What to expect from e-commerce in 2015


e-commerceMulti-million dollar valuations for e-commerce companies; venture capitalists flocking to invest millions of dollars in these companies. That’s how we could best remember the business of e-commerce in India during 2014. Some highlights: Softbank committed an investment of $10 billion in India and invested in Snapdeal, Housing.com and OLA cabs. Amazon.com founder Jeff Bezos visited India and committed an investment of $2 billion. Rival Flipkart.com responded by raising a third round of funding taking the total to $1.9 billion. With that, Flipkart’s market valuation reached $7 billion by the end of the year.

In 2014, e-commerce sales through mobile phones picked up drastically. Flipkart and Snapdeal note an increase in the number of users shopping through their respective apps. At the beginning of 2014, Flipkart got 10 percent of its business from mobile apps and for Snapdeal it was 18 percent. By December 2014, the figures jumped to 55 percent (Flipkart) and 60 percent (Snapdeal).

What to expect: The e-commerce bubble is going to swell to massive proportions once the government permits international companies to sell products online in India.  Look out for the entry of giants like Amazon.com and Alibaba.com. And the e-commerce companies will make massive investments in India. Amazon and Flipkart will invest nearly Rs 2,300 crore. Some major acquisitions and mergers may occur. Since most Indians access the Internet on their mobile phones, expect to see more apps and shopping done through phones.  The introduction of 4G services and cheaper 3G phones will boost mobile internet and shopping through mobile phones.

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