The present article has traced the development of e-commerce in India on the basis of qualitative research methodology. The enhanced need for greater attention and management bandwidth to these critical functions has been realized by the stakeholders of e-commerce in India. India has shown a commendable increase in the ecommerce industry in the last couple of years, thereby hitting the market with a boom. The e-commerce is poised for continued growth in India in the coming years. The growth is expected to be led by increased consumer-led purchases in durables and electronics, apparels and accessories, besides traditional products such as books and audio-visuals. The emergence of e-commerce has placed an enormous pressure on the supporting logistics functions. The inventory led e-retailing model cannot attract FDI whereas market-place based e-retailing model can still attract FDI in the present times. The economic potential has increased over a period of time due to the rise of e-commerce logistics in India. The evolution of logistics landscape, long term profitability of the e-retailing industry, increase in FDI in the inventory-led retail, better infrastructure and robust supply chains, new taxation policies in the country, entry of more players in the 3PL domain and rationalization of delivery costs will lead to substantial investments in supporting infrastructure and innovative and game changing business models.

KEYWORDS: e-commerce, e-retailing, online purchasing