Consumer confidence for shopping online will continue to rise in India according to Google Forrester Report 2016, but the shocking revelation is about consumers’ huge amount of dissatisfaction with the online shopping experience. 62 per cent buyers were dissatisfied and 67 per cent also highlighted that the current return process was too complicated and expensive. Trust was a major issue with non-buyers with 55 per cent non-buyers not having the requisite trust in the quality of products sold online.
The report has revealed some insightful findings that could make the ecommerce players introspect and come up with solutions to problems like trust deficit. They also need to strengthen the backend, solve infrastructural issues and make the entire shopping experience less cumbersome. Will they be able to do so and are they ready for increasing demands for quality and convenience from the ever growing population of online shoppers? For ecommerce brands this is a constant source of worry. Sahil Barua, CEO at Delhivery, entered the internet space to solve this most interesting problem of managing logistics. Speaking about the how the last mile delivery could be improved, he said, “We need to simplify processes and also see what mobile can do for the supply side. Older models of distribution do not work anymore. Operational issues need to be simplified.” Delhivery started as a third-party, last mile logistics delivery firm in Delhi to serve e-commerce companies. It tracks real time status of orders to consumers.
Another striking trend revealed by the study was about women buyers becoming the most significant contributors to the growth of online shopping and that India would have 100 million online shoppers by 2016. Citing some interesting data, Rajan Anandan, Vice President and Managing Director, Google India underlined the importance of mobile in the ecommerce revolution, “6 million internet users are being added every month in India and mobile is driving most of this growth,” he said.
Speaking at the launch of the report, Nitin Bawankule, Director for E-commerce and Online Classifieds, Google India stressed on the need for the e-tailing industry to act now to cater to this strong user growth trend. “Improved customer experience across all touch points, easy to use mobile apps can create a strong pull for non-buyers to shop online in tier 1 and 2 cities,” he said.
The report methodology used data combined from Google search trends over the last two years in India and Forrester Consulting Research conducted during March 31 to July 30. The research was conducted by interviewing 6859 respondents covering both online buyers and non-buyers in 50 cities and towns. The research was conducted with the objective to understand the motivations of ecommerce buyers and has come out just before the launch of the Great Online Shopping Festival from Dec 10-12, 2014.