Due to the rapid expansion of e-commerce in the country, Indian online retail market is expected to grow over 4-fold to touch $ 14.5 billion by 2018.

As per the report, the compound annual rate at which the online retail market is projected to grow during the period from 2014 to 2018 is 40-45%.

The report also reveals that the current market size of online retail sector in India is $ 3.5 billion and that the country is among the most swiftly emerging online retail markets across Asia-Pacific region.

The major reasons for the growth, as per the study, are

• The increasing penetration of mobile Internet
• Higher purchases of Smartphones
• Need for ease of shopping
• Time convenience
• Higher mobility

[useful_banner_manager banners=27 count=1]


The report also emphasized as to how the heavy discounts offered by online portals will drive the market growth. If we talk about the product segments, electronic gadgets claim the highest share at present followed by apparel and books.

However, few years down the line, apparel and accessories will take over the top slot from electronic gadgets, with increase in home decor and furnishing share at the same time, as per the report.

Mainly, the growing acceptance of home grown apparel brands of online shopping portals and openness towards purchasing home decor and furniture from online stores is accountable for this increase.

Moreover, the better payment and return policies are going to fuel the increase further.

A few more factors that contribute to the growth in the online retail industry are

• Smartphones offering accessibility to online shopping
• Aspirations of tier II & III cities
• Women becoming more tech savvy
• Evolving awareness around branded products
• Impulsive buying
• Logistical convenience


The report also threw light on certain challenges that are impeding the growth of the online retail industry such as

• Absence of proper Internet connections in many rural areas
• Some consumers being skeptical about the security of online financial transactions even now

But then!

These glitches and predicaments can of course bring some friction but can’t stop the Indian retail online retail industry from becoming robust and offering a promising future to the world especially in terms of creating a customer-oriented trade system , employment, career , sophistication and a lot more, benefitting businesses at the same time.


You can’t deny or overlook the endeavors the government and private players are making to

• To improve the facility of logistics
• Boost the Internet penetration
• Smooth the progress of better services for the end consumer

For working professionals & entrepreneurs
Learn how to market a business online just like experts & agencies do it.
Learn from real practitioners not just trainers.

Watch This Video to See Trainer’s Affiliate Marketing Stats


Important Links

DSIM Blog is created to help you to know all aspects of Digital Marketing ranging from basics of Digital Marketing to Advance Level Topics, Read our posts and feel free to reach our team for any queries.