Indian E-Commerce Market Projected to be worth $300B in 2030

India's e-commerce market is poised for significant growth, expected to grow from $59 billion in 2022 to around $300 billion by 2030, according to Redseer's India D2C report. This increase is expected to be due to mass consumers - everyday people who increasingly rely on e-commerce platforms to fulfill their various needs, which may be due to factors such as affordability, easy availability and a wider range of products.

The report highlights several key dynamics contributing to this upward trend. One is the evolution of the e-commerce category mix, where lower average selling prices (ASP) command a higher percentage of gross merchandise value (GMV). Another driving factor is the rapid adoption of online shopping in Tier 2 and smaller cities. Combined with a growing consumer base and advanced third-party logistics (3PL) services, these factors will significantly increase shipping volumes.

Interestingly, shipment growth is expected to outpace GMV growth. According to the report, this trend highlights the need for strong logistics and supply chain management to meet growing demand, especially in small cities.

On the logistics front, the report predicts a 23 percent drop in shipping costs for 3PL companies from ₹60 per shipment in 2023 to an estimated ₹47 per shipment by 2030. This downward trend in costs is due to aggregate demand in small towns. and essential policy adjustments that facilitate more efficient and cost-effective operations. Despite these optimistic forecasts, the 3PL sector faces some challenges, including securing shipments, resolving weighted disputes and improving returns processes and overall accountability.

Interestingly, the increase in shipments is set to outpace GMV growth. This trend accentuates the necessity for robust logistics and supply chain management, especially to meet the escalating demand in smaller cities, as per the report.