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Abstract
Speedy diffusion of high-speed internet and internet-enabled smart gadgets, growing acceptability of online payments and favourable demographics has provided online retail in India the unique opportunity for companies to connect with customers. The online retail market is projected to grow from US$ 6 billion to US$ 70 billion during FY15-FY20. India’s price competitiveness attracts large retail players to use it as a sourcing base. While a few well-funded players, like Amazon, Flipkart, and Snapdeal are successful in establishing brands and reaching to wide areas of the market, none of these have shown a profit, and none have even shown sufficient revenues to meet overhead along with the cost of goods and deliveries. Problems with supply chain infrastructure, payment gateways and management of payment costs, tax related issues and intense competition have created a market in which companies are struggling to exist. As a result, investors are keeping their funds close, creating a financing drought just as the industry aims major growth pains. As one of the swiftest growing sectors in India in recent years, the megatrends that will shape the online retail sector and the emerging challenges faced by the market leader and followers in online retail industry is a significant area for research. The present study is a conceptual survey with a descriptive approach and is an attempt to explain the market structure of online retail industry, business models for e-commerce, various trends in online retail and challenges before the sector in India.