E commerce business poised to grow bigger in 2016

Tony John (Chartered Accountant) (6085 Points)

14 January 2016  

Ecommerce had a standout year in 2015, when it grew in size — from $5 billion to $8 billion — and pervaded every aspect of our lives. In 2016, it will grow further and sink deeper into our lives, albeit in a different form. Ecommerce is set to become more 'm', or mobile, than 'e' commerce. That means more users.

Companies will go after profitable growth rather than woo customers with deep discounts (in other words, running on losses). Cash on Delivery (CoD), a preferred mode of payment for many customers, will decline as more and more people familiarise themselves with using payment wallets to shop and pay bills.

According to experts, there were 50 million transacting users in 2015. This year, it will be at least 75 million.

Six of the large ecommerce players — Flipkart, Amazon India, Paytm, Snapdeal, eBay.in and Shopclues — together have about 85-90 per cent of the e-commerce business in India.

More users and lesser discounts? A look at what 2016 holds for Indian ecommerce  firms like Flipkart and Snapdeal< ..