Retail and wholesale segmentation is a critical component of the online retail industry.
According to a recent report by IDC, the online marketplace market is set to experience a 10% fall in the year to March 2019.
While the retail sector is expected to grow by 2.2% year-on-year, the wholesale segment is set for a contraction of 5.7% to 4.5%.
This, however, does not necessarily mean that the segment will experience another decline.
The report further stated that while online retail will likely experience a gradual decline in the next couple of quarters, the impact will be significant.
“While the online segment is expected be growing by around 0.5% in the first half of 2019, the real impact of the segment decline will be felt during the second quarter,” the report stated.
A key driver of the decline is the rise of Amazon, which is expected rise by 3% to 10% in 2019.
According the report, online retail market will see a significant growth in 2019, and it is likely that this will be the first year where online retail has witnessed a significant decline.
In the second part of the report titled “Amazon in India,” IDC forecasts the growth of online retail to be around 5.5-6% in 2020.
The digital economy is expected see a sharp drop in 2019 due to a number of factors, including the impact of GST.