The Indian e-commerce industry is growing almost by leaps and bounds. A leading global reseach and advisory firm, Forrester, has estimated, that the e-commerce industry in India, will have a CAGR of 57%, during 2012-16, the highest in the Asia Pacific region. It is also estimated that the global e-commerce industry will reach a figure between $700 to $950 billion by 2015, up from $500 billion in 2010.
It is estimated that in the next three years, the Indian internet consumers can increase, three times to nearly 380 millions. This number can go up with better broadband penetration into India’s hinterland.The size of the e-commerce sector is estimated to be around $ 10 billion and is projected to reach anywhere between $125 to $260 billion by 2024-25.
The US e-commerce business is growing at a rate of 17% and is likely to touch $ 200 billion in 2013 and India has to do a lot of catching up. One of the prime drivers of e-commerce, is the extent of internet penetration in a country. In USA it is 81% and in China it is 36 %. The current internet penetration in India is 10%, corresponding to a population of 121 million users. This figure keeps going up, due to falling broadband prices and expansion of internet facilities into the rural areas.
There are more than 900 million mobile users, in the country and it is expected to touch a figure of 1200 million by 2015. it is estimated, that around 27 million are active mobile internet users. Currently
One of the features recently introduced by the internet commerce companies is the pay on delivery or cash on delivery system. This has resulted in, very high growth in consumers buying, through internet, as they now see the product and then pay. This has increased the consumers confidence in purchasing online. Also, schemes like return of the product with no questions asked and refund of money paid have also increased the customers' confidence levels and resulted in higher sales for internet based companies.
The payment through credit/debit cards, has also increased the size of e-commerce market. Of the nearly 200 million card holders around 10 million do online transactions. It is estimated that nearly 150million are ready to go for online transactions. Further it is observed that the Indian online buyer, is now ready to go for larger purchases, in the range of upto Rs 27,000/-, from the present average of around Rs 5000/- , thus indicating further confidence in e-commerce business.
Venture capitalists are also now investing in e-commerce industry and this is helping the various players; to consolidate and increase their reach. to far flung regions of the country. The logistic companies. are also seeing this as an opportunity, to increase their business.
The future of e-commerce in India is thus very bright and promising. With changing life styles and couples working, online buying is a convenient way of increasingly safe mode of shopping.