Going Forward the B2C E-commerce Market will continue to consolidate. Vendors would evolve their business models and will diversify their marketing services. Shipping, Billing and warehouses related issues would warrant special attention from vendors. In absence of this, big ticket players will continue to find it difficult to be profitable in the long run.

1. How Big Is the B2C E-Commerce Market in India?
India B2C E-commerce market stood at $13.4 Billion YE 2014
Total Indian E-Retail market stood at $5.2 Billion YE 2014 & is expected to be around $7.4 Billion YE
2015
India E-Retail as % of Retail sales would be around 1% by YE 2015
Digital Buyer Penetration around 50m YE 2014
M-Commerce or Mobile Commerce
Table 1: Mobile Internet Buyers in India, 2012-2014
Dec-12 Dec-13 Dec-14
Mobile Internet Buyers
As % of Mobile Internet Users
(who buy products at year-end)
10,061,833 18,346,989 32,749,907
Source: researchandanalytics4u.com
Table 2: Pure Mobile Internet Buyers (PMIB’s) in India (In millions), 2012-2014
Dec-12 Dec-13 Dec-14
Pure Mobile Internet Buyers
PMIB’s
(as % of Total Mobile Internet
Buyers
(who buy products at yearend)
2,012,367 3,669,398 6,549,981
Source: researchandanalytics4u.com calculations; base data from eMarketer.com
Note: MIBs numbers adjusted for overlap to arrive at PMIB’s (Pure Mobile Internet Buyers); PMIB’s are buyers
who complete the whole transaction online

2. Digitally Addressable Market in India 2015
Where the E-commerce Market growth is going to come from?
Table 1: E-commerce Market Segmentation
City/Districts and States Categorization as; Tier I, Tier II, Tier III and Tier IV Cities
5 Most Urbanized States;
these states are 50% Urban
Kerala, Maharashtra, Gujarat, Tamil Nadu,
West Bengal
Top 8 Cities; these are also
known as
Tier I Cities
Mumbai, Delhi (NCT), Kolkata, Bangalore, Chennai, Hyderabad,
Ahmadabad, Pune
Among Tier II Cities are
23 Cities; to focus on are the
ones that will be urbanized
at a very fast pace and will
follow the lead Tier I Cities
Jaipur, Nagpur, Kanpur, Vadodara, Amritsar, Lucknow, Coimbatore,
Madurai, Patna, Surat, Indore, Visakhapatnam, Rajkot, Varanasi,
Vijayawada, Nasik, Kochi, Ludhiana, Agra, Bhopal, Meerut, Ghaziabad,
Jabalpur
Among
Tier III and Tier IV Cities
are 47 Cities; these are the
Key Upcoming Towns/
Or Cities Surrounding the
Tier I and Tier II Cities
Mysore, Bareilly, Guwahati, Tiruppur, Solapur (M Corp.), Hubli-
Darwad (M Corp.), Salem, Aligarh, Gurgoan, Moradabad (M Corp.),
Bhubaneswar, Jalandhar, Warangal, Bhiwandi, Dehradun, Saharanpur
(M Corp.), Siliguri, Gorakhpur, Guntur, Cuttack, Puducherry, Jammu,
Bikaner (M Corp.), Amravati (M Corp.), Noida (CT), Mangalore,
Belgaum, Bhavnagar, Firozabad (NPP), Jamnagar, Durgapur,
Malegaon, Nellore, Bokaro Steel City, Kolhapur, Raurkela, Ajmer,
Naded Waghla (M Corp.), Jhansi, Gulbarga, Erode, Ujjain (M Corp.),
Sangali, Tirunelveli, Muzaffarnagar, Vellore, Rajahmundry
Source: researchandanalytics4u.com analysis, based on Census 2011 Data

3. How to Measure the E-commerce Market?
Gross Merchandise Value (GMV) Vs. Net Revenues
GMV method of E-Commerce Portal Valuation leaves much to be desired as a method of calculating
the market size and for the final valuation of portals. GMV is the actual value of goods sold through
the shopping site. On the other hand “Net Revenues” is the actual fees paid to the shopping site per
sale . Market valuations based on GMV does not capture the actual worth of a shopping site.
The overall financial performance of a shopping site is to be evaluated based on the “actual Internet
buyers” each of them have in various “product categories”.
Product categories on a particular shopping site many times differ from another one. The product mix
in terms of the volume of the products, the unit sizes, the prices on offer also differs. So to calculate
the actual performance product category-wise GMV method as such again won’t be of much help.
So To Measure The Actual Performance Of A Shopping Portal …Net Fees Paid To The Shopping Site
Per Sale Is The Feasible Method To Do A Reality Check.