Unveiling the Latest Trends in E-Commerce Research in India: A Comprehensive Study
E-commerce has been an ever-growing industry in India, with the advent of digitalization and the increase of internet penetration over the years. With the pandemic further fueling the shift to online shopping, the e-commerce industry has been witnessing an upward trend. This article aims to showcase the latest trends in e-commerce research in India, specifically focusing on consumer behavior, digital payments, and logistics.
Consumer Behavior
Studies suggest that Indian consumers are becoming increasingly inclined towards online shopping. According to a report by EY India, 42% of online shoppers in India increased their online spending due to the pandemic. However, price sensitivity continues to be a significant factor for Indian consumers, with 90% of consumers comparing prices before making a purchase.
Moreover, consumers are also looking for personalized and engaging shopping experiences. With the help of Artificial Intelligence (AI) and Machine Learning (ML), e-commerce companies are providing personalized recommendations to consumers and enhancing their shopping experience. For instance, Amazon India has been using AI to customize product recommendations to suit customers’ preferences and requirements.
Digital Payments
With the government’s push towards digitalization and the increase in online transactions, digital payments have become an integral part of e-commerce in India. According to a report by ACI Worldwide, the transaction value of India’s digital payments market is set to grow by 23.2% CAGR over the next five years, from INR 2,153 trillion in 2020 to INR 7,092 trillion by 2025.
Moreover, with the Reserve Bank of India’s mandate of compulsory two-factor authentication for online transactions, e-commerce companies have started integrating newer and more secure payment options such as Unified Payment Interface (UPI) and Digital Wallets, which have gained immense popularity in recent times.
Logistics
Logistics is a crucial aspect of the e-commerce industry, making or breaking the consumer experience. Indian e-commerce companies are constantly innovating and improving their logistics processes to meet the growing demand for timely and efficient deliveries.
With the increase in online shopping, e-commerce players have been expanding their supply chain and warehousing capabilities to cater to the growing demand, increasing their last-mile delivery network, and optimizing their delivery routes.
Moreover, the pandemic and the subsequent lockdowns have encouraged companies to explore alternative modes of delivery such as hyperlocal deliveries, increased utilization of drones for delivery, and the adoption of Electric Vehicles (EVs) to meet the growing demand while ensuring sustainability.
Conclusion
In conclusion, the e-commerce industry in India has been witnessing significant growth, driven by the shift towards online shopping, consumer behavior, digital payments, and logistics. Companies that can provide personalized and engaging shopping experiences, innovate and integrate secure digital payment options, and optimize their logistics processes are poised to succeed in this ever-evolving industry. By keeping up with the latest trends in e-commerce research in India, these companies can continue to cater to the growing demand and ensure sustainable growth.
