digital advertising and analytics, Neeraj Jain, partner at Deloitte Touche Tohmatsu India LLP said. These investments have enabled the ecommerce companies to leverage technology and related practices to reach out to millions of new online customers.
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