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[[India]] has an Internet user base of about 696.77million as of May 2020, about 40% of the population.<ref>{{cite web|url=https://timesofindia.indiatimes.com/business/india-business/for-the-first-time-india-has-more-rural-net-users-than-urban/articleshow/75566025.cms|title=For the first time, India has more rural net users than urban|work=timesofindia|access-date=23 February 2021}}</ref> Despite being the second-largest user base in world, only behind China (650 million, 48% of population), the [[Market penetration|penetration]] of [[e-commerce]] is low compared to markets like the [[United States]] (266 million, 84%), or [[France]] (54 M, 81%), but is growing, adding around 6 million new entrants every month.<ref>{{cite web|URL=http://m.timesofindia.com/tech/tech-news/Online-shoppers-in-India-to-cross-100-million-by-2016-Study/articleshow/45217773.cms |title=Online shoppers in India |publisher=timesofindia.indiatimes/tech |date=2014-11-20 |access-date=2015-03-25}}</ref> The industry consensus is that growth is at an inflection point.<ref>{{cite web|url=http://www.vccircle.com/500/news/e-commerce-in-india-are-we-at-an-inflection-point/ |title=Indian e-commerce at inflection point? |publisher=Vccircle.com |date=2010-08-19 |access-date=2013-07-04}}</ref>

In India, [[cash on delivery]] is the most preferred payment method, accumulating 75% of the e-retail activities.<ref>{{cite web|url=http://www.translatemedia.com/translation-blog/cod-trust/ |title= In COD we trust|publisher=translatemedia.com |date=2015-02-06 |access-date=2015-03-24}}</ref> Demand for international consumer products (including [[long-tail]] items) is growing faster than in-country supply from authorised distributors and e-commerce offerings. Long tail business strategy allows companies to realize significant profits by selling low volumes of hard-to-find items to many customers, instead of only selling large volumes of a reduced number of popular items. The term was first coined in 2004 by Chris Anderson.<ref>{{Cite web|last=Hayes|first=Adam|title=Understanding Long Tails|url=https://www.investopedia.com/terms/l/long-tail.asp|access-date=2020-06-02|website=Investopedia|language=en}}</ref>

In 2017, the largest e-commerce companies in India were [[Flipkart]], [[Snapdeal]] and [[Amazon.com|Amazon]].<ref>{{cite web|url=https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/amazon-india-reportedly-closing-in-on-flipkart/articleshow/63407725.cms|title=Amazon India reportedly closing in on Flipkart |work=The Economic Times|access-date=22 March 2018}}</ref> In 2018, Amazon beat Flipkart and was recorded the biggest ecommerce in India in terms of revenue.<ref>{{Cite web|url=https://www.timesnownews.com/business-economy/companies/article/amazon-beats-flipkart-to-become-indias-largest-ecommerce-company-by-gross-sales/322166|title=Amazon beats Flipkart to become India's largest ecommerce company by gross sales|website=www.timesnownews.com|language=en|access-date=2019-09-09}}</ref>

==Market size and growth==
India's e-commerce market was worth about $3.9 billion in 2009. As per "India Goes Digital",<ref>{{cite web|url=http://www.avendus.com/Files/India_goes_Digital.pdf|title=404|access-date=4 May 2016}}</ref> a report by Avendus Capital, the Indian e-commerce market is estimated at ₹28,500 [[Crore]] ($6.3 billion) for the year 2011. Online travel constitutes a sizable portion (87%) of this market today. Online travel market in India had a growth rate of 22% over the next 4 years and reach ₹54,800 crore ($12.2 billion) in size by 2015. Indian e-tailing industry is estimated at ₹3,600 crore (US$800 million) in 2011 and estimated to grow to ₹53,000 crore ($11.8 billion) in 2015. The market went up to $12.6 billion in 2013. In 2013, the e-retail segment was worth US$2.3 billion. About 79% of India's e-commerce market was travel related in 2013.<ref>[http://www.pwc.in/assets/pdfs/publications/2014/evolution-of-e-commerce-in-india.pdf Evolution of e-commerce in India], [[PwC]], 2014.</ref> According to Google India, there were 35 million online shoppers in India in 2014 Q1 and was expected to cross 100 million mark by end of year 2016.<ref>{{cite web|url=http://m.timesofindia.com/tech/tech-news/Online-shoppers-in-India-to-cross-100-million-by-2016-Study/articleshow/45217773.cms|title=Online shoppers in India to cross 100 million by 2016: Study|work=The Times of India|access-date=4 May 2016}}</ref>

CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are the biggest categories in terms of sales. Overall e-commerce market had reached ₹1,07,800 crores (US$24 billion) by the year 2015 with both online travel and e-tailing contributing equally. Another big segment in e-commerce is mobile/DTH recharge with nearly 1 million transactions daily by operator websites.<ref>{{Cite web|url=https://telecomtalk.info/freecharge-transactions-per-day/149707/|title=Freecharge Aims to Achieve 7 Million Transactions Per Day|date=2016-02-17|website=Telecom Talk}}</ref> Year 2016 also saw online sales of luxury products like jewellery also increased. Most of the retail brands have also started entering into the market and they expect at least 20% sales through online in next 2–3 years.<ref>{{Cite web|url=http://articles.economictimes.indiatimes.com/2016-03-25/news/71808492_1_carat-lane-caratlane-mithun-sacheti|title=CaratLane in talks with US-based online stores for acquisition|website=Economic Times|access-date=2016-04-05}}</ref> According to Google India Research in 2016, by 2021 India is expected to generate $100 billion online retail revenue out of which $35 billion will be through fashion e-commerce.<ref>{{Cite web|url=http://www.livemint.com/Industry/N9i3R5ExZpSBIhtuS0CCQJ/Indias-fashion-eretail-market-to-touch-35-bn-by-2020-Goo.html|title=India’s fashion e-retail market to touch $35 bn by 2020: Google|last=PTI|publisher=[[Mint (newspaper)|Mint]]|access-date=2016-03-13}}</ref>

The ecommerce industry was reported at $24 billion in 2017 and was recognised as the fastest growing industry in India.<ref>{{Cite news|url=https://economictimes.indiatimes.com/industry/services/retail/indian-e-commerce-market-to-touch-usd-84-billion-in-2021-report/articleshow/68169239.cms?from=mdr|title=Indian e-commerce market to touch USD 84 billion in 2021: Report|date=2019-02-26|work=The Economic Times|access-date=2019-08-29}}</ref> The ecommerce market grew to $38.5 billion in 2018.<ref>{{Cite news|url=https://www.business-standard.com/article/news-cm/e-commerce-market-growing-at-a-rate-of-about-17-in-2018-19-118121700794_1.html|title=E-Commerce Market growing at a rate of about 17% in 2018-19|last=Market|first=Capital|date=2018-12-17|work=Business Standard India|access-date=2019-08-29}}</ref> It is estimated that one in every three Indian shops via smartphone and online retailers deliver to 20,000 pin-codes out of the 100,000 pin-codes in India.<ref>{{Cite web|url=https://www.ibef.org/industry/ecommerce-presentation|title=Indian Ecommerce Industry Analysis {{!}} IBEF|website=www.ibef.org|access-date=2020-04-22}}</ref> As per Goldman Sach, India's e-commerce industry will reach $99 billion in size while online retail is expected to more than double to around 11% by 2024 from 4.7% in 2019 while increasing at 27% compound annual growth rate (CAGR). The online grocery segment that is below $2 billion will reach $29 billion in size by 2024. Online grocery orders will grow from 3,00,000 per day in 2019 to more than 5 million per day by 2024. Non grocery eCommerce penetration will be 16.1 percent by 2021.<ref>{{Cite web|last=Network|first=The Statesman/Asia News|date=2020-07-23|title=India e-commerce to grow 27%; Reliance to capture half of online grocery sales—Goldman|url=https://business.inquirer.net/303336/india-e-commerce-to-grow-27-reliance-to-capture-half-of-online-grocery-sales-goldman|access-date=2020-08-08|website=INQUIRER.net|language=en}}</ref><ref>{{Cite web|title=India's e-commerce industry to be $99 billion in size by 2024; RIL to dominate online grocery space|url=https://www.businesstoday.in/current/corporate/indias-ecommerce-industry-goldman-sachs-survey-online-shopping-grocery-ril/story/411139.html|access-date=2020-08-08|website=www.businesstoday.in}}</ref>

