Indian E-commerce Trends 2020

The e-commerce industry is now well established in India. It has changed the way business is done in India. Since India is rapidly becoming a digitally advanced country, the e-commerce industry is developing at a tremendous pace.

The e-commerce market has undergone a phenomenal change in the past decade. Smartphones have become a thing of necessity rather than luxury, this has enabled people to buy things they desire at the flick of the hand and swipe of the thumb.

The consumers can easily locate the product they want and get it delivered at their doorstep. They don’t have to spend time and energy searching for the desired product. E-commerce sites also help in selling our products easily. There is no obligation to set up a physical store and the products can be sold from the comfort of our house.

This advancement has created job opportunities for the hordes of people in all the sectors of society. A huge number of new jobs were created and are still creating in both in the skilled labour and the unskilled labour market. The e-commerce tech giants have reached even the remotest villages and are providing extended service there.

An increase in the literacy rate, internet, and smartphone penetration is among the prime factors for the gigantic growth of this industry. This has turned the attention of international e-commerce giants towards India. There are also a number of new Indian startups taking a plunge into the market every day.

The e-commerce industry has largely influenced the way we buy and sell our products and the way we travel.

Indian E-commerce Market And User Analysis

Indian e-commerce market and user analysis

Since people are now adapting social distancing this year due to COVID-19, it gave a great opportunity to e-commerce sites to expand their businesses. In fact, e-commerce market has seen a tremendous growth during this time and in the future as well, it is expected to grow more.

In this section we will explore:

  • E-commerce market forecast 
  • Growth in the Internet market
  • Consumer by gender 
  • Number of expected users
  • The average revenue per users
  • Consumer by age
Indian e-commerce market and user analysis
Impact of Covid-19 on online shopping

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Indian e-commerce market and user analysis

The estimated value of the goods sold in India by the end of 2020 is 38 billion dollars. Based on this data, the total value of goods sold is estimated to be 100 to 120 billion dollars by the end of the year 2025.

Currently, there are 548.5 million users of e-commerce sites in India. The projected number of users in the year 2021 is 643.9 million users and the following year it is estimated to be 739.3 million users. In the year 2024, the approximate number of users will be 884.7 million.

The average current revenue and forecasted revenue per user for years of 2020, 2021, 2022, 2023 and 2024 are $83.66, $85.37, $85.23, $84.71 and $84.89 respectively.

If the consumers are categorized based on age, then the age group of 25-34 are the major consumers of the e-commerce market with a percentage usage of 37.1%


Following them is the age group of 18-24 years with a percentage of 29.4 %. People in the age group of 35-44 years contribute up to 23.6% to the Indian e-commerce market. 


People in the age group of 45-54 contribute to 8.6% and 55-64 year group users contribute to 1.4% of the Indian e-commerce revenue which is the least of all.

Based on gender, 64.9% of the consumers of the e-commerce market are male and 35.1% of the consumers are the female population.

Opportunities For Digital Payments

 Opportunities For Digital Payments

Digital payment gives a great opportunity to its users as they are able to send money through their mobile phones using the internet. This technology brings great comfort to its user, hence over the period of time, it’s going to expand more.

In this section we will explore:

  • Modes of payment used
 Opportunities For Digital Payments
Modes of payment used

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Modes of Payment used

The consumers of e-commerce products use different modes of payment to pay for the goods that they are buying.

With the increase in the online buying and selling of products, there has been a steep rise in the increase in the usage of electronic wallets


E-wallets amount to 26% of the total digital transactions. They provide the option to add cash to your e-wallets and transfer money with just the phone number or the UPI Id of the receiver. 


This happens instantly without any downtime to add the receiver as the beneficiary.

We can add the credit/debit cards to our accounts for fast access and this makes a transaction with the debit and credit cards easier.


With just the PIN number and the CVV, the payment will be completed. The card transactions amount to 25% of the total digital transactions.

Direct debits and bank transfers both equally contribute to 16% of the total transactions while cash on delivery constitutes 14% since it involves the hassle of finding the exact amount/change for the price of the product. 


Other miscellaneous modes of payment contribute to 2% of the online transactions.

People nowadays prefer online methods of payment over cash on delivery. Hence the digital modes of payment have seen substantial growth this year. 

Festive Sales Are The Trump Card

Festive sales are the trump card

Every year around October, most of the e-commerce sites start festive sales and it is always expected that there will be rise in the sale period. In future as well, the demand for online shopping will continue to see a increasing trend. For mor information, check the stats mentioned in the upcoming section for clear understanding.

In this section we will explore:

  • Total Sale Value Skyrocketed During Festive Sales
  • Leading Online products/categories of the Total Sale Value
  • Share of Shoppers and their spending
Festive sales are the trump card
E-commerce platforms big win during festive sales

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Festive sales are the trump card for e-commerce sites

The festive sales continue to bring in huge revenue for the e-commerce tech giants. Amazon and Flipkart sold goods with a value of up to 4.1 billion dollars. 


90% of the goods sold during festive sales were from Flipkart and Amazon. Snapdeal, Paytm Mall, and others contributed to the remaining 10% of the sales.

Mobile phones were the most sought-after products in online sales which contributed to 47% of the total sale value. 


