Gujarat lags behind in e-commerce, slips in rank to seventh position

Logistical constraints and lack of broadband connectivity in non-urban areas of Gujarat seems to have caused a decline in the state's ranking as a top e-commerce hub in the country.

According to the census report by e-commerce major, eBay, Gujarat's rank has slipped from fourth in 2010 to seventh in 2011 after Rajasthan, which stood sixth gaining from 13th position in 2010.

E-commerce major, eBay unveiled its annual eBay India Census 2011 report on Wednesday giving an outlook of the details on e-commerce hubs in the country. As per the census report, Delhi topped the list of top five e-commerce hubs in India followed by Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh.

"Internet connectivity especially the broadband and 3G is a challenge in Gujarat, meanwhile courier services mainly in the non-urban regions does not seem to be well covered. The online buyers, who would prefer cash-on-delivery mode may find it difficult due to non-availability of proper courier infrastructure," said Santosh Rao, head-customer experience, eBay India.

According to him, profile of people living in states would also affect online purchases. "In states like Andhra Pradesh. Tamil Nadu and Karnataka there are more tech-savvy people, while in Gujarat the lifestyle is different. Also, people are less tech-savvy," said Ray.

However, when it came to retail exports; bandhani sarees, religious posters, herbal remedies were some of the largest exported goods from Gujarat.

The state exported largest maritime collectibles in the country, the report noted. On the domestic front, users at eBay sold machine embroidered sarees, sunglasses and Ganesha idols.

Meanwhile, rough diamonds, cutting tools and men's wallets were some of the largest imports in Gujarat through eBay platform, while the eBay users bought USB cables and printed tees from other parts of the country.

The e-commerce industry is pegged at around Rs 25,000 crore in India, which is expected to grow at a double digit rate in the next year.

The annual eBay India census tracks online buying and selling behaviour in India as well as trends from global buyers from Indian entrepreneurs.