As per property consultant [[Colliers International]], the demand for warehousing of 5,000 to 10,000 square feet size will increase due to [[COVID-19 pandemic in India|COVID-19]] lock-downs which lead to a surge in online orders of essential items for same day delivery especially in tier-1 cities like [[Mumbai]], [[Kolkata]], [[Bengaluru]], [[Chennai]] and [[New Delhi]].<ref>{{Cite web|title=In-city warehousing demand may rise as e-commerce firms target same-day delivery|url=https://www.moneycontrol.com/news/business/in-city-warehousing-demand-may-rise-as-e-commerce-firms-target-same-day-delivery-5665521.html|access-date=2020-08-08|website=Moneycontrol}}</ref> Flipkart will debut a hyperlocal service called Flipkart Quick in Bengaluru to start 90 minutes deliveries.<ref>{{Cite news|date=2020-07-28|title=Walmart's Flipkart to offer 90-minute deliveries in India|language=en|work=Reuters|url=https://www.reuters.com/article/us-india-flipkart-idUSKCN24T0TL|access-date=2020-08-08}}</ref> [[Amazon (company)|Amazon]] observed spike in page views with four times increase in “Add to Cart” during the lockdown, leading to doubling of sales. It also started selling auto insurance in partnership with [[Acko General Insurance]] which is available to users through Amazon app and mobile website.<ref>{{Cite web|last=Patil|first=Kiran|date=2020-08-03|title=How To Tap Into Rising Opportunities In Grocery E-commerce?|url=https://www.entrepreneur.com/article/354137|access-date=2020-08-08|website=Entrepreneur|language=en}}</ref><ref>{{Cite web|last=July 27|first=Danielle Ling {{!}}|last2=PM|first2=2020 at 01:00|title=Amazon is now selling auto insurance in India|url=https://www.propertycasualty360.com/2020/07/27/amazon-is-now-selling-auto-insurance-in-india/|access-date=2020-08-08|website=PropertyCasualty360|language=en}}</ref> With opening of 10 new warehouse, the count of Amazon warehouse in India stands at 60 across 15 states that has an area equivalent to more than 100 football fields.<ref>{{Cite news|date=2020-07-23|title=Amazon to open 10 new India warehouses; offers insurance|language=en|work=Reuters|url=https://www.reuters.com/article/us-amazon-com-india-idUSKCN24O0TF|access-date=2020-08-08}}</ref>

