More than 50 per cent of online shopping in India are done on cash on delivery method and the digital commerce market in the country is expected to cross $50 billion in value by the end of 2018 from the current level of $38.5 billion, on the back of a growing internet population and increased online shoppers, says a report from Assocham and Deloitte.
The digital commerce market in India has grown steadily from $19.7 billion in 2015 to $38.5 billion in 2017. The report attributes the growth to increasing mobile and internet penetration, m-commerce sales, advanced shipping and payment options, exciting discounts, and the push into new international markets by e-businesses.
The report said that banks and other players in the e-commerce ecosystem are providing a secured online platform to pay effortlessly via payment gateways. However, still Indian e-commerce sector is heavily dependent on the cash on delivery (CoD) mode of payment as it is the most preferred choice for Indian consumers due to lack of trust in online transactions, limited adoption of credit and debit cards, and security concerns, among others.
According to report, more than 50 per cent of online transactions are done on cash on delivery method and it is available across 600 cities and towns of India. One out of three customers currently makes transactions through mobiles in tier-1 and tier-2 cities.
Report also highlight the fact that people are using smartphone to access information online. In 2017, 82 per cent of shopping queries were made through mobile devices, compared to 76 per cent in 2016, said the study. While 65 per cent of online shoppers are male, 35 per cent are female. The products that were highest sold in 2017 included mobile phones, apparel, food items and jewellery, among others, it said.
As per the report, there would be more than a seven to ten fold increase in revenue generated through e-commerce as compared to last year with all branded apparel, accessories, jewellery, gifts and footwear available at cheaper rates and delivered at the doorstep.