E-commerce sector at boom, over 120 million consumers to shop online in 2018; here’s why

The e-commerce sector in Indian market is seeing massive boom, especially with the ongoing major deals taking place in this sector, not to forget the latest Flipkart selling it’s major stake to American-based Walmart. This sector is seen to see some major boost even going ahead, as an Assocham report believes that over 120 million Indian consumers are expected to shop online, clocking annualized growth of 115 per cent in 2018. This would take place on the back of discounts and other attractive deals in a wide range of products from clothes, mobile phones, air-conditioners to a whole lot of consumer items.

In 2017, popular categories accounted for higher consumer spend online. The frequency of purchase was also higher for categories like apparels & accessories (54%), beauty & personal care (43%) products in comparison to electronics (33%), adds the report.

As many as 108 million consumers did online shopping in 2017 even as the mobile phones are becoming the preferred choice of device for the e-commerce sales.

According to Assocham report, Over 60-65% of online shoppers would opt for placing their orders on mobile phones from the present 40-45 per cent, the study projected.  

The Assocham body carried out a survey across  Delhi, Mumbai, Kolkata, Bangalore, Ahmedabad, Hyderabad, Pune & others, where 89% of the consumers covered in the study are  heavy users of the Internet.

Top reasons given by shoppers in buying through Internet:

• Good discounts / lower prices
• Saves time and efforts
• Convenience of shopping at home
• Wide variety / range of products are available
• Get detailed information of the product
• You can compare various models / brands
•  An insight into some of the problems stated by customers

There is a surge in the number of people shopping on mobile across India with tier II and III cities displaying increased dominance. In fact, 50% of our traffic is coming from mobile and a majority of them are first time customers, adds the paper.

ASSOCHAM Secretary General Mr D S Rawat said, "Since the base is still quite low, there is a huge scope for growth year on year for quite some time. With improvement in logistics and more and more delivery channels, the online shopping is bound to grow. No wonder, a huge amount of foreign investment is coming in the sector. "

Rawat adds, " It has become a multi-billion investment business. Investment in back end delivery channels, brand building, consumer research and building trade partners would be the key drivers."

Online ticket buyers were also seen to be more comfortable with the use of debit cards (23%), credit card (17%) and cash on delivery (58%). For regular internet users - cash on delivery was the most preferred mode of payment (74%), followed by debit card (18%) & credit card (5%), noted the study.

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.