Report from [[software as a service]] (SaaS) provider Unicommerce shows increasing penetration of e-commerce beyond tier-1 cities with major growth coming from tier-2 and tier-3 towns/villages due to increasing [[vernacular language]] content<ref>{{Cite web|date=2020-08-23|title=E-commerce big winner: This is the reach of online retail in India's hinterland, read details - OrissaPOST|url=https://www.orissapost.com/e-commerce-big-winner-this-is-the-reach-of-online-retail-in-indias-hinterland-read-details/|access-date=2020-08-23|website=Odisha News, Odisha Latest news, Odisha Daily - OrissaPOST|language=en-US}}</ref> and improving last mile delivery. Consumers are also diversifying their purchasing option from large scale e-commerce channels like Amazon or Flipkart to specific retail brand websites.<ref>{{Cite web|date=2020-08-22|title=Report highlights e-commerce is big in India's hinterland|url=https://www.zeebiz.com/india/news-report-highlights-e-commerce-is-big-in-indias-hinterland-133843|access-date=2020-08-23|website=Zee Business}}</ref> As per [[Goldman Sachs]], three or four players can co-exist in the e-commerce space given the size of India but travel, food delivery, ride-hailing services will see a maximum of two players capturing the market. Reliance Jio will increase competition in grocery, fintech, online retail, food delivery.<ref>{{Cite web|date=2020-08-23|title=Amazon, Flipkart, others may have more fierce competitors ahead after Reliance in e-commerce, grocery|url=https://www.financialexpress.com/industry/amazon-flipkart-walmart-and-ril-market-wars-indian-e-commerce-pond-big-enough-for-plenty-of-fish/2062742/|access-date=2020-08-23|website=The Financial Express|language=en-US}}</ref> From February 2020 to June 2020 during the Covid19 lock-down period, e-commerce increased by 117% with the delivery of only essential supplies that is now bigger than the pre-Covid19 level. Flipkart surpassed 1.5 billion visits per month with 45% growth in monthly active user while 30% growth in transaction per consumer. Tier-3 markets are showing 53% year on year growth with higher internet penetration and connectivity.<ref>{{Cite web|title=India’s e-commerce is now even bigger than pre-COVID – smaller cities add to the bounty while metros continue to lead|url=https://www.businessinsider.in/business/ecommerce/news/indias-e-commerce-is-now-even-better-than-before-smaller-cities-add-to-the-bounty-while-metros-continue-to-lead/articleshow/77655199.cms|access-date=2020-08-25|website=Business Insider}}</ref> Kinetic Green started selling electric [[auto rickshaw]] and [[golf cart]]s online mainly in eastern and northern parts of India with a revenue of ₹75 crore in 2019 which now stands at ₹100 crore as of August 2020.<ref>{{Cite web|last=Aug 14|first=Satyanarayan Iyer / TNN /|last2=2020|last3=Ist|first3=04:56|title=Kinetic Green looks to e-commerce, home delivery to grow in Covid times - Times of India|url=https://timesofindia.indiatimes.com/business/india-business/kinetic-green-looks-to-e-commerce-home-delivery-to-grow-in-covid-times/articleshow/77534424.cms|access-date=2020-08-28|website=The Times of India|language=en}}</ref> E-commerce helped [[Nestlé]] increase sales at a rate of 122% which contributes to 3.6% of overall sales during Q2 of 2020-21.<ref>{{Cite web|date=2020-07-28|title=E-commerce sales of Nestlé India more than double in Q2; eight factories restored to pre-Covid levels|url=https://www.financialexpress.com/industry/e-commerce-sales-of-nestle-india-more-than-double-in-q2-eight-factories-restored-to-pre-covid-levels/2037699/|access-date=2020-08-28|website=The Financial Express|language=en-US}}</ref> [[Apple Inc.]] is opening online channel to sell products in India for the first time during August 2020 to target the festival seasons.<ref>{{Cite news|date=2020-08-25|title=Apple to open India online store in September: Bloomberg News|language=en|work=Reuters|url=https://www.reuters.com/article/us-india-apple-idUSKBN25L16X|access-date=2020-08-28}}</ref>

==Closures==
Though the sector has witnessed tremendous growth and is expected to grow, many e-commerce ventures have faced tremendous pressure to ensure cash flows. But it has not worked out for all the e-commerce websites. Many of them like Dhingana, IndiaPlaza.in, eBay-India, Rock.in, Seventy MM amongst others had to close down<ref name="http://www.business-standard.com/article/companies/discounts-backfire-many-e-com-ventures-shut-shop-114022600591_1.html">{{cite news|url=http://www.business-standard.com/article/companies/discounts-backfire-many-e-com-ventures-shut-shop-114022600591_1.html|title= Discounts backfire; many e-com ventures shut shop|work= Business Standard|date=26 February 2014 |access-date=9 December 2014}}</ref> or change their business models to survive.<ref name="Latest e-commerce shut downs and acquisitions in India">{{cite news|url=http://www.klypy.com/in/ecommerce-shut-downs-acquisitions-india/|title= Latest e-commerce shut downs and acquisitions in India|date=17 May 2014 |access-date = 4 January 2015}}</ref>
In March 2020, the [[Government of India]] restricted online sales of all goods except for critical items including [[food]], [[pharmaceuticals]], and [[medical equipment]]. Many Indian startups including Urban Company, BookMyShow, Pepperfry and [[Nykaa]], which do not feature in the government’s list of notified essential services, are running at a loss due to [[COVID-19]] pandemic.<ref>{{cite news |last1=Gooptu |first1=Biswarup |title=Vertical ecom majors like Pepperfry, Nykaa feel the squeeze post Covid-19 outbreak |url=https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/from-nykaa-to-pepperfry-indias-vertical-ecom-majors-feel-the-squeeze-post-covid-19-outbreak/articleshow/74904939.cms?from=mdr |work=[[The Economic Times]] |date=31 March 2020}}</ref><ref>{{cite news |last1=Bhattacharya |first1=Ananya |title=Coronavirus will sink a lot of small e-commerce companies in India
|url=https://scroll.in/article/957607/coronavirus-will-sink-a-lot-of-small-e-commerce-companies-in-india |work=[[scroll.in]] |date=30 March 2020}}</ref>

