A report from Redseer Strategy Consultants claims that the e-tailing market in India reached US $ 60 billion in gross merchandise value (GMV) in FY ’23 registering a 22 per cent steady growth.
E-tailing in India is growing with the increased proliferation of smartphones and the Internet.
Mrigank Gutgutia, partner, Redseer said that the strategic partnerships of e-commerce platforms with global and Indian brands along with a change in shopper mix and an increasing share of women shoppers have resulted in an explosion of fashion sales.
Direct-to-consumer (D2C) brand growth has also spurred traditional players to take the digital route offering a competitive shopping experience and encouraging consumers to shop online.
The report also says that with 210 million annual shoppers, ads monetisation contributed US $ 1.2 billion in revenue for Indian e-tailers in FY ’23, growing at 37 per cent year-on-year.
It has been said that the Monthly shopper base (MTU) which stood at 65 million in FY ’23 is now 31 per cent of the annual e-tailing shopper base – the same metric which was just 23 per cent in the pre-pandemic era.
With 1.2 times better take rates, the revenue from product sales across India e-tailing has grown three times from US $ 2 billion in FY ’19 to US $ 6 billion in FY ’23.
The report also says that the advertise revenue is growing significantly faster than the overall digital ads market reaching a 15 per cent share of the digital ads market in FY ’23.