Indian Ecommerce Marketplaces to have millions of sellers by 2020…. But how many will be active ?

Indian Ecommerce Marketplaces to have millions of sellers by 2020…. But how many will be active ?

It was recently reported that there are expected to be over 10 million online sellers to cater to the huge growth in the customer base of online marketplaces in India. That’s by the year 2020!

Sellers are likely to be from all types of categories and some of the focus areas will be beauty and personal care, lifestyle including home and furnishings, and fast moving consumer goods as was reported at a retail industry conference

It was also reported that the internet users in India would more than double to 650 million from the current 350 million. Presently, there are over 100 million online shoppers, which is also expected to grow exponentially.

Now let’s calculate

200 Million Online shoppers

Multiplied By

24 transactions a year

Divided by

10 Mn Sellers

Equals to

480 transactions per year per seller

Equals to

40 transactions per month per seller

Multiplied by

INR 1,000 per transaction

Equals to

INR 40,000 per seller sales per month

Equals to NO PROFIT

The number of dormant sellers will be a very large number

One of the ways sellers can stay ahead is to have superior merchandising strategy. This includes the following actions by the seller

  1. Get to know of global trending products and those that are relevant to India
  2. Identify suppliers (India, China, Europe, USA and others) who can provide these trending products to them at a reasonable price and with a quality assurance
  3. Be able to continuously source such products for which there is likely to be a demand

A good merchandising and sourcing strategy will require investment in teams, sourcing, importation, logistics and liquidation. Such skills cost money and will not be affordable by the small and medium online seller

Online sellers can take advantage of companies like Tiger Pug ( who will spot trends and source good quality products for retailers at low MOQ (Minimum Order Quantities) for sellers to further sell to their customers online or offline

To know more about how Tiger Pug can be your sourcing partner please write to