== Collaborations ==
In light of the [[Coronavirus disease 2019|Covid-19]] pandemic, the Indian government issued a directive to stop delivery of non-essential items by e-commerce platforms.<ref>{{Cite web|url=https://www.businessinsider.in/business/ecommerce/news/you-wont-be-able-to-order-non-essential-items-on-amazon-flipkart-and-others-till-lockdown-is-lifted/articleshow/75230373.cms|title=Amazon, Flipkart cannot deliver non-essential items like mobile phones, TVs during lockdown|website=Business Insider|access-date=2020-04-22}}</ref> This led to many e-commerce platforms to collaborate and sell essential goods. For e.g. [[Myntra]] partnered with [[Wildcraft]] to sell protective face masks.<ref>{{Cite web|url=https://retail.economictimes.indiatimes.com/news//|title=- ET Retail|last=www.ETRetail.com|website=ETRetail.com|language=en|access-date=2020-04-22}}</ref> McCoy Mart partnered with [[Rossari Biotech]] Ltd to sell hand sanitizers. Flipkart partnered with Uber for last mile delivery of essentials to its customers.<ref>{{Cite web|url=https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/flipkart-smartbuy-launches-medical-essentials/75067538|title=Flipkart SmartBuy launches medical essentials - ET Retail|last=www.ETRetail.com|website=ETRetail.com|language=en|access-date=2020-04-22}}</ref>

==Infrastructure==
There are many hosting companies working in India, some of which offer [[SaaS]] for hosting web stores. India has got its own version of [[Cyber Monday]] known as [[Great Online Shopping Festival]] which started in December 2012, when Google India partnered with e-commerce companies including [[Flipkart]], [[HomeShop18]], [[Snapdeal]], [[Indiatimes shopping]] and [[Makemytrip]]. "Cyber Monday" is a term coined in the US for the Monday coming after [[Black Friday (shopping)|Black Friday]], which is the Friday after [[Thanksgiving Day]].<ref name="Google partners e-commerce sites for 'Cyber Monday' on December 12">{{cite news|title=Google partners e-commerce sites for 'Cyber Monday' on December 12|url=http://articles.economictimes.indiatimes.com/2012-12-04/news/35594711_1_operations-rajan-anandan-google-india-md-online-travel-sites|access-date=31 December 2012|newspaper=Economic Times|date=4 December 2012}}</ref> Most recent GOSF [[Great Online Shopping Festival]] was held during Dec, 2018.

In early June 2013, [[Amazon.com]] launched their Amazon India marketplace without any marketing campaigns. In July 2014, Amazon had said it will invest $2 billion (Rs 12,000 crore) in India to expand the business, after its largest Indian rival, Flipkart announced $1 billion in funding. In June 2016, Amazon agreed to invest another $3 billion to further pressure rivals Flipkart & [[Snapdeal]]<ref>{{cite web|title=Amazon plans $3 billion investment in India to challenge Flipkart, Snapdeal|url=https://www.cnbc.com/2016/06/08/amazon-plans-3-billion-investment-in-india-to-challenge-flipkart-snapdeal.html| date=25 Jun 2016|publisher= CNBC}}</ref> Amazon has also entered grocery segment with its Kirana now in Bangalore and is also planning to enter in various other cities like Delhi, Mumbai and Chennai and faces stiff competition with Indian startups.<ref>{{Cite web|url=http://devmantra.com/2015/09/01/e-commerce-and-its-evolution-in-india/|title=E – Commerce and its evolution in India {{!}} Devmantra|access-date=2016-04-28|archive-url=https://web.archive.org/web/20170325203832/http://devmantra.com/2015/09/01/e-commerce-and-its-evolution-in-india/|archive-date=25 March 2017|url-status=dead}}</ref> A large proportion of traffic towards e-commerce sites is driven by coupon sites.<ref>{{cite web|last1=Gore|first1=Dipti|title=Coupon, offers and deal listing website CouponChaska.com promises to get you the best deal!|url=http://techstory.in/coupon-offers-and-deal-listing-website-couponchaska-com-promises-to-get-you-the-best-deal/|website=TechStory|publisher=TechStory Media Pvt. Ltd. (India)|access-date=8 March 2017}}</ref>

