Global ecommerce sales are forecast to hit $6.09 trillion in 2024. India’s ecommerce sector is experiencing explosive growth. According to a recent report by the Financial Express, the Indian ecommerce market is set to grow from $70 billion in 2023 to a whopping $325 billion by 2030. This rapid expansion places India among the fastest-growing ecommerce markets in the world.
Rising Digital Sales: Biggest Drivers
While there are numerous factors at play, experts say the pandemic accelerated the shift to online shopping by as many as five years. But, that’s just one of the top reasons…
Digital Transformation & Internet Penetration
The infiltration of mobile technology into consumers’ lives has more than helped to move things along. Globally, as it stands in 2024, the number of digital buyers is at 2.71 billion. That is 70 million more than the previous year’s, marking a 2.7% year-over-year increase. Data also shows an increasing reliance on shopping via mobile devices.
Home to 954 million internet users, the internet penetration rate in India rose over 52% in 2024, from about 14 percent in 2014. Analysts say the rise of ecommerce in India can be attributed to the growing accessibility of affordable smartphones and mobile internet.
The Rise of Gen Z & Millennials
In 2021, 52% of India’s population was made up of Gen Z and Millennials, which is higher than the global average of 47%. India also has a higher proportion of these generations than developed nations. Gen Z is now the largest generation ever to live in India. India’s 377 million-strong Gen Z population is redefining consumer behavior, influencing 43% of household consumption and pushing brands to adopt personalized, affordable strategies.
AI-Powered Personalization & Generative AI
Companies are leveraging Generative AI (GenAI) to personalize customer interactions, enhance product discovery, and streamline support services. Today, Indian consumers are more likely to purchase from brands that provide personalized recommendations powered by AI.
Shop ‘Til You Drop… From Decision Overload
Let’s face it: sometimes, shopping online feels more exhausting than exciting. While ecommerce offers consumers convenience and variety, it also comes with a unique problem—the choice paradox.
According to Business Insider, 54% of consumers report feeling overwhelmed by the sheer number of options available online. This paradox of choice often results in:
- Decision Fatigue: Shoppers get exhausted by the number of decisions they need to make, leading to frustration.
- Lower Conversion Rates: The abundance of options can paralyze consumers, reducing the likelihood of completing a purchase.
When customers are presented with too many choices, they may feel paralyzed, unsure of what to buy. This results in lower conversion rates and higher cart abandonment rates, directly impacting a brand’s bottom line.
In a recent Accenture survey of 19,000 consumers around the world, 74% of respondents said that they had abandoned an online shopping cart at least once in the past three months because they felt “bombarded by content, overwhelmed by choice and frustrated by the amount of effort they need to put in to making decisions.”
According to NYU professor Raluca Ursu, tools like filtering and sorting can reveal even more options to consider, leading to “search fatigue.” This is when you spend hours comparing similar products, like two nearly identical TVs, and end up feeling less satisfied with your purchase.
Online retailers could be losing out on potential revenue due to decision fatigue, which could result in a 30% drop in conversion rates.
Ecommerce Giants Simplifying Customer Choices with GenAI
Ultimately, less is more when it comes to shopping. Ecommerce giants like Amazon, Flipkart, and Myntra have recognized the need to tackle the choice paradox. These platforms have invested heavily in AI-driven search and product discovery tools to streamline the shopping experience.
This Diwali, India’s leading ecommerce brands — leveraged Generative AI (GenAI) to deliver smarter, more engaging, and more personalized shopping experiences.
The result? A staggering INR 1 lakh crore in sales! 💥Here’s a glimpse of their most interesting AI use-cases.
Level Up: The AI Advantage Starts Now
According to Gartner, in its latest Hype Cycle for Digital Commerce, it identified AI-guided selling as a transformative technology in the ecommerce space. This innovation combines GenAI, machine learning, and predictive analytics to streamline and personalize the customer shopping journey, making it easier for shoppers to discover products tailored to their preferences. By leveraging these technologies, ecommerce brands can anticipate customer needs and offer a seamless, tailored experience that drives both engagement and conversions.
As Diwali this year has shown, brands that leverage GenAI are leading the way in delivering exceptional customer experiences. Flyfish.ai, recognized by Gartner as a 2024 Cool Vendor in AI Guided Selling, is at the forefront of this shift with its multimodal search capabilities. Flyfish.ai enables brands to implement features like AI guided selling, multilingual search, voice-activated shopping, and visual search functionalities, making the online shopping experience more engaging and user-centric.
At Flyfish, You can start with a free site search audit report. Where our expert team will help you identify gaps in your ecommerce product discovery and get a sense of what fits your brand’s needs best. Find a convenient time on the calendar and we can get our expert team to get in touch with you soon.
