Find business opportunities in one of the world's fastest-growing e-commerce markets. This guide contains market insights, customer shopping habits, as well as India customs and export tips to help your business succeed.
India's e-commerce statistics

India is home to 1.4 billion people
India is one of the top two most populated countries in the world (1,2).
With a fast-growing e-commerce sector, India's massive consumer base presents huge growth opportunities for any business looking to expand into new markets.

50% growth to 2030
India’s e-commerce market is set to grow rapidly between 2023 and 2030 (3), with 73.7% of consumers set to use e-commerce by 2027, compared to 57.6% in 2023. (4)

4th for e-commerce growth
India has one of the world's fastest-growing e-commerce sectors, with a CAGR of 13.91% between 2023 and 2027. Only Brazil, Argentina and Turkey are expected to grow faster. The global average is 11.34%.(5,6)

49% internet access
Just under half of India’s population has access to the internet, compared to the global average of 64.6%. However, e-commerce penetration is around 180-190 million and rising fast. (7)
Doing business in India: Market overview
India is growing in every way. Its e-commerce penetration is low compared to other similarly positioned nations, but it is expanding rapidly, making it one of the fastest-growing markets in the world.
A rapidly growing consumer base
In India, the growing middle class — those earning enough to be considered comfortably off and able to afford common retail goods — is driving the e-commerce demand.
While class definitions vary, some estimates put the number of those fitting the middle-class criteria in India at around 400 million. That's the same as the entire population of South America!
Data from the DHL Trade Growth Atlas found that alongside the Philippines and Vietnam, India is one of the future trade growth leaders through to 2026.
India has the world’s third-largest e-commerce market, with approximately 210-230 million online shoppers (as of 2021—this number has likely increased significantly since then). But what are these consumers buying? And from which countries?8
India’s imports
Which countries do e-commerce users in India buy from the most?9
Distribution of goods purchased by cross-border import e-commerce users in India as of January 2021, by region of origin:
Tips to sell to India
To successfully sell to a new international market, you need to understand local buyers’ behaviors and preferences. These insights can inform your sales and marketing strategies.
What do online shoppers in India buy from international brands?(10)

Mobile commerce
By 2026, India is expected to have 1 billion smartphone users (11). If India’s smartphone users alone were a country, they’d be the third largest in the world (11).
The key lesson: make sure your online store is optimized for mobile users!
India's online marketplaces: Amazon India, Flipkart, Indiamart
Hundreds of millions of people use online marketplaces every month in India.
Some of the most popular online marketplaces in India include Amazon, Flipkart, Snapdeal, Paytm Mall, Myntra, IndiaMart, and eBay. Amazon is the largest online marketplace in India with more than 295 million visits every month. The only other marketplace on a similar scale is Walmart-owned Flipkart, with 167 million monthly visits. Flipkart specializes in fashion retail.12
1. Amazon.in
2. Flipkart.com
3. Indiamart.com
Shopping holidays in India: Holi, Diwali and more
Digital wallets and online payments in India
Local consumers are becoming more and more used to online payment systems. In the past, cash on delivery was a popular option, but smartphones and digital wallet systems are growing fast with apps like Paytm, PhonePe and banking apps.
Preferred online payment methods13
Other commonly used payment systems in India include:
1. Cashfree
2. RazorPay
3. Paytm
4. PayPal
5. PayU
6. CCAvenue
Challenges of exporting to India
1. Customs clearance
India has strict customs procedures that can be time-consuming and complex. Shippers must provide detailed documentation such as POA (Power of Attorney) and invoices with descriptions, value, and quantity.
Solution:
Shippers need to comply with specific regulations to ensure that their shipments are cleared quickly and efficiently. You can do this by choosing a delivery provider that guides you through the process. DHL’s myGTS portal (Global Trade Services) can help. You’ll also need to register with the Directorate General of Foreign Trade.
2. Compliance with import regulations
India has specific regulations governing the importation of certain products, including food, electronics, and medical devices.
Solution:
Shippers need to ensure that their products comply with these regulations to avoid delays, fines, or seizure of the shipment. Visit the Export Promotion Council website to find out more.
As an exporter to India, you’ll need to register with the relevant council. Foreign companies are required to establish an Indian entity with goods and services tax (GST) registration or to partner with a local Indian entity. The Ministry of Commerce and Industry regulates online sales in the Indian market.
3. Import taxes and duties
India imposes import taxes and duties on many products, which can add to the cost of shipping.
Solution:
You can find more information at the Central Board Of Indirect Taxes & Customs website, for access to a range of customs and excise forms needed for importing goods to India. Head to DHL's myGTS portal (Global Trade Services) to stay up to date with customs and regulations for various markets.
4. Shippers must register with Know Your Customer (KYC)
KYC is a mandatory procedure where entities are required to submit documents to verify the identity and address of the receiver. Whether an individual is sending a shipment to India or a company is sending bulk products, KYC documents must be submitted to the logistics carrier.
Since KYC documents should be provided to the customs officials during the import clearance process, the receiver needs to submit them to the logistics carrier before the shipment arrives. If the documents are not submitted at that time, it will not only result in the process of clearance being delayed but can even incur penalties in some cases.
The KYC documents the receiver must submit can be categorized under two groups: proof of identity and proof of address.
You can find out more here.
Our best tips for exporting to India
In this section, DHL's expert on India exports and shipping provides you with the top tips to prepare you to sell to this key market.
Conduct market research
India is a massive and diverse country, with consumers from all backgrounds and with varying preferences. Have a clear idea of your target audience – including their age, budget, which online marketplaces they buy from the most, which social media platforms they engage with, and their preferred payment methods.
Generally, e-commerce user demographics are shifting in India: women increasingly shop online, with 43% of new online shoppers being women and 57% men in 2021, compared to 32% and 68% respectively in 2015. The 45 and older age group is growing too. It is now the largest cohort for online shopping in India, closely followed by the 25 to 34-year-old group.14
What’s trending in India?
1. Sustainability is a growing priority for consumers
2. Local sourcing and products are popular
3. Consumers are looking for wellness features in products
4. Shopping on mobile/smartphone is rising
5. Social media is a growing influence on buying decisions
Find the right marketing strategy
Some of the top social e-commerce platforms in India include Meesho (clothing), Flipkart-owned Shopsy (fashion and lifestyle products), and Shop101 (a reseller platform). These platforms allow sellers and resellers to sell products by sharing them on social media sites. Influencer marketing is also a popular strategy. There are several influencer marketing platforms in India that can help connect businesses with influencers, such as Ainfluencer and Confluencr.
Easy and convenient shopping and payment
As with any other e-commerce market, intuitive online experiences and easy payment options are highly valued by consumers in India. Ease of use and convenience are very important factors for online shopping in India. A study found that ease of use and convenience is the most relevant factor for online shopping for 32% of shoppers.15
E-commerce businesses should work with a logistics provider that has experience and expertise in navigating complex clearance processes to ensure their shipments are cleared quickly and efficiently.
Give your customers an easy e-commerce delivery experience by covering all import duties, taxes, and fees associated with shipping your products. This allows consumers to receive their purchases without any additional costs or delays.
DHL’s Duty and Taxes Paid (DTP) service, sometimes called Delivered Duty Paid (DDP) makes this possible. Partner with DHL today to give your buyers a hassle-free shopping experience that can help build customer loyalty and strengthen your brand.
Feeling inspired and ready to sell to India?
Your first stop is opening a DHL Express Business Account for expert international shipping advice and competitive rates.
Apply for an account today