Recent Trends in India’s Ecommerce Market in India

Abstract

The cost is high, but the retailer considers this option necessary to develop consumer trust and confidence in the retailer. While such at-home pickup for returns is typical in other emerging markets, markets tend to shift from this labor-intensive, often inconvenient process to prepaid return labels as the eCommerce ecosystem develops. eBusiness professionals with an interest in the online retail market in India must understand how India differs from other leading eCommerce markets and where hurdles do and don’t exist. In this report, we outline some of these local nuances and explain the key trends shaping eCommerce in India. In 2011, venture capitalists invested US$177 million in eCommerce in India — more than recent estimates of eCommerce investment in Russia in 2011, for example.8 A partner at one of India’s top early- and mid-stage venture funds noted that India’s online population — which is largely upper and middle class — has moved well beyond the initial stage of online shopping. As of May 2012, the Telecom Regulatory Authority of India reported more than 929 million wireless subscribers in the country. While 3G penetration today is estimated to be in the low single digits and users complain of low network speeds, mobile will be akey tool in helping users connect in a market where overall Internet penetration remains low. However, retailers can take a series of steps to ensure they are offering the payment types that most appeal to consumers today. By doing so, these businesses position themselves to capitalize on growing online spending as infrastructure issues are addressed. eBusiness professionals .