The e-commerce industry is likely to grow rapidly next four years, the sector has been one of the fastest growing sectors across the globe. It is expected that over 10 million sellers to join the e-commerce industry in India and the number of internet users to double by 2020. The companies in the field of FMCG, beauty, personal care are likely to be online in order to capitalize the surging internet user base in India.
Currently, India has more than 350 million internet users, and it is expected to touch 650 million by 2020. The number of users of e-commerce portal is expected to grow in many folds from the existing number of 100 million online shoppers.
The companies have been developing best e-commerce portals with high user experience to provide the seamless online shopping experience to the customers. Due to the boom in the e-commerce trend in India, online shoppers have been looking the best portals where they can place orders for the products. Experts believe that Indian online shoppers have been preferring the ‘cash on delivery’ mode of payment for the e-commerce transactions.
Most of the online shoppers are from urban India as 75 million internet users belong to urban areas while only 20 percent online shoppers are from rural. By 2020, the number of internet users in rural India is likely to grow more rapidly than urban areas. The number of female online is also expected to grow, which is around 30 percent of total online shoppers in India.
The boom in the e-commerce segment is an opportunity for the e-commerce companies as well as consumers. This will create a huge consumer base for the companies whereas consumers are likely to get more discounts and products due to high competition in online sales.
Recently, the model GST law was approved by the finance minister of states which aimed to bring e-commerce in its ambit. The induction of e-commerce in GST would end all the index tax hassles the companies do face while doing e-commerce business in India. This could be another factor that would propel the growth of e-commerce industry in India.