India will have more ecommerce users by 2025 than US’ population

• India’s ecommerce user base is expected to reach half a billion by the end of this decade.
• In the next three years alone, this number is expected to eclipse the total population of the US.
• Of these, 7 out of 10 users are expected to complete at least one online transaction.

India is expected to have more ecommerce users by 2025 than the total population of the US, according to a new report. Further, 7 out of every 10 internet users are likely to complete an online transaction in the same period.

According to a report by WPP’s GroupM and Wunderman Thompson, in collaboration with Amazon Ads, the Indian ecommerce sector is expected to grow at a compound annual growth rate (CAGR) of 23% to reach half a billion by the end of this decade.

Year	Ecommerce users
2020	150 million
2025	350 million
2030	500 million

Source: WPP’s GroupM and Wunderman Thompson report with Amazon Ads

A report by private wealth management company Bernstein also expects online shoppers in India to reach 330 million by 2025. “The TAM is expanding with new opportunities in social commerce/quick commerce. Flipkart is building Shopsy (social commerce), scaling Flipkart Quick (hyperlocal). Reliance acquiring Dunzo (Quick commerce) to scale JioMart,” the company added.

“We saw an exponential growth of consumers moving to online shopping during Covid-19. With the trend only continuing to grow as more customers are coming online to shop from Tier 2 and Tier 3 cities,” said Manoj Mansukhani, chief digital officer, Wunderman Thompson South Asia.

“With marketplaces like Amazon becoming the first port of call for product searches, brands need to develop a separate content strategy to help engage with customers on these platforms,” he added.

Vijay Iyer, Director-Ad Sales at Amazon Ads India, noted that ecommerce marketplaces are playing a crucial role in shaping brand and product discovery. “Marketers have the unique opportunity to build connections with customers through an immersive content experience rather than restricting themselves to “advertising real estate”, the report added.

According to a report by Bernstein, ecommerce is the largest segment in India internet and is expected to grow more than five-fold to reach $133 billion opportunity by 2025. “We believe the sector will not be a winner-take-all and multiple players will emerge across categories & markets,” the private wealth management company added.

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