With better penetration of Internet and broadband service, online shopping market is expected to reach Rs 1,500-crore over the next two years, an expert said.

"Online shopping industry is growing exponentially the industry is expected to double at Rs 1,500-crore from the present around Rs 700-crore by 2014," tradus.in President Rahul Shetty told PTI here.

Online shopping is the process whereby consumers directly buy goods or services from a seller in real-time, without an intermediary service, over the Internet.

"We expect the rural India will contribute more than 50 per cent of revenue in the next two years. Presently, the Tier I and Tier II cities contribute major chunk of revenue to the industry," he said.

Tradus.in is promoted by Ibibo which provides a wide variety of products. The company is growing fast in Online Shopping segment and is eyeing Rs 100-crore revenue over the next two years, he said.

"We expect Rs 100 crore revenue from present Rs 35 crore, by 2014," he said.

Another industry player, 123.loot.com, sees the retail segment playing a major role in online shopping.

"The industry will continue to grow in double digit number and is expected over Rs 1,200-crore by 1024," 123.loot.com Manager Sudeep Kumar said, adding that India is still lagging behind compared to UK, US and China.

"The retail is doing well and we expect the rural India will overtake the Tire 1 and Tire II cities in the next two years," he said.

eBay India also claimed the e-commerce demand has increased in the country, mainly due to the greater penetration of Internet.