Flipkart, Amazon, and Meesho invested significantly in supply chain infrastructure in Q4’22
B2C Ecommerce market in India is expected to grow by 10.75% on annual basis to reach US$107.3 billion in 2023, according to a report by ResearchAndMarkets.com.
The Medium to long-term growth story of B2C Ecommerce industry in India promises to be attractive, said the report “India B2C Ecommerce Market Opportunities Databook”.
The B2C Ecommerce is expected to grow steadily over the forecast period, recording a CAGR of 8.68% during 2023-2027.
The country’s B2C Ecommerce Gross Merchandise Value will increase to US$149.7 billion by 2027 from US$96.9 billion in 2022.
The B2C e-commerce industry is projected to grow at a rapid rate over five years in India. Amid the growing digitalization, which has resulted in millions of new consumers accessing online sales channels to make everyday purchases, competition among players has also intensified for customer acquisition and market share.
In Q4 2022, leading players such as Flipkart, Amazon, and Meesho also invested significantly in their supply chain infrastructure to handle the increased order volume during the year-end festive season.
While the market is growing at a significant pace, losses for B2C e-commerce firms have also increased in India, owing to higher spending on customer acquisition costs, which include marketing and discounts. Flipkart, for instance, reported a loss of Rs.43.99 billion in FY 2022 compared to Rs.29.07 billion in FY 2021.
For Amazon, the losses narrowed down to reach Rs.36.49 billion in FY 2022. As part of their cost savings effort, both of these leading e-commerce giants are shutting down some segments of their businesses, including the food delivery business. fiinews.com
