India is one of the largest eCommerce markets globally, thanks to some of the most valuable online marketplaces in the world. According to a 2021 report by Bain & Co, “India is currently the third largest eCommerce market worldwide, with a massive consumer base of 180-190 million”. Experts predict India will leapfrog the United States’ eCommerce sales volumes within the next two years.
Overview of eCommerce in India
eCommerce is one of India’s fastest-growing channels for commercial transactions. As per the India Brand Equity Foundation (IBEF) report, “the eCommerce market in India will likely hit $200 billion by 2026 from $48.5 billion in 2018. This massive growth is attributed to the recent rise in digital literacy, increasing internet penetration and behavioural change.”
The ongoing digital transformation in the country has led to an investment influx in the eCommerce sector. It has provided a level-playing field for new players to set up their businesses while churning out innovative ways to disrupt old styles.
According to the same IBEF report, shares of various segments in eCommerce retail by value in 2020 stood as follows:
- Consumer electronics- 40%
- Apparel- 40%
- Food and grocery- 7%
- Jewellery- 7%
- Furniture- 4%
- Others- 2%
Online marketplaces offer sellers various benefits and a great deal of convenience, so selling online has become extremely popular across the globe. These benefits and ease of operations have brought more and more retailers to online marketplaces. Businesses need to understand why online marketplaces are an ideal option.
Why are Online Marketplaces an Ideal Option for Sellers?
Here are some reasons:
- Broader Reach: One of the most important aspects of online marketplaces is that they offer a vast customer base, which can help you increase your store’s visibility and reach new customers beyond a particular geographical location.
- Easy Shipping and Delivery: Shipping and delivery are essential in an online business. With several courier companies operating in India, shipping your products is hassle-free. These courier partners manage the entire shipping journey of your orders. This helps you save time and money.
- Lower Costs: Online marketplaces are generally more cost-effective than traditional brick-and-mortar stores. Sellers don’t need to pay to maintain their physical stores or other charges when they go online.
- Easy setup: Putting your business on online marketplaces is very simple. The process requires a simple setup process (sign up, digital documentation, submission of payment details, etc.) that allows merchants to start selling their products quickly and easily.
- Customer Trust: People generally perceive that business operations carried out over the Internet are more transparent than in other ways. Online marketplaces help businesses of all sizes and domains sell their products and manage exchange and returns promptly and efficiently. This helps build trust with their customers.
Some of the Top Online Marketplaces to Sell Products in India
Amazon India
Amazon India is one of the top online marketplaces in India that you may consider. The eCommerce giant has over half a million sellers onboard. From consumer electronics and fashion to beauty and home-kitchen, Amazon India has sellers selling an extensive selection of products.
Listing your products on Amazon India begins with account creation. Following your sign-up, the company verifies your profile as a seller. Once your profile is verified, you can upload your products with descriptions and relevant images to start your seller journey.
Flipkart
Flipkart is another popular eCommerce marketplace in India. Founded in 2007, Flipkart started its operations as an internet-based bookstore. It has now become a leading eCommerce platform selling products across many categories – consumer electronics, fashion and apparel, health and wellness, beauty, furniture, etc.
Flipkart’s business model has been remarkably successful in India. The company is regarded as one of the pioneers of many innovative eCommerce ideas in India, including but not limited to cash-on-delivery (COD) payment options, no-questions-asked returns and localised marketing strategies. Flipkart has also invested in its supply chain and logistics infrastructure to ensure fast and reliable delivery of products to its customers.
Myntra
Founded and 2007 and headquartered in Bengaluru, Myntra specialises in fashion and lifestyle products. The company initially started as an online retailer of personalised gift items before venturing into the fashion and lifestyle category. Myntra now operates as one of India’s leading online fashion marketplaces.
Myntra collaborates with various fashion brands and designers to provide its customers with a diverse and curated selection of products. The company features Indian and international brands, catering to different price points and style preferences.
In a nutshell, Myntra has become a prominent player in the Indian eCommerce landscape, especially in the fashion and lifestyle segment. It offers a range of products and personalised shopping experiences and keeps up with the latest trends in the fashion world.
Pepperfry
Pepperfry, headquartered in Mumbai, is an online furniture and home decor marketplace. It is one of the largest and most popular eCommerce platforms in its category in the country. The company offers many products, including but not limited to furniture, lamps and lighting, home decor, kitchenware and appliances.
Pepperfry works on a marketplace model, collaborating with multiple sellers and brands to deliver its customers a diverse range of products. Pepperfry offers a convenient, hassle-free shopping experience with various payment options and efficient delivery services.
According to a 2022 Statista report, India’s online furniture market will likely rise to $40 billion. Industry experts strongly believe that companies like Pepperfry will drive this increase in the furniture segment in the coming days.
Meesho
Meesho is one of India’s most sought-after internet marketplaces for products from various categories, such as fashion, home-kitchen, and beauty. Founded in 2015, the company has established itself as a household name and is popular in the Indian market for its competitive pricing.
Meesho currently focuses on ₹500-600 segment and competes with eCommerce giants like Flipkart and Amazon India. As per a report published by BQ Prime, the company had 1.2 Crore average monthly active users on its platform in 2022.
Conclusion
The online marketplace landscape in India offers many opportunities for direct-to-customer (D2C) sellers to reach a vast customer base and take their businesses to the next level. India’s growing internet user base, robust eCommerce infrastructure, and a range of platforms make for a strong case for sellers to sell online.
Among the available options (aforementioned and otherwise), some marketplaces have established themselves as leaders in customer reach, logistics infrastructure, and seller support. Now, it is essential for sellers to comprehensively study and evaluate the various digital marketplaces before making the final decision.
Frequently Asked Questions
As per Similarweb’s Top Marketplace Websites in India rankings for April 2023, amazon.in is India’s most visited internet Marketplace website, followed by Flipkart.
According to the India Brand Equity Foundation (IBEF), consumer electronics and apparel segments compete for neck and neck, contributing roughly 40% each in overall retail by value.
Here’s how you can sell your products online in 5 steps:
1. Research well and decide which products to sell.
2. Complete the legal and documentation process.
3. Publish an online store (create your own website or use the online marketplace).
4. Set up payment methods (particularly applicable when you create your own website).
5. Choose your shipping methods.
