Factors affecting e-commerce adoption in India and US

Abstract

E-commerce has redefined commercial activities since the turn of the century. As an industry E-commerce grew with a CAGR of 25.7% in FY20 (Gaubys, J.) and is expected to be 21.8% (Vision Monday, 2021) of all retail sales by 2024. While E-commerce penetration has been steadily increasing worldwide, the rate of adoption has large variations across different countries. China leads the way with E-commerce accounting for 24.9% (UNCTAD, n.d.) of their retails sales in FY20 while in countries like Canada and Australia E-commerce contributes to less than 10% of retail sales. The report analyses the factors that affect the adoption of e-commerce within a country. The report focuses on two countries – US & India. The report individually looks at the trends of e-commerce growth in each country and the contributing to the growth. Followed by a comparative analysis of e-commerce development in the two countries.