Report Details. India is rapidly becoming a digitally empowered society. Various factors such as the push for e-governance, the proliferation of smartphones, increasing Internet access, digital payment, favorable demographics and policy reforms are driving the market.

Moreover, improving data affordability, consumption growth and newer financial products, the e-commerce market is set to grow, be it across e-Retail, travel, consumer services and online financial services. The report study has analyzed revenue impact of covid pandemic on the sales revenue of market leaders, market followers and disrupters in the report and same is reflected in our analysis.

E-commerce in India has grown the first wave of metro consumers beyond tier I cities. E-commerce is governed by multiple regulatory bodies and several regulations. Recently RBI, released new guidelines for internet banking.

These prescriptive regulatory frameworks based on understanding the current business models are hampering the evolution of more innovative models. Inc. PESTEL/PESTLE Analysis, Recommendations

E- Retail segment is expected to lead the over forecast period. Electronics is currently the biggest online retail sales category with a share of 48 per cent, followed closely by apparel at 29 per cent. The Indian e-commerce industry is expected to surpass the US to become the second largest e-commerce market in the world by The objective of the report is to present a comprehensive analysis of India e - commerce sector including all the stakeholders of the industry.

The past and current status of the industry with forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all aspects of the industry with a dedicated study of key players that includes market leaders, followers and new entrants by region.

External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers. The report also helps in understanding India e- commerce sector dynamics, structure by analyzing the market segments and project the India e - commerce sector size. Table of Contents Indian e-commerce market 1.

Preface 1. Report Scope and Market Segmentation 1. Research Highlights 1. Research Objectives 2. Assumptions and Research Methodology 2. Report Assumptions 2. Abbreviations 2. Research Methodology 2. Secondary Research 2. Secondary data 2. Secondary Sources 2. Primary Research 2. Data from Primary Sources 2. Breakdown of Primary Sources 3.Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.

Online shopping has never been so popular. No endless lines of shoppers, no need to talk to pushy salespeople.

You can get exactly what you need, when you want it. Amazon has quickly become the leader in e-commerce shopping. The company is reliable, accessible, and the online catalogue is nothing to sniff at. Amazon is an e-commerce offering an online catalog of products for users all over the globe. Because they operate overseas, Amazon must abide by political and legal regulations in each location.

But many of them can interfere with online purchases.

PEST Analysis Of E-Retail Leader Amazon

A mazon relies on government support to implement, distribute, and profit β€” all thanks to the internet. Not to mention taxes in foreign countries can be drastically expensive. Considering taxes can alternate depending on the people in powerAmazon must be up-to-date on these fluctuating numbers.

If the economy is positive, businesses flourish. Luckily, retail is one of those industries that can take an economic beating and still remain profitable.

Disposable income is higher these daysallowing people to spend more frivolously on luxurious items and entertainment β€” plenty of both found on Amazon. But that also means more competition for Amazon. For example, Walmart is putting significant focus on their online system.

pestel analysis of e commerce industry

Although few can take Amazon head-on but Wal-Mart is ready for the battle. On the flip side, Amazon is focusing more on their grocery sector development, battling against Walmart offline. Retail stocks have dropped for Amazon and Walmart, affecting share prices negatively. Amazon has also faced criticism for reducing job opportunities within the company, employing the use of technology to take over where possible.

Obesity is increasing among adults and children more than ever before. The government is under pressure to improve the lifestyles by introducing new bills and changing how fast food chains manage nutritional information.Go Back.

The Indian E-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second largest E-commerce market in the world by Online shoppers in India reached million in and are expected to reach million by Online retailers deliver to 15, pin codes out of nearlypin codes in the country.

Init was estimated that one in every three Indian shopped via a smartphone. Much of the growth in the industry has been triggered by increasing internet and smartphone penetration. Smartphone shipments in India increased 8 per cent y-o-y to reach Internet penetration in India grew from just 4 per cent in to The number of internet users in India is expected to increase from A young demographic profile, rising internet penetration and relative better economic performance are the key drivers of this sector.

As per the new FDI policy, online entities through foreign investment cannot offer the products which are sold by retailers in which they hold equity stake. Further, it states that the FDI policy for E-commerce sector has been developed to ensure a level playing field for all participants.

According to the draft, a registered entity is needed for E-commerce sites and apps to operate in India. Government also proposed the National E-commerce Policy to set up the lawful agenda on cross-border data flow β€” no data will be shared with foreign Governments without any prior authorisation from the Indian Government.

Through its Digital India campaign, the Government of India is aiming to create a trillion-dollar online economy by All Search Presentations.The PESTLE Analysis is a common approach for examining the general business environment in order to manage the future opportunities and threats from probable changes in the environment Mullins by analyzing the Political and legal conditions, Economic conditions, social and cultural conditions, technological conditions and environment related issues.

