E-commerce in India
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{{EngvarB|date=January 2015}}
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The e-commerce in India was $147.3 billion in 2024, with 18.7% CAGR through to 2028 which will be further fueled by the technology innovations (5G & 6G based higher internet speed, AI and ML based hyper-personalized shopping experience, immersive AR and VR virtual try-ons and virtual stores, blockchain based enhanced supply chain transparency and increased trust among consumers), cheaper data rates, rising smartphone adoption, increased market penetration (Tier II and Tier III cities which contribute 60% of business and Direct-to-consumer (D2C) brands grew from 2% five years ago to now 15 % with projected future CAGR of 40 %), and evolving consumer behaviors (12% growth in Gross Merchandise Value (GMV) and 23.8 % growth in digital payments fueled by Unified Payments Interface}UPI.[https://www.indianretailer.com/article/d2c-new-commerce/eretail/e-commerce-landscape-2025-trends-growth-and-role-d2c-brands The E-Commerce Landscape in 2025: Trends, Growth, and the Role of D2C Brands], indianretailer.com, 5 Jan 2025. By 2027, the number of Indian ecommerce consumers will 400 million as compared to 312.5 million in 2022.{{cite web| website=statista| title=Number of digital buyers in India 2021-2025| url=https://www.statista.com/statistics/251631/number-of-digital-buyers-in-india/| access-date=1 August 2023| archive-date=1 August 2023| archive-url=https://web.archive.org/web/20230801054316/https://www.statista.com/statistics/251631/number-of-digital-buyers-in-india/| url-status=bot: unknown}} India had an Internet user base of about 690.0 million in 2023, about 40% of the population.{{cite news|url=https://timesofindia.indiatimes.com/business/india-business/for-the-first-time-india-has-more-rural-net-users-than-urban/articleshow/75566025.cms|title=For the first time, India has more rural net users than urban|work=timesofindia|date=6 May 2020 |access-date=23 February 2021|archive-date=14 February 2021|archive-url=https://web.archive.org/web/20210214144822/https://timesofindia.indiatimes.com/business/india-business/for-the-first-time-india-has-more-rural-net-users-than-urban/articleshow/75566025.cms|url-status=live}} Despite being the second-largest user base in world, only behind China (1.079 billion, 48% of population), the penetration of e-commerce is low compared to markets like the United States (266 million, 84%), or France (54M, 81%), but is growing, adding around 6 million new entrants every month.{{cite web |url=http://timesofindia.indiatimes.com/tech/tech-news/Online-shoppers-in-India-to-cross-100-million-by-2016-Study/articleshow/45217773.cms |title=Online shoppers in India |publisher=timesofindia.indiatimes/tech |date=2014-11-20 |access-date=2015-03-25 |archive-date=23 November 2014 |archive-url=http://web.archive.org/web/20141123031950/http://timesofindia.indiatimes.com/tech/tech-news/Online-shoppers-in-India-to-cross-100-million-by-2016-Study/articleshow/45217773.cms |url-status=dead }} The industry consensus is that growth is at an inflection point.{{cite web |url=http://www.vccircle.com/500/news/e-commerce-in-india-are-we-at-an-inflection-point/ |title=Indian e-commerce at inflection point? |publisher=Vccircle.com |date=2010-08-19 |access-date=2013-07-04 |archive-date=22 August 2010 |archive-url=https://web.archive.org/web/20100822192704/http://www.vccircle.com/500/news/e-commerce-in-india-are-we-at-an-inflection-point |url-status=live }}
In India, cash on delivery is the most preferred payment method, accumulating 75% of the e-retail activities.{{cite web |url=http://www.translatemedia.com/translation-blog/cod-trust/ |title=In COD we trust |publisher=translatemedia.com |date=2015-02-06 |access-date=2015-03-24 |archive-date=30 March 2019 |archive-url=https://web.archive.org/web/20190330170632/https://www.translatemedia.com/translation-blog/cod-trust/ |url-status=live }} Demand for international consumer products (including long-tail items) is growing faster than in-country supply from authorised distributors and e-commerce offerings. Long tail business strategy allows companies to realize significant profits by selling low volumes of hard-to-find items to many customers, instead of only selling large volumes of a reduced number of popular items. The term was first coined in 2004 by Chris Anderson.{{Cite web|last=Hayes|first=Adam|title=Understanding Long Tails|url=https://www.investopedia.com/terms/l/long-tail.asp|access-date=2020-06-02|website=Investopedia|language=en|archive-date=18 September 2020|archive-url=https://web.archive.org/web/20200918172419/https://www.investopedia.com/terms/l/long-tail.asp|url-status=live}}
In 2023, the largest e-commerce companies in India were Flipkart, Snapdeal and Amazon.{{cite news|url=https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/amazon-india-reportedly-closing-in-on-flipkart/articleshow/63407725.cms|title=Amazon India reportedly closing in on Flipkart|work=The Economic Times|access-date=22 March 2018|last1=Variyar|first1=Mugdha|archive-date=22 March 2018|archive-url=https://web.archive.org/web/20180322222632/https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/amazon-india-reportedly-closing-in-on-flipkart/articleshow/63407725.cms|url-status=live}}
