India’s Online Retail Market Hits $60 Billion in GMV This Fiscal

India’s Online Retail Market Hits $60 Billion in GMV This Fiscal

The online retail market in India reached $60 billion in gross merchandise value (GMV) in FY23, registering a 22 per cent steady growth, said a report released by Redseer Strategy Consultants on May 19.

The Indian user base matured over the year with 31 percent of annual shoppers converting into monthly shoppers, up from 23 percent in FY21. These mature shoppers in select urban, tier 2 and 3 markets have helped ecommerce grow, the report said.

With 210 million annual shoppers, ads monetisation contributed $1.2 billion in revenue for the online retailers in the current financial year, with a 37 percent year-on-year rise. Despite losing momentum, the sector today stands at 2.5 times of pre-COVID levels and is performing much better than overall retail consumption, said Redseer. The popularity of e-tailing is due to increased propagation of smartphones and the internet.

Direct-2-consumer brand growth has also made traditional players take the digital route to sell their products. Monthly shopper base (MTU), which stood at 65 million in this fiscal is now 31 per cent of the annual e-tailing shopper base. It is the same metric that was just 23 per cent before the pandemic hit.