E-tailers optimistic about business this year

With more and more Indians taking the online route to for shopping, e-tailers are witnessing high demands, including from far-flung and remote areas. Propelled by rising smartphone penetration, the launch of 4G networks and increasing consumer wealth, the Indian e-commerce market is expected to grow substantially by 2026. The ongoing digital transformation in the country is expected to increase India’s total internet user base by 2021.

The later part of 2019 was did not go too badly for Amazon and Flipkart as festive sales brought in record revenue for both the companies. But overall it has not been a great year for e-commerce. There has been an overall slowdown amid negative sentiments. One challenge is Reliance Retail’s impending entry into the online retail sector. Reliance Retail operates 10,415 stores in more than 6,600 cities and towns, with 500 million annual footfalls - giving the company the kind of scale required to swiftly launch India-based operations. Reliance Retail has already launched its food and grocery app for beta testing among its employees. Profitability is another concern for the big players. There have been investments in certain new categories but nothing much has changed this year. Another big worry is the new e-commerce policy.