The digital commerce market in the country might cross USD 50 billion by the end of 2018 from the current level of USD 38.5 billion, on the back of an upward internet population and increased online shoppers, says a recent study.
The E-Commerce market in India has grown progressively from USD 19.7 billion in 2015 to USD 13.6 billion in 2014, as per a joint study conducted by Assocham and Deloitte.
The emergent mobile and internet diffusion, m-commerce sales, advanced shipping and payment options, exhilarating discounts, and the thrust into new international markets by e-businesses are the major drivers of this extraordinary growth, it said.
Banks and other players in the e-commerce ecology are providing a protected online platform to pay effortlessly via payment gateways.
Though it is pointed out that the Indian e-commerce sector is majorly dependent on the cash on delivery (CoD) mode of payment as it is the most favored choice for Indian consumers due to lack of trust in online transactions, limited adoption of credit and debit cards, and security concerns, among others.
“More than 50 % of online transactions are done on COD method and it is available across 600 cities and towns of India,” the joint study states that.
On the increase in choice of mobile transactions, the study said one out of three consumers currently makes transactions through mobiles in tier-1 and tier-2 cities.
In 2017, 82 % of shopping queries were made through mobile devices, compared to 76% in 2016, added the study, demonstrating the growing mobile transactions.
The analysis highlights that 28% of regular shoppers are in 18-25 age group, 42 % in 26-35, 28 % in 36-45 and 2 % the age group of 45-60.
While 65 % of online shoppers are male, 35 % are female. The products that were maximum sold in 2017 included mobile phones, apparel, food items and jewellery, among others, it said.
As per the study, there would be more than a seven to ten fold boost in revenue generated through e-commerce as compared to last year with all branded apparel, accessories, jewellery, gifts and footwear available at low rates and delivered at the doorstep.
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Jatin Bhatia, From ITvoir News Desk