The trend of online shopping is set to see greater heights in the coming years, not just because
of India’s rising internet population, but also due to changes and growth in the supporting
ecosystem .The industry has attracted millions of online consumers by creating a secure online
transaction environment, facilities such as Cash-on-delivery (COD), and a strong focus on
customer service that led to Indian consumers placing their trust in online shopping.
KEY DRIVERS IN E COMMERCE INDUSTRY
• Increasing broadband Internet services and growing 3G penetration in India
• Rising standards of living and a burgeoning, upwardly mobile middle class with high
disposable incomes
• Lower prices compared to brick and mortar retail model driven by disintermediation,
reduced inventory holding and real estate costs
• Busy lifestyles, urban traffic congestion and lack of time for offline shopping
• Evolution of the online marketplace model with websites such as Flipkart, Snapdeal,
ebay etc. has come a full circle with marketplace models taking center stage.