The e-commerce market in India is slated to grow more than 30 per cent by the end of the next year.
It is expected to cross $50-billion mark by the end of 2018 from the current level of $38.5 billion, according to a joint study conducted by Assocham and Deloitte.
The increasing mobile and internet penetration, m-commerce sales, advanced shipping and payment options, exciting discounts, and the push into new international markets have supported the unprecedented growth.
As per the study, the Indian e-commerce market has grown steadily from $13.6 billion in 2014 to $19.7 billion in 2015.
Despite the growth, the Indian e-commerce sector still witnesses a large dependency on the cash on delivery (CoD) mode of transaction.
The study pointed out that CoD is the most preferred choice for Indian consumers due to lack of trust in online transactions, limited adoption of credit and debit cards, and security concerns, among others.
“More than 50% of online transactions are done on cash on delivery method and it is available across 600 cities and towns of India,” the joint study added.
However, the study found an interesting growth factor on the back of increasing mobile transactions. One out of three customers currently makes transactions through mobiles in tier-1 and tier-2 cities.
In 2017, 82 per cent of shopping queries were made through mobile devices, compared to 76 per cent in 2016, added the study, indicating the increasing mobile transactions.
The products that were highest sold in 2017 included mobile phones, apparel, food items and jewellery, among others.
As per the study, there would be more than a seven to ten folds increase in revenue generated through e-commerce as compared to last year with all branded apparel, accessories, jewellery, gifts and footwear available at cheaper rates and delivered at the doorstep.