Then come the other electronics and kitchen appliances which contribute to 28% of the total sale value. 14% of the sales revenue comes from fashion products


The leftover 11% of the sale revenue is generated from selling other miscellaneous items.

52 million people have shopped during the first week of the festive sales which amounts to 85% of the total sale value.

The Indian e-commerce market has penetrated tier-2 cities like Asansol, Ludhiana, Dhanbad, and Rajkot.


During the festive sales, tier-2 cities like these contributed to 55% of the total sales revenue.

On average a shopper spent 6800 INR in the year 2019 which has seen a drop in 2020, the average amount spent by consumers this year 2020 is INR 5500. 


Though there is a dip in the amount spent by each consumer, the number of shoppers and sales has increased compared to last year.

Growth Of Flipkart

Growth Of Flipkart

FFlipkart is one of the leading e-commerce Indian companies which is actually well established and is experiencing a good market uprise. As we’ve said before, e-commerce has seen an increase in sales, Flipkart have also seen a huge spike in their sales. Check the statistics given below for a better understanding.

In this section we will explore:

  • Big Billion Days Sales Analysis 
  • Leading Online Shopping Categories
Growth Of Flipkart
Flipkart big billion sale

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Flipkart big billion sale

Analysis of sale on Big Billion Days shows that the site saw more than 666 million visitors


110 orders were placed per second on the site during the Big Billion sales. 10 million product deliveries were achieved during the Flipkart Big Billion sales.

There has been a tremendous increase in the number of shoppers and deliveries compared to the last year.


The mobile category saw twice the number of customer visits during the Big Billion Days compared to the last year. The visit to the premium mobile segment has increased by 3.2 times to the last year.

During this sale, over 16 million products were sold. Top brands like Puma, Saara, ADIDAS, Metronaut, and Nike dominated the sales. 


1500 new cities shopped for fashion products during the sale. The tier-2 market has grown by 51% this year.

In the electronics section, one TV was sold within every 2 seconds and 1 microwave oven was sold every 14 seconds. Audio devices saw enormous sales in the Big Billion Days this year. 


One home theatre was sold every 2 seconds and one Apple Airpods was sold within every 4 seconds. 11 headphones were sold every second since day one of the sales.

Bakeware saw major growth in sales this year which amounts to 10 times the sales of last year. The sale of cookware and cleaning supplies has increased by three times compared to the previous year. 


Pressure cookers, choppers, and food supplies sales have increased by at least 2 times compared to last year.

The fear of going to shops to buy products in this pandemic has driven people to order them online which in turn has increased the sales in Flipkart by a bigger percentage.

Myntra: Big Fashion Festival

Myntra: Big Fashion Festival

Myntra is an online shopping platform for clothing, as said before due to safety protocols people started purchasing online more, hence it is also a great opportunity for Myntra.

In this section we will explore:

  • Visitors recorded during “Big Fashion Festival”
  • Number of people who shopped
  • Number of items sold
Myntra: Big Fashion Festival
Myntra: Big Fashion Festival

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Myntra: Big Fashion Festival

Myntra is the pioneer in the sales of online fashion products. It has a good collection of clothes from various brands and allows consumers to compare the prices of the products.


The product reviews and ratings available on the site help the consumers in choosing the best product suited to their taste.

During the “Big Fashion Sale” Myntra recorded 45 million visitors to the site.


Among them, 4 million users shopped during the sale. 13 million products were ordered and delivered during the Big Fashion Sale. 


The sale was a great hit and the shoppers feasted on the great discounts that were available on the site. 

Conclusion

The driving factors for the growth of the e-commerce industry in India are the comfort and flexibility with which the consumers can shop online.


The consumers from even the remotest towns are provided with several brand options for the product they are looking to buy.

Even from the seller's perspective, e-commerce has brought in transparency. E-commerce sites allow the seller to check the prices of the counterparts and adjust the price levels accordingly. 


This encourages the sellers to register with the e-commerce platform which in turn increases the revenue of the market.

With the increasing number of e-retail shoppers, India has gained the attention of global investors.


Though the Indian e-commerce market is dominated by Amazon and Flipkart, there are other notable players in the market like Snapdeal, Myntra, Jabong, and Paytm Mall.


There are more than 5700 new active e-commerce start-ups in India aiming to capture a dedicated market.

Digitization of the economy and providing internet at subsidized prices can be considered as the underlying reason for an increase in the sales of e-commerce sites.


Furthermore, the availability of online wallets and other modes of online payment, have improved the speed at which people shop online.

With the increase in consumption of online goods and the increase in the millennial population, the Indian e-commerce industry will continue to flourish and grow considerably in the upcoming years. 


Developing cities have also witnessed an increase in the consumption of e-commerce platforms as it satisfies the need for people from different age groups.

Sources & References

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About The  Author

Editor-in-Chief : Ishant Sharma

Currently working as an Editor in chief with Recommendit, he is managing all the ins and outs of the content management process and editorial operations. Having an experience of 8 years in the publishing/ e-solution industry, he manages a small freelancing team of fellow editors and has worked with several domains including academics, healthcare, lifestyle and technical writings. He is a stickler for accuracy and loves to read noir-fiction and binge-watch anthologies. Know more about Ishant

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