In 2018, Amazon beat Flipkart and was recorded the biggest ecommerce in India in terms of revenue.{{Cite web|url=https://www.timesnownews.com/business-economy/companies/article/amazon-beats-flipkart-to-become-indias-largest-ecommerce-company-by-gross-sales/322166|title=Amazon beats Flipkart to become India's largest ecommerce company by gross sales|website=www.timesnownews.com|date=28 November 2018 |language=en|access-date=2019-09-09|archive-date=12 November 2019|archive-url=https://web.archive.org/web/20191112161922/https://www.timesnownews.com/business-economy/companies/article/amazon-beats-flipkart-to-become-indias-largest-ecommerce-company-by-gross-sales/322166|url-status=live}} In 2020, Flipkart heavily outsold Amazon by almost two to one by sales during festive retail season.{{Cite web|url=https://asia.nikkei.com/Business/Retail/Flipkart-beats-Amazon-in-India-s-record-8.3bn-festive-sales|title=Flipkart beats Amazon in India's record 8.3bn USD festive sales|website=asia.nikkei.com|language=en|access-date=2021-07-12|archive-date=12 July 2021|archive-url=https://web.archive.org/web/20210712163144/https://asia.nikkei.com/Business/Retail/Flipkart-beats-Amazon-in-India-s-record-8.3bn-festive-sales|url-status=live}}
In 2022, the pilot phase of the Open Network for Digital Commerce was launched.{{Cite news |date=2022-04-29 |title=India launches pilot phase of open network for digital commerce, ONDC aims to democratise e-commerce |work=ANI |agency=ANI |url=https://www.aninews.in/news/national/general-news/india-launches-pilot-phase-of-open-network-for-digital-commerce-ondc-aims-to-democratise-e-commerce20220429225246/ |access-date=2022-05-19 |archive-date=1 June 2022 |archive-url=https://web.archive.org/web/20220601124203/https://www.aninews.in/news/national/general-news/india-launches-pilot-phase-of-open-network-for-digital-commerce-ondc-aims-to-democratise-e-commerce20220429225246/ |url-status=live }}
Market size and growth
India's e-commerce market was worth about $3.9 billion in 2009. As per "India Goes Digital",{{cite web|url=http://www.avendus.com/Files/India_goes_Digital.pdf|access-date=4 May 2016|url-status=dead|title=Archived copy|archive-date=12 April 2015|archive-url=https://web.archive.org/web/20150412092703/http://www.avendus.com/Files/India_goes_Digital.pdf}} a report by Avendus Capital, the Indian e-commerce market is estimated at ₹28,500 crore ($6.3 billion) for the year 2011. Online travel constitutes a sizable portion (87%) of this market today. Online travel market in India had a growth rate of 22% over the next 4 years and reach ₹54,800 crore ($12.2 billion) in size by 2015. Indian e-tailing industry is estimated at ₹3,600 crore (US$800 million) in 2011 and estimated to grow to ₹53,000 crore ($11.8 billion) in 2015. The market went up to $12.6 billion in 2013. In 2013, the e-retail segment was worth US$2.3 billion. About 79% of India's e-commerce market was travel related in 2013.[http://www.pwc.in/assets/pdfs/publications/2014/evolution-of-e-commerce-in-india.pdf Evolution of e-commerce in India] {{Webarchive|url=https://web.archive.org/web/20170830072250/http://www.pwc.in/assets/pdfs/publications/2014/evolution-of-e-commerce-in-india.pdf |date=30 August 2017 }}, PwC, 2014. According to Google India, there were 35 million online shoppers in India in 2014 Q1 and was expected to cross 100 million mark by end of year 2016.{{cite web|url=http://timesofindia.indiatimes.com/tech/tech-news/Online-shoppers-in-India-to-cross-100-million-by-2016-Study/articleshow/45217773.cms|title=Online shoppers in India to cross 100 million by 2016: Study|work=The Times of India|access-date=4 May 2016|archive-date=23 November 2014|archive-url=http://web.archive.org/web/20141123031950/http://timesofindia.indiatimes.com/tech/tech-news/Online-shoppers-in-India-to-cross-100-million-by-2016-Study/articleshow/45217773.cms|url-status=dead}}
CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are the biggest categories in terms of sales. Overall e-commerce market had reached ₹1,07,800 crores (US$24 billion) by the year 2015 with both online travel and e-tailing contributing equally. Another big segment in e-commerce is mobile/DTH recharge with nearly 1 million transactions daily by operator websites.{{Cite web|url=https://telecomtalk.info/freecharge-transactions-per-day/149707/|title=Freecharge Aims to Achieve 7 Million Transactions Per Day|date=2016-02-17|website=Telecom Talk|access-date=21 November 2018|archive-date=21 November 2018|archive-url=https://web.archive.org/web/20181121203841/https://telecomtalk.info/freecharge-transactions-per-day/149707/|url-status=live}} Year 2016 also saw online sales of luxury products like jewellery also increased. Most of the retail brands have also started entering into the market and they expect at least 20% sales through online in next 2–3 years.