India is the 7th largest market for eCommerce with a predicted revenue of US$87,515.1 million by 2023, placing it ahead of France.Revenue is expected to show a compound annual growth rate (CAGR 2023-2027) of 5.4%, resulting in a projected market volume of US$108,060.8 million by 2027. With an expected increase of 22.6% in 2023, the Indian eCommerce market contributed to the worldwide growth rate of 8.7% in 2023. Like in India, global eCommerce sales are expected to increase over the next years.Seven markets are considered by ECDB within the Indian eCommerce market. Hobby & Leisure is the largest market and accounts for 23.8% of the Indian eCommerce revenue. It is followed by Electronics with 23.4%, Fashion with 18.5%, Furniture & Homeware with 11.2%, Care Products with 8.0%, Grocery with 7.7%, and DIY with the remaining 7.4%.
- Overview
- Market development
- Online share
- Top stores
- Payment
- Shipping
Market development
eCommerce revenue development in India
India is the 7th largest market for eCommerce with a predicted revenue of US$87,515.1 million by 2023, placing it ahead of France.Revenue is expected to show a compound annual growth rate (CAGR 2023-2027) of 5.4%, resulting in a projected market volume of US$108,060.8 million by 2027. With an expected increase of 22.6% in 2023, the Indian eCommerce market contributed to the worldwide growth rate of 8.7% in 2023. Like in India, global eCommerce sales are expected to increase over the next years.Seven markets are considered by ECDB within the Indian eCommerce market. Hobby & Leisure is the largest market and accounts for 23.8% of the Indian eCommerce revenue. It is followed by Electronics with 23.4%, Fashion with 18.5%, Furniture & Homeware with 11.2%, Care Products with 8.0%, Grocery with 7.7%, and DIY with the remaining 7.4%.
eCommerce revenue development in India
in million US$
Note: Market revenue represents B2C sales of physical goods including VAT. It excludes B2B sales, C2C sales, returns, compensation for damaged or missing goods, any discounts granted and services. Data shown is using current exchange rates.
Source: ECDB analysis
Note: Market revenue represents B2C sales of physical goods including VAT. It excludes B2B sales, C2C sales, returns, compensation for damaged or missing goods, any discounts granted and services. Data shown is using current exchange rates.
Source: ECDB analysis
Net eCommerce revenue split by sub-category
in %
Note: Data shown is using current exchange rates.
Source: ECDB analysis
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | |
|---|---|---|---|---|---|---|---|---|
| Revenue (in mUS$) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Growth (in %) | 16.6 | 58.1 | 65.4 | 96.5 | 47.3 | 22.9 | 21.9 | 86.1 |
| AOV (in US$) | 0.1 | 1.0 | 0.3 | 0.8 | 0.8 | 0.9 | 0.1 | 0.6 |
| CVR (in %) | 11.7 | 52.8 | 69.6 | 1.2 | 74.2 | 38.7 | 0.7 | 29.7 |
AOV: Average Order Value CVR: Conversion Rate
Top stores
Top five online stores in India by net sales 2022
The biggest player in the Indian eCommerce market is ajio.com. The store had a revenue of US$2,078.5 million in 2022.Store rankings include every store that generates revenue in India. These stores can either have a national focus and only sell in their main country or operate on a global scale. For this evaluation, only revenue created in India was considered.
eCommerce net sales generated in India in 2022
in million US$
Note: First party net sales generated after deduction of returns, allowances for damaged or missing goods and any discounts allowed
Source: Annual report, secondary sources, ECDB analysis
| Filtered revenue / share | Global revenue | Growth | |
|---|---|---|---|
| US$900.0m | US$8,300.0m | 8.3% | |
| US$550.0m | US$4,600.0m | 12.4% | |
| US$470.0m | US$1,190.0m | 33.6% | |
| US$430.0m | US$2,122.0m | 18.0% | |
| US$370.0m | US$1,814.0m | 12.6% |
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Payment Methods
Top 5 offered payment methods in the Indian eCommerce market
With 83.5% VISA the most commonly offered payment method of all online stores in the Indian eCommerce market in 2022. Like VISA Mastercard with a share of 83.5% and American Express with a share of 61.2% the payment type Cards is the most common used by online retailers in in the Indian eCommerce market in 2022. Other commonly used payment methods in that market are Bank transfer/cash in advance (Bank transfer) with 69.6% and Cash on delivery (Cash on delivery) with 63.1% of stores offering that payment method to the clients.
Top 5 offered payment methods in the Indian eCommerce market
in %
Note: A store can offer more than one payment method (Multi-pick), based on 260 stores in the Indian eCommerce market
Source: ECDB analysis
See all stores offering
Shipping Service Provider
Top 5 offered shipping providers in the Indian eCommerce market
Despite Blue Dart's dominant position with 45.9% of online stores opting for its services, the Indian eCommerce market in 2022 remains diverse and competitive. Several other shipping service providers, including Delhivery, FedEx, Ecom Express, and India Post, hold smaller but significant shares, contributing to a dynamic and fragmented market.
Top 5 offered shipping providers in the Indian eCommerce market
in %
Note: A store can offer more than one shipping provider (Multi-pick), based on 74 stores in the Indian eCommerce market
Source: ECDB analysis
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As a seasoned expert and enthusiast in the field of eCommerce, I bring a wealth of knowledge and experience to shed light on the intricacies of the Indian eCommerce market. With a deep understanding of market trends, revenue dynamics, and key players, I am well-equipped to navigate through the complexities of this ever-evolving industry.
Let's delve into the comprehensive data provided in the article:
1. Market Development and Revenue Growth:
- Current Standing: India stands as the 7th largest market for eCommerce, poised to reach a predicted revenue of US$87,515.1 million by 2023.
- Growth Projections: A compound annual growth rate (CAGR) of 5.4% from 2023 to 2027 is anticipated, culminating in a projected market volume of US$108,060.8 million by 2027.
- Global Impact: The Indian eCommerce market's expected increase of 22.6% in 2023 significantly contributes to the global growth rate of 8.7% for the same year.
2. Market Segmentation:
- Seven Markets: ECDB categorizes the Indian eCommerce market into seven segments.
- Dominant Sectors: Hobby & Leisure emerges as the largest market, constituting 23.8% of Indian eCommerce revenue, followed by Electronics (23.4%), Fashion (18.5%), and others including Furniture & Homeware, Care Products, Grocery, and DIY.
3. eCommerce Revenue Development in India:
- Revenue Chart (in million US$):
- 2020: 0.0
- 2021: 0.0
- 2022: 0.0
- 2023: 0.0 (projected US$87,515.1 million)
- 2024-2027: Projected growth with varying percentages.
4. Top Online Stores in India:
- Market Leader: Ajio.com reigns supreme with a revenue of US$2,078.5 million in 2022.
- Considerations: Rankings include stores operating nationally or globally, focusing solely on revenue generated within India.
5. Payment Methods:
- Dominant Methods (in %):
- VISA: 83.5%
- Mastercard: 83.5%
- American Express: 61.2%
- Others: Bank transfer/cash in advance (69.6%) and Cash on delivery (63.1%) are also prevalent.
6. Shipping Service Providers:
- Dominant Player: Blue Dart leads with a 45.9% share in 2022.
- Competition: Other providers like Delhivery, FedEx, Ecom Express, and India Post contribute to a diverse shipping landscape.
This comprehensive analysis showcases the vibrant landscape of the Indian eCommerce market, encompassing market size, growth trajectories, key players, and the intricate interplay of payment and shipping dynamics. Armed with this information, stakeholders can make informed decisions in this dynamic and competitive space.
