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| Emerging Era of E-Commerce Post Pandemic: The Decade of Digital India | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Paper Id :
16983 Submission Date :
18/01/2023 Acceptance Date :
22/01/2023 Publication Date :
25/01/2023
This is an open-access research paper/article distributed under the terms of the Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. For verification of this paper, please visit on
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| Abstract | Digital world perpetuates the business of e-commerce to a new creation for the emerging economic growth. The new source of business is leading the world by its easy to click and checkout option into an easy market. We have witnessed how the e-commerce have evolved during the last decade especially post-pandemic when every click was done at home within the walls and how new online based startups and businesses have saved the human civilization from its survival. This paper thus, focuses on the evolving trends in the e-commerce and its related growing numbers. It also focuses on how the digital payments in India have led to increase in the business of e-commerce by highlighting the data of various companies. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Keywords | Digital, E-commerce, Business, Pandemic. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Introduction |
According to Britannica, “E-Commerce, in full electronic commerce, maintaining relationships and conducting business transactions that include selling information, services, and goods by the means of computer.” In simple words, E-commerce or the electronic commerce is the act of selling or buying products over the internet. E-commerce support following of the business models: Business – to – Business (B2B), Business – to – consumer (B2C), Consumer – to – Consumer (C2C), Consumer – to – Business (C2B), Business – to – Government (B2G) and others. In 1960, when for the first-time internet started as ARPANET a mode of communication and storing data by US defense and researchers. After 1971, when ARPANET evolved into what we now know as internet people started to realize the importance of internet and researchers and scholars started to bring light to some fascinating and major applications of internet. Surprisingly in India, the concept of e-Commerce came even before the internet’s introduction in India. K Vaitheeswaran was the man who was literally ahead of time, when people only heard about internet, he already had an idea of starting an online shopping marketplace. In 1996, after the introduction of internet in India K Vaitheeswaran came into action and in 1999 he launched India’s First E-Commerce website “Fabmart.com”. But later Fabmart.com was acquired by Aditya Birla Group and rebranded it. Not only Fabmart but many e-Commerce businesses came crashing down in India; reason being was significantly low internet penetration. To encourage e-Commerce investors in India, the government launched its first online reservation system IRCTC in 2002. The first stepping stone towards setting the e-Commerce heavyweight was the creation of one of biggest online shopping marketplace Flipkart, when two engineers from IIT Delhi started their venture by selling books online which was no different than Amazon. Little did they know that decade later they will be biggest online shopping website of India and that they will be starting a fierce bidding war between two US retail mammoth companies Walmart and Amazon which was eventually won by Walmart in a whooping US$ 16 billion-dollar deal. |
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| Aim of study | The aim of this study are as follows: a. To study and analyze the e-Commerce market in India. b. To analyze the digital payment trends in India. c. To analyze the growth of digital payment’s percentage value to GDP. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Review of Literature | The
study in this field was a paper on “Evolution of e-Commerce in Global
Marketing” written by Cécile Ferrera and published by International Journal of
Technology for Business (IJTB) on march 2019. This research was based on
secondary data and some of the findings were that global market is shifting its
trend and e-Commerce is evolving rapidly. Basheer K.T on the topic; “An
analytical study of e-Commerce in India” and published by International Journal
of Creative Research Thoughts on July 2020. In this study importance of
e-Commerce was marked by describing e-commerce as faster, cheaper and a service
to customer. One particular research paper studied was e-Commerce services in
India: Prospects and Problems written by Ranjan Upadhyaya, Ashok Panigrahi&
Dr. P.P. Raichurkar and published by International Journal on textile
Engineering and Processes on January 2016. In this study, state of e-Commerce
was described as fast growing and innovative idea to buy and sell products via
internet. The study also stated that some of the under this new trend of
business which is e-Commerce some industries or specific field of market is
thriving. To understand more about the e-Commerce, one research was quite
peculiar written by Dr. (Smt.) Rajeshwari M. Shettar on the topic “Emerging
trends of E-Commerce in India: An empirical study” published by International
Journal of Business and management Invention on September 2016. According to
the study, e-Commerce is any transaction which takes place in the digital world
and not in the physical world. |
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| Main Text | Relationship between Internet & E-Commerce Internet and e-Commerce are terms which are closely related but have quite separate meaning individually. Internet is a network of networks spread all around the world while on the other hand e-Commerce is a financial activity done on internet. Internet is a concept which is very wide in 21st century and e-Commerce is just an adaptation of internet. E-Commerce simply means buying and selling of goods and services on internet. While internet is itself a vast concept in which basic applications like social media, streaming music & videos, e-Mailing, chatting, video calling and some latest and advanced applications of internet like Internet of Things (IOT), Cloud Computing, E-Commerce and many more are included in this.
