As shown in the above graph, the e-commerce industry across India is estimated to be worth around 200 billion U.S. dollars in 2027, a significant rise from about 64 billion dollars in 2020.

Unsurprisingly, a growing digital population, expanding beyond the country’s urban centers spent an average of 224 dollars per user in 2017. The increase of smartphone users was directly proportionate to the growth in the e-commerce sector.

Based on a report on Statista, owing to the increasing internet user base and favorable market conditions, India has a lot of potential in the e-commerce industry.

Growing at an exponential rate, the market value of the e-commerce industry in India was approximately 50 billion U.S dollars in 2018. This number was estimated to reach 200 billion U.S. dollars by 2027.

The competition in the e-commerce business in India is fierce. The market is filled with many local and foreign companies trying to hold the maximum market share.

As of April 2017, Amazon India was the leading online marketplace in the country with more than 500 million U.S dollars in the sale. Flipkart and Myntra were prominent players in the local market.

In a survey conducted in May 2020 about permitting e-commerce platforms to deliver goods in India after coronavirus lockdown, the majority of respondents voted in favor.

The growing trend of eCommerce in India is attributed to a number of reasons. Digitizing the economy and providing cheap internet to the people are a few of many reasons that boosted the growth of digital sales in India.

In 2018, eCommerce sales across India were estimated to increase by 25 percent.

The growth rate, however, was predicted to observe a slight dip in 2022. Consequently, the revenue-generating potential has also increased.

The average retail eCommerce revenue collected per user in India in 2018 was more than 50 U.S dollars. It was estimated to cross 75 U.S dollars by 2024.

(Source: Statista)