The number of online shoppers has grown rapidly over the past few years, and that trend continues this week, when Indian Prime Minister Narendra Modi unveils the Goods and Services Tax (GST) on July 1.
While most of India’s biggest retailers are expecting strong demand, most online retailers are holding back.
While retailers like Amazon India, Flipkart, Snapdeal, Paytm, and Snapdeal Pay have already started accepting GST, some of the smaller online retailers, like Amazon, have yet to start selling goods online, with the aim of getting online orders processed quickly.
Some of the biggest online retailers in India are still waiting for online orders to be processed before they can ship.
We are expecting a very strong online shopping market to be created, which will also be the biggest challenge for e-commerce retailers.
We have been waiting for a long time for a good deal, so that will also affect our business, said V.V. Sankaran, managing director at the India e-retailers association, IndiaEase.
However, with so much uncertainty over the rollout of GST, the e-tailers are still keeping their options open for online shopping.
The online retailer said it will accept GST on July 10.
This is a positive development for online shoppers, said Sankarans India ease.
The e-store operators have been busy in accepting GST and other major tax changes.
The last major GST changes were announced on June 30, 2018.
Since then, the number of e-stores accepting GST has jumped to 2,500, according to a report by Mint.
This includes 2,100 in Mumbai, 1,400 in Chennai, 1 in Kolkata, and 500 in Kaun Banegaon.
It also includes 1,300 in Delhi, 1 to 1,500 in Delhi-NCR, and 800 in Delhi.
These numbers have more than doubled from 1,200 in 2017.
The growth of e-stores has also led to a rise in e-billing transactions.
As of April, the industry had almost 4,200 e-services stores, which accounts for almost one-fifth of all e-wallets, according TOI.
in the last 12 months, there have been over 400 e-payments in the sector, up from the same period last year, the report said.
In terms of revenue, e-sellers have reported a loss of Rs 8,000 crore in the first six months of the year, which includes Rs 1,800 crore for the April-September period.
This was up from Rs 3,200 crore a year ago.
However this does not include the loss of GST revenues due to online shopping, which was Rs 3.75 lakh crore in FY17.
The Indian e-shop industry is expected to grow by a healthy Rs 13,500 crore in 2018-19, the biggest growth in more than a decade, the National Payments Corporation of India (NPCI) has said.
However some online retail players have seen some gains in the past two years, said Arvind Kapoor, CEO of online retailer e-Sellers, India.
Online shopping accounts for more than 70% of IndiaEas’s total e-revenue, but this has also helped it to boost its sales in the second half of 2018-2019, said Kapoor.
“We expect the etailers will have a good year in 2018,” he said.
The average e-price for online products is also growing, said Sarvendra Kumar, director, ecommerce, Indian ecommerce company, eCommerce Trends.
In the past year, epayments for online sales have grown by 7% on a year-on-year basis, which is a huge jump from the 6.2% growth in the year-ago quarter.
This trend has been going on for some time, said Kumar, adding that it will likely continue in 2018.