The Indian e-commerce industry is now two decades old. It started with online classifieds back in 1997 and now it has been predicted to grow to $16 billion by Deloitte and ASSOCHAM by the end of 2015.Although e-commerce is present in India since two decades, major developments have occurred only in the last five years.
There are many segments in e-commerce business. Those are online travel, Online retail, Online Classifieds, Financial services and Digital Downloads. Out of these segments online travel comprised 70% of the e-commerce market size. But gradually online retail is catching up with online travel and both make up to 90% of total e-commerce market.
Key Factors Responsible for E-commerce boom
In the last decade or so several factors have come together and created a perfect conducive environment for the e-commerce to boom. Those are increase in internet penetration, increase in smartphone penetration, robust online payment systems, and finally increase in disposable income of households.