If the stats from the Central Statistics Organisation (CSO)and the International Monetary Fund (IMF) are to be believed, India has become the world’s fastest growing e-commerce market in the world and this is only slated to grow in the coming years. The B2B E-commerce industry in India has been developing at a rapid pace and still remains an open platform with lots of scopes.If you didn’t know before, here are some entertaining facts pertaining to the B2B e-commerce sector in India.
• The Indian B2B sector is 6 times larger than the B2C sector and is expected to reach $700 billion by 2020.
• More than $78 million has been invested in the B2B e-commerce sector by VC’s in 2016 alone.
The B2B segment has had a great year in 2017 with many new startups coming up in this sector. Many foreign companies are also looking to establish themselves in the current Indian market which is estimated to be around $300 billion. The world’s largest e-commerce company Amazon has already made a jump in the field. Walmart, also a big conglomerate within the United States launched its portal a while back called BestPriceWholesale.co.in and is currently catering in cities like Hyderabad and Lucknow with expansion plans to other Indian cities as well.B2B e-commerce has also been gaining a lot of traction with a number of SME’s looking to expand their reach and increase sales for their respective businesses. Unlike the B2C sector, the B2B portals get more than 80% repeat customers. B2B buyers are more focused on their approach when it comes to making an online purchase as compared to customers in the B2C sector. The demands of B2B buyers also remains different who look for ease of search in locating the products, pricing for bulk buying, proper logistics and timely delivery of products. The B2B segment has also gained immensely with the Indian government’s move like:
• 100% FDI:
Allowing a 100% FDI in the wholesale/B2B e-commerce for companies outside of India has proved a big help for conglomerates like Amazon and Walmart to establish their bases in India.
• Rolling out the new GST plan:
The recent announcement of a GST rollout in 2017 will help the B2B sector in streamlining its supply chain and the tax structure while also rationalizing the seamless integration of goods and services within the country. The inclusion of GST will ensure clarity in regards to application of direct taxes and will eliminate the dual taxes that are currently in place in the e-commerce sector.
• Digitisation and Digital India Campaign:
The Digital India campaign being put in place is bound to bolster the B2B e-commerce sector. This move is aimed at introducing internet and broadband services to the far-flung corners of India and also increasing trade by bringing in small and medium sectors into the mix.
The current and startup environment in the B2B e-commerce sector is bound to witness a momentous change in the coming years The growth of e-commerce in India is definitely helping reshape the economy pushing it in the right direction.