Future Prospects of e-commerce in India

Future prospects of e-commerce in India:- E-commerce has become an integral part of our daily life. E-commerce growth has become means of survival in the new world of e-commerce based trade and business. The growth depends on the availability and price of hardware and software as well as the human resource and educational standards and policies of the country.

To understand the current scenario, we can divide e-commerce into three broad categories which include physical services, Physical goods, and virtual goods:

  1. The first category of physical services is definitely the major contributor which includes travel ticketing, jobs, matrimonial and event management websites with travel sites accounting for 76% of all e-commerce industries.
  2. The second category of physical goods is the one currently considerable attention, thanks to the hype created by new startups/stores being launched daily. Leaders in this division are Flipkart, Infibeam, Homeshop18, Indiatimes, Naaptol, Letsbuy etc. each of which offers everything from mobile phones to pet food.
  3. The third and final category of virtual goods and gift vouchers like online music, software’s, movies, games. Taj Hotel gift vouchers, Reebok gift vouchers, Pizza Hut gift vouchers etc. have been relatively lagging behind in India as compared to Europe and America, primarily due to piracy concerns and the social perspective of Indians.

Future prospects of e-commerce in India:-

E-commerce world is changing rapidly with the development of new technological tools. It has brought revolution in the industrial process and business activities. India e-commerce percentage is getting higher as more and more online retailers enter the market.

The future prospect of E-commerce In India depends on some factors:

  • Enhancing domain registrations.
  • Rising internet users.
  • Easy access to internet.
  • Awareness about internet even in rural areas.
  • Growing need for e-commerce.


The growth of e-commerce requires easier access to internet, convenient and secure modes of payment. In the near future, the scenario is expected to change with the digital downloads segment expected to grow in the Indian e-commerce market due to the explosion of mobile devices and the services available over the Internet at special discounts.

Certain unique attributes of the e-commerce industry in India such as cash on delivery mode of payment and direct imports that lower costs considerably are probably going to bring about a speedy growth in this industry in years to come. According to the latest research, the e-commerce market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of over 57% between  2012-16.

E-commerce can become an integral part of sales strategy  as it is one of the cheapest medium to reach out the new markets. If implemented successfully, it can offer a smart way of expansion. The e-commerce platforms maximize its reach to the potential customers and provide them with a convenient, satisfying & secure shopping experience.

According to another report, the e-commerce market in India is expected to grow 37% to reach $20 billion by next year on the back of growing internet population and increased online shoppers. E-commerce is India is $11 billion market, and is estimated to reach $20 billion by 2015, growing at a  CAGR (compound Annual Growth Rate) of 37% over 2013-15.

There are various segments that would growth in the future like: Travel and Tourism, electronic appliances, hardware products and apparel. There are also some essential factors which will  significantly contribute to the boom of the e-commerce industry in India i.e. replacement guarantee, mobile-commerce services, location based services, multiple payment options, right content, shipment option, legal requirement of generating invoices for online transactions, quick service, T & C should be clear & realistic, the product quality should be some as shown on the portal, dedicated 24×7 customer care centre should be there.

Considering these problems and challenges, there are four areas which need to be focused to five a big push to e-commerce in India:

  1. The government  has  a  very  important  role  with respect to the positive business environment for deployment of new telecom technologies. The government can create a positive environment to build infrastructure and allow a fair competitive play among the competitors.
  2. To keep pace with the changing software and hardware scenario, it is necessary to emphasize on the current IT trends and develop quality programmes to impart training and education in the contemporary topics . Technology or solution providers, industry bodies and government should educate Indian businesses more on the potential benefits of e-commerce. IT education would be a major driving force towards the development adoption and growth of e-commerce in India.
  3. Businesses planned to cater to retail consumers with have to create awareness and provide reassurances before persuading the customer to buy. Most of the content on the Internet is in English or other foreign languages, and a large portion of the majority of the India population. Creative solutions need to be found for overcoming this challenge.
  4. Government should play the most active role by enacting cyber laws, making positive interventions when needed and assuring adequate infrastructure.

Also Read:-

What do you mean by e-commerce?

Why is e-commerce important? 

What are the functions of e-commerce?

Advantages and Disadvantages of E-commerce