When you hear the term “eCommerce,” your first instinct may be to picture Amazon. The eCommerce giant owns a huge percentage of the online marketplace, but it is far from the only internet-based shop. As of 2014, there are over 110,000 eCommerce companies, and the multi-billion dollar industry is growing by double digits every year. The United States and China are known as the two biggest players in the eCommerce industry, but another country is making a name for itself. India is quickly rising to become the next eCommerce Revolution.
Rising Number of Customers
More than 65% of India’s population is under the age of 35. All these young, hip consumers are turning to the web to gain access to products they aren’t able to find at their local shops. According to the Economist, every second three more Indians experience the internet for the first time. By 2030, more than 1 billion Indian people will be online. That’s 1 billion opportunities for eCommerce companies to land new customers. Since this rising number of internet are typically younger, they are generally more likely to buy items from eCommerce stores, rather than typical brick and mortar establishments.
Surge in Online Spending
Having more people simply on the web is an important first step to India’s eCommerce revolution; however, the real tell is how much people are spending. As more people head online, the more they are spending with online retailers. It’s forecasted that online retail sales in India will surge 31% this year, to reach an impressive $32.7 billion. By 2020, the eCommerce market in India is expected to be worth a whopping $120 billion.
Companies are Taking Notice
With India’s recent surge in eCommerce Spending, large companies are starting to take notice. Online retail giants including Flipkart, Amazon and Paytm Mall have started investing in India-specific items to increase their customer base in the country. By adding daily life essentials, including groceries, diapers, and clothes, these eCommerce sites are becoming a one-stop shop for internet users. They can do all their shopping without ever having to leave the comforts of home. These features are especially being used by the country’s growing middle class. Instead of leaving work or taking the kids while parents shop, families are able to complete all their shopping needs from the comforts of their home. This gives them more family time when they are not hard at work.
It isn’t just eCommerce companies taking notice either. Financial institutions are also claiming their stake in the Indian eCommerce revolution. Surprisingly, cash on delivery is still the most popular method of online shopping in India. It’s estimated that 60 to 70% of all online purchases are paid for with COD. However, a growing number of customers are using credit cards to make their purchases. Banks and financial institutions are putting roots in India, to supplement any credit card needs customers may have.
Small Businesses Are Heading Online
Although shopping online may be convenient, it can never replace your favorite mom and pop shop down the road. However, just as the need for eCommerce shops grows, more small retailers are also heading online. India has about 51 million small business that employ over 120 million people across the country. As the Indian Revolution has taken off, Google has taken it upon itself to help all 51 million companies adapt to the digital world. A study published by Google and KPMG found that small businesses in India with a web presence grow their revenues twice as fast as those without a website. The companies with a web presence were then in turn able to hire up to 10 more employees.
Its estimated over 60% of India’s small and medium businesses do not have a website. Google’s Next Billion Users project is intended to educate and provide reliable Internet access to Indian business owners, so they can get their businesses online. To compete with eCommerce giants like Amazon, small business owners will need to create functional, appealing websites. Wagento can help small businesses meet this goal.
At Wagento, we specialize in eCommerce, web design, and SEO, to help your company have a successful website. We can help Indian Business owners find their corner of this eCommerce Revolution, by teaching them how to build websites with Magento. Websites powered by Magento are full customizable, easy to navigate, and turn leads into customers.