The Rise in E-commerce: Trends and Predictions for 2024

The emergence of e-commerce has transformed the daily lives of humans and marketing strategy by introducing the Internet world to selling-purchasing relationships. Over the years, we have witnessed a tremendous rise in the e-commerce sector, leading to dozens of new websites selling everything from books and appliances. 

E-commerce has brought a change in the market and offered a unique way of selling and purchasing goods, making it a significant factor in the advancement of the market and its functioning. It has initiated a new idea of business under the name of company names like Flipkart, Amazon, Ajio and more. 

Image Credit- freepik

No one had the idea about the power of e-commerce when it started but now this innovation truly impacted the economy of the country. From ordering food from your favourite restaurants to buying your favourite clothes are all just in one touch which makes it a magical effort.

While covering the rise in e-commerce in this article we will also delve into the trends and predictions for 2024 which has the possibility of transforming our present.

Defining E-commerce 

E-commerce is the process of connecting buyers and sellers to a virtual space where no physical or active presence is required on the other hand it reduces the time and effort in day-to-day life. Whatever you order online using your mobile phone and internet is a part of e-commerce.

The virtual space is called the internet sites like Amazon and Flipkart which connect the two mediums i.e. Buyers and Sellers. This virtual connection with both ends is called e-commerce that is offering ease to both ends. The process of selling and buying has become very easy using internet technology and mobile phones. 

Rise in E-commerce in India

ET Retail

The E-commerce industry in India is breaking its all records and creating rapid growth due to digitalization and the increasing internet user base. The industry has witnessed massive growth after being fueled by advancements in technology like artificial intelligence and virtual reality that have revolutionised the online shopping experience.

The statistics of internet users in India are growing at full speed as the recent Google report revealed that India’s internet economy is about to reach around $1 trillion by 2030. it is assumed that this growth is due to the growth that is driven by the increasing exaggeration of e-commerce in Tier 2 and Tier 3 towns that were earlier underserved by traditional retail. 

As the country’s graph shows the growth of the e-commerce industry it is expected that India will become the second largest by 2034 and the expected gross merchandise value of $350 billion by 2030.

It is also expected by the renowned Indian agency that e-commerce will reach to a remarkable compound annual growth rate (CAGR) of 27%, touching $163 by 2026. This enhancement in the growth is nearly three times that of the overall retail market.

Many factors are acting as fuel in growing the e-commerce industry and as per an important figure in the e-commerce industry, he said “The factors driving this rapid growth include internet penetration, rising disposable incomes, and the convenience of online shopping. As more consumers from Tier 2 and Tier 3 cities embrace online shopping, the demand for e-commerce platforms and services is expected to continue growing. Five key trends are going to define the e-commerce industry in 2024,” said the expert on e-commerce Sachin Verma. 

5 Key Trends in E-Commerce in India in 2024

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Rising advancement in technology and its adoption is adding to the interest of more people in e-commerce and mobilising businesses virtually. People nowadays looking to facilitate themselves with every hack that can change their lifestyle. Here we are listing some of the latest trends that contribute to making e-commerce a big boom.

1- Artificial Intelligence

Source: UCF

AI is playing a crucial role in pushing the e-commerce industry to new heights in India and other countries of the world. This technology will enable businesses to personalise customer experiences, improve recommendation systems, and streamline operations through automation.  

The implementation of AI and virtual reality will improve customer relations with companies by providing real-time support using AI-powered chatbots and virtual assistance.

Technology like Generative AI and tools like ChatGPT are making the potential of e-commerce high all over the world by providing more ease to consumers.

2- Social Media Platforms

Source: The Daily Guardian

There is an emerging trend going on all over the world that combines the power of social media with e-commerce platforms. The massive user base and engagement on social media platforms will push the acceleration of sales and increase brand awareness. 

The power of social media and the online world is recognised by the pioneer of e-commerce in India as said “Platforms like Facebook, Instagram, and WhatsApp are becoming not just spaces for social interaction but also vibrant marketplaces where users can discover, share, and buy products seamlessly. The potential for direct interaction with customers, real-time feedback, and the ability to leverage influencers for marketing makes social commerce a game-changer,” by Sachin Verma, an expert of the e-commerce industry.

