Banking Service Chronicle

Banking Service Chronicle

Banking Service Chronicle Published this article page no  76 ECOMMERCE IN INDIA Why in news? Recently The Competition Commission of India (CCI) released a Report titled Market Study on Ecommerce in India Key Findings and Observations. Key features of Ecommerce ecosystem in India  Fastest growing market in the world Revenue from the Indias ecommerce sector is expected to increase from USD 39 billion in 2017 to USD 120 billion in 2020 growing at an annual rate of 51 percent the highest in the world.  Funding Since 2009 the ecommerce sector has received around USD 13338 million in investments from across the world.  MSME Participation As per a Working Paper of United Nations Industrial Development Organization (UNIDO) nearly half of the 30 manufacturing output in India comes from the Micro Small & Medium Enterprises (MSMEs) and 43% of the MSMEs participate in online sales in India.  Dynamic pricing Online trade has led to increased price transparency and the consequent ease of pricecomparison for the customers. It also enables sellers to monitor competitors prices and use the same as an input in setting their own prices.  Strategic response to ecommerce Some smaller retailers are primarily using third party marketplace platforms to access the online consumers. Some have launched their own websites to complement the physical sales. Also there are sellers who sell exclusively online with no brick and mortar presence.  Role of online marketplace platforms The study reveals that thirdparty online marketplaces play a central role in ecommerce in India. An estimated 64% of digital retail trade in India is through online platforms Banking Service Chronicle buy. 

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