{{Cite web|url=http://articles.economictimes.indiatimes.com/2016-03-25/news/71808492_1_carat-lane-caratlane-mithun-sacheti|title=CaratLane in talks with US-based online stores for acquisition|website=Economic Times|access-date=2016-04-05|archive-date=17 April 2016|archive-url=https://web.archive.org/web/20160417174245/http://articles.economictimes.indiatimes.com/2016-03-25/news/71808492_1_carat-lane-caratlane-mithun-sacheti|url-status=dead}} According to Google India Research in 2016, by 2021 India is expected to generate $100 billion online retail revenue out of which $35 billion will be through fashion e-commerce.{{Cite web|url=http://www.livemint.com/Industry/N9i3R5ExZpSBIhtuS0CCQJ/Indias-fashion-eretail-market-to-touch-35-bn-by-2020-Goo.html|title=India's fashion e-retail market to touch $35 bn by 2020: Google|date=19 March 2015|publisher=Mint|access-date=2016-03-13|archive-date=30 June 2018|archive-url=https://web.archive.org/web/20180630111142/https://www.livemint.com/Industry/N9i3R5ExZpSBIhtuS0CCQJ/Indias-fashion-eretail-market-to-touch-35-bn-by-2020-Goo.html|url-status=live}}
The ecommerce industry was reported at $24 billion in 2017 and was recognised as the fastest growing industry in India.{{Cite news|url=https://economictimes.indiatimes.com/industry/services/retail/indian-e-commerce-market-to-touch-usd-84-billion-in-2021-report/articleshow/68169239.cms?from=mdr|title=Indian e-commerce market to touch USD 84 billion in 2021: Report|date=2019-02-26|work=The Economic Times|access-date=2019-08-29|archive-date=15 April 2021|archive-url=https://web.archive.org/web/20210415211225/https://economictimes.indiatimes.com/industry/services/retail/indian-e-commerce-market-to-touch-usd-84-billion-in-2021-report/articleshow/68169239.cms?from=mdr|url-status=live}} The ecommerce market grew to $38.5 billion in 2018.{{Cite news|url=https://www.business-standard.com/article/news-cm/e-commerce-market-growing-at-a-rate-of-about-17-in-2018-19-118121700794_1.html|title=E-Commerce Market growing at a rate of about 17% in 2018-19|date=2018-12-17|work=Business Standard India|access-date=2019-08-29|archive-date=29 August 2019|archive-url=https://web.archive.org/web/20190829072013/https://www.business-standard.com/article/news-cm/e-commerce-market-growing-at-a-rate-of-about-17-in-2018-19-118121700794_1.html|url-status=live}} It is estimated that one in every three Indian shops via smartphone and online retailers deliver to 20,000 pin-codes out of the 100,000 pin-codes in India.{{Cite web|url=https://www.ibef.org/industry/ecommerce-presentation|title=Indian Ecommerce Industry Analysis {{!}} IBEF|website=www.ibef.org|access-date=2020-04-22|archive-date=15 August 2020|archive-url=https://web.archive.org/web/20200815201804/https://www.ibef.org/industry/ecommerce-presentation|url-status=live}} As per Goldman Sachs, India's e-commerce industry will reach $99 billion in size while online retail is expected to more than double to around 11% by 2024 from 4.7% in 2019 while increasing at 27% compound annual growth rate (CAGR). The online grocery segment that is below $2 billion will reach $29 billion in size by 2024. Online grocery orders will grow from 3,00,000 per day in 2019 to more than 5 million per day by 2024. Non grocery eCommerce penetration will be 16.1 percent by 2021.{{Cite web|date=2020-07-23|title=India e-commerce to grow 27%; Reliance to capture half of online grocery sales—Goldman|url=https://business.inquirer.net/303336/india-e-commerce-to-grow-27-reliance-to-capture-half-of-online-grocery-sales-goldman|access-date=2020-08-08|website=inquirer.net|language=en|archive-date=8 April 2023|archive-url=https://web.archive.org/web/20230408032102/https://business.inquirer.net/303336/india-e-commerce-to-grow-27-reliance-to-capture-half-of-online-grocery-sales-goldman|url-status=live}}{{Cite web|title=India's e-commerce industry to be $99 billion in size by 2024; RIL to dominate online grocery space|url=https://www.businesstoday.in/current/corporate/indias-ecommerce-industry-goldman-sachs-survey-online-shopping-grocery-ril/story/411139.html|access-date=2020-08-08|website=www.businesstoday.in|date=27 July 2020|archive-date=15 April 2021|archive-url=https://web.archive.org/web/20210415075727/https://www.businesstoday.in/current/corporate/indias-ecommerce-industry-goldman-sachs-survey-online-shopping-grocery-ril/story/411139.html|url-status=live}}
