E-commerce is a business model that takes advantage of the internet to buy and sell goods and services using a number of technological platforms.
Economic prosperity is measured through GDP (per capita income), i.e the value of all goods and services produced by a country in one year is divided by the country’s population. The rate of growth of GDP reflects the pace of the economy and GDP per capita is nothing but GDP per person. Since, the GDP is divided by the total number of workers, therefore it reflects the ‘average’ revenue that is earned or contributed by an individual in the economy. It is assumed that if the GDP grows in an economy, then everyone in the chain will be benefited and the growth will have a trickledown effect on the population. Thus, your standard of living will simultaneously rise leading you to pay more for your domestic help and will lead you to a better and equipped nation.
The per capita income will only rise if there is an increase in aggregate demand and if there is spare capacity in the economy, then an increase in aggregate demand will cause a higher level of real GDP. Since, our network is our net worth, therefore big and local businesses are adopting e-commerce to increase their market capitalisation through e-commerce platform, primarily buying or selling goods and services by using the internet. With the advent of new technologies buying or selling stuff over internet has become an ease. This has led a major increase in the demand of consumer satisfaction through a variety of choices and with its wide range. Hence, giving a major boost to the GDP with the obvious reasons and increasing the per capita income.
E-commerce is a business model that takes advantage of the internet to buy and sell goods and services using a number of technological platforms. There are a variety of e-commerce platforms examples – the B2C or D2C online marketplace where multiple third parties sell goods (Amazon) directly to the consumers. There are even consumers to business (C2B) types of e-commerce where individuals sell freelance services to businesses. The operations require a huge work force for systematic business handlings and other affairs. The e- commerce platform is not only providing job opportunities within their organisation but is also providing job opportunities indirectly to the market as well. Since the jobs opportunities are increasing and more and more people will have spending capacity domestically, hence therefore it will also increase the per capita income (GDP).
As the country will grow, it will motivate other investors and foreign countries to invest and set up more MNCs or manufacturing units in our country. This will eventually lead to more employment opportunities and a developed nation. It is expected that the Indian e-commerce industry will surpass the US by 2034 by becoming the second largest e-commerce market, hence, moving on a path of an upward growth trajectory.
The e-Retail market is expected to continue its strong growth – registering a CAGR of over 35% to reach Rs. 1.8 trillion (US$ 25.75 billion) in FY20. It is foreseen that by 2021, online grocery, medicine/pharmacy and social commerce will witness maximum traction. The overall economy may still lag till Covid-19 vaccine is widely available but according to industry experts, ecommerce will continue to grow with convenience and discounts of online shopping as the key factors supporting it. In the past 6 months, the e-commerce space witnessed a sudden rise in demand, contributing a major proportion to the economy, hence, being beneficial for facilitating growth in the per capita income and job opportunities in our country.
Source: Business World
