How Indians shop online and what they prefer most - free shipping or fast deals
Nearly everyone is shopping online – 94% of consumers globally; unchanged year-over-year. But, the frequency with which consumers shop online is accelerating, said a report by Pitney Bowes.
More and more Indians are buying things online. It not only saves time but makes for a cheaper experience often. The cashbacks and discounts are frequent and now even the Tier-II and Tier-III cities consumers are going online. The trend is not confined to India, it is global.
Now a report by the Pitney Bowes has claimed that around 94% of consumers globally are shopping online.
"Nearly everyone is shopping online – 94% of consumers globally; unchanged year-over-year. But, the frequency with which consumers shop online is accelerating. Globally, 35% of online shoppers make an online purchase at least weekly,” said the report titled Pitney Bowes Global E-commerce Study 2018.
It added that consumers in India are shopping online more frequently, and they prefer marketplaces.
“In India, 68% of online shoppers are purchasing from a marketplace, as opposed to a shopping with an online brand,” it added.
The study shows that consumers start to make judgments on the post-purchase experience even before placing their orders. At the same time, consumers are becoming more demanding in their expectations for 'fast and free'.
“Only 47% consider 2-day free shipping ‘fast’. Consumers still rank “free shipping” as more important than “fast shipping.” Globally, 76% of consumers prefer “free” over “fast.” In India, 56% of consumers prefer free shipping over faster delivery,” said Lila Snyder, President of Commerce Services at Pitney Bowes.
As online retailers and marketplaces prepare for record volumes of e-commerce orders this holiday season, the study found that 61% of consumers globally felt let down by their online shopping experience during the last holiday season. This figure is up significantly from 47% in 2017, and 41% in 2016.
Consumers pointed to post-purchase experiences, including items arriving late, expensive shipping, tracking inaccuracies, confusing returns policies, and lost or incorrect items as reasons for their dissatisfaction.
“More and more, consumers are saying that the post-purchase experience – what happens after the order – is every bit as important, if not more, than the shopping experience that occurs before the order,” said Snyder.
Snyder says the uptick in shopping frequency, while welcome news for retailers, is also contributing to the rise in consumer dissatisfaction.
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The report revealed that a bad post-purchase experience can cost retailers, multiple customers. Among millennials, 30% will go public about their poor experience, complaining in an online review or social media post, potentially affecting the buying decisions of their entire social networks.
In the battleground for consumer attention, the study found that marketplaces continue to soak up 60% of online purchases, but it also found the opportunity for retailers who invest in their brand and delight consumers throughout the shopping and post-purchase experience.