And as proposed by Neil Bottenp. Political factors include government regulations and legal issues and define both formal and informal rules under which firm must operate. In term of the legal system, the Chinese legal framework for e-commerce is still in its nascent stage and has already experienced several problems.

China has limited experience with drafting e- commerce legislation for issues such as transactional security, intellectual property rights protection and tax. And regulations supporting areas critical to the development of e-commerce such as the privacy, consumer rights, and validation of electronic contracts and recognition of digital signatures have yet to be written Kariyawasamp. But the legal system of China does develop quickly to meet the needs of the e-commerce.

Though the economic situation is seems to be good, the economic development does slow down a little and also with worrying trends such as high inflation rate and high property prices.

According to the most recent news, the consumer price index rose 6. Politically sensitive food prices, however, increased by more than 13 per cent. To understand the social and cultural environment involves close analysis of the society. Demographic changes such as population growth, movements and age distribution will be important, as will changes in cultural values and social trends such as family size and social behaviors Dransfieldp.

With the rapid economic growth, there are growing people having Internet access and use the Internet to do shopping. Many people have called themselves the Taobaoer by spending much of their monthly expenditure on Taobao, the largest B2C e-commerce website.

According to Boston Consulting Group, the volume is expected to increase fourfold by And E-commerce has already been changing the way Chinese consumers think about shopping: online, it is more social than a hard sell. But like many other physical shopping, cheating and fake products are common in the online shops though the most populous shops tend to sell quality and price competitive products to the customers or will state clearly the possible quality problems of the products in the introduction of the products in the pages.

Lytras p. Technological factors include areas such as new products being developed, new purchasing mechanisms intranet, extra-netnew production technology, new distribution mechanisms Internet and new methods of working e. What is more, based on the perspective of Ortolani there had been only 1 percent credit card penetration in China suggesting that the most widely used payment method had low acceptance in China and the payment system to support online credit card transaction is also facing low usage.

And the lack of safe online credit card payment system is one of the key reasons behind this low usage and penetration. Environmental factors refer to all the factors directly related, influenced or determined by the surrounding environment. This includes, but is not limited to weather, climate, geographical position, climate change and even insurance Heldman Despite the fact that the environmental protection work is still low in China because the majority of focus and priority had been attributed to the alleviation of poverty and economic development which result in the low public participation in the environmental protection work, in the recent years, with the substantial economic advancement and raised living standard, income level and also the degradation of environment in the country, the Chinese government has started educate the public about the environmental protection.

And with a joint effort from the non-governmental organizations NGOs and media such as newspapers, radio and tv, we are witnessing an increasing environmental awareness in the public resulting in changes in the consumer behaviors to put environment protection in a higher importance level Heggelundp.

Here based on the analysis we have above, we are able to draw some conclusions. Firstly, very stable political conditions and rapid economic growth has made the e-commerce industry in China attractive to investors and the increasing awareness of environment protection also promote the way of e-commerce as it creates less pollution and damage to the environment; secondly, there are also risks such as lack of trust, stable and secured online payment systems and lack of legal protection that create challenges and uncertainties to the players in the industry.

Notify me of follow-up comments by email.Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker. The eCommerce industry, otherwise known as the online shopping industryhas seen massive growth within the last decade. Thanks to the growing popularity of the personal computer and the fast-paced development of mobile devices, eCommerce businesses can now reach more buyers than ever before.

Perhaps the biggest Strength of eCommerce businesses is their extensive accessibility. In the past, shopping meant physically traveling to a certain place, within certain times. With eCommerce, buyers can now browse, learn about, and purchase products from the comfort of their homes, at whatever time of the day or night. Although teleshopping offers similar benefits, the advent of the internet has seen a huge number of consumers move away from TV, radio, and press towards computers.

Another considerable Strength of online shopping is that products tend to have lower prices, when compared to traditional retail channels. One reason for this is that eCommerce typically involves sellers interacting directly with consumers, cutting out middlemen such as distributors. Another reason is that the eCommerce stores typically have significantly lower overheads than brick-and-mortar stores, which have to account for rent costs, employee salaries, and more.

Certain products lend themselves to eCommerce better than others. For example, books, electronics, and kitchen gadgets are all easy to sell through online stores, since consumers roughly know what to expect.

India E- commerce Market Forecast and Analysis (2019-2026) by category, by End Users and by Region.

However, some items are much less universal; the best example of this is clothing. Unfortunately, it will be very difficult for eCommerce stores to expand into these industries. One of the biggest opportunities for the online shopping industry is the growing market.

This will subsequently result in a greater volume of eCommerce sales. There are a number of internet users who use their large social followings to promote various goods and services. These people, known as influencerspresent a powerful marketing opportunity for savvy eCommerce sellers. With social media becoming such a huge part of our everyday lives, influencers are set to play an increasingly important role in how products are marketed β€” and eCommerce stores are best positioned to take advantage of this.

