eCommerce Industry in India will continue to Witness an Upswing in 2015

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eCommerce Industry in India will continue to Witness an Upswing in 2015

Rohit Pandey – Sr. Content Writer / Social Media Strategist

It isn’t just that E-commerce depends on express mail; there’s a sense in which E-commerce is express mail. Right now, billions of dollars are being spent around the country on so-called “last-mile delivery systems.” – Malcolm Gladwell, Journalist, Author, and Speaker.

We could not agree more with Mr. Gladwell. Last-mile delivery is indeed garnering eyeballs in the Asia-Pacific eCommerce market. Various surveys and research suggested that Asia-Pacific is fast emerging as the most bankable markets in terms of B2C (Business-to-Consumer) businesses. In 2013, the market witnessed a staggering growth of 45% with sales surging up to approx. 567. Billion USD (source – IAMAI Reports). The Asia-Pacific market ranked higher on the eCommerce sales board ahead of Europe, North America, Latin America and the Middle East. In terms of global statistics, B2C eComm sales increased by more than 23 percent over 2012 (source – These statistics suggest that a large chunk of the market still remains unexplored and untapped. With business transactions categorized into various segments such as B2B, B2C, C2C, C2B or the recently evolved business-to-business-to-consumer (B2B2C), the industry will continue to witness an upswing in 2015. In terms of the different forms of eCommerce, eTravel and eTail have been topping the heap in regards to popularity.

The US, UK and China combined together to contribute approximately 57% of the world’s total eCommerce sales in 2013. India is still lagging behind in terms of the sales comparison with these markets. However, with the demographic diversity India enjoys, the scenario is set to witness a big change as 2016 arrives. Looking at the country ranking in the Asia-Pacific eCommerce sales, India stands at 4th as compared to China standing at the pinnacle. Let’s focus on the reason behind this steady growth.

The main reason behind India’s steady growth in the Asia-Pacific eCommerce market is India’s low internet penetration with the e-households. Even, if we leave aside the e-households, India’s normal National internet penetration figures are still pretty low. Have a look at this infographic courtesy

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However, in terms of tapping the eCommerce industry, these statistics are witnessing huge changes already. The eCommerce sector has grown by 34% (CAGR) since 2009 to 16.4 billion USD in 2014. The sector is expected to be in the range of 22 billion USD in 2015. The fast-growing internet population would be one the main factors that would fuel the growth in the country. Here’s an infographic that perfectly depicts the online retail market size and growth.

Image Source – CRISIL Research

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Recently, reports surfaced that Flipkart has partnered with the dabbawalas of Mumbai to strengthen their last-mile delivery of goods to the consumers. Thus, coming back to Mr. Gladwell’s observation, many more established companies & startups will follow the trend & try to come up with innovative solutions to cater to last-mile delivery in India. Catering to these pivotal developments, eCommerce Industry in India will continue to Witness Upswing in 2015.




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About Thinking Aloud

“Thinking Aloud” reflects the emerging trends and varied outlook of the rapidly evolving internet and communication sector. An IAMAI publication, this is a part of the market education initiative of the association.

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