Background of E-Commerce Industry

Electronic commerce commonly referred as ‘e -commerce’. Basically, E-commerce is buying

and selling of goods and services as well as transmitting of funds or data, over an electronic
networking using internet. E-Commerce covers a various business service such as online
shopping, E-enterprise, online bank which are independently evolving as well. One of the
most popular e-commerce services is online shopping, which enables customers to view,
order, and pay for goods and services using a device from any location and at any time.
Transaction happens between business to business, consumer to consumer, consumer to
business and business to consumer using mobile applications, Websites, e-mail, shopping
carts etc. E-commerce refers to the practice of conducting business over the Internet or the
web engaging in commercial activities, which often entail the exchange of money or other
forms of value across organisational or personal borders in exchange for goods and services.
E-Commerce as notion first emerge formally in 1991, When internet was not available
widely in India. People start learn about the internet by late 1990s but to major extent it
remained a luxury. In 2002, IRCTC launched online reservation system that public began to
view internet as useful tool. In the other words, Information technology (IT) is
fundamentally altering the way business conducts around the world and the e- commerce
industry has long since undergone a complete transformation into digital sector. The current
business climate in developing countries has potential to accelerate the development of e-
commerce industry such as India.
Over the past ten years, the Indian e-commerce market has grown rapidly. Due to faster
adoption of technology, sharp increase in internet usage, creative business models,
flexibility in payment methods contributed for E-commerce industry growth. High growth
continues persistent, the industry anticipates seeing a significant boost in revenue in the
next coming years. The top-performing e-commerce industries in India in terms of market
share are fashion, apparel, grocery, and electronics. Consumer electronics, which is
anticipated to increase by up to 8% by 2025, is predicted to follow these sectors closely.

Introduction

Leaders and businesses have interpreted the new environment in their own ways as e-
commerce has continued to disrupt the retail landscape, coming up with tactics that are
effective for both the changes and their specific market position. E-commerce has become
more broadly available to people in both urban and rural areas due to increased use of
smartphones, tablets, and the internet. Huge quantities of money are being invested in
Indian businesses by foreign corporations. In recent years, India experienced quantum jump
with respect to number of internet and smartphone users. In 2021, Internet connection
increased to 830 million because of “Digital India “Program. This will expect to achieve
smartphone base by 1 billion by year 2026. Major Segments like D2C (direct-to-consumer)
and B2B (business-to-business) able to achieve remarkable growth which predicts that by
2030, India’s overall e-commerce market will able to reach US $350 billion.