As per property consultant Colliers International, the demand for warehousing of 5,000 to 10,000 square feet size will increase due to COVID-19 lock-downs which lead to a surge in online orders of essential items for same day delivery especially in tier-1 cities like Mumbai, Kolkata, Bengaluru, Chennai and New Delhi.{{Cite web|title=In-city warehousing demand may rise as e-commerce firms target same-day delivery|url=https://www.moneycontrol.com/news/business/in-city-warehousing-demand-may-rise-as-e-commerce-firms-target-same-day-delivery-5665521.html|access-date=2020-08-08|website=Moneycontrol|date=8 August 2020 |archive-date=8 April 2023|archive-url=https://web.archive.org/web/20230408201433/https://www.moneycontrol.com/news/business/in-city-warehousing-demand-may-rise-as-e-commerce-firms-target-same-day-delivery-5665521.html|url-status=live}} Flipkart will debut a hyperlocal service called Flipkart Quick in Bengaluru to start 90 minutes deliveries.{{Cite news|date=2020-07-28|title=Walmart's Flipkart to offer 90-minute deliveries in India|language=en|work=Reuters|url=https://www.reuters.com/article/us-india-flipkart-idUSKCN24T0TL|access-date=2020-08-08|archive-date=8 April 2023|archive-url=https://web.archive.org/web/20230408201304/https://www.reuters.com/article/us-india-flipkart-idUSKCN24T0TL|url-status=live}} Amazon observed spike in page views with four times increase in "Add to Cart" during the lockdown, leading to doubling of sales. It also started selling auto insurance in partnership with Acko General Insurance which is available to users through Amazon app and mobile website.{{Cite web|last=Patil|first=Kiran|date=2020-08-03|title=How To Tap Into Rising Opportunities In Grocery E-commerce?|url=https://www.entrepreneur.com/article/354137|access-date=2020-08-08|website=Entrepreneur|language=en|archive-date=7 April 2022|archive-url=https://web.archive.org/web/20220407131837/https://www.entrepreneur.com/article/354137|url-status=live}}{{Cite web|date=27 July 2020|first=Danielle|last=Ling|title=Amazon is now selling auto insurance in India|url=https://www.propertycasualty360.com/2020/07/27/amazon-is-now-selling-auto-insurance-in-india/|access-date=2020-08-08|website=PropertyCasualty360|language=en|archive-date=7 April 2023|archive-url=https://web.archive.org/web/20230407225518/https://www.propertycasualty360.com/2020/07/27/amazon-is-now-selling-auto-insurance-in-india/|url-status=live}} With opening of 10 new warehouse, the count of Amazon warehouse in India stands at 60 across 15 states that has an area equivalent to more than 100 football fields.{{Cite news|date=2020-07-23|title=Amazon to open 10 new India warehouses; offers insurance|language=en|work=Reuters|url=https://www.reuters.com/article/us-amazon-com-india-idUSKCN24O0TF|access-date=2020-08-08|archive-date=8 April 2023|archive-url=https://web.archive.org/web/20230408113903/https://www.reuters.com/article/us-amazon-com-india-idUSKCN24O0TF|url-status=live}}
Report from software as a service (SaaS) provider Unicommerce shows increasing penetration of e-commerce beyond tier-1 cities with major growth coming from tier-2 and tier-3 towns/villages due to increasing vernacular language content{{Cite web|date=2020-08-23|title=E-commerce big winner: This is the reach of online retail in India's hinterland, read details - OrissaPOST|url=https://www.orissapost.com/e-commerce-big-winner-this-is-the-reach-of-online-retail-in-indias-hinterland-read-details/|access-date=2020-08-23|website=OrissaPOST|language=en-US|archive-date=23 June 2021|archive-url=https://web.archive.org/web/20210623162600/https://www.orissapost.com/e-commerce-big-winner-this-is-the-reach-of-online-retail-in-indias-hinterland-read-details/|url-status=live}} and improving last mile delivery. Consumers are also diversifying their purchasing option from large scale e-commerce channels like Amazon or Flipkart to specific retail brand websites.{{Cite web|date=2020-08-22|title=Report highlights e-commerce is big in India's hinterland|url=https://www.zeebiz.com/india/news-report-highlights-e-commerce-is-big-in-indias-hinterland-133843|access-date=2020-08-23|website=Zee Business|archive-date=8 April 2023|archive-url=https://web.archive.org/web/20230408112906/https://www.zeebiz.com/india/news-report-highlights-e-commerce-is-big-in-indias-hinterland-133843|url-status=live}} As per Goldman Sachs, three or four players can co-exist in the e-commerce space given the size of India but travel, food delivery, ride-hailing services will see a maximum of two players capturing the market. Reliance Jio will increase competition in grocery, fintech, online retail, food delivery.{{Cite web|date=2020-08-23|title=Amazon, Flipkart, others may have more fierce competitors ahead after Reliance in e-commerce, grocery|url=https://www.financialexpress.com/industry/amazon-flipkart-walmart-and-ril-market-wars-indian-e-commerce-pond-big-enough-for-plenty-of-fish/2062742/|access-date=2020-08-23|website=The Financial Express|language=en-US|archive-date=7 September 2020|archive-url=https://web.archive.org/web/20200907221710/https://www.financialexpress.com/industry/amazon-flipkart-walmart-and-ril-market-wars-indian-e-commerce-pond-big-enough-for-plenty-of-fish/2062742/|url-status=live}} From February 2020 to June 2020 during the COVID-19 lock-down period, e-commerce increased by 117% with the delivery of only essential supplies that is now bigger than the pre-COVID-19 level. Flipkart surpassed 1.5 billion visits per month with 45% growth in monthly active user while 30% growth in transaction per consumer. Tier-3 markets are showing 53% year on year growth with higher internet penetration and connectivity.