Ecommerce in India: Have you shopped online yet?


Is E-Commerce in India growing at the pace that it should?

As per the latest findings, Indian Ecommerce growth is pegged at 30% year on year. Do you think these figures should make online retailers happy?

As per the report released by Internet and Mobile Association of India (IAMAI) and IMRB International, the total online transactions in India stood at Rs. 7080 crores (approx $1.75 billion) for 2006/2007 and is expected to grow by 30% to touch 9210 crores (approx $2.15 billion) by 2007/2008.

Just to put it in perspective, that is only 0.002% of our GDP!

Growing ecommerce in India

Distribution of Online spending

The Online spending is categorized mainly in following 5 areas:

  1. Travel: comprising Travel aggregators, Tour Operators, Hotels and Railways
  2. E-tailing: comprising Online Retailers and Online Auctions.
  3. Classifieds: comprising Online Jobs, Online Matrimony, Online Property, Online Automobile and General Classifieds
  4. Paid Content Subscription: comprising research, articles, exclusive videos, etc
  5. Digital downloads: from Internet to Mobiles and internet
Here is the chart of rest of the online spending breakup:
 Description  2006/2007 
in crores
in crores
 1  Travel Industry 5500 7000  76%
 2  E-tailing 850 1105  12%
 3  Online Classifieds 540 820  9%
 4  Paid Content subscription 20 30  –
 5  Digital Downloads 170 255   3%
   Total  7080 9210   100%

It is quite clear that online spending is largely skewed towards Travel E-Commerce. Rs. 7000 crores out of 9210 crores is expected to be spent on online purchase related Travel like AirFare and train / Bus ticket booking. So 76% of overall E-Commerce goes to travel sector alone.

30% growth seems to low considering that Internet and mobile growth is happening at much higher pace and Online Ecommerce is directly proportional to that growth.

What do you think? Have you shopped online yet?

  1. Sell Online in India says

    There is a new online portal for buying an selling launched recently .Buy Sell Online is an Online Shopping Mall which has free auctions, classifieds , advertisements, stores, eshops, and other Indian products.

    This looks a lot like ebay india and the fees are a fraction of ebay. I am very positive about this site.

    All the ebay sellers and others indulging in selling online will love this site I am sure.
    Good design and fees structure. A++++

  2. Sam says

    i checked ut .However theres very few listings – maybe the site owners need to spread the word. I did like the fact that you can use an ordinary creditcard immediately to make a purchase and your purchase is protected by Times Group.

  3. Swarup says

    Yes. On eBay, sellers and buyers are facing lots of difficulties. Whether it’s selling fees or paying for an item through PaisaPay. Yes. I have also heard this site buysellindia and there listing fees will be very less than eBay and as they are coming new, there customer support will be good I am sure. I contacted one of the site owner and they have told that the site will launch within 2 – 3 months. Let’s boycott a USA company and give chance to an Indian Company.

  4. Swarup says

    A great auction site is coming to give serious challenge to Check out the site “” just after 2 – 3 months. I am sure now we can make profit by selling items on an auction site in India and get the item in a good price from sellers.

  5. vijay srinivas says

    The growth rate of E-comerce in india is drastically low.Forget about US,China has an E-commerce revenue of more than 20 billion dollars and even Singapore has revenues of more than 5 Billion dollars with a population, which is just 4% of what India has:)

    So doing some introspection,everyone of us would accept that its the lack of penetration of credit cards,broadband which has led us to this slow growth in E-commerce…But apart from it what are the E-commerce websites in india which is stunning and yet we dont purchase there?
    rediff..indiatimes…are too mediocre….yeah futurebazaar has relaid their website ..made it look “youngistaan”..but what abt the user experience from -choosing the product to receving it -?

    But personally there is No USP for these websites…or to out it..there is no compelling factor for people to buy things online…

  6. ecommerce says

    Great post. added to my favourites list. ecommerce has been one of the best businesses today.

  7. e retail says

    That’s great info. Do you have updated information & stats for 2008?

  8. Sam says

    Online Shopping & Auction Sites in India
    Hello Everybody!Recently one of my friend informed me about a new Auction Site (I m always excited to check auction sites and the items listed on them) which will be launching soon. It will be a full fledge auction site like EBAY and will give another platform to all the aspiring people of India to do the business they always wanted to do but couldn’t do as they did not have enough funds to start off.Guys checkout the auction site. It’s Buy N Sell
    The response which I got from the site itself seems to be a sure short winner even though the site has not started. I am seriously looking forward for this site as I have tried selling on and could not make profits due to their high selling and other fees which this site claims to be keeping very less then ebay so sellers can make real profits.  And who does not want an extra income without risking ur current work/job/business. I am On for this site and just hoping it deliver what they are promising.By the way, "Always hope for the best"Check the site out, http://www.buynsellindia.comI think it’ll be good.Thanks for ur time to read this.

    1. Sreya says

      I have gone through this site too. Looks very promising to me.

      1. Mitesh says

        I have checked the site too, good for my business low selling fee structure as well as excellent customer support.

        Keep it up guys, all the best

  9. karan says Indian shopping search
    Shoppers can find all of products from different Indian online stores at one, a major online shopping resource for shoppers and merchants.
    just visit

  10. Nilesh Mishra says

    Now shopping online is made even more easier with portals like where they can check the the best Shopping deals online

  11. sarath says

    Ya i have also shopped on ebay..I ahve found another shopping portal named which sells groceries online.I tried shopping vegetables at storrz..

  12. Mesmerized says

    Na …. i sort of have only shopped from Indiatimes and Amazon

    Im skeptical about online shopping in India yet !

  13. Philip says

    Oh yeah. I have shopped on rediff, indiatimes, amazon, and quite a lot of International websites.

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