The Indian e-commerce industry has been on an upward growth trajectory. The online retail market in India is estimated to be around 25% of the total organized retail market and is expected to grow around 37% in next couple of years which shall surpass the United States to become the second largest e-commerce market globally.
A young demography, increasing internet and smartphone penetration, and relatively better economic performance are some key drivers of this sector. Each month, India adds approximately 10 million daily active internet users- the highest rate in the world.
In order to tap onto the large market, the e-commerce industry has also seen an increase in innovation across platforms, and ancillary segments such as logistics. The market has become conducive grounds for testing various business models such as inventory, social networks, aggregator, and e-commerce marketplace model, among many others.
The e-commerce trend is gaining major popularity even in the tier-2 and tier– 3 cities.
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