Amit Chougule

Entrepreneur – Endurance Cyclist

E-commerce in India

E-commerce in India is on the rising curve. In last couple of years, there have been tremendous change in E-commerce business in India. Many startups are coming up with creative products for online shops & online services. Some companies like Flipkart & Snapdeal which just started few years ago have shown extraordinary growth in India. Flipkart which started with only books now deals with many other categories also & have become India’s biggest E-commerce company now. Other small companies are also coming on canvas with niche sector.

E-Commerce in India

E-Commerce in India 2013

 E-commerce worth by Country

As compare to world’s E-commerce market, Indian E-commerce market is very small. USA is currently leading online market with more than $348 Billion. UK & Japan are following with $116 billion & $110 billion respectively which is way less than America. Then comes the France with $52 billion which is one of big market in Europe. In Asian market, China is heading with $22 billion per year. India is just opening up with E-commerce business. Consumers in India are recently accepting online shopping & its growing aggressively. Currently Indian E-commerce is worth $4 billion per year. International companies are now keeping an eye on our Indian Online market. India has hidden potential which is yet to discover.

ecommerce worth by country

E-commerce worth by country


 Predicted growth in Internet Users

There is very interesting statistics which makes E-commerce business in India more interesting. As per statistics , India is out standing in predicted growth of Internet users. India had 101 million users in 2012 & as per prediction there will 200 million new users will be connected through Internet. So India will have more than 300 million internet users by the end of 2013. You can imagine how much potential we have in online business in India. Important part of this number is these new users are young consumers who are more likely to buy things online. Comparatively china, brazil & russia are also in competition but shown less growth in internet users.

predicted growth in internet users

Predicted growth in Internet users


Total growth in India

total e-commerce growth in IndiaIf you look at the numbers of growth in Indian E-commerce market, you will be astonished. This include all sector’s of E-commerce business. In 2012 , Indian online business was worth of 5570 million euro. By end of  2013, it is predicted that Indian consumers will contribute to more than 7407.8 million euro business. This is very positive sign for future of e-commerce business in India. This growth represents more than 32% growth in just 1 year. If Indian online business growing with this speed for next few years then, it won’t be any longer to compete with Other developed country’s e-commerce market.

What people are buying online?

ecommerce industry in india 2012

What people are buying online in India?


Indian Online business is largely dominated by Consumer Electronics, Apparels & Accessories, books.  Even biggest Indian e-commerce player, Flipkart started its business with only books. There have been so many small e-commerce startup which are discovering niche market within these sectors. There is still large portion of pie left unclaimed. Consumer electronics constitutes around 34% of market share in e-retailing. This category is mainly about laptops, camera, smartphones, phone accessaries. Apparels & Accessories is another major category in online shopping with 30% market share.  Many retail brands are now entering into this sector. There are so many players competing within this category.  Books are surprisingly covers 15% of e-retailing market. Major piece of this cake goes to Flipkart. Beauty & personal care products are also interestingly makes 10% of e-commerce market. Home & furnishing contributes 6% of market share. Baby products & healthcare shares 2& 3 % respectively. There are so many other small niche sectors also covered in big categories.

What are opportunities in E-commerce boom in India?

E-commerce in India

E-commerce in India

Now as you read all this information here, you can understand the big treasure hidden in E-commerce business in India. There is still many niche markets which can be discovered within these categories. This growth is not slowing down any time soon. The growth is exponential in Online business in India. If you study many major players in e-commerce business worldwide , you can notice one thing. They initially concentrate on some niche sector & once they become master in it, then they spread in other categories. It is not always suggested to follow trend, sometimes some special requirement could also have large potential consumer base.  E-commerce is not only about making fast money in startup phase. Startup must concentrate more on building their community in initial phase. Personalisation of user experience is something which can play important role in e-commerce business. Consumer wants personalised experience on site. It’s all about marketing & presentation. Consumer can’t touch these products, or feel it  or smell it as in any other physical store. To overcome this difficulty, E-commerce startups should work on giving consumer more comfortable experience on site. You can also have look at some of other articles here.

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This is the right time to enter in this newly open market. It’s just tip of iceberg. Large customer base is still to be explored. I am currently working on a plan of an interesting E-commerce startup. If you are interested in investing in this startup, contact me to discuss more. I think, you won’t want to be left out in this boom. Don’t hesitate to contact me for more information. Small investors are also welcome to join us in this opportunity. Wish you all happy online shopping. If you are planning to start your e-commerce business or want to take your current business online & need assistance in building online shop, developing website, planning business strategy or online marketing , you can contact me for consultancy.


  1. […] be proactive & reach out to large consumer base online. You can see here some statistics of E-commerce business in India.  Do you want to know How to start ecommerce Business. There are some basic steps to start your […]