"Digital commerce is at a nascent stage in India. However, India is one of the fastest-growing eCommerce markets in Asia/Pacific," Gartner Research Director Praveen Sengar said in a statement.
India represents a USD 3.5 billion eCommerce market, growing at around 60-70 percent a year, but that is less than 4 percent of the total retail market, he added.
"B2C (business to consumer) eCommerce leads the market in India, while B2B (business to business) is limited to organizations that drive online channels to integrate with their partners and distributors," Sengar said.
Mobile commerce is finding increasing traction in shopping, Gartner said, adding that marketplaces, consumer product goods and food and beverages companies have started investing in this segment.
"However, less than 5 per cent of total digital commerce happens through mobile. mCommerce will help organisations skip the desktop wave with increasing penetration of affordable smart devices with connectivity and a rapidly growing ecosystem to engage customers on mobile," it said.
Thirty per cent of traffic for eCommerce sites come from mobile and tablets.
Limited Internet penetration, low digital commerce volume, multiple payment models (like cash on delivery, credit card and wire transfers), logistics and fulfilment challenges, higher return rates and low average order value are putting pressure on the profitability and viability of the B2C eCommerce businesses, Gartner said.

Latest News  from Business News Desk