{{Cite web|title=India's e-commerce is now even bigger than pre-COVID – smaller cities add to the bounty while metros continue to lead|url=https://www.businessinsider.in/business/ecommerce/news/indias-e-commerce-is-now-even-better-than-before-smaller-cities-add-to-the-bounty-while-metros-continue-to-lead/articleshow/77655199.cms|access-date=2020-08-25|website=Business Insider|archive-date=22 September 2020|archive-url=https://web.archive.org/web/20200922162330/https://www.businessinsider.in/business/ecommerce/news/indias-e-commerce-is-now-even-better-than-before-smaller-cities-add-to-the-bounty-while-metros-continue-to-lead/articleshow/77655199.cms|url-status=live}} Kinetic Green started selling electric auto rickshaw and golf carts online mainly in eastern and northern parts of India with a revenue of ₹75 crore in 2019 which now stands at ₹100 crore as of August 2020.{{Cite web|date=14 August 2020|first=Satyanarayan|last=Iyer|title=Kinetic Green looks to e-commerce, home delivery to grow in Covid times|url=https://timesofindia.indiatimes.com/business/india-business/kinetic-green-looks-to-e-commerce-home-delivery-to-grow-in-covid-times/articleshow/77534424.cms|access-date=2020-08-28|website=The Times of India|language=en|archive-date=14 August 2020|archive-url=https://web.archive.org/web/20200814012733/https://timesofindia.indiatimes.com/business/india-business/kinetic-green-looks-to-e-commerce-home-delivery-to-grow-in-covid-times/articleshow/77534424.cms|url-status=live}} E-commerce helped Nestlé increase sales at a rate of 122% which contributes to 3.6% of overall sales during Q2 of 2020–21.{{Cite web|date=2020-07-28|title=E-commerce sales of Nestlé India more than double in Q2; eight factories restored to pre-Covid levels|url=https://www.financialexpress.com/industry/e-commerce-sales-of-nestle-india-more-than-double-in-q2-eight-factories-restored-to-pre-covid-levels/2037699/|access-date=2020-08-28|website=The Financial Express|language=en-US|archive-date=18 August 2020|archive-url=https://web.archive.org/web/20200818235105/https://www.financialexpress.com/industry/e-commerce-sales-of-nestle-india-more-than-double-in-q2-eight-factories-restored-to-pre-covid-levels/2037699/|url-status=live}} Apple Inc. is opening online channel to sell products in India for the first time during August 2020 to target the festival seasons.{{Cite news|date=2020-08-25|title=Apple to open India online store in September: Bloomberg News|language=en|work=Reuters|url=https://www.reuters.com/article/us-india-apple-idUSKBN25L16X|access-date=2020-08-28|archive-date=27 August 2020|archive-url=https://web.archive.org/web/20200827220540/https://www.reuters.com/article/us-india-apple-idUSKBN25L16X|url-status=live}}
Closures
Though the sector has witnessed tremendous growth and is expected to grow, many e-commerce ventures have faced tremendous pressure to ensure cash flows. But it has not worked out for all the e-commerce websites. Many of them like Dhingana, IndiaPlaza.in, eBay-India, Rock.in, Seventy MM amongst others had to close down{{cite news|url=http://www.business-standard.com/article/companies/discounts-backfire-many-e-com-ventures-shut-shop-114022600591_1.html|title=Discounts backfire; many e-com ventures shut shop|work=Business Standard|date=26 February 2014|access-date=9 December 2014|archive-date=12 November 2017|archive-url=https://web.archive.org/web/20171112110357/http://www.business-standard.com/article/companies/discounts-backfire-many-e-com-ventures-shut-shop-114022600591_1.html|url-status=live}} or change their business models to survive.{{cite news|url=http://www.klypy.com/in/ecommerce-shut-downs-acquisitions-india/|title=Latest e-commerce shut downs and acquisitions in India|date=17 May 2014|access-date=4 January 2015|archive-date=4 January 2015|archive-url=https://web.archive.org/web/20150104192125/http://www.klypy.com/in/ecommerce-shut-downs-acquisitions-india/|url-status=live}}
In March 2020, the Government of India restricted online sales of all goods except for critical items including food, pharmaceuticals, and medical equipment. Many Indian startups including Urban Company, BookMyShow, Pepperfry and Nykaa, which did not feature in the government's list of notified essential services, were running at a loss due to COVID-19 pandemic.{{cite news |last1=Gooptu |first1=Biswarup |title=Vertical ecom majors like Pepperfry, Nykaa feel the squeeze post Covid-19 outbreak |url=https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/from-nykaa-to-pepperfry-indias-vertical-ecom-majors-feel-the-squeeze-post-covid-19-outbreak/articleshow/74904939.cms?from=mdr |work=The Economic Times |date=31 March 2020 |access-date=24 June 2020 |archive-date=14 July 2020 |archive-url=https://web.archive.org/web/20200714000052/https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/from-nykaa-to-pepperfry-indias-vertical-ecom-majors-feel-the-squeeze-post-covid-19-outbreak/articleshow/74904939.cms?from=mdr |url-status=live }}{{cite news |last1=Bhattacharya |first1=Ananya |title=Coronavirus will sink a lot of small e-commerce companies in India |url=https://scroll.in/article/957607/coronavirus-will-sink-a-lot-of-small-e-commerce-companies-in-india |work=scroll.in |date=30 March 2020 |access-date=24 June 2020 |archive-date=25 June 2020 |archive-url=https://web.archive.org/web/20200625081722/https://scroll.in/article/957607/coronavirus-will-sink-a-lot-of-small-e-commerce-companies-in-india |url-status=live }}