This is because of how easy it is for just about anyone β€” anywhere β€” to launch a new eCommerce store and compete with other online shopping businesses. The world of eCommerce is fuelled by digital payments, whether that involves credit or debit cards, bank transfers, or even cryptocurrencies. This makes it a huge target for fraudsters, who now have an easy way to cash out on their illicit activities. Shopping online requires you to hand over a lot of sensitive data, including your payment details, address, and other assorted information.

If this information gets into the wrong hands, it can have devastating consequences. Since eCommerce stores can cater to entire countries β€” or even the entire world β€” it leaves a lot of potential for monopolies to form. Perhaps the best example of this is if you review how Amazon has affected bookstores. In the past, a variety of local bookstores including mom and pop stores, smaller chains, and larger chains would have serviced a given area.

With the advent of huge eCommerce alternatives like Amazon, these stores are dying off and Amazon is becoming the one-stop-shop for books. This trend may spread into other markets, and may at some point warrant government regulation. Overall, the eCommerce industry is in a strong position, but definitely facing some downsides. Its Strengths include accessibility and low prices β€” which allow consumers to shop wherever and whenever, at cheaper prices than usual.

Looking to the future thanks to the SWOT analysis of online shoppingOpportunities for eCommerce include a growing digital market and the power of internet influencers.

pestel analysis of e commerce industry

However, a multitude of Threats β€” including competition, fraud, data concerns, and the potential for monopolies β€” will need to be monitored. Doing so will likely require government regulation, clever business practicesand close attention to detail. Thomas Bush is an English-born writer, entrepreneur, and fitness enthusiast. Having freelanced for years, Thomas has appeared on various online publications numerous times, but recently set up his own website 'TalkSupplement' about the world of sports nutrition.The Ecommerce industry has seen immense growth in the recent years and apart from some fluctuations in the global economy like demonetization in India, the situation has remained favorable for its growth.

China and US are the largest of the e-markets. However, growth rate is expected to be even higher than US in the Asia Pacific region this year. The US e-retail market is among the largest ones in the world. The technological factors have also supported the growth of the Ecommerce industry. Growth in the use of mobile gadgets has also pushed the ecommerce sales high.

A larger number of people are now shopping using their mobile phones. There are several factors apart from economic and political that affect the global ecommerce industry. This is a PESTEL analysis of the ecommerce industry that analyzes how these various forces can affect the ecommerce industry and how deep can their impact be on it. While the threats may not be the same before the e-retailers as the physical retailers, still there are several political hurdles before them.

There are several risk factors affecting the e-businesses. For example for the global leaders like Amazon and E-bay growth in Asia pacific region can be made difficult by the Red tape. Several news reports highlight how Red Tape in India can become major difficulty in the way of new businesses trying to extend their presence there.

The political and regulatory challenges before the e-businesses have kept rising. The growth of Ecommerce in EU has also been challenged by political factors.

EU has kept targeting technology giants from US. Google and Amazon have already been targeted by EU. Such issues can be a threat to the growth of ecommerce in Europe and it is why several sources predict that the growth rate of ecommerce in Europe is going to be low.

Political issues are not limited to just those discussed above but there are many more. Political stability in most regions of the world leads to economic stability. Political chaos can result.

pestel analysis of e commerce industry

Overall, political issues can have a significant impact on ecommerce and its growth. Economic factors are very significant in terms of business. It is because economic factors are directly related to business and their effect is also direct on business revenue and profits. During the period of recession, spending had decreased. People had adopted cost cutting measures as the level of economic activity and employment had gone down.

During such periods when economic activity has gone down, the profits and revenue of businesses can go down. E-businesses too cannot remain unaffected. Economic fluctuations since the recession have also kept affecting businesses from time to time since the recession. In several economies like Russia, Brazil and India, these economic fluctuations affected both global and local businesses.Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.

The retail industry is everywhere. Just turn on your smartphone and start shopping online.

SWOT Analysis of the eCommerce Industry

With the help of technology, retail is one of those industries that can survive post-economic destruction. The revenue and profitability of any retail store are affected by government policies. These regulations impact the economy, consumer buying habits, and international trade laws.

The only thing left for the company to do about these changes is abide by them. Each country must abide by their political regulations. The regulations affect which products can be imported, exported, and sold in stores. Stores offering food products must comply with health guidelines proposed by the government. Antitrust issues and data breaches are causing the government to look into how data is stored, used, and shared. This affects the retail industry, particularly big names like Wal-Mart and Amazonwho provide products online.

When retail stores branch into other countries, they need to abide by the policies in that country too. In some cases, this can be beneficial. A stronger economy allows consumers to buy products they want.

PESTEL analysis fully explained

Rather than just buying products they only need. It also means more investors are becoming interested in the profitability offered by retail stores.

This is only possible when the economy is on the rise. People save their money for products of necessity. This can happen when unemployment rates spike. Or when a certain industry is hit harder than others. The retail industry was able to hold itself up even during the recession.

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