India's e-tailing to hit $76B by 2021

With the rise of Internet connectivity at home and over mobile, and the success of local online Indian retailers, the local e-tailing market is set grow over a hundred-fold in nine years.

E-tailing, which is the business of selling retail goods online on the Internet, was just US$0.6 billion in 2012 in India, but will grow by over a hundred-fold to US$76 billion by 2021, according to a Technopak Advisors study.

India’s e-tailing to hit US$76 billion by 2021.

A report by TechGig cited the study "E-tailing in India Unlocking the Potential", which claimed India’s growing Internet consumer base, which will comprise 180 million broadband users by 2020, along with a burgeoning class of mobile Internet users, will drive the sector.

Just a few weeks ago, U.S. giant Amazon finally made its debut into the India marketplace , but already has competition amongst Indian giants such as Flipkart and Jabong. 

Many Indian consumers don't have either a debit card or a credit card, as the majority of transactions are made in cash. So, in order to accommodate this difference, many have offered cash on delivery (COD) options for their online shopping.

Furthermore, their selection of goods and services is not just vast, it is also more affordable and convenient. For example, a few months ago I ordered a CD online from Flipkart using my mobile device, entered the billing and delivery address, and opted for COD. I received both e-mail and SMS tracking notifications and within 24 hours, the CD was delivered. The real advantage for me was that this CD was less than half the price of what it would have cost in a local music shop at the mall.

I was sold on this concept, because of the ease of use and also that I was buying a genuine product. Unfortunately in India, a lot of the local markets and bazaars have high quality knock offs that even the trained eye can't tell. But purchasing something online, consumers know that purchasing fakes products isnit an option.

Initially, many consumers were skeptical about purchasing online from places such as Flipkart or Jabong, however within the past few years, online shopping has been a huge hit for Indian consumers.

These online retailers typically have m-commerce sites. And for those who do want to pay via debit card or credit card, the option is still available too, but COD is still the preferred payment choice in India.