ecommerce in India

eCommerce Growth in “India” World’s 2nd Largest eCommerce Industry – How to Start?

December 13, 2020

The upward growth trajectory of India’s eCommerce industry in the pandemic is set to make India the biggest digital empowered society in the world. The increasing rate of smartphone users, cheap and easy access to the internet and the government’s push for digitisation is fueling India to become a trillion-dollar digital economy. It is reported that during this festive period, the eCommerce market of India sold over $8.3 Billion worth of products for brands and sellers. The gigantic sales not only uplifted the eCommerce growth in India but edged out the US for India to become the second-largest eCommerce industry in the world.

With rapidly increasing internet users, India is undoubtedly tapping into becoming the world’s most promising internet economy. The rising consumption growth and easy access to financial products make it favourable for the e-commerce market to boom in India. The young generations are deliberately looking for ways to step into the eCommerce industry. Many are looking for ways on how to start eCommerce store in India while others are trying to get a position in established eCommerce organizations. 

Factors Fueling eCommerce Growth In India

There are a plethora of factors involved in the fueling of the eCommerce market in India. Some of the most crucial ones are discussed down below:

●    The Proliferation of Smartphone Users

Economic times suggests that more than 60% of the Indian population will switch to smartphones by the end of 2022. Once the number of smartphone users becomes this enormous, there is no stopping for the eCommerce sector in India. Smartphones expedite and ease the process of online shopping for users.

It provides an opportunity for the brands to go beyond their work hours and let consumers shop, anytime and anywhere. So definitely, more people having smartphones means larger business for the eCommerce industry.

●    India’s Growing Internet Penetration Rate

At the start of 2020, internet penetration in India had almost reached fifty percent. It signifies that half the population of India has a reach over the internet now. It might be interesting for you to know that in 2015, the internet penetration in India was only 19%. A jump of over 30% indicates how swiftly the number of internet users is increasing in India.

Moreover, many reports suggest that rural regions of India see much higher growth in the digital revolution as opposed to urban regions. Rural India has a total of 264 million internet users and their internet penetration rate showed a growth of 41% in the past year. This consistent increase in internet users will surely open the gateway of the eCommerce industry for the common rural masses of India.  

●    Digital India (Govt Initiative) 

The government of India has started a digital India initiative that promotes the use of digital devices. This movement has been a key contributor to enhancing the internet penetration rate across the country. A large number of government services are made digital under this initiative.

It allowed the common people to taste the luxury of ease and convenience of using digital methods for different government services. Apart from digitally accessing the essential services, consumers have now taken it to the next level and contribute to the eCommerce growth in India by shopping online.

Also Read: How to Choose the Right Hosted Ecommerce Platform for Your Online Store?

●    Rising Standards of Living

India is not only showing tremendous growth in the eCommerce sector but is growing in all other aspects. The Indian economy has consistently stayed up since the start of the 21st century. This has brought a significant uplift in the standard of living of people. Though there might be many deprived societies in the country, a large percentage of people are enjoying luxuries that their forefathers only thought of in their minds.

Along with better internet access, double-income families, higher disposable income, exposure to global markets, a large section of society is the key factor for increasing eCommerce growth in India.

●    Role of Technology in eCommerce

Technology has played a major role in the development of the eCommerce industry all over the world. The various technological inventions have made us experience the comfort of shopping online while we sit back and relax at home. However, the pace for the evolution of technology hasn’t stopped yet. With several new eCommerce technology trends, shopping has now become more consumer-specific with a better shopping experience.

Technological systems like augmented reality and virtual reality are empowering people to view their products like never before while shopping online. From viewing images of the product from different perspectives to the ability to zoom and much more, the AR and VR systems are definitely the future of online shopping. The multiple online payment systems are another reason for the growing popularity of eCommerce. From internet banking to eWallets, you can now shop with more speed and better security. Ease to buy, pay and get delivery of products at their doorstep is one of the reasons for people shifting to online stores for shopping.

●    Accelerated eCommerce Growth Due to Covid-19

Though Covid-19 has affected all sectors of the world in one way or another, the eCommerce industry has certainly benefited from it. As people were lockdown in their homes, this gave a tremendous opportunity for the brands and eCommerce stores to market their products.

Business Insider claims that the eCommerce market in India grew by a whopping 117% between the months of Feb 2020 to June 2020. This shows how people prefer online stores over retail stores. As the Covid-19 pandemic still continues to threaten people’s lives, it has taught people to shop in a new efficient and secure way. 

Technology Companies Ruling eCommerce Market

Many ecommerce companies have skyrocketed and have made a large name for themselves in the eCommerce market over the last few years. These organisations work to provide software solutions for every possible challenge. Additionally, they can help you to start an eCommerce store in India. Here are a few top mentions:

●    Quick eSelling

Quick eSelling is one of the best eCommerce solutions company in India. It lets you operate your own online store by providing you with easy and quick connections with the wholesalers and customers. With Quick eSelling, global retailers or SMBs can launch their online store for Free of Cost.

●    Jungle Works

JungleWorks is a SaaS tech service provider that provides all kinds of digital solutions to SMBs and entrepreneurs to maximize their ROI. 

●    FATbit Technologies

FATbit Technologies is one of the leading custom development company that serves the global market with its integrated web services & solutions.


The way India is expeditiously headed towards development is a bonus for the eCommerce industry. The number of potential prospects turning into online customers is extensive. Entrepreneurs, SMEs, and MSME can benefit big time from this tremendous opportunity. As far as eCommerce growth in India, the technologies and the current statistics of the country shows all green signals for the eCommerce industry in its future aspects.

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