Monday, February 10, 2025

India’s E-commerce Sector: Rising Salaries and the Challenges Ahead

India’s e-commerce sector is experiencing rapid growth, driving demand for talent and becoming the nation’s leading paymaster.

However, this growth comes with challenges such as market consolidation and issues within the gig economy.

Salary Surge in E-commerce

This sector has become the top paymaster in India, with salaries across all levels seeing a significant increase.

Internet penetration and smartphone ownership are key factors influencing this trend.

In 2024, top executives in the internet and e-commerce sector earned an average cost to company (CTC) of nearly ₹37 lakh, making it the highest-paying industry in the country.

Professional services, business consulting, and media closely followed.

The growth of e-commerce in India is fueled by increased internet and smartphone usage.

Additionally, the entry of small and medium-sized enterprises into the space, along with the availability of convenient alternate payment methods, has contributed to this growth.

This has created a huge demand for talent, which is attractively compensated at all levels.

Bengaluru and Mumbai have emerged as talent hotspots, while Tier-2 cities like Bhopal, Mysore, and Kanpur are also seeing impressive growth in junior-level roles.

Market Consolidation Concerns

While the sector is booming, there are concerns about market consolidation.

Most e-commerce verticals are already dominated by two or three players, which limits job creation and competition.

Excessive consolidation can hinder the industry’s ability to create jobs. It may require policy intervention to attract more players with deep pockets.

The rise of e-commerce has also led to an increase in gig economy roles, which offer low social security compared to traditional retail jobs.

While these roles provide better pay than informal employment in traditional retail, they come with fewer benefits and job security.

Policymakers need to address these challenges to ensure that the growth of e-commerce does not come at the cost of traditional retail jobs.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus