India: ecommerce market to reach USD 6 bln in 2015

Friday 17 October 2014 13:27 CET | News

The Indian ecommerce market is expected to hit USD 6 billion in 2015, up by 70% year-over-year, according to market research agency Gartner.


Praveen Sengar, research director at Gartner, has informed that ecommerce represents less than 4% of the total retail market, despite its notable growth.

Mobile commerce is increasingly being adopted by marketplaces, consumer product goods, and food and beverages companies. However, less than 5 percent of total digital commerce happens through mobile. 30% of traffic for ecommerce websites come from mobile and tablets.

Digital companies will expand investments in personalisation, digital marketing, web analytics and big data in order to stay competitive. India has approximately 200 million users on social networks and it is an important channel to understand and engage with customers.

Limited internet penetration, low digital commerce volume, multiple payment models (e.g. cash on delivery, credit card and wire transfers), logistics and fulfillment challenges, higher return rates and low average order value is putting pressure on the profitability and viability of B2C ecommerce businesses.

The B2B model is leveraged to drive efficiency in the supply chain. The biggest challenge is getting the business digital commerce strategy right and adequate investments in people, process and technology to engage with customers across channels, which has been ignored by Indian enterprises so far.

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Keywords: India, ecommerce, market, USD, growth, customer, merchant, online sales, nusiness
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce