Indian shoppers spend $8.7 billion on international e-commerce sites in 2016

By

Erin Floyd

Published
Jan 18, 2017

More than $8.7 billion was spent on international e-commerce sites by Indian consumers in 2016, with most shoppers opting to buy from the U.S., according to a new report from Paypal Ipsos.

The U.S. was far and away the preferred international sales region for Indian consumers, with a 2016 expenditure of RS 26600 crore ($3.9 billion). Lagging behind somewhat at 6599 and 5661 crore were China and the UK, respectively.

The report suggested that key features for Indian shoppers spending internationally was the transaction currency, as consumers were more likely to complete the purchase if a local currency was available, and if the site provided free shipping.

Sales were also driven by alternative products available on international sites. Clothes, footwear and accessories accounted for a 54% share of the sales.

Nevertheless, against a backdrop of flourishing e-commerce in India, cross-border e-tail remains unlikely to pose a threat. Amazon reported recently a 160% increase in their Indian seller base and announced an aggressive expansion program last month. Flipkart, as Amazon’s top competitor in India, has also undergone extensive restructuring with expansion and increased market share in mind.  

And while the report confirmed that U.S. and China forged ahead, India is still a top grower in terms of online spend, with a compound annual growth rate of over 30% and cross-border purchases up 6.7% from last year, the report said.