3- Providing Secondhand Marketplace

Source: Zipsale

Today the sites and online spaces are increasing and sustainable purchasing habits are in a time surge. Secondhand marketplace, rental portals and resale of items are going to affect the e-commerce industry more than before.

Platforms like Facebook and Olx are acting as a surging factor in the e-commerce industry which are providing different ways of selling and buying goods. Why pay for more when the goods are available at just a 50% cost cut, definitely people will prefer platforms like these where secondhand things are available.

4- Sustainable Shopping

Source: Ecogreenlove

This has become the most crucial trend in the e-commerce industry as in modern days people are more concerned about the impact of their investing in the climate and environment. Consumers are now more inclined to purchase sustainable and eco-friendly products. 

The E-commerce industry can support this trend by providing a massive range of such product sourcing and manufacturing processes. This will enhance the promotion of consumption practices among consumers.

Industry experts are more in favour and one said “E-commerce will continue to drive competitive logistics, shortening delivery times and reducing carbon emissions through efficient transportation and packaging methods. These platforms will witness a surge in sales of Indian-made products, empowering small businesses and showcasing India’s rich cultural heritage to a global audience,” by Sachin Verma.

5- Flexible Payment Options

Source: Hospitality Net

It is not wise to accept the loss just because your platform does not accept payment in diverse modes when you have the option to take payment in other ways. Companies should be offering some of the most trending payment modes to get a head start in the future e-commerce trend.

Today the use of mobile phones is prominent all over the world so offering mobile payment solutions has become among the top e-commerce trends worldwide. The use of UPI payment option is also one of the most famous payment methods which is helping the e-commerce industry to grow.

Current State of E-commerce

E-commerce in India is rising day by day as it is one of the largest consumer markets. At present status, India is at the sixth position in the world as per the bank survey of global consumer markets. The nation has the highest future potential.

The country has witnessed a notable surge in the past decades which has been predicted by the World Economic Forum. The world-renowned forum also predicted that India will be the world’s third-largest consumer economy by 2030. 

The trends of E-commerce have now been shifted even in the urban places of the country which also surged the interest of people in ecommerce.

Global statistics and recent growth trends

Eccomerce is the most emerging sector not only in India but also in the whole world. The current situation of e-commerce is very impressive as its statistics and growth rate also give an idea of how the future of India will be in the next few years. 

Online shopping is the biggest trend in India and today almost all people have access to the internet which is a most powerful factor for surging the ecommerce sector.

The current growth rate of e-commerce in India is 9.8% with a user possibility of around 46.9 trillion.  This data shows that year by year people are more inclined towards buying and selling products via online methods. 

Today almost 2.71 billion people are shopping in online mediums which shows that the percentage is growing year by year all over the world. 

Mobile phones have played an important role in enhancing the power of ecommerce in the world as today 42.9% of people are using their mobile phones on ecommerce platforms. 

Social media is playing an important role in enhancing the power of e-commerce and also the platforms are empowering it by providing a suitable space for grooming and styling. The trends will be three times bigger in 2025 as predicted by the organisation.

Key players in the market

The e-commerce sector is the trending space in India and other countries which is boosting the Indian economy. Some of the important key players in the market like Amazon, Flipkart, and Alibaba are listed below-

Amazon

This is one of the most renowned e-commerce platforms in India and other countries which is owned by the parent company Amazon. The company is giving access to the whole world and the main domain of the e-commerce platform is listed below-

Amazon.in- For India

Amazon.com- For outside of India

Flipkart

This e-commerce platform is also one of the most renowned e-commerce platforms in India which provides the buying and selling options in the e-commerce sector. The portal provides a space where the customers are using it for their uses in commercialisation.

Alibaba

Witnessing the power of the e-commerce sector which is transforming the rules of the market and their buyer and seller relation. The leaders of the world are well-known about the power of e-commerce and hence they have their hands in the domain of it. Alibaba is the most famous e-commerce platform in the world which has the facility to provide selling, and buying products including providing secondhand articles. 

Among the above e-commerce platforms, many other platforms are providing the best solutions to society by giving buying and selling options. These platforms are also contributing to the economy of India. 

Conclusion

The e-commerce industry is rising day by day due to its popularity among consumers and in future it will triple the growth of e-commerce. While the industry is dependent on many trends and practices we have discussed the trends of the e-commerce industry which should be adopted by all the pioneers in the country.