Factors driving e-commerce growth
Development of warehouse and logistics
- Now, out of almost 100,000 pin codes in the nation, online retailers deliver to 15,000–20,000 pin codes.
- India’s warehousing market is expected to reach 516 million sq ft by 2026, driven primarily by e-commerce expansion and consumer demand. The demand is expected to be highest in Mumbai, Pune, and Delhi.
Localized content on the Internet
- Online merchants view this market as the next big growth engine due to the large inflow of mobile users who are now at ease speaking languages other than English.
- The percentage of internet users who speak Indian is approximately 57%.
Mobile Commerce
- The increasing use of mobile internet is driving online retailers’ expansion into towns and cities outside of metro areas. An increasing number of Indians are having easier access to online shopping thanks to their smartphones.
- By 2030, there will be 887.4 million smartphone users in India.
Employment generation:
- By 2025, Amazon India hopes to have created 20 lakh jobs in the nation, adding to its previous record of producing over 13 lakh direct and indirect job opportunities. It has helped create 1.4 lakh jobs in the last year in a variety of industries, including manufacturing, e-commerce, IT, logistics, content creation, and skill development.
- In 2024, the average salary in India is expected to increase by 9.6%, with the ecommerce sector expected to witness the highest salary growth of 10.9%.
Consumer spending
- Transactions increased from 2.071 billion in FY 2017–18 to 13.462 billion in FY 2022–2023 at a CAGR of 45% (Figure 2). As of December 11, there had been 11.660 billion transactions in FY 2023-24.
Modernization of payments
- India has been at the forefront of the real-time digital payment infrastructure, supported by 24×7 NEFT and UPI.
- As a result of customers switching from cash to cards due to the COVID-19 pandemic, digital, contactless payments have increased even more.