“Based on our survey data, we estimate that online retailers create 15.8 million jobs, including 3.5 million jobs for women,” said the report by the Pahle India Foundation (PIF), a Delhi-based policy research institute.
According to the report, e-commerce is a major driver of job creation in India. On average, online retailers employ 54 percent more people and almost twice as many female employees as offline retailers.
The report found that two of the most widely recognized benefits of e-commerce penetration of the retail sector are job growth and improved consumer welfare.
It was said that e-commerce is not displacing physical markets but is expanding into new areas such as third-tier cities.
“Our data shows that a higher percentage of consumers in Tier 3 cities spend more than Rs 5,000 per month on online shopping than consumers from larger cities,” the study said. This is India’s consumption story, which enables the coexistence of physical and digital retail. The study analyzed the impact of e-commerce on employment and consumer welfare using a nationwide survey of 2,062 online retailers, 2,031 offline retailers and 8,209 consumers of products from e-commerce websites in 35 cities across 20 states and union territories. According to the report, on an average, each e-commerce retailer employs about 9 people, of whom 2 are women, while each offline retailer employs about 6 people, of whom only 1 is a woman.
It was noted that employment has increased at all skill levels, including high-skilled (management, marketing), medium-skilled (customer service, operations) and low-skilled (warehousing, logistics, delivery) functions.
According to the report, the growth of e-commerce and the associated digitization have fundamentally changed the skills and roles required in the industry.
“The providers have seen improved business performance parameters since their online listing, including increased revenues and profits,” it said.
According to the report, 60 percent and 52 percent of retailers, respectively, say their sales and profits have increased since they started selling online.
“Overall, more than two-thirds of the online retailers surveyed saw an increase in online sales value and profits last year,” the report says. 58 percent saw an increase in both areas.
Apart from costs, suppliers have noticed a positive change in all other aspects of their business performance since they started selling online.
According to the report, there are good business reasons for offline retailers to list on e-commerce platforms or pursue an omnichannel strategy.
“The integration of e-commerce has brought significant benefits to traders from smaller towns and micro-enterprises,” it said.
The study also examines how e-commerce has changed consumer behavior, finding that consumers have shifted to online shopping for reasons such as convenience, product variety and accessibility.
“Consumers’ high level of engagement is demonstrated by the fact that over 50 percent of all survey participants spend more than two hours per week on e-commerce platforms and that 70 percent have made a purchase via e-commerce in the last month alone,” the statement said.
Speaking at the event, former Vice Chairman of NITI Aayog Rajiv Kumar said that e-commerce has revolutionized India’s retail landscape.
Saurabh Garg, Secretary, Ministry of Statistics and Programme Implementation (MoSPI), praised the government’s initiatives to develop digital public infrastructure, which have enabled smooth expansion of e-commerce.
