India Post launches e-commerce portals
Published Date | 2018 November 15
The Department of post office has been focusing on e-commerce sector to increase revenueIndia: Department of India Post has announced soft launched of its e-commerce portal in 14th November 2018 to leverage its parcel business network. While details of the e-commerce service provided through India Post could not be ascertained, an official source reported that the Department of Posts has done only soft launch and full fledge operations of the service will start around or after mid-December. The department of posts has been focussing on e-commerce sector to increase its revenue receipts. The department facilitates has collected and remitted more than USD 37.45 crore under cash on delivery till January 2018 since its introduction in December 2013. According to BlueWeave Consulting, India’s e-commerce market will potentially grow more than fourfold by 2022, fuelled by rising incomes and a surge in internet users. During the period, the size of India’s middle-class is expected to swell to 539 million from 378 million in 2017, according to BlueWeave Consulting. In India, the number of internet users is expected to double to 848 million in five years from 448 in 2017. Of the total, 150 million users are expected to transact digitally and will emerge mainly from tier-2 and 3 cities with diverse language choices, payment modes and products. Since 2014, the Government of India has announced various initiatives to promote e-commerce business, namely Digital India, Make in India, Start-up India, Skill India, and Innovation Fund. The timely and effective implementation of such programs will likely support the e-commerce growth in the country. Some of the major initiatives taken by the government to promote the e-commerce sector in India to increase the participation of foreign players in the e-commerce field, the Indian government hiked the limit of foreign direct investment (FDI) in the E-commerce marketplace. In addition, in the Union Budget of 2018-19, government has allocated USD 1.24 billion to BharatNet Project, to provide broadband services to 150,000 gram panchayats. According to the upcoming report by BlueWeave Consulting on “Global Retail E-Commerce Market, By Business, By Product, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, the retail E-commerce industry is projected to witness robust growth in the coming 10 years. Consumer spending, which typically accounts for around two-thirds of the GDP, has been a key indicator of the health of the retail market. Emerging hub of the e-commerce market, due to the growing population, rising disposable income, increasing access to the internet, smartphone penetration, and developing transport infrastructure leading to efficient logistics services with faster delivery options.