India is under a complete lockdown until April 14 and during this period e-tailers are permitted to sell only essential items.
The halt in sales of non-essential items due to the coronavirus-led lockdown will cost ecommerce majors nearly $1 billion hit in gross sales, the Times of India reported quoting market research firm Forrester.
India is currently in a lockdown till April 14, during which e-tailers are permitted to sell only essential items.
While there has been a surge in online grocery orders, such sales constitute only 10 percent on the overall sales, the report said. Smartphones, large appliances, electronics, and fashion typically form the bulk of sales.
Moneycontrol could not independently verify the story.
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Ecommerce companies are expected to grow only 5 percent this year, a sharp drop from the 26 percent growth reported last year, according to the Forrester data.
In 2019, total ecommerce sales, including movie tickets and other platforms, were $32 billion, the report said.
“If they (online retailers) can grow by 5 percent this year, they should feel lucky. Even after the lockdown ends, consumer spending will be hit. Even with EMI waivers, people will push many of their spendings to next year,” said Satish Meena, senior forecast analyst at Forrester, as quoted by The Times of India.
Sale of electronics and other items would need to be allowed if the lockdown is extended beyond April 14, some ecommerce executives told the publication.