5 Defining Moments That Transformed E-Commerce in India
E-commerce, as we all are aware, is nothing but transaction of buying and selling online. It became possible in the year 1991 when the internet was opened to commercial use. Since that date, thousands of businesses have taken up residence at websites.
The year 2017 saw various moments in the E-commerce area which cannot be overlooked. They give a new turn and twist to all the other sectors as well.
1. Paytm entry
After the demonetization that took place in the month of November 2016 saw a great rise in digital payments, thus Paytm made its entry and had a huge impact all of a sudden during that time. It launched its e-commerce arm Paytm mall in February 2017. It has an omni-channel business model which connects its customers to the offline retail stores around them. It provides a QR code-based platform through which offline stores can put up their inventory online. The customers can also place an order for the products which are out of the stock because of these QR codes. These two features make Paytm mall stand out from the rest.
2. Incoming of Online Grocery market
Who wouldn’t like it when you can get even the perishable items at your doorstep with 100% good quality at your convenience. This is what Bangalore based BigBasket company promised to do, however, their competitors were tough. Amazon made their way in and soon Flipkart will join too. In 2017, Amazon made some headway in the non-perishable grocery category through Amazon pantry. It has a two-hour delivery promise of all the grocery items and has tied up with supermarkets like BigBazar, Hypercity, Spencer’s etc. Flipkart started the same service in the month of November 2017 however only to their employees.
3. Downfall of Snapdeal
Snapdeal spent Rs 200 crore on rebranding in September 2016 but still, it was unable to beat its arch rivals Flipkart and Amazon in their last festive season sale. Snapdeal offered Flipkart to merge but they could not settle for a mutual agreement. They have also lost digital wallet arm FreeCharge to Axis Bank. Many of the senior officials had also resigned, making Snapdeal’s future dimmer day by day.
4. Amazon Vs Flipkart
The e-commerce battle grew fiercer and Flipkart established its leadership over US-based mammoth Amazon. After the big billion sale, it was claimed that Flipkart had over 70% market share in fashion, mobile phones and appliances. It also emerged as a leader in the festive season sales with a market share of 58% versus Amazon’s 26%. Flipkart, in order to be ahead of everyone, launched an Express Programme which helps sellers mark all orders ready to dispatch, within two hours of receiving it. It has also launched its private label in fashion, large appliances and furniture, unlike Amazon.
5. E-commerce has seen an overall growth
There is no comparison of E-Commerce growth of India to China. The growth is tremendous there. China is the largest E-commerce market in the world with $1.1 trillion. India has about 330 million internet users and by the year 2022, it is expected that it will have 510 million users according to Statista 2018.
E-commerce market has a great future in this country if the efforts of making it grow are put in the right place. Reliance also has its plan to launch its e-commerce platform soon, so we’ve our fingers crossed.