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| Methodology | For the present research, secondary data was used which was collected from various sources of government like reserve bank of India official site, India brand and equity foundation IBEF, Telecommunication regulatory authority of India and many more for the study of growth, recent trends and future prospects. |
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| Analysis | 1.
Standings & data of the nation having maximum number
of active internet users in the world 2020.
Interpretation: In the above table, the data about Indian E-Commerce market is shown. E-Commerce market generally includes all the online transaction related activities. In this table we can see that India’s E-Commerce market in 2018 is about 21.9 US$ billions. By the end of financial year 2020, this data was 30 US$ billions and IBEF also forecasted that till 2024 its value will be 4 times the size in 2018 about 99 US$ billions.  Figure 2, Source: India brand and equity foundation (IBEF) Interpretation: The abovefigure shows the percentage shares of various segments in e-Commerce retail. In this table we can see that 2 retail segments of Indian E-Commerce market shares 80% of the total share those are Electronics retail with 40% share and Apparels with similar 40% share of total share of e-Commerce market. Rest 20% is divided among the rest of the segments with 7-7% Foods & grocery segment and jewelry segment. 4% of total share was occupied by furniture segment and remaining 2% of the total share was divide among all the other smaller categories.
Interpretation: In this above table,India’s Top 10 online store of 2020cby their net sales are shown. In this list top position was secured by amazon.in with 1,274 million US$ net sales followed by bigbasket.com with 513 million US$ sales. 3rd position was secured by grofers.com with 356 million US$ and 4th position was taken by hihonor.com with 311 million US$ net sales. Amazon.com took 5th position in this list which is international platform of amazon.in. 6th and 7th position was secured by apple.com with 223 million US$ and nykaa.com with 216 million US$ respectively. Ajio.com secured 8th position with 165 million US$ followed by cilory.com with 150 million US$ and 10th position in this list was secured by dell.com with 122 million US$.
Interpretation: The above table and figure shows the shares of methods used in payment related to e-Commerce in India. In this table, the most used method for e-Commerce transaction is cards either credit or debit which is 29%. Second most used method was digital wallets with 25% followed by Bank transfer via internet banking with 20% of total method used. And traditional method, payment by cash was 4th with 17% accountable of all and rest 9% of methods were by other methods.
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| Conclusion | E-Commerce is evolving rapidly and more and more people understand to worth of e-Commerce. The Indian internet economy in 2018 was about 125 billion US$ and which is forecasted to be doubled by the end of year 2022. In recent coronavirus outbreak, has made people more use to e-Commerce apps such as amazon, flipkart, phonePe, Paytm and basically all those websites and apps which charges money in exchange of goods or services provided to the consumers. These e-Commerce platforms are easy to use, are much faster and better than traditional method of shopping. The feature of providing product and services directly to consumer’s doorstep is what makes this technology paramount. In this study the value of India’s E-Commerce market in 2018 was found to be 21.9 billion US$ and by the forecasted data by IBEF by the end of year 2024 this value may drift positively and can become 5 times. This sudden change can be output of cost reduction of internet charges by telecommunication companies and better quality of internet services. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Suggestions for the future Study | 1. To begin with, for enhancing this service government should try to increase internet penetration because India has just 40% internet penetration and still has 504 million internet users and is 2nd in the world after China. With little more digitalization India can be no.1 in the world which ultimately beneficial for e-Commerce. 2. Moreover, government should constitute law regarding digital payment security so that people don’t get afraid of online payments. 3. Similar to big businesses, small businesses should also get in touch with online retailers for buying and selling of products. 4. Indian government should also enhance the transport networks so that shipping cost can be reduced even further and people can freely order their product online. |
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| References | 1. Evolution of E-Commerce and Global Marketing 2019 by Ferrera, Cécile; Kessedjian, Eowyne, International Journal of technology for Business (IJTB).
2. Impact of E-Commerce in Indian Economy 2018 by Kumar Anuj, Fahad Fayaz, Ms. Namita Kapoor, IOSR International Journal of Business and Management(IOSR-JBM).
3. E-Commerce in India: Opportunities and Challenges by Raj Kumar Singh, Research Scholar (Management), Department of Business Management, CRIM, Barkatullah University, Bhopal.
4. E-Commerce services in India: Prospects and Problems by Ashok Panigrahi, Ranjan Upadhyaya, Pramod Raichurkar& SSRN Electronic Journal.
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10. Emerging Trends of E-Commerce in India: An Empirical Study 2016 by Dr. (Smt.) Rajeshwari M. Shettar International Journal of Business and Management Invention.
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