Domestic e-commerce market is expected to see a three-fold increase in its value compared to last year, as more and more people show interest in purchasing goods online.
The combined gross merchandise value (GMV) of the Indian online retailers is projected to surpass $12 billion (Rs 78,000 crore) by December against $4.5 billion (Rs 29,000 crore) recorded in 2014.
As major players like Flipkart, Snapdeal, Amazon, and eBay continue to provide a wide variety of merchandise on their platforms by partnering with many sellers and enhancing delivery mechanism, the Indian e-commerce sector is expected to see such a massive growth, Business Standard reported.
Amazon sales have increased four-fold this year, as it tripled the number of sellers on its platform. Similarly, the country's second largest retailer, Snapdeal, has increased its customer three times compared to last year, as it reduced the delivery time to just four hours in several cities.
On the other hand, India's largest e-commerce firm Flipkart saw a robust growth in sales to an estimated $300 million during recently concluded Big Billion Day sale that went for five days. The company said that it had sold 10 lakh products in the first 10 hours of 'The Big Billion Days' sale launched on 13 October.
While top players -- Amazon, Flipkart and Snapdeal -- account for about of 80% of the online sales, small players in the sector are also gaining from the emerging trend. Competition in the domestic e-commerce space is expected to intensify as many big firms plan to foray into online retailing.
Recently, Mukesh Ambani-led Reliance Industries Ltd (RIL) said that it would roll out its online retailing platforms for fashion and electronic devices by the end of this year.
"The overall ecosystem is growing. The good part is that many small guys are also growing rapidly with an increase in their shopper base and GMV. Even a niche e-commerce firm in furniture or baby goods is growing three to four times a year," said Nitin Bawankule, head of e-commerce at Google India.
Value of India's e-commerce market is estimated to reach nearly $18-20 billion in 2016, according to Google.
"There is a plenty of hype, but there is also a good deal of reality in India. It is a growing market, it is exciting, and there will be multiple winners. We will be one of them," Scott Schenkel, chief financial officer & senior vice-president, eBay had said in an investors' call last week.
About 40% of retail shopping in the country happens during the festive season from September to December.