India’s digital transformation is reshaping the landscape of e-commerce and online retail as an estimated 900 million users are expected to be online by 2025, powering substantial growth across industries, especially for small businesses.
E-commerce Growth Among Small Businesses in India
- Dominance in Digital Sales: 62% of Indian small businesses leverage websites, online stores, or e-commerce platforms as their primary sales channels, surpassing the global average of 61%. (GoDaddy, 2023)
- Revenue from Online Sales: 65% of small businesses in India earn up to half of their revenue through online sales, while 36% report over half of their earnings from digital transactions.
Online Shopping Trends in India
- Rising Customer Engagement: 73% of Indian customers made online purchases within the past year.
- Increasing User Penetration: User penetration is projected to reach 22.1% in 2024 and grow further to 34.0% by 2029.
E-commerce Insights
- Emerging Market from Small Towns: Smaller towns and two-tier cities contribute to 60% of online orders, reflecting the spread of digital adoption across India.
- Popular Categories: Electronics and apparel make up 70% of the online shopping segment.
Mobile and Online Behavior
- Mobile Payment Preference: 86% of Indians prefer making transactions using mobile payments, showcasing a shift towards mobile-driven commerce.
- Online Trust: 72% of Indians express trust in the internet for transactions, a promising indicator of digital acceptance.
- Urban User Behavior: 62% of urban users research products online before making a purchase.
Internet Usage Surge in India
- Steady Increase in Internet Users: Over 50% of Indians currently use the internet at least once a month, according to IAMAI and Kantar (May 2023).
- Future Growth: By 2025, India’s active internet base is projected to grow to a staggering 900 million users.
Top Online Shopping Destinations
- Leading Platforms: Amazon, Flipkart, and Myntra dominate the Indian e-commerce market, driving the growth of online shopping experiences across the country.
India’s digital revolution is not only enhancing e-commerce but also transforming the way small businesses reach customers and generate revenue, solidifying India’s position as a rapidly growing online economy.