You might be running your own business such as stationary, cloth etc but you don’t have to shut down your current business to enter the most profitable E-commerce categories.
Many people commit this mistake out of their greed but you should not do that. Stastista.com is the world’s famous website. They provide large data, They have understood the E-commerce market of India ans selected 5 profitable E-commerce categories for the year 2020
Top 5 categories to Sell on E-commerce
According to statista.com, the world’s famous website, for the year 2020, the most profitable 5 E-commerce categories in India are explained in decreasing order as follows:
- Home & Furniture
- General Merchandise
- Mobiles & Electronics
Brief Description about these categories
Key Note#1: Home & furniture:
The market for home & furniture is the lowest out of 5 categories in the e-commerce business.
The home & furniture segment is still a large offline market.
By 2023, the Home & furnishing market of India will be 98% offline.
If someone wants to buy a sofa set for his home, he will do online research but he will buy the sofa set offline.
He will go to the shop, touch and feel the sofa before actually buying it.
So, you should enter in this category only when you can open an offline store along with your online mode.
Key Note#2: General merchandise (men, women & baby products)
Data regarding Personal care products:
There is a boom in the market of the personal care market, especially during the period of COVID 19.
People are more focused on their personal care, looks, hygiene.
The largest trend is of conscious male consumers.
They are spending money on perfumes, beauty appliances, skincare, grooming.
These trends are collected from statista.com. It collects primary and secondary data about consumers and then it is published.
Key Note#3: Mobile phones & electronics
Data regarding mobile phones & electronics are discussed as follows:
- Mobile phones:
Today, every second mobile phone is bought online in India.
Flipkart holds a 57% share in the mobile market. It is selling mobile phones at a faster speed.
As income increases, people want to use good quality mobile phones.
Today, mobile phones are not just utility, they have become a fashion statement as well.
Many people aggressively change their mobile phones.
The most popular mobile phones brands in India are:
There is also an emerging market of second hand refurbished mobile phones which are discussed as follows:
In 2019, 14 lakh refurbished second-hand mobile phone sets were sold online in India.
On Amazon, all categories of refurbished mobile phones, laptops, headphones, home products, kitchen appliances are available.
Olx and Quikr have largely grown due to refurbished electronics, mobile phones.
Many people aggressively buy new products and they sell their old products such as laptops, mobile phones.
You can buy these refurbished products and sell them further to the next consumers.
The market for electronics is discussed as follows:
In India, the net worth of the online market of electronics and appliances is around Rs.99,000 crores.
This is growing very fast because the Indian youth is technology and automation oriented.
The primary consumer market for electronics and appliances is divided into 5 categories:
- Air conditioners
- Washing machines
If you want to do business in consumer electronics, these are 5 businesses where maximum products are purchased and sold.
These 5 categories have a major scope and size in India.
Also, they have good margins but the large opportunity lies in launching a private label brand.
DETEL is a make in India brand of manufacturing. Their office is in Gurgaon.
His owner is Mr. Yogesh Bhaita told that they will be launching electronic vehicles.
Also, they have launched a large brand of refurbished electronics.
He did not sell products through some other existing brand rather he launched his brand.
According to him, one should use his brain, hard work, and money in launching his private label brand.
So, you can also make your private label brand.
Also, you can make large margins in this business.
You can leverage government subsidies and schemes of “Make in India”.
It will be beneficial for you if you can do manufacture or enter into a partnership with companies like DETEL.
India is the world’s second-largest footwear producer after China.
Footwear made in India is sold everywhere in the world.
Their key centers are Kanpur, Agra, Ranipet, Ambur.
The fashion segment holds a larger share in the footwear segment.
The leather footwear export is a larger size of the footwear segment.
Children products and doctor recommended shoe is also a large segment.
These are the niche markets of the footwear segment where competition is not high and you can move forward by investing small money.
If you enter in this niche market, it will be beneficial for you because people are investing in their health care after COVID 19.
Key Note#5: Clothing
The fashion industry involves clothing and jewelry.
The biggest problem in clothing is correct sizing due to which there are any returns.
You started an online clothing store.
Mr. Paritosh ordered a shirt of Arrow brand.
While ordering he thought the size is perfect for him when the shirt was delivered to his home, the size was small.
Now, if Mr. Paritosh returns the shirt it will be your loss and not the loss of Amazon.
Loss is yours because you send the shirt to the customer’s place and the order was returned.
It involved various costs such as marketing, shipping but the product was returned to you.
So, you should think innovatively.
You can provide a dress design for the customer.
The dress will be made when the customer gives you his size.
Either the customer is male/female he will tell you about his body size and body type.
Now, you can custom design this dress for him/her.