As per a London-based data and analytics firm, GlobalData, e-commerce sales in India will expand at a compound annual growth rate (CAGR) of over 18% to reach $120.1 billion by 2025. India’s e-commerce growth slowed dramatically in 2020 due to pandemic.
However, this year, the tendency will be upwards again, to around 17 per cent, taking the market past $60 billion and then over 20 per cent by 2022. The positive trend is recorded when general consumer spending has been declining, and there has been an economic slowdown. Retailers widen payment platforms E-commerce market leading retailers like Flipkart, Amazon and BigBasket have seen an increase in orders each month since the outbreak of the virus, according to GlobalData.
GlobalData said: “The Covid-19 pandemic fast-tracked consumers’ transition to digital payments in most markets, a trend also seen in India. With social distancing rules and the closure of many brick and mortar stores, shoppers have embraced online channels even for their day-to-day purchases”.
More than two-thirds of India’s online consumer demand comes from Tier 2 and lower cities in India, according to a Uni-commerce e-commerce trends report from last year.