==Funding==
Examples of venture capital firms having invested in e-commerce companies in India are as follows:
[[Flipkart.com]] raised about USD 2.3 billion.<ref>{{cite web|title=Fund-raise values Flipkart at $10 billion|url=http://timesofindia.indiatimes.com/tech/tech-news/Fund-raise-values-Flipkart-at-10-billion/articleshow/45253331.cms| date=24 Nov 2014|publisher= Times of India}}</ref> On 10 July 2013, Flipkart announced it had received $200 million from existing investors [[Tiger Global]], [[Naspers]], [[Accel Partners]], and [[ICONIQ Capital]], and an additional $160 million from Dragoneer Investment Group, [[Morgan Stanley Wealth Management]], [[Sofina]], [[Vulcan Inc.]] and more from Tiger Global.<ref>{{cite web|title=Flipkart raises $160M more from Morgan Stanley, Vulcan Capital, Tiger Global, others|url=http://www.vccircle.com/news/technology/2013/10/09/flipkart-raises-160m-more-morgan-stanley-vulcan-capital-tiger-global|publisher=VCCIRCLE}}</ref>

In February 2014, online fashion retailer [[Myntra.com]] raised $50 million from a group of investors led by Premji Invest, the investment company floated by [[Azim Premji]], Chairman of [[Wipro]]. May 2014 also witnessed an acquisition of [[Myntra.com|Myntra]] by [[Flipkart.com|Flipkart]] reportedly for ₹2,000 crores.<ref>{{cite web|url=http://timesofindia.indiatimes.com/tech/tech-news/Flipkart-acquires-Myntra/articleshow/35472797.cms|title=Flipkart acquires Myntra|date=22 May 2014|work=The Times of India|access-date=4 May 2016}}</ref>

In September 2015, [[PepperTap]] raised $36 million from [[Snapdeal]] and others.<ref>{{cite web|url=http://economictimes.indiatimes.com/industry/services/retail/peppertap-raises-36-million-in-fresh-round-of-funding-led-by-snapdeal/articleshow/49151863.cms|title=PepperTap raises $36 million in fresh round of funding, led by Snapdeal|work=The Economic Times|access-date=4 May 2016}}</ref>

In July 2020, Purplle raised $30 million from [[Goldman Sachs]] and others.<ref>{{Cite web|last=Srivats|first=K. R.|title=Online beauty platform Purplle raises $30 m in Series-C round|url=https://www.thehindubusinessline.com/info-tech/online-beauty-platform-purplle-raises-30-m-in-series-c-round/article30300072.ece|access-date=2020-08-08|website=@businessline|language=en}}</ref>

In January 2021, B2B Udaan has raised $280 million from new investors Moonstone Capital Partners and Octahedron Capital, besides existing investors Lightspeed Venture Partners, DST Global, GGV Capital, [[Altimeter Capital]] and Tencent Holdings.<ref>{{Cite news|date=6 January 2021|title=Udaan raises $280 mn from new and existing investors|work=Livemint|url=https://www.livemint.com/companies/start-ups/udaan-raises-280-million-from-new-existing-investors-11609930973449.html}}</ref>

==Niche retailers==
The spread of e-commerce has led to the rise of several niche players who largely specialize their products around a specific theme. As many as 1,06,086 websites are registered daily and more than 25% are for niche businesses.<ref>{{cite web|url=http://www.financialexpress.com/article/companies/taking-flight/67376/|title=E-commerce: Niche online ventures going where biggies of Amazon, Flipkart can’t|date=28 April 2015|work=The Financial Express|access-date=4 May 2016}}</ref>

During 2014, [[Royal Enfield]] sold 200 bikes of special series Online.<ref>{{Cite news|url=http://www.thehindu.com/business/royal-enfields-despatch-riders-sold-out-in-26-minutes/article7425689.ece|title=Royal Enfield’s ‘Despatch’ sold out in 26 minutes|date=2015-07-15|newspaper=The Hindu|language=en-IN|issn=0971-751X|access-date=2016-04-27}}</ref>

