E-commerce in India

The E-commerce market in India has a user base of about 483 million (as of July 2019). Currently, it is increasing by the day, which is about 40% of the country’s population.

By the end of 2019 expected to reach 630 Million users. Similarly, by the end of 2020 to reach an astonishing 666 million.

e-commerce market in India picture

Despite the huge number of internet users and India being the second largest online market, we are behind China. The penetration of e-commerce in our country is very low. When compared to countries like USA with 84% or 266 million internet users or with France. France has an internet user base of about 54 Million which is an astonishing 81% of its population.

However, India has been recording a growth of about 6 million new entrants every month.

In the year 2017, the biggest e-commerce players in India were Flipkart, Amazon, Myntra, Paytm, and Snapdeal. However, in the year 2018, Amazon beat Flipkart and occupied the first spot.

In the year 2009, the Internet was generating a revenue of $3.9 billion from 62 million users. This has now grown to a whopping 630 Million users generating an enormous $200 Billion revenue in 2019. Furthermore, predictions by Deloitte India and Retailers Association of India(RAI) indicate growth to $1.2 trillion.


e-commerce in indian market picture

The year 2017 has seen the largest spike in the Indian online users market.
From 295 million users in 2016, they jumped to 440 million users in 2017 which is approximately 50%. Furthermore, this is when Amazon.in announced its globally loved service “Amazon Prime membership”. A service that entitled its users a 2-day delivery and access to the “Amazon Prime Videos”.

When India was being penetrated in the world of internet services from Reliance JIO, Amazon brought the Amazon Prime services. Furthermore, everyone was exposed to a world of unlimited data.

Today Amazon offers almost everything, ranging from clothing to electronics to even groceries. You can buy almost all that you need on a daily basis from Amazon.in nowadays. The best part was that they also offer two-hour shipping for most products from the pantry category.

You can buy your daily essentials and groceries from the Amazon pantry and they would be delivered to your place. Usually, in a particular time slot you’ve selected or within 2 hours.

No wonder, Amazon has captured the online market in India. This is why they are one of the biggest e-commerce websites in the world.


Though the Indian online-market is growing rapidly, many e-commerce ventures have been facing immense pressure to ensure cash flows. As a result, this resulted in furthermore closure or change in their business model for survival. Some of these are Dhingana, InidiaPlaza.in, and Rock.in.

The spread of e-commerce players has meanwhile led to a rise in Niche-players like Myntra who deal with Fashion products.

Online apparel is one of the most popular verticals today, which makes up 42% along with consumer electronics.

Some established brands like Arvind are now creating a separate clothing line just for their online customers.

As these small but Niche businesses get popular, they are getting acquired by the big players. For example, Myntra was acquired by Flipkart India for a cost of $300 Million in May 2014. Similarly, Mahindra retail acquired BabyOye to be a part of its $17billion Mahindra group. Furthermore, Ekstop was acquired by Godrej Group to be a part of it’s chain of Nature’s basket group.

The ongoing trends and predictions of e-commerce in India and the world looks to be vivid and appealing.

Like J HILLBURN on E-commerce once said

E-Commerce And Mobile Commerce Have Dramatically Changed The Way Brands Reach Customers. Making It Faster And Easier For Consumers To Make Purchases On The Fly While Avoiding The Hassles Of Going To The Store.

J.Hilburn Hil Davis

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