The Rise of No-Inventory E-Commerce in India
Video commerce, which accounted for 5% of online sales in 2022, is projected to increase to nearly 20% by 2025. Currently, e-commerce exports contribute $4-5 billion annually, but the goal is to increase this figure to $200-$300 billion by 2030. Changing Consumer Preferences Consumer preferences are evolving, with 75% of shoppers discovering new products online and 72% actively seeking healthier options.
The no-inventory model is reshaping the landscape of e-commerce in India by reducing upfront costs and risks for businesses. This model, which is gaining traction across the country, allows sellers to manage operations more efficiently while meeting the demands of modern consumers who desire faster delivery and personalized products.
Innovations in Print-on-Demand and Automated Technology
Print-on-demand services are playing a crucial role in supporting small and medium enterprises (SMEs) across India. By producing items as they are ordered, these services enable businesses to avoid maintaining large inventories, thereby reducing waste and utilizing resources more effectively. The use of eco-conscious, water-based inks further demonstrates a commitment to sustainable manufacturing practices.
Integrated platforms are automating various e-commerce functions, making it possible for products to be produced and dispatched within two to three business days. These streamlined operations not only support sellers across the nation but also benefit micro-entrepreneurs and students who are entering the market. The result is a significant reduction in order processing times, enhancing the overall efficiency of the e-commerce ecosystem.
Quick Commerce: The Future of Online Shopping
The concept of quick commerce is poised to replace traditional e-commerce by 2027, with the top 200 cities in India transitioning towards this rapid model of shopping. Quick commerce is characterized by its ability to deliver products almost instantly, and the number of dark stores, which facilitate these operations, is expected to reach between 15,000 to 20,000 in India.
Companies like Blinkit are already operating in nearly 200 cities, and the adoption of quick commerce is particularly high in non-metro areas. While market penetration remains low, consumer interest in quick commerce continues to grow, paralleling the rise of video commerce in China. Video commerce, which accounted for 5% of online sales in 2022, is projected to increase to nearly 20% by 2025.
Boosting E-Commerce Exports
The Indian Commerce Ministry is exploring an export-only inventory model as part of its strategy to boost e-commerce exports from India. Currently, e-commerce exports contribute $4-5 billion annually, but the goal is to increase this figure to $200-$300 billion by 2030. The global cross-border e-commerce market is anticipated to reach $551.23 billion by 2025.
Under this model, e-commerce firms will be permitted to maintain inventory specifically for exports, focusing on products like handicrafts, art, books, and garments. E-commerce export hubs are being established near major airports to offer expedited customs and security clearance, along with quality and certifying agency provisions. Additionally, the easy reimport policy for e-commerce consignments and the extension of RoDTEP benefits to e-commerce exports are expected to enhance the competitive edge of Indian products in the global market.
Changing Consumer Preferences
Consumer preferences are evolving, with 75% of shoppers discovering new products online and 72% actively seeking healthier options. Despite this shift towards health-conscious purchasing, a significant 94% of consumers are unwilling to compromise on taste. This trend highlights the need for businesses to balance quality and health benefits in their offerings.
As no-inventory e-commerce continues to grow, it is clear that the sector is on the cusp of significant transformation. With a focus on sustainability, efficiency, and meeting ever-changing consumer demands, Indian e-commerce is set to make a substantial impact both domestically and on the global stage.