Online retail has evolved in the past 2-3 years to become one of the most lucrative industries in the country. It has become like any other industry now with its share of problems on both sides – complaints from consumers as well as sellers. Recent reports suggest government intervention in keeping unethical practices of sellers in check with the amendment of the Consumer Protection Law.
The marketplace model of business is the most common now in online selling space, with all the biggies like Flipkart, Amazon and Snapdeal following it for their operations. But, bottom line remains that consumers have been spoilt with choice with never-seen-before deals and discounts. So they would go for whichever platform or online shop that would give them the cheapest products. In the broader picture, yes online marketplaces score more in the credibility and trust factor. But there are certain online shops that are doing well too.
Consumers have warmed up to the idea of online shopping and now access these sites through multiple gadgets like smartphones, tablets, laptops etc. So what contributes to their buying decisions? How much of their monthly income do they set aside for online shopping? How much do they rely on reviews and opinions from other consumers?
- 71% of online consumers in India buy based on recommendations from family, while 64% depend on friends and 29% prefer to check on online reviews.
- Social media is popular for checking out reviews and 50% consumers depend on these before making a purchase.
- For every 10 consumers, more than 4 share their experiences of a negative product/service after shopping online.
- 36% consumers turn to websites/platforms that allow them to select and compare from different stores.
The below infographic has some more interesting facts to share about the online shopping behaviour of Indian consumers.