eCommerce market in India

India is the 4th largest market for eCommerce with a predicted revenue of US$120,756.1 million by 2024, placing it ahead of South Korea. Revenue is expected to show a compound annual growth rate (CAGR 2024-2028) of 17.7%, resulting in a projected market volume of US$231,823.3 million by 2028. With an expected increase of 20.3% in 2024, the Indian eCommerce market contributed to the worldwide growth rate of 7.4% in 2024. Like in India, global eCommerce sales are expected to increase over the next years. Seven markets are considered by ECDB within the Indian eCommerce market. Electronics is the largest market and accounts for 24.4% of the Indian eCommerce revenue. It is followed by Hobby & Leisure with 20.6%, Fashion with 19.1%, Furniture & Homeware with 12.0%, Care Products with 8.3%, Grocery with 8.0%, and DIY with the remaining 7.5%.

The online share refers to the proportion of the retail volume that is transacted via the Internet. It includes purchases via desktop PC, tablet or smartphone, both via website or app. Only retail of physical goods is taken into account. In the Indian retail market, the online share is 4.0% and will increase by an average of 7.4% to 5.3% by 2028.

The biggest player in the Indian eCommerce market is ajio.com. The store had a revenue of US$2,297.2 million in 2023. Store rankings include every store that generates revenue in India. These stores can either have a national focus and only sell in their main country or operate on a global scale. For this evaluation, only revenue created in India was considered.

With 83.7% VISA the most commonly offered payment method of all online stores in the Indian eCommerce market in 2023. Like VISA Mastercard with a share of 83.7% and American Express with a share of 61.6% the payment type Cards is the most common used by online retailers in in the Indian eCommerce market in 2023. Other commonly used payment methods in that market are Bank transfer/cash in advance (Bank transfer) with 69.4% and Cash on delivery (Cash on delivery) with 63.6% of stores offering that payment method to the clients.

Despite Blue Dart's dominant position with 52.2% of online stores opting for its services, the Indian eCommerce market in 2023 remains diverse and competitive. Several other shipping service providers, including Delhivery, FedEx, Ecom Express, and DTDC, hold smaller but significant shares, contributing to a dynamic and fragmented market.