The Rise of E-commerce Industry in India

The Inception of E-commerce in India

E-commerce is the buying and selling of goods and services, or the sending of funds or data, over the Internet. E-commerce transactions can be either B2B, B2C, C2C, or C2B. Though the e-commerce industry in India is riding the wave of popularity in recent times, its inception can be traced back in the early 1990s with Rediff. IRCTC, the first company to create a successful e-commerce portal, was introduced in 2002. However, the revolution of smartphones and easy availability of cheap data have amplified the current Indian e-commerce scene.

The Present Scenario

• The e-commerce industry in India is growing fast, booming, and expanding at a larger rate. The concept of online shopping has attracted the Indian population tremendously. Exposure to Internet has been highly instrumental in the e-commerce success.
• According to IAMAI-IMRB report, over 460 million Indians use Internet and India has been the second largest online market after China. It is obvious that e-commerce growth is directly related to the number of Internet users.
• Furthermore, a study by Forrester Research states that India’s online market is expected to reach $64 billion by the year 2021, growing at a five-year CAGR of 31.2%.
• The emergence and extraordinary success of various online commerce startups like Flipkart, Jabong, Snapdeal, have recreated the model of online marketplace. Even global companies like Amazon and eBay made their entry in the Indian market that can be seen to dominate the e-commerce industry.

Top Successful Ecommerce Businesses in India

Flipkart – Flipkart is one of the pioneers among India’s successful e-commerce startups. Founded in 2007, it was the brainchild of Sachin and Binny Bansal, both IIT-Delhi graduates. Though they started as an online bookseller, they gradually expanded their base with more retail options such as apparels, electronic gadgets, and household items. With multiple payment options and huge discounts, Flipkart slowly grew its customer base. It even became the first e-commerce portal to launch its mobile app version. It even went on to acquire competitors Myntra for $280 million and Jabong for $70 million, and more. According to reports, Flipkart’s revenue rose up to 34% in the year 2015-16.

MakeMyTrip – MakeMyTrip was initially launched as India Ahoy in the year 2000 by IIM-A alumni Deep Kalra. It was the first-of-its-kind online travel portal in India. Though MakeMyTrip’s beginning was not a smooth one, it redefined the way how Indians purchased e-tickets and booked hotels. Recently, it has merged with another popular travel portal, Goibibo and reported revenue of $447 million in which half of it came from hotels and travel packages.

Snapdeal – Besides Flipkart and Myntra, Snapdeal is in the list of successful e-commerce ventures in India with the largest online marketplace. The company saw an immense growth in just two years – its growth being almost 600% every year. The venture was launched in the year 2010 by Kunal Bahl and Rohit Bansal as an offline coupon business by the name MoneySaver. Later they moved into selling various items – from clothes and books to gadgets and appliances. Currently, they have more than 50,000 sellers and sell around 5 million products.

Ecommerce Companies and Increasing Job Opportunities

The e-commerce boom in India has not only changed the face of consumer business but also opened many doors in terms of career and job opportunities. With a number of ecommerce startups launching every year and the market growing by leaps and bounds, the e-retail trend is here to stay.

Students who want jobs in the e-commerce industry need to have an MBA degree in Marketing, Finance, or even a degree in engineering based on the job profile. There are various e-commerce jobs that include product creation and design, branding and marketing, product development and management, business analysis, finance, and more. On an average, an e-commerce job salary can range in between Rs.35 lacs to Rs.50 lacs for mid-level employees. The good news is, the salary growth is expected in the coming years as well. Special skill sets and certifications in analytics or big data can add more weightage.

Various universities across India offer career-focused MBA programs. Ajeenkya DY Patil University offers 2-years’ MBA in Digital Marketing and E-commerce that is specially designed for students who aim for e-commerce jobs. Learn more about ADYPU’s MBA in Digital Marketing and E-commerce