The Anchor: 5 reasons India can accommodate more e-commerce sites

26 Oct,2012

By Satish Mani


#1 Increased Digital Connectivity:

With the explosive growth in broadband penetration and mobile phone usage across population strata and town classes, the online population in India is expected to double by 2015. This will fuel the demand for products and services available online.


#2 Enhancement of service levels by e-commerce firms:

E-commerce companies are constantly enhancing their service levels through better delivery, more realistic shopping experience, customer-centric purchase and return policies. This will lead to an increase in customer confidence for shopping online and they will migrate a higher proportion of their discretionary spends online.


#3 Increasing need for convenience:

Traffic congestion and crowded retail infrastructure in smaller towns and cities increase the demand for home delivery. We will soon see major retailers adopting the e-commerce route to keep up with consumer demand.


#4 Increasing adoption of online shopping by the younger population:

The younger population, with an early exposure to the internet has been quick to adopt online shopping. This increasing adoption opens more growth opportunity for the e-commerce industry.


#5 High infrastructural costs for brick and mortar outlets:

As the cost of establishing and maintaining an offline retail presence becomes increasingly expensive, big brands will be prompted to invest in increasing their online presence.


Satish Mani is Chief Technical Officer of


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