The year of 2016 has been a great year of jump for online shopping in India. The online and e-commerce earnings have reached to the whopping level of 20 billion dollars. And this earning levels will further rise as well in year 2017 too.
The functionality and cost saving features of online shopping has attracted the attention and interest of more and more companies to divert towards the selling good and products by the way of internet while offering a good number of discount and offers to their customers.
One of the reasons for this rise in internet economy in India is increased internet availability and more and more payment options for e-commerce sector in India. Along with electronics the jewellery, home, kitchen appliances and lifestyle accessories as watch and perfumes even are now sold online.
However, the travel sites were the king of this online selling frenzy having more than 60% chunk of this online shopping to their share. The online sale figure just doubled from $6.3 billon in 2014 to $24 billion in 2016 and expected to touch the figure of $58 billon in 2016. There are more that thousand e-commerce websites operational in India.
E-commerce site would focus more on loyalty programs and better customer care in order to increase their margins and profitability. The core to the revolution to the e-commerce in India, would be going to cost optimization by the means of warehouse and logistics management enabling companies and firms to do a bulk of profitable business.
While players like snapdeal and flipcart have been around for a while, one saw many more portals mushrooming in 2016. An important entry in the Indian market was that of one of the world's largest online retailer -- Amazon.com. The website launched the desi version as 'Junglee.com'. Even the shopping sites like Flipkart, Snapdeal, Homeshop18 and Makemytrip, partnered with Google India to provide discounts to online shopper for selling the goods and commodities.
The reasons like rising internet penetration, increased spending power, availability of multiple payment methods as credit/debit cards, cash on delivery, combined with faster adoption of smartphones and tablets giving boost to online sales and selling opportunity. There were about 237 million internet users in India and that even are expected to grow by leaps and bonds in coming years. And the segment of online shopping will rise from tier 2 and tier 3 cities as well.