Indians buy and sell online every day, and e-commerce revenues continue to rise. Therefore, it is no wonder that his e-commerce revenue will reach 4,416.68 trillion rupees at the end of 2024.[2]. But what exactly is the Indian e-commerce market like? Here are India's e-commerce statistics for 2024.
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Overview: Key e-commerce trends and statistics for 2024
India's e-commerce sector is thriving due to several factors such as increasing smartphone penetration, increasing affluent population, and affordable data prices, all of which are driving the growth of e-retail. The proliferation of the Internet has made India the second largest Internet market in the world.
According to TRAI's India Telecom Service Performance Index for January-March 2023, as of March 2023, the number of internet users in India exceeded 880 million and the number of telecommunication subscribers was 1.172 billion. surpassed humans.[1]
Further research on how e-commerce is being used by citizens across India shows the following key trends:
- India's e-commerce sector is expected to reach Rs 4,416,680 million in 2024 and Rs 7,591,940 million by 2029 at an annual growth rate of 11.45%.[2] UPI's transaction value reached Rs 125.94 trillion in 2022, with a user base of over 800 million.[1]
- By 2029, e-commerce users are expected to reach 501.6 million. User penetration is predicted to increase to 22.1% in 2024 and 34.0% by 2029. The average revenue per user (ARPU) is expected to be INR 14,121.[2]
- Government Electronic Marketplace (GeM) achieved the highest GMV record of $201.1 billion in FY 2022-23. Since its inception, GeM has accumulated a cumulative GMV of over Rs 4.5 trillion till July 23, 2023.[1]
Major e-commerce companies
E-commerce platforms definitely help businesses successfully launch online stores in India. But who is taking a big piece of the pie in India's booming e-commerce market? They own Amazon.com, Inc., Flipkart Private Limited, eBay Inc., Alibaba Group Holdings Limited, and Nykaa FSN E-Commerce Ventures Limited.
Amazon to invest $15 billion in India by 2031
- Amazon has announced that it will inject an additional $15 billion into India over the next seven years.
- The move increases the company's total investments in India across all its operations to $26 billion.
- The e-commerce giant has already injected $11 billion into India.
- The company has vowed to digitize 10 million small and medium enterprises in India, drive $20 billion in exports and create 2 million job opportunities in India by 2025.[3]
Flipkart's parent company invests Rs 722 crore in India
- Singapore-headquartered Flipkart Private Limited has injected Rs 722 crore ($90 million) into its Indian marketplace arm.
- Flipkart Internet, the marketplace unit owned by Walmart, has received a cash infusion of about 722 million rupees ($90 million) from its Singapore-based parent company.[3]
India's Nykaa collects revenue of Rs 51 billion in FY2023
- Indian online marketplace Nykaa's revenue collection increased from just over Rs 5,000 crore to Rs 51,000 crore in FY23.
- This growth coincided with an increase in per capita spending on beauty and personal care products.
- Although Nykaa offered products in a wide range of price points, from luxury to mass market, its main source of income was the sale of cosmetics.
- Nykaa had relatively less competition compared to platforms like Amazon and Flipkart because it was focused on other areas.[2]
E-commerce allows consumers to have their orders shipped quickly and shop online by choosing from categories. Further research shows that all pin codes across India accept e-commerce.
60% of online orders come from tier 2 cities and small towns
Over 60% of transactions and orders come from tier 2 and small cities. The surge in e-commerce has been particularly pronounced in tier 2 and tier 3 cities, where nearly half of all shoppers reside, contributing to three out of five orders on major e-retail platforms. The average selling price (ASP) in tier 2 and below cities is slightly lower than in tier 1/metro cities.[1]
70% of e-commerce orders go to electronics and apparel
Home appliances and apparel account for nearly 70% of the transaction value in the e-commerce market. Additionally, emerging categories within e-commerce include edtech, hyperlocal services, and foodtech.[1]
Millennials drive global social media shopping
By 2025, Millennial consumers will account for one-third of global social media shopping spending, followed by Gen Z at 29% and Gen X at 28%. Baby boomers are expected to be least involved in social commerce due to challenges associated with adopting new technologies as the population ages.
Boomers in particular are active on social media, with 82% maintaining at least one social media account and 78% on Facebook. Despite their relatively low social commerce activity compared to other generations, there is still a clear upward trend in their engagement.[4]
In 2023, 34% of Instagram users purchased an order through the platform
Instagram arguably ranks as the fourth most used social platform in the world, with an estimated 2.35 billion monthly active users. Approximately one-third of these users participate in social shopping on the platform, creating great business opportunities for them.[4]
Over 250 million Facebook Shops demonstrate the platform's extensive reach
Facebook offers many features tailored to businesses, making it an attractive channel for social commerce. Facebook boasts a whopping 2.96 billion monthly active users, surpassing Instagram in terms of users. Facebook ranks as his third most visited website in the world with 11.2 billion visitors, 1.5 billion unique visitors, and an average visit time of 31 minutes.[4]
37% of social commerce buyers are concerned about the security of their payment information
Despite the growing popularity of social commerce, there is still significant skepticism among consumers when making purchases on social media platforms. This concern arises because traditional e-commerce requires customers to purchase directly from a company's website.[4]
mobile e-commerce statistics
Mobile commerce sales expected to exceed $3 trillion worldwide by 2027
E-commerce allows users to leverage the power of the Internet to conduct online transactions anytime and anywhere at their convenience. In recent years, mobile commerce, which involves online shopping and transactions using smartphones and tablets, has grown rapidly. Currently, smartphones account for more than 60% of e-commerce. [5]
E-commerce fraud statistics
54% of account-related fraud is reported in the e-commerce sector
Considering that 59.5% of the world's population has access to the internet and consumers increasingly prefer convenient shopping, global retail e-commerce sales are estimated to reach Rs 365.5 trillion by 2021. I can understand that. However, it is also worth noting that global payment fraud is escalating. Merchant losses are projected to reach Rs 3.56 trillion by 2027.[7]
35% of consumers choose to spend money on festive supplies
35% of consumers prefer to purchase Puja and Diwali essentials during the festive season primarily through online shopping websites and apps. Shopping activity in India increases during October, November, and December due to festivals such as Diwali, Dussehra, Navratri, Dhanteras, and Christmas. Shoppers find this time to be auspicious for shopping, and sellers are more likely to offer deep discounts and the most attractive deals.[2]
source of information
- invest in india
- Statista
- mordor intelligence
- Tidio
- red line
- business standard
- finances online
