E-Commerce Industry

eCommerce connects buyers and sellers globally through digital platforms, transforming shopping with innovation.

Market Overview Key Growth Drivers

Mobile Penetration: Responsible for 40% of the eCommerce boom, especially in emerging markets.
Global Market Size: $5.78 trillion in 2023, projected at $6.3 trillion in 2024.
Digital Payments: Contributes 30%, driven by UPI, wallets, and secure gateways.
Indian Market Size: $102 billion in 2023, projected at $123 billion in 2024.
Global Connectivity: Accounts for 20%, boosted by improved logistics and cross-border policies.
The Indian eCommerce markets are expected to grow rapidly in the near future due to digitization and increasing Internet penetration.
9000 350 Mobile Penetration Digital Payment
8000
GLOBAL MARKET INDIAN MARKET Region
(%) Adoption (%)
300
Mobile Penetration
7000
250
6000 North America 85 70
In billions($)

5000 200 Digital Payments

4000 150 Europe 80 60
3000 Global Connectivity
100
2000 Asia-Pacific 75 80
1000 50 Other Factors
0 0 India 90 85
2019 2020 2021 2022 2023 2024 2025* 2026* 2027* 2019 2020 2021 2022 2023 2024 2025* 2026* 2027*

Global Market Growth: Expected to reach $8.03 trillion by 2027, driven by rising smartphone usage and cross-border trade. Impact Summary: It reveals regional differences in the implementation of adoption measures as specific approaches to developing
Indian Market Growth: Projected to hit $300 billion by 2027, led by digital payments and rising demand in tier-2 and tier-3 cities. electronic commerce and optimizing the flow of supplies and products in developing countries. These trends run together to reinforce
Both markets highlight the critical role of technological advancements and consumer behavior shifts. the importance of invention in the sphere of portable and payment solutions.

Competitive Analysis Future Trends

M-Commerce Integration of AI
Mobile commerce will make up Expect Personalization to remain an
over 40 % of all online retail sales
by 2024 to be boosted by such
01 02 area that is increasingly improved
on by Artificial Intelligence ranging
technologies as the biometric sign- from the products we use to the
in and mobile payment methods. services we receive.

Omnichannel Strategies Eco-Friendly Practices

Retailers will adopt integrated With growing consumer demand for
approaches across multiple 03 04 ethical shopping, brands will
prioritize eco-friendly products and
platforms to create seamless
shopping experiences. packaging, and adopt carbon-neutral
India’s eCommerce market, led by Flipkart, Amazon, and Meesho, thrives on electronics and groceries. Flipkart gains an edge through Omnichannel marketing helps shipping methods.​

exclusive tie-ups and competitive pricing, Amazon excels with a robust supply chain and diverse verticals like fresh food delivery and build customer loyalty​

video streaming, while Meesho empowers micro-entrepreneurs in tier 2 and 3 cities with affordable bulk orders.

Sources : Page No.

E-Commerce Industry Growth
Understanding the EBIT margins of the ecommerce along with major acquisitions as well as the market dynamics
Key Players Growth (based on 2023 data) EBIT Margins Of E-commerce Industry
Ecommerce growth is very similar in all key players globally with Amazon's EBIT improving slightly due to growth in it's AWS. EBIT (Earnings Before Interest and Tax) Margin is calculated by dividing the operating profit by total revenue and expressing it as a
Alibaba has seen steady margins due to it is dominance in Chinese E-commerce. Walmart's margins have been improving driven by it's percentage. The EBIT Margin of top performers in the e-commerce industry globally are as follows :
aggressive push into e-commerce. Shopify's margins have improved significantly as it is SaaS model generates higher margins.
30.00%
These figures are indicative and derived from overall trends and
Interest analysis of company financial reports.
Company EBITDA 2023 CAGR Return Sales Growth 25.00%
Coverage
20.00%

Amazon 12.6% 47.94% 11.83% 12.79 Amazon's margins (3–5%) are relatively low due to high
15.00% logistics and fulfilment costs, which are necessary to maintain
its competitive edge. Alibaba, with its asset-light marketplace
Alibaba 16.74% 28% 17% 14.77 10.00% model, enjoys much higher margins (18–22%), although
regulatory challenges have slightly impacted profitability.
Walmart operates with thin margins (2–4%) because of its
Walmart 7.3% 13.4% 12% 10.45 5.00%
focus on price competitiveness and expanding grocery delivery.
eBay leads with 25–30% margins, thanks to its marketplace
0.00% model requiring lower operational costs.
Shopify 26% 109% 26.07% -0.94 Amazon Alibaba Walmart eBay

2022 2023

Mergers and Acquisitions Revenue Drivers

Over 200 deals were identified, signaling consistent activity despite market cooling compared to the high volumes seen in
2021. The decline in deal-making from the pandemic-era boom reflects a return to normalcy .Many acquisitions focused on Product Sales Subscription Services Logistics
niche areas, such as apparel, health, beauty, and consumables, while others targeted platforms and marketplaces to expand Platforms like Flipkart and
cross-border capabilities or logistics. Indian eCommerce GMV is
Amazon Prime has over 22 Amazon boost revenue with
expected to reach $150 billion
million subscribers in India, premium delivery options and
by 2026, growing at a 27%
Walmart, which already owns a majority stake i.e. 80.5% in 2023 in Flipkart, continues to contributing to steady income third-party logistics
invest heavily to expand the e-commerce giant’s logistics and reach in India, further CAGR
partnerships.
consolidating its lead in the market and to grow significantly in the coming years. Walmart
is keen to expand Flipkart's role as a leader in e-commerce in India.
Value-Added Services Advertisements Cross-Border Trade
Initiatives like Amazon's "Global
Seller services, including
In a deal focusing on quick commerce, Zomato acquired a 100% stake in Blinkit (formerly Ads contribute up to 20% of Selling" program allow Indian
Grofers) in 2022. This acquisition has bolstered Zomato’s footprint in the grocery delivery training and logistics, are
revenue for platforms like merchants to access international
segment. It was their strategy to diversify it's food delivery business by entering the quick projected to grow at a 20% customers, significantly boosting
Flipkart and Amazon
commerce sector. CAGR revenue streams.

Sources :