E-Commerce Market Set to Grow Sixfold, but Only 40% Shop Online

Alongside technology and e-commerce platforms, quick commerce is increasingly vital in product delivery. Young consumers aged 13 to 28 favor platforms that offer the fastest delivery, driving the most traffic. Moving forward, e-commerce firms will likely prioritize delivery within a few hours.

Multiple reports indicate that products from fashion to groceries, beauty, and personal care are arriving at customers' doors within minutes. For instance, Shiprocket's average delivery time varies from 24 hours to 3.5 days. Handling between 10 million and 15 million transactions each month, Shiprocket serves 400,000 retailers. The company works closely with D2C brands and small to medium-sized enterprises. Gautam Kapoor, co-founder and COO of Shiprocket, estimates India's instant commerce market could reach $40 billion by 2030. However, much of the country's fulfillment infrastructure is outdated, with inventory often stored far from customers, widening the gap between customer demands and retailer supply. Shiprocket aims to fill this gap by enabling rapid deliveries, even within minutes.

India’s e-commerce market is expected to grow from $22 billion in 2018 to $123 billion by 2024, yet only 40% of the population shops online. This presents significant growth potential. According to Shiprocket, Tier-2 and Tier-3 cities see the highest rate of returned orders—17.68% in Tier-2 and 22.17% in Tier-3. In these cities, cash-on-delivery accounts for 60.95% of transactions in Tier-3 areas, compared to 54.51% in Tier-2.