By now, we all are aware that mobile commerce accounts for a major chunk of ecommerce traffic in India. However, every now and then a research report reinforces the growing power of m-commerce, just like the latest study conducted by research firm Forrester.
US based research and advisory firm, Forrester revealed that almost 50% of the $12 billion annual online sales in India happens through mobile phones. Whereas, in the US and China, m-commerce’s contribution is 34% and 48%, respectively.
The report also affirmed that m-commerce is expected to cross desktop-based online transactions in 2016 and is set to grow five-fold to $51 billion by 2020.
The report stated, “One unique component of India’s e-commerce market is just how quickly it expanded to tier 2 and tier 3 cities across the country. Only 8% of the 1.3 billion populace lives in the top eight tier 1 cities (Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune), where e-commerce penetration is already high. Today, leading online retailers Jabong, Myntra and Amazon report half their revenues from tier 2 and tier 3 cities. While the tier 2 and 3 cities have low PC and broadband penetration, they also have fewer brick-and-mortar stores, giving e-commerce a chance to fill the gap.”
Categorically addressing the COD trend in India, the report said, “While COD assuages consumer concerns about package delivery and product quality, it has significant implications for online retailers: costlier order fulfilment, greater chance of returns (one Ernst & Young study cited return rates averaged at 40% for COD online purchases in the market), and the risk of fraud by cash collection agents.”
Needless to say, ecommerce players including the leaders Flipkart, Snapdeal and Amazon are concentrating on enhancing mobile shopping experience for buyers.
“Starting early 2014, the focus moved entirely towards mobile. We said we will serve all customers, but focus-wise, what we would build for first is the mobile app,” shared Akshay Sahi, Head – Customer Experience, Amazon India.
Right from embedding mobile apps in popular smartphones, introducing mobile wallets for easy payments, creative mobile marketing campaigns, 2016 is witnessing major developments in mobile commerce.
Editor team is specialized in introducing the marketplace content targeting the Indian online sellers. They plan and coordinate to bring the appealing content for the small businesses on how to partner with the e-commerce sites like Amazon and Flipkart and strategies for improving their online business.
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