ecommerce — sales by brands through their websites, apps and social media — has grown to 10-15% of India’s online retail market of $70-75 billion now from 2-3% five years ago, according to industry data and analysts.
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Some of the large brands in the online space are becoming mature and are increasingly focusing on selling through their own channels, reducing dependence on marketplaces. This helps them avoid marketplace commissions that typically range between 20% and 30% and improve profitability.
However, analysts said, horizontal marketplaces such as Amazon India and Flipkart that sell a variety of products and services across categories, as well as vertical etailers like Myntra and Nykaa that specialise in a specific category like fashion, with their huge customer base will continue to have a majority share in online retail.
Senior executives at several direct-to-consumer (D2C) brands told ET that direct commerce has become an important part of their channel mix.
“Customers are looking out for more brands… and from our perspective, while marketplaces offer