What Motivates People Buy Things Online?

During the last couple of years, e-commerce has started to make its charisma felt in the shopping habits of Indian consumer. Jewellery, books, electronics, travel, furniture, food and health, sports goods, fashion and apparel- name anything and you have an online shop for that. Indian consumer, who had just realized the pleasures of shopping in malls, is now opting for shopping from the comfort of his home and office.

Studies reveal 10 million shoppers went for online purchase in the year 2011(excluding online travel) and the value of transactions was estimated to be half a billion. However, this is still petite when we compare India’s total consumption. Undoubtedly, these figures will improve exponentially as more people will come online and operational infrastructure like logistics and payment modes will get better.

Profile of e-shoppers in India

Couple of years back, there was an ambiguity about how much profit would be created through e-commerce business. The trend was considered as premature for Indian consumer market. However, with the indications of rise of e-commerce in Indian metros, the apprehensions were laid down to rest. According to a study by ASSOCHAM, Delhi’s e-shoppers showed 10% increase in e-shopping. Cities like Chennai, Bangalore and Kolkata are witnessing a steady growth in this upcoming trend in the market. Figures show that 28% of regular customers are in the age group of 18-25 years, 48% in 26-35 years, 15% in 36-45 years of age group and 9% consumers are 45-60 years of age. Studies also reveal that 88% of online consumers are male whereas 12% of them are female. The quick development of e-commerce is thrusting entrepreneurs to implement new business strategies for online customers.

Factors which motivate the e-shoppers in India

Various factors contribute to this shift in buying habits of Indian customers:

· Changing lifestyle: Unlike earlier times, Indian customers are now willing to experiment with innovative ways of spending money. For most of the Indians, mainly the escalating middle class population which has witnessed a giant leap in their disposable incomes, the convenience of online shopping is gradually becoming irresistible.

· Convenience and quality products: Indian consumer is inclined towards the shopping with the comfort of sitting at home or office. Typically big brands do not have their outlets in small towns and even if they have, variety and stocks are very limited. With the use of internet, shoppers in small towns now have freedom to make decision pertaining to the choice of brands, deals and quality of product.

· Security and convenient payment service: Unlike earlier days, customers can now trust online portals with their payment. The motivating factors for online customers are safe, fast and convenient transaction services provide by online portals.

· Advanced Internet usage: Large number of internet users with the added advantage of 3G services in our country has led to the growth of online consumers in larger sections of the society. Interestingly, Internet has dissolved the differences between small towns and metros. It has enabled small town buyers to have access to good brands and quality products which was once a privilege only for shoppers from big cities.

· Improved customer care services: The quality customer services motivate Indian consumers to buy products and services through online portals. Now-a-days we have more merchants offering 24 hour customer care services, free returns and loyalty programmes for their customers.