The ecommerce industry is expected to form the largest part of the Indian internet market, exchange4media.com reports. The number of online shoppers is set to reach 220 million, a sharp increase from 20 million users in 2013, according to a report issued by The Confederation of Indian Industry (CII) and Deloitte, a consultancy company.
The Gross Merchandise Volume (GMV) for B2C segment in India was approximately USD 16 billion in 2015, while the Indian B2B ecommerce market potential was valued at USD 300 billion in 2014, and is expected to reach USD 700 billion by 2020. The total percentage of online shoppers using the internet is expected to grow to 36% in 2020 compared to 3% in 2013, while the average spend per online shopper in India is expected to grow to USD 464 by 2020 as compared to USD 147 in 2013.
According to a report by KPCB, a capital firm, India has the highest share of mobile based ecommerce sales globally at 41%. The big ecommerce companies state that almost 70-75% of their online traffic comes from mobile phones and thus higher revenues are coming from mobile applications. Also, 60% of payments are made through cash-on-delivery (CoD), while debit and credit cards account for 13% and 17%, respectively.
The implementation of Goods and Services Tax (GST) is expected to include the central excise duty, service tax and additional customs duty at the central level and VAT, CST, entry tax etc. and at the state level. The B2C marketplace was launched by National Small Industries Corporation (NSIC) with no transaction costs and expects to onboard 5.000 – 10.000 MSMEs by 2016.
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