B2C e-commerce in India - statistics & facts
India is ranked fifth among the world's largest and most rapidly growing economies. Various sectors contribute to the growing economy of the country, one of which is the e-commerce sector. The e-commerce market in India offers enormous opportunities because of the presence of one of the largest consumer base globally. The market is driven by enhanced digitalization and fintech infrastructure, resulting in an estimated 250 million online shoppers across the country. As a result, India is on the verge of becoming the core of global e-commerce.
This tremendous growth of the online retail market has also been driven by reliable payment methods, advanced customer service, advertisements, customized user experiences, and express deliveries. While fashion dominates, categories like groceries, consumer health, beauty, and electronics have witnessed increased traction from e-retailers and new entrants. For millions of Indian consumers, online shopping and services offer convenience and better deals as e-commerce companies work diligently to offer a memorable shopping experience for Indian consumers.
Online marketplace companies have also allowed businesses to sell their products to a larger consumer base not only in urban cities but also in rural areas. The “Digital India” government initiative, launched in 2015, heavily influenced this expansion of the online consumer base by providing high-speed internet to rural areas and developing digital literacy.
In recent years, the demand for B2C services has surged. Multiple sectors in the country have incorporated B2C services such as food delivery, travel, matrimony/dating, finance, healthcare, and education. The online food delivery market is currently leading among B2C services, followed by online travel, and online grocery markets.
An evolving landscape: Online retail or e-retail market
Even though the offline retail market is dominant in India, the online retail penetration rate has surged overall. One major factor for the acceptance of online retail adoption, not only in India but also globally, was the COVID-19 pandemic. Consequently, the size of the online retail market amounted to around 120 billion U.S. dollars in the financial year 2023 and is projected to increase in the future.This tremendous growth of the online retail market has also been driven by reliable payment methods, advanced customer service, advertisements, customized user experiences, and express deliveries. While fashion dominates, categories like groceries, consumer health, beauty, and electronics have witnessed increased traction from e-retailers and new entrants. For millions of Indian consumers, online shopping and services offer convenience and better deals as e-commerce companies work diligently to offer a memorable shopping experience for Indian consumers.
Unlocking opportunities: B2C companies and services
The country’s B2C e-commerce market has been booming due to the presence of e-commerce giants such as Amazon India and Flipkart. The Flipkart Group occupied about 50 percent of the online retail market share of the country in 2023. During the festive season, these e-commerce companies make huge profits by offering great deals for consumers during sale events such as “Big Billion Days” or the “Great Indian Festival Sale,” boosting online sales significantly.Online marketplace companies have also allowed businesses to sell their products to a larger consumer base not only in urban cities but also in rural areas. The “Digital India” government initiative, launched in 2015, heavily influenced this expansion of the online consumer base by providing high-speed internet to rural areas and developing digital literacy.
In recent years, the demand for B2C services has surged. Multiple sectors in the country have incorporated B2C services such as food delivery, travel, matrimony/dating, finance, healthcare, and education. The online food delivery market is currently leading among B2C services, followed by online travel, and online grocery markets.
