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Are Indians buying online? As per Internet & Online Association of India (IOAI) forecasted estimates, e-commerce transactions will cross the Rs 2000 crore mark (2006-2007) which translates into an increase of over 300% from financial year 2004-05.

The relationship between the Internet and commerce has passed its nascence. According to estimates by IOAI, online shopping crossed Rs 430 crores to Rs 570 crores in 2004-05. The turnover is further expected to increase to Rs 1180 crores in 2005-06.

The Internet offers an audience that will grow to a 100 million users by 2007-08, unlimited shelf space and isn’t bound by operational timings and geographical boundaries; with an opportunity to cater to country wide city markets (for consumers and suppliers alike) at a comparative minuscule cost.

This four fold population increase raises a pertinent question to many a business and enterprise ’How should you embrace this medium?’ This research reports deals specifically with that premise and arms any reader with an arsenal of information to start/improve his online shop / enterprise in his core competitive area. No conundrum, Here are the facts!

The E-Commerce Industry:
570 crores worth of E-commerce conducted online in 2004-2005 to grow to Rs 2300 crores by 2006-2007, an estimated 300%+ growth.

The E-Commerce Site Visitor:
55% of visitors to e-commerce sites have adopted the Internet as a shopping medium.

The ‘Regular Online Shopper’
Of the 55% of online shoppers [Base 1716] – 87% [1493] of shoppers have shopped more than once and have been termed ’as regular shoppers’. They form the ‘base’ for this report of users who have transacted online to buy products & services ‘more than once’.

Internet Access:
76% of online shoppers access the Internet from their office, 63% from home & 24% from cyber cafes. Shoppers accessing the net through multiple access points represents a dismissal that Internet Penetration is no more only PC dependent. All internet activity support e-commerce in an allied or primary capacity.

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