Shopping online has become a norm in India, with the rise of e-commerce platforms offering a wide range of products at competitive prices. From electronics to fashion, books to home decor, there is a website for everything. India is known for its large population. At 1.37 billion, it’s one of the most inhabited places in the world, second only to China. Still, of its billion-plus people, internet penetration is quite low, coming in at 41 percent of the total population, roughly 500 million of the 1.37 billion in the country.
Despite the low internet
penetration, the e-commerce sector in India is still massive, thanks to the
overall population size. In the financial year 2023, the gross merchandise
value of e-commerce in India reached 60 billion U.S. dollars, marking a notable
increase compared to the previous financial year's GMV of 49 billion dollars.
It’s also worth noting that internet and smartphone adoption in India is
growing rapidly. This adoption of smartphones also shows trends toward mobile
commerce as a preference for the vast number of Indians who own a smartphone.
These are the top 10 India shopping websites
of 2023. These offer a wide range of products across various categories and provide
a seamless shopping experience to their customers.
Amazon.in is a leading e-commerce
platform in India, offering a wide range of products. It provides convenient
features, fast delivery, and reliable customer service. With programs like
Fulfillment by Amazon, it supports sellers and businesses. Amazon Prime offers
additional benefits to subscribers. Amazon net worth as of July 04, 2023
is $1336.1B.
Flipkart is an Indian
e-commerce company founded in 2007 by Binny Bansal and Sachin Bansal, with its
headquarters in Bengaluru. Known for its specialization in fashion, mobile, and
various other items, Flipkart holds around 39% market share in India. The platform
is renowned for offering substantial discounts and maintaining a robust
presence in the market. Flipkart Net Worth is $40 billion.
Myntra, headquartered in Bengaluru, Karnataka, is a prominent Indian e-commerce company specializing in the fashion industry. As a leading e-commerce platform, Myntra is dedicated to making fashion and lifestyle products accessible to all, offering innovative solutions that transform the ordinary and contribute to a happier and more stylish world. The estimated net worth of Myntra is approximately $7.1 million.
JioMart is an Indian
e-commerce platform operated by Reliance Retail, focusing on groceries and
daily essentials. As for its net worth in April 21, reported a 12.9 percent
year-on-year (YoY) jump in net profit at Rs 2,415 crore for the fourth quarter
that ended March 31, 2023.
ShopClues Established in 2011 by Sandeep Aggarwal, Sanjay Sethi, and Radhika Aggarwal, ShopClues is an online marketplace offering home and kitchen appliances, apparel, fashion accessories, and electronics. It provides a platform for small and regional merchants, primarily from Tier 2 and Tier 3 cities, to showcase their products and expand their reach nationwide. In the financial year 2022, ShopClues reported operating revenue of 599 million Indian rupees, representing a decrease compared to the previous financial year.
IndiaMART, founded in 1999, is India's largest online B2B marketplace, connecting buyers with suppliers. With approximately 60% market share in the online B2B classifieds sector, IndiaMART facilitates connections between manufacturers, suppliers, and exporters. It covers diverse categories such as building and construction, industrial machinery, apparel, electronics, chemicals, dyes, and solvents. IndiaMART INTERMESH LIMITED, the company behind IndiaMART, generates revenue of over INR 500 crore.
Nykaa Falguni Nayar, the founder of Nykaa, established the brand in 2012 as an online store specializing in beauty products. Nykaa broke convention by expanding from e-commerce to opening a brick-and-mortar location at Indira Gandhi International Airport in 2015. Over the years, Nykaa has grown its offerings, introducing its own cosmetics line and expanding its range of brands. In 2021, Nykaa became a public company and now retails over 2,000 brands. Falguni Nayar's entrepreneurial success has made her one of India's wealthiest self-made women, with a net worth of $2.3 billion.
AJIO is a subsidiary of
Reliance Retail, founded by Mukesh Ambani, with Nair Vineeth as the CEO. It is
an e-commerce initiative of Reliance Retail Limited. AJIO was launched at the
Lakme Fashion week, attended by Isha Ambani, highlighting the next generation's
involvement in the fashion business. By the end of 2022, AJIO achieved a gross
merchandise value (GMV) of approximately $2 billion.
BookMyShow is a leading Indian online ticketing platform for movies, events, and live entertainment. Founded in 1999, it offers a convenient way to book tickets through its website and app, catering to millions of users nationwide. In FY22, BookMyShow's total revenue reached INR 302.9 Cr, showing a significant increase of 2.7 times compared to INR 108.8 Cr in FY21. Out of the total revenue, INR 218.5 Cr was generated through online ticket bookings.
Snapdeal, founded by
Kunal Bahl and Rohit Bansal in 2010, has been steadily strengthening its
position as an e-commerce company. It offers a wide range of products,
including clothing, kitchenware, and more. Snapdeal has seen significant sales
volumes for fashion and general items on its platform. According to financial
data sourced from the business intelligence platform Tofler, Snapdeal's revenue
from operations increased by 14% to Rs 539 crore in FY22 compared to Rs 471
crore in FY21.
There are three main
types of eCommerce industries. They are as follows:
- Business to Business (B2B) – B2B stands for Business to Business, where goods or services are sold between businesses rather than directly to consumers. for example, Alibaba, Acme, and Shopify.
