Ecommerce India expected to reach USD 200 bln by 2026

Thursday 12 October 2017 10:16 CET | News

Ecommerce market in India will grow 30% CAGR (compounded annual growth rate) for gross merchandise value to be worth USD 200 billion by 2026.

According to India’s Digital Leap – The Multi Trillion Dollar Opportunity report issued by investment bank Morgan Stanley, this growth in ecommerce will help grow market penetration to 12% in the next nine years, versus 2% today.

India had 60 million online shoppers in 2016, which is 14% of the Internet user base of the country. This will rise to over 50% by 2026, the report said.

People with less than 2 years experience on th Internet don’t transact on the web (including mobile banking). They are engaging in basic activities like messaging, social media, and search, that don’t involve a monetary transaction.

Once a consumer has been online for more than five years, they are more likely to buy online. Right now, that’s only 30% of India’s 432 million Internet users.

Several years ago, cash-on-delivery was over 60% of ecommerce sales which has now come down to 55-60%. Looking at UPI and digital wallets, their share has increased to 4-7%. Hoewever, the growth will still be led by the “horizontal” ecommerce players, including Amazon India and Flipkart.

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Keywords: ecommerce, India, Morgan Stanley, CAGR, merchandise, market, Flipkart, Amazon India, report
Categories: Payments & Commerce | Ecommerce
Countries: World
This article is part of category

Payments & Commerce