...other developing countries), cash on delivery is a preferred payment method. India has a vibrant cash economy as a result of which 80% of Indian e-commerce tends to be Cash on Delivery. However, COD may harm e-commerce business in India in the long run [6] and there is a need to make a shift towards online payment mechanisms. Similarly, direct imports constitute a large component of online sales. Demand for international consumer products (including long-tail items) is growing much faster than in-country supply from authorised distributors and e-commerce offerings. Market size and growth[edit] India's e-commerce market was worth about $2.5 billion in 2009, it went up to $6.3 billion in 2011 and to $14 billion in 2012.[1] About 75% of this is travel related (airline tickets, railway tickets, hotel bookings, online mobile recharge etc.). Online Retailing comprises about 12.5% ($300 Million[7] as of 2009). India has close to 10 million online shoppers and is growing at an estimated 30%[8] CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are the biggest categories in terms of sales. Key drivers in Indian e-commerce are: * Increasing broadband Internet (growing at 20%[9] MoM) and 3G penetration.[10] * Rising standards of living and a burgeoning, upwardly mobile middle class with high disposable incomes * Availability of much wider product range (including long tail and Direct Imports) compared to what is available at brick and mortar retailers * Busy...
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