Online apparel is one of the more popular verticals, which along with computers and consumer electronics make up 42% of the total retail e-commerce sales.<ref>{{cite web|url=http://www.assocham.org/newsdetail.php?id=4814|title=Assocham India|access-date=4 May 2016}}</ref> Niche online merchandising brands like Headbanger's Merch, Redwolf and No Nasties partner with and even help sustain independent musicians.<ref>{{cite web|url=http://rollingstoneindia.com/sahil-makhija-at-some-point-a-t-shirt-will-always-outweigh-a-cd/|title=Sahil Makhija: "At some point, a T-shirt will always outweigh a CD"|work=Rolling Stone India|access-date=4 May 2016}}</ref> Some established brands like Arvind are now creating clothing lines just for the e-commerce markets.<ref>{{cite web|url=http://www.livemint.com/Companies/3uszeyGVQaEFwVJSVDqPpN/Arvind-lines-up-select-brands-for-online-retail.html|title=Arvind lines up select brands for online retail|author=Suneera Tandon|publisher=[[Mint (newspaper)|Mint]]|access-date=4 May 2016}}</ref> Some of the bigger online retailer like VoxPop Clothing have secured multiple rounds of funding, the last round raising $1 million from Blume Ventures in 2014.<ref>{{cite web|url=http://articles.economictimes.indiatimes.com/2014-11-14/news/56093182_1_blume-ventures-higher-margins-brands|title=VoxPop Clothing raises $1 million to expand portfolio with higher margins|work=timesofindia-economictimes|access-date=4 May 2016}}</ref>

As these niche businesses get popular, they are slowly getting acquired by the big players. BabyOye was acquired by Mahindra Retail, part of the $17 billion [[Mahindra Group]].<ref>{{cite web|url=https://economictimes.indiatimes.com/industry/services/retail/mahindra-retail-to-integrate-e-commerce-business-to-single-platform/articleshow/46571462.cms?from=mdr|title=Mahindra Retail to integrate e-commerce business to single platform|work=economictimes-indiatimes|access-date=15 Mar 2015}}</ref> Ekstop was acquired by the [[Godrej Group]] to complement their offline chain of Nature's Basket stores.<ref>{{cite web|url=http://www.livemint.com/Companies/nItZXprEHzlavjUoc86oEL/Godrej-Natures-Basket-buys-online-grocer-Ekstopcom.html|title=Godrej Nature’s Basket buys online grocer Ekstop.com|author=Sapna Agarwal|publisher=[[Mint (newspaper)|Mint]] | access-date=4 May 2016}}</ref>

