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E-commerce

Industry Summary

  • Electronic commerce or e-commerce (is a business model that lets firms and individuals buy and sell things over the internet.
  • E-commerce operates in all four of the following major market segments: B2B, B2C, C2C, C2.
  • The Indian E-commerce market is expected to grow to US$ 111.4 billion by 2025 from US$ 46.2 billion as of 2020.
  • The ongoing digital transformation in the country is expected to increase India’s total internet user base to 829 million by 2021 from 636.73 million in FY19.
  • As of July 2021, E-commerce in India is at an all-time high owing to 784.59 million active internet users
  • 100% FDI allowed in the B2B e-commerce segment.
  • Lockdowns owing to COVID-19 pandemic resulted in increased e-commerce transactions. Online grocery, e-pharmacy and other e-commerce segments expected to grow significantly.

Value Chain

Step 1

Sourcing

B2B, Vendors, Modular Production

Step 2

Inventory management

Warehousing

Step 3

Marketing

Dynamic content, ads, customer targeting

Step 4

Sales

Unified customer experience, retention

Step 5

Delivery

Logistics, Last Mile partners

Cost Drivers

  • Marketing
  • Warehousing and Logistics
  • Technical Infrastructure

Revenue Drivers

  • Sales and Commission
  • Advertisements
  • EMI options
  • Listing Fee and escrow interest

Growth Drivers

  • Internet Penetration & personal devices
  • Digital Payments
  • Govt policies & initiatives such as Government E-Marketplace (GEM)
  • Changing buying trends in light of COVID-19 pandemic

Key Customers

  • Small businesses
  • Households

Key Players

  • Amazon
  • Flipkart
  • PayTM
  • Myntra
  • BigBasket
  • Grofers

Channels

  • Online