Indian E-Commerce Industry To Hit $230 Billion By 2028

According to a recent report by the E-Commerce Council of India (TECI), the Indian electronic commerce market is likely to generate total revenues of $230 billion within the next decade. The industry’s growth rate has been outreaching the number of the offline retail segment, ranked as the highest across the world. This upswing is supposed to be facilitated by the increasing acceptance of smartphones, the expansion of Internet usage, as well as the low data tariffs. 

It is estimated that 10 crore people in India are shopping online. By 2028, around 40-50 crore consumers will be added to the whole ecosystem, giving birth to the next hundred-billion-dollar industry. 

Indian e-commerce market: threats and potentials

The development of broadband, additional services, and facilities within e-commerce platforms will help sellers to attract more consumers from semi-urban and rural areas. Contemporarily, urban shoppers, particularly from Tier-I cities, are accounting for the largest proportion within the user base.

The report said nearly 90% of the survey respondents considered neutrality as the primary factor contributing to the success of the e-commerce industry. That means a platform must behave independently as the marketplace instead of running its own units or related parties within the site. For sellers, stores sponsored by the marketplaces attain more advantages over the independent ones and even damage their businesses.

Also, 90% of vendors said the fact that marketplaces operate private labels on their platforms would create a conflict of interest between parties. Sellers believed that customer insights extracted from the platforms’ data would give their private labels an unfair advantage and a better opportunity to create appropriate pricing policies.