International Journal of Financial Management and Economics
Vol. 4, Issue 2 (2021)
E-commerce in India
E-commerce is known as electronic commerce or electronic business. Originally electronic commerce meant the facilitation of commercial transactions electronically. The meaning of e-commerce has changed over the last 30 years. Dealing in goods and services through electronic media and internet is called as E-Commerce. It involves carrying on a business, selling or providing services directly from the websites and portals to the customers. This online business industry is well established in India. Indian E-commerce revenues increased drastically over the last decade. This sector has registered a growth of 36% in 2020. With the evolution of technology and increase in consumerism all over India, E-commerce is riding the high tide in online business. Easy access to internet via mobile devices coupled with increasing confidence of customers to purchase online is leading the way. The e-commerce industry helps in reducing costs in managing orders while also interacting with a wide range of suppliers and trading partners. It also involves many forms of business transactions in which parties interact electronically rather than by physical exchanges or direct physical contact. Recently Indian government introduced various reforms to help the nation’s e-commerce industry grow. The onset of lockdown and a push towards digitalization proved to be a blessing in disguise for the sector. As consumers resorted to online shopping, e-commerce became the backbone for supplying essentials to more than 1.3 billion people of India. The growth of e-commerce volumes in India is attracting the attention of countries worldwide. Government has allowed 100% FDI in business-to-business e-commerce. 100% FDI under the automatic route is permitted in the marketplace model of e-commerce. Rise in digital literacy has led to an influx of investment in e-commerce firms levelling the market for new firms while churning out innovative patterns to disrupt old functioning.