• Source:JND
Add as a preferred

Kantar Report: India's digital economy is seeing major changes with e-commerce accounting for a large percentage of online activity. The report on the Internet in India 2024 by Kantar will be put together to portray trends that are gaining significant ground, such as an increase in Cash on Delivery (COD) being seen as a preferred mode of payment, the slowdown of social media-led shopping, internet penetration, regional usage findings, and changing online behaviour to present a clearer holistic picture of the country's digital landscape.

E-commerce highlights

Total internet users: 886 million
Net commerce users-inclusive of products and services: 480 million
Online product purchasers: 332 million
Social media buyers: 55 million

As of 2024, 1 in 5 online buyers of products or about 16.5 per cent, will shop using social media channels, meaning a slowdown is coming in the rate at which people take up social commerce.

The Rise of COD-Only Shoppers

Interestingly, nearly one-third of all product shoppers prefer to transact only in cash on delivery, with around 105 million online shoppers favouring the same. The trend suggests that a fresh, new unique segment of transactors is entering the digital commerce ecosystem.

Who Are These COD-Only Shoppers?

Rural India: 44%
Female Consumers: 52%
NCCS CDE Profiles: 31%
Likelihood of being 19 Years Old or Younger: 27%

This group of COD-first users is mostly comprised of rural, young, and low-income consumers, and therefore, it can be understood that the issue of trust forms a significant impediment to further diffusion of digital payments.

Less Growth in Social Commerce

Although this social media shopping outreach is proving fundamental for many to get online, it is staring at stagnation. The engaging populations among Internet users have thus declined in 2024 to 12% moving toward e-commerce transactions while social commerce is losing its momentum-engaging fewer users into it.

As the Indian e-commerce market develops, understanding the determinant features of COD-only users might help in digitizing payment acceptance and revamping social commerce. Gapping urban and rural consumers would remain critical in unleashing the vast possibility within India's digital economy.