Impact of demonetization on E-Commerce: critical analysis

India had an internet user base of about 462 million as of Dec 2016 and buoyed by Internet penetration in rural areas, the number of web users in India will see a two-fold rise at 730 million by 2020. Despite being the second-largest user base in world, only behind China (650 million, 48% of population), the penetration of e-commerce is low compared to markets like the U.S (266 million, 84%), or France (54 M, 81%), but is growing at an unprecedented rate, adding around 6 million new entrants every month. The industry consensus is that growth is at an inflection point. In India, cash on delivery is the most preferred payment method, accumulating 75% of the e-retail activities. Demand for international consumer products (including long tail items) is growing much faster than in-country supply from authorized distributors and e-commerce offerings. This paper will give the scenario of present and future of e-commerce business taking consideration of demonetization in country.