Indian e-commerce history: From humble beginnings to a trillion‑rupee market
India’s e‑commerce story started in the late 1990s when dial‑up internet was still a novelty. Early pioneers like Indiashop and Rediff Shopping experimented with basic catalog sites, but limited payment options and low broadband penetration kept sales tiny.
Those first attempts mattered because they taught sellers how to list products online and gave consumers a glimpse of buying without leaving home. The real turning point came when credit cards and online banking became more common, allowing shoppers to trust electronic payments.
Early days and the first online stores
In 2000, Flipkart launched as an online bookstore, inspired by Amazon’s model. Founder Sachin Bansal used his engineering experience to build a simple site that let people order books and get them delivered within days. Flipkart’s focus on good customer service—fast delivery, easy returns, and cash‑on‑delivery (COD) for those without cards—won over a skeptical market.
Other early players included Snapdeal (originally a daily deals site) and ShopClues, which targeted budget shoppers. All relied heavily on COD, because trust in digital payments was still low. By 2005, these sites had created a small but growing user base of urban millennials.
Boom era: Mobile, payments, and global players
The real explosion began after 2010. Smartphones spread rapidly, and 3G/4G networks made browsing fast and cheap. Apps replaced desktop sites, and users could shop while commuting. This mobile wave attracted global giants like Amazon (entered India in 2013) and eBay, which had to adapt to local payment quirks.
Payment innovations—Unified Payments Interface (UPI), digital wallets (Paytm, PhonePe), and net banking—gave shoppers confidence to pay digitally. COD sales dropped from over 80% in 2015 to around 40% by 2022, showing trust in electronic methods.
Simultaneously, logistics improved. Companies like Delhivery and Ekart built nationwide networks, cutting delivery times from weeks to days. Government policies, such as the Goods and Services Tax (GST) in 2017, standardized taxation, making cross‑state commerce smoother.
Today, Indian e‑commerce contributes over $100 billion annually, with fashion, electronics, and groceries leading categories. Marketplaces are adding services beyond shopping—cloud computing, fintech, and entertainment—all rooted in the same online platform.
If you want to start an online store, the history shows two clear lessons: prioritize customer trust (easy returns, transparent pricing) and leverage mobile‑first design. The Indian market still has room for niche players, especially in tier‑2 and tier‑3 cities where online adoption is still rising.
Curious about which company kickstarted Indian e-commerce? This article digs into the surprising roots of online shopping in India. You'll learn about the company that beat the big names by years, how they operated in a dial-up internet world, and the challenges they faced. Real stories, major firsts, and handy tips for spotting real pioneers—all packed here. Get behind the hype and see where it all truly began.