Infrastructure
There are many hosting companies working in India, some of which offer SaaS for hosting web stores. India has got its own version of Cyber Monday known as Great Online Shopping Festival which started in December 2012, when Google India partnered with e-commerce companies including Flipkart, HomeShop18, Snapdeal, Indiatimes shopping and Makemytrip. "Cyber Monday" is a term coined in the US for the Monday coming after Black Friday, which is the Friday after Thanksgiving Day.{{cite news|title=Google partners e-commerce sites for 'Cyber Monday' on December 12|url=http://articles.economictimes.indiatimes.com/2012-12-04/news/35594711_1_operations-rajan-anandan-google-india-md-online-travel-sites|access-date=31 December 2012|newspaper=Economic Times|date=4 December 2012|archive-date=5 March 2016|archive-url=https://web.archive.org/web/20160305014740/http://articles.economictimes.indiatimes.com/2012-12-04/news/35594711_1_operations-rajan-anandan-google-india-md-online-travel-sites|url-status=dead}}
In early June 2013, Amazon.com launched their Amazon India marketplace without any marketing campaigns. In July 2014, Amazon had said it will invest $2 billion (Rs 12,000 crore) in India to expand the business, after its largest Indian rival, Flipkart announced $1 billion in funding. In June 2016, Amazon agreed to invest another $3 billion to further pressure rivals Flipkart & Snapdeal{{cite web|title=Amazon plans $3 billion investment in India to challenge Flipkart, Snapdeal|url=https://www.cnbc.com/2016/06/08/amazon-plans-3-billion-investment-in-india-to-challenge-flipkart-snapdeal.html|date=25 Jun 2016|publisher=CNBC|access-date=9 September 2017|archive-date=16 April 2019|archive-url=https://web.archive.org/web/20190416203906/https://www.cnbc.com/2016/06/08/amazon-plans-3-billion-investment-in-india-to-challenge-flipkart-snapdeal.html|url-status=live}} Amazon has also entered grocery segment with its Kirana now in Bangalore and is also planning to enter in various other cities like Delhi, Mumbai and Chennai and faces stiff competition with Indian startups.{{Cite web|url=http://devmantra.com/2015/09/01/e-commerce-and-its-evolution-in-india/|title=E – Commerce and its evolution in India {{!}} Devmantra|access-date=2016-04-28|archive-url=https://web.archive.org/web/20170325203832/http://devmantra.com/2015/09/01/e-commerce-and-its-evolution-in-india/|archive-date=25 March 2017|url-status=dead}} A large proportion of traffic towards e-commerce sites is driven by coupon sites.{{cite web|last1=Gore|first1=Dipti|title=Coupon, offers and deal listing website CouponChaska.com promises to get you the best deal!|url=http://techstory.in/coupon-offers-and-deal-listing-website-couponchaska-com-promises-to-get-you-the-best-deal/|website=TechStory|publisher=TechStory Media Pvt. Ltd. (India)|access-date=8 March 2017|archive-date=8 March 2017|archive-url=https://web.archive.org/web/20170308220555/http://techstory.in/coupon-offers-and-deal-listing-website-couponchaska-com-promises-to-get-you-the-best-deal/|url-status=live}}
Funding
Examples of venture capital firms having invested in e-commerce companies in India are as follows:
Flipkart.com raised about US$2.3 billion.{{cite web|title=Fund-raise values Flipkart at $10 billion|url=http://timesofindia.indiatimes.com/tech/tech-news/Fund-raise-values-Flipkart-at-10-billion/articleshow/45253331.cms|date=24 Nov 2014|publisher=Times of India|access-date=4 January 2015|archive-date=7 December 2014|archive-url=https://web.archive.org/web/20141207093553/http://timesofindia.indiatimes.com/tech/tech-news/Fund-raise-values-Flipkart-at-10-billion/articleshow/45253331.cms/|url-status=live}} On 10 July 2013, Flipkart announced it had received $200 million from existing investors Tiger Global, Naspers, Accel Partners, and ICONIQ Capital, and an additional $160 million from Dragoneer Investment Group, Morgan Stanley Wealth Management, Sofina, Vulcan Inc. and more from Tiger Global.{{cite web|title=Flipkart raises $160M more from Morgan Stanley, Vulcan Capital, Tiger Global, others|date=11 October 2013|url=http://www.vccircle.com/news/technology/2013/10/09/flipkart-raises-160m-more-morgan-stanley-vulcan-capital-tiger-global|publisher=Vccircle|access-date=19 March 2014|archive-date=19 March 2014|archive-url=https://web.archive.org/web/20140319103131/http://www.vccircle.com/news/technology/2013/10/09/flipkart-raises-160m-more-morgan-stanley-vulcan-capital-tiger-global|url-status=live}}