== Mergers and acquisitions==
According to a report by [[Grant Thornton International|Grant Thronton]], as much as US$2.1 billion worth of mergers and acquisitions were inked in 2017 in the booming Indian e-commerce industry.<ref>{{Cite news|url=https://www.financialexpress.com/industry/indian-e-commerce-market-sees-ma-deals-worth-2-1-bn-in-2017/1157653/|title=Indian e-commerce market sees M&A deals worth $2.1 billion in 2017|date=2018-05-06|work=The Financial Express|access-date=2018-05-19|language=en-US}}</ref> Here is the list of [[Mergers and acquisitions|Mergers & Acquisitions]] which happened in India over a period of time:
{| class="wikitable sortable"
|+Mergers & Acquisitions in Indian E-commerce Market
!Date !! Merger/Acquisition !!Companies Involved !! Cost !! Refs
|-
|May 2014 ||Acquisition ||[[Flipkart]] acquires [[Myntra]] || US$300 million ||
|-
|March 2015 ||Acquisition ||[[Snapdeal]] acquires [[Unicommerce]] || Undisclosed || <ref>{{Cite news|url=https://www.livemint.com/Companies/55xDQzzGjGEJv0vkKZgD7M/Snapdeal-buys-ecommerce-management-firm-Unicommerce.html|title=Snapdeal buys e-commerce management firm Unicommerce|work=Live Mint|access-date=2018-05-19}}</ref><ref>{{Cite news|url=https://inc42.com/buzz/snapdeal-acquires-unicommerce/|title=Snapdeal Acquires Unicommerce|work=Inc42|access-date=2018-05-19}}</ref>
|-
|April 2015 ||Acquisition ||[[Snapdeal]] acquires [[FreeCharge]] || US$400 million || <ref>{{Cite news|url=https://timesofindia.indiatimes.com/business/india-business/Snapdeal-buys-Freecharge-for-400m/articleshow/46857876.cms|title=Snapdeal buys Freecharge for $400m - Times of India|work=The Times of India|access-date=2018-05-19}}</ref>
|-
|April 2016 || Acquisition ||[[Flipkart]] acquires [[PhonePe]]|| Undisclosed ||<ref>{{Cite news|url=https://www.livemint.com/Companies/DbMTb2tDKuZoTfEa203XBL/Flipkart-acquires-UPIbased-payments-startup-PhonePe.html|title=Flipkart acquires UPI-based payments start-up PhonePe|last=Chathurvedula|first=Sadhana|date=2016-04-01|work=livemint.com/|access-date=2018-05-19}}</ref><ref>{{Cite news|url=https://economictimes.indiatimes.com/small-biz/startups/flipkart-acquires-former-executives-startup-phonepe-for-payments-push/articleshow/51643300.cms|title=Flipkart acquires former executive's startup PhonePe for payments push|last=Chanchani|first=Madhav|date=2016-04-04|work=The Economic Times|access-date=2018-05-19}}</ref>
|-
|June 2016 ||Acquisition ||[[Myntra]] (owned by Flipkart) acquires [[Jabong.com|Jabong]]|| US$70 million ||<ref>{{Cite news|url=https://timesofindia.indiatimes.com/deals/-ma/Myntra-acquires-Jabong-for-70mn/articleshow/53394760.cms|title=Flipkart-owned Myntra acquires Jabong for $70 mn - Times of India|work=The Times of India|access-date=2018-05-19}}</ref>
|-
|July 2017 || Acquisition || [[Axis Bank]] acquires [[FreeCharge]] || US$60 million || <ref>{{Cite news|url=https://economictimes.indiatimes.com/small-biz/startups/axis-bank-acquires-freecharge-for-rs-385-crore/articleshow/59789257.cms|title=Axis Bank acquires FreeCharge for Rs 385 crore|last=Variyar|first=Mugdha|date=2017-07-27|work=The Economic Times|access-date=2018-05-19}}</ref>
|-
|May 2018 ||Acquisition ||[[Walmart]] acquires [[Flipkart]]|| US$16 billion ||<ref>{{Cite web|url=https://economictimes.indiatimes.com/industry/services/retail/softbank-ceo-confirms-walmart-flipkart-deal/articleshow/64093437.cms|title=What Walmart's Flipkart acquisition means for India, consumers and its arch-rival Amazon|language=en|access-date=2018-07-22}}</ref>
|-
|January 2020 ||Acquisition ||[[Zomato]] acquires [[Uber Eats]]|| US$350 million ||<ref>{{Cite web|url=https://www.businesstoday.in/current/corporate/zomato-acquires-uber-eats-rs-2485-crore-100-employees-uncertainty/story/394253.html|title=Zomato acquires Uber Eats for Rs 2,485 crore|language=en|access-date=2020-01-21}}</ref>
|}

== Regulation ==
Foreign e-commerce is subject to regulations in India; under local law, foreign companies are to serve solely as marketplaces between vendors and their customers, and are forbidden from holding inventory in the country. Under new regulations effective 1 February 2019, foreign companies will be forbidden from selling any products from vendors that they control or have equity stakes in, and it is forbidden to enter into exclusivity deals between vendors and websites. This regulation is seen as a counter to Amazon and Walmart's influence on the market, which have given smaller traders a disadvantage in the market.<ref>{{Cite web|url=https://venturebeat.com/2019/01/31/amazon-and-flipkart-face-uncertainty-as-india-readies-new-rules-for-foreign-ecommerce-companies/|title=Amazon and Flipkart face uncertainty as India readies new rules for foreign ecommerce companies|date=2019-01-31|website=VentureBeat|language=en-US|access-date=2019-01-31}}</ref><ref>{{Cite web|url=http://fortune.com/2018/12/27/amazon-walmart-ecommerce-india/|title=New India E-Commerce Rule Undermines Expansion of Foreign Companies Like Amazon and Walmart|website=Fortune|language=en|access-date=2019-01-31}}</ref><ref>{{Cite web|url=https://www.straitstimes.com/asia/south-asia/new-e-commerce-rules-in-india-may-hit-amazon-and-flipkart|title=New e-commerce rules in India may hit Amazon and Flipkart|date=2018-12-28|website=The Straits Times|language=en|access-date=2019-01-31}}</ref>

==See also==
*[[Disintermediation]]
*[[E-commerce]]

==References==
{{Reflist||group=|refs=}}

[[Category:E-commerce in India| ]]
[[Category:Entrepreneurship in India]]

E-commerce in India - Revision history

>Imcdc at 14:26, 7 July 2021