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Where is ecommerce Industry in India Headed in the Next Five Years(In 2020)?

December 18, 2015 Ecommerce


Where is ecommerce Industry in India Headed in the Next Five Years(in 2020)?


Recently in Mumbai, a group of professionals tested their pizza delivery 3km afar to their outlet using a GPRS enabled remote controlled Drone.
Presently, Indian government currently do not permit commercial services/ deliveries using aerial objects but the Indian e-commerce future is sure on fire!

Statistics shows that in 2009, India had a rising e-commerce sector with $3.8 billion masses, while 2014 recorded the digits as 17 billion, which is, averaged at the growing percentage of 37% to reach a tenfold hit in the next decade.

Timeline of Indian E-commerce
Technically, India is at the very cusp of e-commerce revolution, currently on the primitive e-commerce model akin to 1.0. This basic model is, based on Convenience, Options and Price, which is, deduced from a globally e-commerce player, Amazon. To understand what awaits the future of e-commerce players in India, we should have a glance upon its growth timeline in the Indian industry to see the present stage that it holds.

  1. Indian Railway teaches India to book ticket online:
  • IRCTC became the Columbus of Indian e-commerce in 2002 when it introduced the online railway ticket booking.
  • A total boon to the Tatkal lines that stretched kilometres of queued people waiting longer than a day was, expected to vanish just as the common man got internet;
  • Currently one can only book any ticket for any coach and train and book buses, meals, hotels, tour packages and shop/ sell on Amazon.
  1. Indian Aviation introduces low cost airline
  • The hefty commission cost to book through agents was completely, erased through web portals helping people book directly from the airlines.
  • It also helped customers to book hotels, find discounts, shop in duty-paid shops, bonuses and Taxi through the same portal
  1. Flipkart descends
  • Flipkart, the face of stunning online shopping or e-commerce was first brought to the layman by Flipkart in 2007
  • The founders initially worked for Amazon and decided to make their own company
  • Flipkart currently reaps a revenue of INR 2,286 per year with a strength of 33,000 employees
  1. Internet Revolution in the last decade
  • Social media introduction like Orkut, Hi5 and Yaari to the layman, which became an e-commerce partner gradually
  • Mobile E-commerce forms major traffic for Flipkart and Snapdeal with 40% and 50%, respectively
  • Online Grocery Stores like emerge


Future Strategies for E-commerce in India
Since the advent of internet in 1991, Gross Domestic Product of India has been, surveyed as quadrupled, thanks to the subsequent e-commerce boom.

Professionals predict that as e-commerce in India is still undergoing Big Bangs of revolution, in the next five years, there will be an increase in the populous to $100 billion.
It will not be long from now that housewives from Kamathipura will be running their websites of selling homemade pickles, laddus and perfumes!

With the creation of a large-scale marketplaces, future will create a One-stop for anything and everything from asteroid piece to Poppy seeds that the customer wishes. When there is one-stop, the rates will be comfortable or erratic, if the competition rises.

According to us, the future strategies that await India’s e-commerce future are:

  1. Upgrade of the following business models to One-stop Model
  • E-marketplace: Flipkart, Snapdeal
  • Inventory Type: Croma, Shoppers Stop
  • Click and Collect Type: Amazon
  • Aggregator Type: Uber, Ola
  • Advertising Revenue Type: Yahoo, Bing
  • Transaction fee type: eBay
  • Affiliate Revenue: CouponDuniya, Paytm
  1. Wide Variety of Payments

Customers will have the option of using any currency such as Credit cards, prepaid cards, gift vouchers or even bitcoins from their e-wallet to shop

  1. Logistic and Supply Chain Growth

Now, anything and everything that anyone wants will be online when the seller logistics controllability is, implemented.

  1. Mergers

With eliminating competition, mergers will not only create better services, but superior standards. An example is of the recent merger of Flipkart and Myntra merger that was a $20 billion deal, which is currently a Master Player in the e-commerce industry.

  1. Retail to E-tail through Omni Channel
    When the offline and online retailers merge, the Omni channel is born and the consumer benefits the liberty to buy online and collect offline, or vice-versa.
  2. Subscription e-commerce
    Subscription models based on discover or utility that helps a regular sale, inventory with an upsell options is the next age of subscription e-commerce
  3. Flash Sale Tactics
    Be it Diwali discount sale on Croma or Festive Deals on Snapdeal, ‘Flash sales every day of the week’ from your favourite online shops, is just the future that awaits the Indian e-commerce!
  4. M-commerce
    With the society taking comfortably to mobile commerce now, it is definite that e-commerce will undergo an upgrade of compact m-commerce, for the greater good.


Applying Darwin’s model of thought, the future for E-commerce industry in India is a model that is descended from common marketplace tactics. Adaptive and competitive entrepreneurs will survive while merging of innovative new tools will continue to happen. Moreover, the struggle of this existence will provide us with the fittest model to grow ahead.

Our Conclusion

If the goal of the e-commerce players is to reach to every nook and cranny of the Indian population, it still has a long way to go. There is a better half of the population still illiterate and in dark, without internet in many places across the country. In addition, it will surely help the country grow its Gross Domestic Product to a startling, developed nation perhaps.

Now that even Google has started semantic sense to rank e-commerce players, rather than keyword stuffing (or choking), e-commerce players with substance and innovative strategies are sure to grow in the next decade.

None can deny that e-commerce was a virgin face to the Indian audience but has now, proved its worth and is here to stay for a long, long time.
We believe that in the next five years, Indian e-commerce is going to be the harbinger of nation’s economic rise and enhancements.

Stay tuned to more exclusives to our future!