Synopsis: The eCommerce industry is expanding! As a prospective investor, you may have many inquiries concerning the direction of the industry you want to enter. This blog provides an overview of the Indian eCommerce market, focuses on its future, and describes how the sector is supported by numerous government initiatives to grow stronger.
India has seen a growth in the use of smartphones and the internet in recent years. Due in large part to the "Digital India" effort, there were 830 million internet connections worldwide till 2021 alone. 55% of all connections to the internet were in metropolitan areas, and 97% of those connections were wireless. The number of smartphones has also greatly grown, and by 2026, that number is anticipated to be 1 billion.
India's digital economy has benefited from this, and by 2030, it is predicted to be worth US$1 trillion. The rapid growth of India's e-commerce industry has been aided by the country's increasing affluence, quick increase in internet users, and smartphone penetration. The e-commerce industry in India has changed how business is conducted there and opened a variety of market niches, including business-to-business (B2B), direct-to-consumer (D2C), consumer-to-consumer (C2C), and consumer-to-business (C2B) (C2B). Significant markets like D2C and B2B have grown tremendously in recent years.
By the financial year 2027, the D2C market in India is anticipated to grow to $60 billion. The global e-commerce market is anticipated to increase by 21.5% in 2022 to reach US$ 74.8 billion and is projected to reach US$ 350 billion by 2030.
This demonstrates the eCommerce sector's bright future and increases commercial potential for eCommerce devlopment. But what exactly does it look like ?
Micro, small, and medium-sized enterprises (MSME) are directly impacted by India's e-commerce industry, and it also has a positive cascading effect on other industries by supplying capital, technology, and training. By 2034, the Indian e-commerce market is expected to surpass that of the United States and take second place globally.
Technology advancements including digital payments, hyper-local logistics, analytics-driven customer engagement, and digital marketing are expected to support the sector's growth. Additionally, India intends to launch an Open Network for Digital Commerce (ONDC). The ONDC will allow e-commerce platforms to display goods and services from every forum by synchronizing search results. In India, e-commerce will be encouraged to grow, and MSMEs may do more business.
It is projected that the Indian e-commerce market will expand into new regions. The Indian e-retail market, which reached Rs. 1.8 trillion (US$ 25.75 billion) in FY20 with a CAGR of over 35%, is anticipated to keep growing quickly. Over the next two-three years, it is expected that the Indian e-retail industry will draw more than 300–350 million customers, increasing the online Gross Merchandise Value (GMV) to US$ 100–120 billion by 2025. This prediction is based on the sector's anticipated 20 percent yearly growth.
According to a survey by Bain & Company, social commerce in India is anticipated to reach a gross merchandise value (GMV) of more than 2 billion US dollars. Analysts predict that due to the extensive usage of mobile technology, it will reach US$ 20 billion by 2025 and then perhaps soar to US$ 70 billion by 2030.
Online product demand from consumers is still rising: Most consumers today prefer to shop online. Customers are more likely to investigate things online and purchase them there than they are to hunt for them in actual stores. A growing number of online retailers can enter the market because of the steadily rising demand for products.
Comparing investing in brick-and-mortar establishments versus online retail, the costs are lower: The initial overhead expenses related to starting physical store locations are high. The store area, lighting, fixtures, signs, and other factors are present. eCommerce is the best choice if you're seeking a secure, affordable, and rewarding investment. The most expensive components are rapidly removed because a brick-and-mortar site is not required.
More expansion opportunities emerge from investing in eCommerce: You search for businesses that are poised for growth and expansion as an investor. While opening a second physical shop location might take years, eCommerce firms that are successful in their early years have more options to grow and extend into worldwide and multichannel markets than traditional retail establishments.
The government is supporting technologies like UPI, RuPay, DigiLocker, and eKYC in order to encourage digital transactions, boost their use in smaller cities, and spur innovation in this field. An INR 1,500 crore programme to provide financial incentives for digital payments was proposed in the FY22 Budget.
