The Indian eCommerce market is estimated to reach USD 163M by 2026, growing at a 27% CAGR (Compounded Annual Growth Rate). With the sector up by 12% in 2024 from 2023, eCommerce is a sunrise sector that is thrusting the nation towards foretold potential.
Growth isn’t just handed over to you on a silver platter; it’s a reward for those sellers who not only keep abreast of eCommerce trends impacting them but wield some of them to their advantage.
Today and now is as good a time as any to be equipped with the complete rundown on eCommerce trends, so read on!
1.Tailored Experiences
Personalization is a key differentiator for retailers, and AI will play a vital role in providing brands with insights into purchase behaviors, seasonality and price points. On the backend, sellers can accordingly make inventory adjustments and activate restock triggers around true demand. On the front end, marketing teams can create custom drip mails and run promotions that will interest your audience based on their buying history and preferences. Those businesses that use AI for personalization can expect to see an increase in conversion rates by 15% and customer loyalty by 30%.
Case in point- Q-Commerce platforms Zepto, Zomato and Flipkart Minutes are all using AI to suggest region-specific grocery labels based on frequency and timing of purchase in the day. This is to lean into the customer’s impulses and comfort.
2. Rise of Voice Commerce
Voice-assisted commerce or V-Commerce is one of the emerging eCommerce trends that is helping customers to find what they’re looking for. This makes it all the more vital that product descriptions on eCommerce catalogs are optimized for searches. For example, if a customer verbally requests a specific shoe size and color from a brand, those sellers carrying variants with those attributes will be preferred over those with missing information. VCommerce essentially reduces the checkout experience and time as customers don’t have to key in every word and can go handsfree should they wish to.
3. Regional Marketplaces
With eCommerce democratization, regional market players have given behemoths Amazon and Flipkart stiff competition, with the differentiator being that they cater to the needs of tier-2 and 3 towns and cities. Their USPs include providing a platform in different vernaculars, sourcing produce from local farmers and partnerships with Kiranas that have helped the latter penetrate the Q-Commerce bubble.
We’ll be covering this in a future post, but the quick commerce segment also is teeming with newer stars, among them hyperlocal food deliveries like Zing and fashion brand Slikk. Platforms like Meesho and Udaan are in the lead in order volume and customer growth in Tier 2 and 3 towns. 80% of Meesho’s 15 Crore annual transacting customers come from tier-2 towns, and out of this, 50% of newly added users are from places like Naidupeta in Andhra Pradesh, Sherghati in Bihar and Harapanahalli in Karnataka.
4. Cross-border Commerce
The cross-border eCommerce sector holds immense potential for India, which is estimated to grow to $30 Bn in 2025,up by ~150% from 2023, as per Redseer. It offers sellers global opportunities for expansion with unique product offerings. For example, Shilajit, the Himalayan power herb for weight management and fitness have made sellers 4x revenue. To capitalize on the moment, sellers will need to train their focus on three pillars of cross-border eCommerce; with those being
- Improved fulfillment logistics for timely deliveries
- Multicurrency options for reduced dropoff rates.
- Alignment with regulatory frameworks with respect to labeling and product safety.
5. Sustainability as a Priority
Customers are more mindful of how their actions impact the environment and are opting for sustainability, making it a notable eCommerce trend. For sellers, there’s another tangible benefit; curbing bracketed returns by educating their customer base on the high reverse logistics and disposal costs. This year and beyond is going to see sustainable commerce becoming a priority for sellers and shoppers alike. Amazon, for example, has succeeded in reducing carbon emissions by 0.36% between 2021-22.
In India, the marketplace is set to add 10,000 electric vehicles to their delivery fleet in 2025. Estee Lauder, the beauty and fragrance brand, has made sustainability plans of its own, making 75-100% of their packaging recyclable and reusable. As more brands adopt net-zero carbon measures and incorporate sustainable packaging, the benefits of this particular eCommerce trend will outweigh the costs involved.
6. The AR and VR market
At a volume of $262.4Mn this year, Augmented Reality software presents the largest segment of AR and VR in India. ~40% of shoppers are using AR both in-store and online to make informed purchasing decisions and brands are listening.
Snitch.io, the popular menswear brand with 17+ stores including the latest Delhi launch, is allowing their customers to do virtual tryons to reduce indecision. Retailers can also use AR to offer their customers styling advice, customization suggestions and make the experience more personal.
7. Social Commerce Revolution
62% of Gen Z are shopping through social commerce, making it a profit-centric touchpoint for sellers. In fact, the Gross Merchandise Value (GMV) for social commerce has risen to a whopping $17Bn.
Platforms like Amazon have developed a social offering called Creator Central. It lets influencers monetize and promote content when interacting with amazon’s wide base, signifying the need to be where the customers convene.
8. Subbing to Subscription Models
Subscription-based eCommerce is lucrative for both customers and sellers, because it incentivises loyalty and reduces churn. This year and beyond will see more businesses adopt this model to engage customers and drive experience-based retention for newly added users.
Subscriptions offer subsidies in some format to customers, whether it’s a price drop or bundled value to existing services such as priority delivery, automated reordering, combos etc. Of course, this model will succeed only if customers are given the right to pause, upgrade or downsize and will require secure paywalls with this builtin tolerance for flexibility.
9.Advancements in Delivery Technology
Advancements in status tracking for orders is critical to your strategy because customers hold you accountable if their deliveries are late or incorrect, no matter the actual reason. Amazon is already deploying drones, AV and robots at warehouses to speed up the pick-to-ship process.
On Base, there are settings to retrieve quantities in storage at all locations. The system’s Pick-Pack Assistant facilitates cart scans to inform occurrences of pick-to-cart. This ensures that the correct items are picked for specific orders. It also offers order status tracking which updates sellers and customers alike of order movements, adding the transparency so crucial to smooth experiences.
10. Financial Relaxations
Finance Minister Nirmala Sitharaman has introduced a number of reforms to provide relief to the Indian eCommerce sector. These measures includes
- A reduction in Tax deducted at Source (TDS) for operators from 1% to 0.1% which is a relief for rent, salary and professional fees.
- Expansion of eCommerce export hubs.
- Streamlined services such as export clearance, quality testing, packaging and warehousing.
In the upcoming Budget 2025, reports state eCommerce player’s expectations, which include optional physical addresses for businesses and continued financial investments towards infrastructure improvement and last-mile connectivity.
Conclusion
Centered around technological advancement, these eCommerce trends will transform the Indian market in 2025. Sellers who embrace digital innovation will edge their way to customer success and will require a system that can keep up with an ever-evolving landscape.
Which of these eCommerce trends have you heard of already and which ones are you yet to start on? Let us know in the comments below.