In February 2014, online fashion retailer Myntra.com raised $50 million from a group of investors led by Premji Invest, the investment company floated by Azim Premji, Chairman of Wipro. May 2014 also witnessed an acquisition of Myntra by Flipkart reportedly for ₹2,000 crores.{{cite web|url=http://timesofindia.indiatimes.com/tech/tech-news/Flipkart-acquires-Myntra/articleshow/35472797.cms|title=Flipkart acquires Myntra|date=22 May 2014|work=The Times of India|access-date=4 May 2016|archive-date=13 April 2016|archive-url=https://web.archive.org/web/20160413052539/http://timesofindia.indiatimes.com/tech/tech-news/Flipkart-acquires-Myntra/articleshow/35472797.cms|url-status=live}}
In September 2015, PepperTap raised $36 million from Snapdeal and others.{{cite news|url=http://economictimes.indiatimes.com/industry/services/retail/peppertap-raises-36-million-in-fresh-round-of-funding-led-by-snapdeal/articleshow/49151863.cms|title=PepperTap raises $36 million in fresh round of funding, led by Snapdeal|work=The Economic Times|access-date=4 May 2016|last1=Gooptu|first1=Biswarup|last2=Chanchani|first2=Madhav|archive-date=3 May 2016|archive-url=https://web.archive.org/web/20160503154137/http://economictimes.indiatimes.com/industry/services/retail/peppertap-raises-36-million-in-fresh-round-of-funding-led-by-snapdeal/articleshow/49151863.cms|url-status=live}}
In July 2020, Purplle raised $30 million from Goldman Sachs and others.{{Cite web|last=Srivats|first=K. R.|title=Online beauty platform Purplle raises $30 m in Series-C round|url=https://www.thehindubusinessline.com/info-tech/online-beauty-platform-purplle-raises-30-m-in-series-c-round/article30300072.ece|access-date=2020-08-08|website=@businessline|date=13 December 2019|language=en|archive-date=11 July 2020|archive-url=https://web.archive.org/web/20200711133144/https://www.thehindubusinessline.com/info-tech/online-beauty-platform-purplle-raises-30-m-in-series-c-round/article30300072.ece|url-status=live}}
In January 2021, B2B Udaan has raised $280 million from new investors Moonstone Capital Partners and Octahedron Capital, besides existing investors Lightspeed Venture Partners, DST Global, GGV Capital, Altimeter Capital and Tencent Holdings.{{Cite news|date=6 January 2021|title=Udaan raises $280 mn from new and existing investors|work=Livemint|url=https://www.livemint.com/companies/start-ups/udaan-raises-280-million-from-new-existing-investors-11609930973449.html|access-date=26 May 2021|archive-date=26 May 2021|archive-url=https://web.archive.org/web/20210526194141/https://www.livemint.com/companies/start-ups/udaan-raises-280-million-from-new-existing-investors-11609930973449.html|url-status=live}}
Niche retailers
The spread of e-commerce has led to the rise of several niche players who largely specialize their products around a specific theme. As many as 1,06,086 websites were registered daily and more than 25% are for niche businesses.{{cite web|url=http://www.financialexpress.com/article/companies/taking-flight/67376/|title=E-commerce: Niche online ventures going where biggies of Amazon, Flipkart can't|date=28 April 2015|work=The Financial Express|access-date=4 May 2016|archive-date=17 April 2016|archive-url=https://web.archive.org/web/20160417134130/http://www.financialexpress.com/article/companies/taking-flight/67376/|url-status=live}}
During 2014, Royal Enfield sold 200 bikes of special series online.{{Cite news|url=http://www.thehindu.com/business/royal-enfields-despatch-riders-sold-out-in-26-minutes/article7425689.ece|title=Royal Enfield's 'Despatch' sold out in 26 minutes|date=2015-07-15|newspaper=The Hindu|language=en-IN|issn=0971-751X|access-date=2016-04-27|archive-date=27 June 2017|archive-url=https://web.archive.org/web/20170627200237/http://www.thehindu.com/business/royal-enfields-despatch-riders-sold-out-in-26-minutes/article7425689.ece|url-status=live}}
Online apparel is one of the more popular verticals, which along with computers and consumer electronics make up 42% of the total retail e-commerce sales.{{cite web|url=http://www.assocham.org/newsdetail.php?id=4814|title=Assocham India|access-date=4 May 2016|archive-date=10 June 2016|archive-url=https://web.archive.org/web/20160610114027/http://www.assocham.org/newsdetail.php?id=4814|url-status=live}} Niche online merchandising brands like Headbanger's Merch, Redwolf and No Nasties partner with and even help sustain independent musicians.{{cite web|url=http://rollingstoneindia.com/sahil-makhija-at-some-point-a-t-shirt-will-always-outweigh-a-cd/|title=Sahil Makhija: "At some point, a T-shirt will always outweigh a CD"|work=Rolling Stone India|date=21 May 2013|access-date=4 May 2016|archive-date=18 May 2016|archive-url=https://web.archive.org/web/20160518004611/http://rollingstoneindia.com/sahil-makhija-at-some-point-a-t-shirt-will-always-outweigh-a-cd/|url-status=live}} Some established brands like Arvind are now creating clothing lines just for the e-commerce markets.{{cite web|url=http://www.livemint.com/Companies/3uszeyGVQaEFwVJSVDqPpN/Arvind-lines-up-select-brands-for-online-retail.html|title=Arvind lines up select brands for online retail|author=Suneera Tandon|date=15 October 2015|publisher=Mint|access-date=4 May 2016|archive-date=30 April 2016|archive-url=https://web.archive.org/web/20160430032037/http://www.livemint.com/Companies/3uszeyGVQaEFwVJSVDqPpN/Arvind-lines-up-select-brands-for-online-retail.html|url-status=live}} Some of the bigger online retailer like VoxPop Clothing have secured multiple rounds of funding, the last round raising $1 million from Blume Ventures in 2014.{{cite web|url=http://articles.economictimes.indiatimes.com/2014-11-14/news/56093182_1_blume-ventures-higher-margins-brands|title=VoxPop Clothing raises $1 million to expand portfolio with higher margins|work=timesofindia-economictimes|access-date=4 May 2016|archive-date=8 May 2016|archive-url=https://web.archive.org/web/20160508005956/http://articles.economictimes.indiatimes.com/2014-11-14/news/56093182_1_blume-ventures-higher-margins-brands|url-status=dead}}