- Business to Consumer (B2C) – B2C stands for Business to Consumer, representing the sale of goods or services from businesses directly to individual consumers. for example, Expedia, Trivago, and Amazon.
- Consumer to Consumer (C2C) – C2C stands for Consumer to Consumer, referring to the direct sale or trade of goods and services between individual consumers. for example, Craigslist, Etsy, and eBay.
Profitability,
productivity, ease of payment, and personalization are the key pillars of
eCommerce. Profit is vital for the sustainability of eCommerce businesses, as
without it, there can be financial losses and adverse effects on support
functions like shipping and order fulfillment. Productivity and efficient
payment processes contribute to profitability, while personalization fosters
customer loyalty and builds confidence in the company.
INVESTMENTS/DEVELOPMENTS
some of the major developments in the Indian e-commerce sector are as follows:
- In June 2022, Amazon India signed an MoU with Manipur Handloom & Handicrafts Development Corporation Limited (MHHDCL), a Government of Manipur Enterprise to support the growth of artisans and weavers across the state.
- India’s eCommerce sector received US$ 15 billion of PE/VC investments in 2021 which is a 5.4 times increase year on year. This is the highest investment value received by any sector ever in India.
- In February 2022, Flipkart launched the “sell back program” to enable trade in smartphones.
- In February 2022 Xpressbees a logistics ecommerce platform become a unicorn valued at US$ 1.2 billion in 2022. The firm raised US$ 300 million in its Series F funding.
- In February 2022, Amazon India launched One district One product (ODOP) bazaar on its platform to support MSMEs.
- In January 2022, Flipkart has announced expansion in its grocery services and will offer services to 1,800 Indian cities.
- In January 2022, Walmart invites Indian sellers to join its US market place with an aim of exporting US$ 10 billion from India each year by 2027.
- In September 2021, CARS24, India's leading used car e-commerce platform, has raised US$ 450 million in funding, comprising a US$ 340 million Series F equity round and US$ 110 million in debt from various financial institutions.
- In September 2021, Bikayi, a mobile commerce enabler, raised US$ 10.8 million in a Series A funding round, led by Sequoia Capital India.
- In September 2021, Amazon launched Prime Video Channels in India. Prime Video Channels will give Prime members a seamless experience and access to a variety of popular video streaming services.
- In November 2021, XPDEL US- based ecommerce announced expansion in India.
- Flipkart, India's e-commerce powerhouse, announced in July 2021 that it has raised US$ 3.6 billion in new funding from various sources including sovereign funds, private equities and Walmart (parent company).
GOVERNMENT
INITIATIVES MENTIONED:
The Government of India has introduced several initiatives since 2014,
including Digital India, Make in India, Start-up India, Skill India, and
Innovation Fund. The successful implementation of these programs is expected to
contribute to the growth of e-commerce in the country. Here are some key
initiatives taken by the Government to promote e-commerce in India:
- As of November 2022, the GeM portal has facilitated 12.28 million orders valued at Rs. 334,933 crore (equivalent to US$ 40.97 billion) from 5.44 million registered sellers and service providers, serving 62,247 buyer organizations.
- The Department for Promotion of Industry and Internal Trade (DPIIT) is reportedly planning to utilize the Open Network for Digital Commerce (ONDC) in order to systematize the onboarding process of retailers on e-commerce platforms. This initiative aims to establish protocols for cataloging, vendor discovery, and price discovery, providing equal opportunities to marketplace players and optimizing the e-commerce ecosystem for the country and its citizens.
- As part of the proposed national retail policy, the government has identified five key areas: ease of doing business, rationalization of the license process, digitization of retail, focus on reforms, and the implementation of an open network for digital commerce. This approach emphasizes the integral administration of offline retail and e-commerce, ensuring comprehensive management and coordination between the two sectors.
- The Consumer Protection (e-commerce) Rules 2020, issued by the Consumer Affairs Ministry in July, mandated e-commerce companies to display the country of origin alongside product listings. Additionally, these companies are required to disclose the parameters used to determine product listings on their platforms.
- In October 2019, the Government e-Marketplace (GeM) entered into a Memorandum of Understanding (MoU) with Union Bank of India to establish a cashless, paperless, and transparent payment system for a range of services.
- As part of the Digital India movement, the government has launched various initiatives such as Umang, Start-up India Portal, and Bharat Interface for Money (BHIM) to promote digitization.
- In October 2020, the Minister of Commerce and Industry, Mr. Piyush Goyal, encouraged startups to register on the public procurement portal, GeM, and offer their goods and services to government organizations and public sector undertakings (PSUs).
- In October 2020, the government amended the equalization levy rules of 2016, requiring foreign companies operating e-commerce platforms in India to obtain permanent account numbers (PAN). Additionally, a 2% tax was imposed in the FY21 budget on the sale of goods or provision of services through non-resident e-commerce operators.
- To encourage the participation of foreign players in e-commerce, the Indian government increased the limit of foreign direct investment (FDI) in the e-commerce marketplace model up to 100% (in B2B models).
- The government's substantial investment in rolling out a fiber network for 5G will contribute to the growth of e-commerce in India.
Major Hubs for
Ecommerce
India's top e-commerce hubs include Delhi, Mumbai, Jaipur, Bangalore, and
Chennai, while Andhra Pradesh, Tamil Nadu, Maharashtra, Uttar Pradesh, and West
Bengal are the states with the most e-commerce hubs.
0 Comments