Helped by fast increasing data consumption and improvement in logistics, over 120 million Indian consumers are expected to shop online, clocking annualized growth of 115 percent in 2018 as the e-commerce platforms slug it out with discounts and other attractive deals in a wide range of products from clothes, mobile phones, air conditioners to a whole lot of consumer items, according to an Assocham–Resurgent joint study.
As many as 108 million consumers did online shopping in 2017 even as mobile phones are becoming the preferred choice of device for the e-commerce sales. Over 60–65 percent of online shoppers would opt for placing their orders on mobile phones from the present 40–45 percent. In 2017, popular categories accounted for higher consumer spend online. The frequency of purchase was higher for categories like electronics (33 percent).
In terms of motivators to shop online, the consumers’ highlighted cash back guarantee as the number one benefit, ability to give cash on delivery, fast delivery, great deals, and access to branded products. The consumers also highlighted some barriers that deter them from shopping online – the number one factor was the inability to touch and try the goods before purchase, fear of faulty products, fear of posting their personal and financial details online, and the inability to bargain were cited among the other reasons. There is a surge in the number of people shopping on mobile across India with tier-II and tier-III cities displaying increased dominance. In fact, 50 percent of the traffic is coming from mobile and a majority of them are first time customers.
The year 2018 will see large-scale growth in the Indian e-commerce sector with increased participation from people across the country. This industry will continue to drive more employment opportunities and contribute toward creating more entrepreneurs through the e-commerce marketplace model.