Sowaibah Anam
Hyderabad, November 26: India’s retail and e-commerce sector is entering a rapid expansion phase, with value-focused platforms emerging as key drivers of digital consumption. A recent explainer by financial educator CA Rachana Ranade highlights the scale of this shift and the opportunities it presents for small sellers and new internet users across the country.
India’s retail market stands at an estimated ₹83 trillion and is projected to reach between ₹123 trillion and ₹135 trillion by 2030. Within this, e-commerce gross merchandise value is expected to touch ₹15 trillion to ₹18 trillion by 2030. Growth is driven by rising middle-class spending, urbanisation, and increased demand from tier-2 and tier-3 cities.
Ranade’s analysis divides e-commerce activity into two segments, convenience e-commerce and value e-commerce. Convenience e-commerce caters to urban premium customers who prioritise fast delivery, branded goods and smoother logistics. Their average order value ranges from ₹900 to ₹1,800 and they shop largely through platforms such as Amazon and Flipkart.
Value e-commerce focuses on low-price products for mass-market users. These buyers accept longer delivery timelines in exchange for affordability. Average order value in this segment ranges from ₹250 to ₹350, with stronger demand for unbranded and regional goods. Ranade identifies Meesho as the strongest example of this model in India.
To explain the potential scale of value-led platforms, she compares India’s online market with China. India has about 250 to 270 million e-commerce shoppers, while China has close to 950 million. China’s e-commerce market size, at more than 2,300 billion dollars, far exceeds India’s estimated 70 billion dollars. Ranade attributes this gap to three growth phases in China, search-based online buying, price-led commerce, and content-led commerce through short videos and live streams.
Content-led shopping emerges as a major growth
In China, content-led purchases account for nearly half of all e-commerce gross merchandise value. In India, content commerce contributes only one to two percent. Ranade suggests that India’s next phase of growth will depend on combining value e-commerce with content-driven shopping.
Meesho positions itself as a digital marketplace for affordable products. It does not own inventory or delivery vehicles. Instead, it connects buyers, small sellers, logistics partners and content creators. The platform uses personalised recommendations to show low-price product ranges to users in smaller cities. Buyers do not pay subscription or platform fees.
Meesho leads the rise of value e-commerce.
Sellers benefit from Meesho’s zero-commission model. Home entrepreneurs, small manufacturers and regional traders list products with simple catalog tools. The platform manages shipping and returns and transfers payments once orders are completed. Logistics partners work through Meesho’s Valmo system, which assigns parcels to the most efficient delivery option. Average delivery cost on Meesho stands at around ₹43, significantly lower than industry averages.
Creators contribute by showcasing products through short videos and live sessions and earn commissions on sales generated through their content.
Ranade also notes important risks. Meesho’s average order value is lower than major Chinese platforms, which increases logistics cost pressure. The company continues to report adjusted EBITDA losses, although losses before exceptional items have declined over recent years before rising again in the latest three-month period. Key operating metrics such as transacting users, seller numbers, order volumes and net merchandise value continue to show growth.
For Raftaar e Deccan readers, the analysis points to two clear trends. Small sellers in non-metro regions are gaining access to nationwide demand through zero-commission online markets. At the same time, India’s move towards content-driven shopping presents opportunities for youth as creators, logistics partners and online sellers.