Government efforts to increase rural broadband penetration within the scope of Digital India are expected to be beneficial for e-commerce. One such initiative, BharatNet, has a budget of INR 61000 crore and aims to provide broadband connectivity to 2,50,000 Gram Panchayats in India.
In order to facilitate comprehensive socioeconomic progress across all regions, the government has started the ODOP programme with the goal of choosing, branding, and marketing One Product from each District (One District - One Product) of the nation.
In addition to defining duties and responsibilities for the marketplace and sellers, rules will boost efficiency and competition in the Indian e-commerce business.
A proposed strategy intends to establish a framework for fostering the sector's overall growth, supporting it alongside other programmes like Make in India and Digital India.
By the end of 2024, the Indian government wants to develop a $99 billion industry. According to the same research, 220 million online shoppers will use digital storefronts as a medium to make purchases by 2025. Government officials and business leaders agree that ecommerce is the next big thing and will be essential to growing the economy of the nation. The government is doing everything possible to encourage and inspire prospective e-retailers since there is so much potential. Let's take a closer look at a few of these initiatives and discover how they might support the expansion of your online business.
Any small or medium-sized business that is just getting started should use the Startup India initiative. Once registered, you have access to faster IPR processing, simpler compliance requirements, and tax advantages. In addition to this, the programme provides access to a huge network of incubators, women's entrepreneurship, and public procurement.
With such a committed strategy, female business owners have excelled. In accordance with this policy, the government offers women business owners a little salary. Up till now, a monthly stipend of Rs. 20,000 has been paid on average. The payment is made for a year and the amount fluctuates for various reasons. The objective is to encourage and provide female company owners with some stability while they expand their enterprises.
Additionally, you can take advantage of this government initiative and quickly launch your own eCommerce website. You only need to select Builderfly. The portal is made to assist prospective internet entrepreneurs in starting their own enterprises, and you can also sign up for the Startup India programme through it. Udaan, Boat, and other successful examples of this programme are a few. Each of these firms had a modest beginning and gained more advantages by joining the effort.
The goal of the Digital India programme is to improve the internet presence of medium-sized and small enterprises. Data.gov.in, Jeevan Pramaan, BHIM, Mobile Seva, and other programmes are among them. Another excellent example of this is Digilocker. By visiting their official website, you may join the campaign and find out more information about it.
You may join the Digital India Campaign by utilizing Builderfly to take the first step toward a digital India. Launch your internet business and get digital. It provides a wide range of tools that may help you not only establish a digital presence for your company but also increase sales and profit. The best part is that you don't need any technical knowledge to complete it.
Since the program's debut, many small and medium-sized businesses have benefited from its multiple advantages. Builderfly can assist you in making the crucial first move at no cost and entice the growing advantages of the Digital India Campaign.
The goal of the campaign is to encourage people to support regional vendors. In the end, this was beneficial, particularly for small business owners. These firms can now sell to the entire city and the entire country, as opposed to just their local area and their physical store.
Many businesses have increased their sales by establishing an online presence thanks to the Digital India campaign. While many independent sellers and enthusiasts also jumped into the pool to make some money, on the one hand, traditional store owners launched their online stores to enhance sales.
Many platforms observed an outstanding increase in the number of merchants. One of them was Builderfly. It has seen a steady increase in sales, particularly over the past year. On the list are new businesses, independent vendors, hobbyists, and experts. Each of them developed a unique brand to use with the Builderfly tool. It enables you to launch an online store without any technological expertise and increase your sales on online marketplaces.
The business plan is, of course, yours! You already own a physical store; therefore, you get the idea to expand it online. To enter the eCommerce industry and grow, you do, however, need an eCommerce website.
With our help in eCommerce devlopment , we have elevated several brands in the past to stay up with the pace of the field. Please get in touch with us if you have any questions about the same. We would be pleased to help you as you grow your eCommerce business.
We would love to be a part of your journey to success. Let's team up today!