As these niche businesses get popular, they are slowly getting acquired by the big players. BabyOye was acquired by Mahindra Retail, part of the $17 billion Mahindra Group.{{cite news|url=https://economictimes.indiatimes.com/industry/services/retail/mahindra-retail-to-integrate-e-commerce-business-to-single-platform/articleshow/46571462.cms?from=mdr|title=Mahindra Retail to integrate e-commerce business to single platform|work=economictimes-indiatimes|access-date=15 Mar 2015|archive-date=20 April 2021|archive-url=https://web.archive.org/web/20210420162204/https://economictimes.indiatimes.com/industry/services/retail/mahindra-retail-to-integrate-e-commerce-business-to-single-platform/articleshow/46571462.cms?from=mdr|url-status=live}} Ekstop was acquired by the Godrej Group to complement their offline chain of Nature's Basket stores.{{cite web|url=http://www.livemint.com/Companies/nItZXprEHzlavjUoc86oEL/Godrej-Natures-Basket-buys-online-grocer-Ekstopcom.html|title=Godrej Nature's Basket buys online grocer Ekstop.com|author=Sapna Agarwal|publisher=Mint|access-date=4 May 2016|archive-date=4 May 2016|archive-url=https://web.archive.org/web/20160504192612/http://www.livemint.com/Companies/nItZXprEHzlavjUoc86oEL/Godrej-Natures-Basket-buys-online-grocer-Ekstopcom.html|url-status=live}} Similarly, Techjockey has emerged as a specialized B2B marketplace for software solutions, offering enterprises access to a curated range of IT products and services https://economictimes.indiatimes.com/wealth/earn/startup-techjockey-offers-a-marketplace-for-software-solutions-across-industries/articleshow/54263840.cms?from=mdr
Mergers and acquisitions
According to a report by Grant Thronton, as much as US$2.1 billion worth of mergers and acquisitions were inked in 2017 in the booming Indian e-commerce industry.{{Cite news|url=https://www.financialexpress.com/industry/indian-e-commerce-market-sees-ma-deals-worth-2-1-bn-in-2017/1157653/|title=Indian e-commerce market sees M&A deals worth $2.1 billion in 2017|date=2018-05-06|work=The Financial Express|access-date=2018-05-19|language=en-US|archive-date=20 May 2018|archive-url=https://web.archive.org/web/20180520123901/https://www.financialexpress.com/industry/indian-e-commerce-market-sees-ma-deals-worth-2-1-bn-in-2017/1157653/|url-status=live}} Here is the list of Mergers & Acquisitions which happened in India over a period of time:
Regulation
Foreign e-commerce is subject to regulations in India; under local law, foreign companies are to serve solely as marketplaces between vendors and their customers, and are forbidden from holding inventory in the country. Under new regulations effective 1 February 2019, foreign companies will be forbidden from selling any products from vendors that they control or have equity stakes in, and it is forbidden to enter into exclusivity deals between vendors and websites. This regulation is seen as a counter to Amazon and Walmart's influence on the market, which have given smaller traders a disadvantage in the market.{{Cite web|url=https://venturebeat.com/2019/01/31/amazon-and-flipkart-face-uncertainty-as-india-readies-new-rules-for-foreign-ecommerce-companies/|title=Amazon and Flipkart face uncertainty as India readies new rules for foreign ecommerce companies|date=2019-01-31|website=VentureBeat|language=en-US|access-date=2019-01-31|archive-date=1 February 2019|archive-url=https://web.archive.org/web/20190201002808/https://venturebeat.com/2019/01/31/amazon-and-flipkart-face-uncertainty-as-india-readies-new-rules-for-foreign-ecommerce-companies/|url-status=live}}{{Cite web|url=http://fortune.com/2018/12/27/amazon-walmart-ecommerce-india/|title=New India E-Commerce Rule Undermines Expansion of Foreign Companies Like Amazon and Walmart|website=Fortune|language=en|access-date=2019-01-31|archive-date=1 February 2019|archive-url=https://web.archive.org/web/20190201065830/http://fortune.com/2018/12/27/amazon-walmart-ecommerce-india/|url-status=live}}{{Cite web|url=https://www.straitstimes.com/asia/south-asia/new-e-commerce-rules-in-india-may-hit-amazon-and-flipkart|title=New e-commerce rules in India may hit Amazon and Flipkart|date=2018-12-28|website=The Straits Times|language=en|access-date=2019-01-31|archive-date=1 February 2019|archive-url=https://web.archive.org/web/20190201065712/https://www.straitstimes.com/asia/south-asia/new-e-commerce-rules-in-india-may-hit-amazon-and-flipkart|url-status=live}}