The World Trade Organization (WTO) said that the e-commerce development would boost the growth rate and standard of living, particularly in developing countries. It has been one of the fastest growing sectors. E-commerce platform has opened the door of the global marketplace for business houses and companies. The sector has been strong instrumental to foster the participation of buyers in international trade.
Despite the obstacles like legal, compliances, payment systems and digital infrastructure, the Micro, Small and Medium Enterprises (MSMEs) in developing countries have adapted to the digital environment. Many MSEMs have been successful in implementing and following the e-commerce business model. The participation of MSMEs has boosted the e-commerce market, which has been the driving force for the industry. Other factors like the rise in internet penetration and internet enabled mobile handsets have pushed the e-commerce market to the next level.
In India, the e-commerce sector has witnessed rapid growth in last two years and it is speculated that the growth rate would continue till the five to six years. Many companies including major business houses forayed into the e-commerce space in the country considering the growth rate and high Return on Investment (RoI). Recently, the Government of India has brought e-commerce under the purview of Goods and Services Tax (GST) in the draft bill. Besides, the government has also relaxed the Foreign Direct Investment (FDI) norms in the e-commerce to accelerate the growth rate. The missions like Digital India by the government aimed to improve the digital infrastructure by connecting rural areas through broadband. Which would increase the internet penetration in India and ultimately to boost the e-commerce space.
The growth in the e-commerce sector has been getting the attention of business tycoons and companies across the world. Business houses have been successfully implementing e-commerce business model by having e-commerce portals, and mobile applications.