According to a recent report “Indian eCommerce:Landscape & Trends”, by comScore, India is the 5th largest e-commerce market in terms of visitors to Retail categories. The report reveals that India has 62% penetration in the retail category compared to a global average of 74%. Retail is the fastest growing category, adding over 15 million users in last 12 months.
As per the report, the total internet user base in India grew to 139 million in Dec 2012, a 50% growth from last year. It found that almost 75% of Indian online users are below the age of 35 yrs with a 60/40 Male Female ratio consistent across retail category. At the same time, there’s been an increase in visitor loyalty, averaging 6 visits per month. While the 35-44 yr segment shows highest usage, younger segments add the bulk of users.
The report found that Social Networking sites and search act as entry points to retail sites, showing higher overlap. Besides these, Portals and Entertainment sites are also popular among more than 80 percent retail users. More than 70% users consume Business/Finance, News and web-mail. As per the report, the reach of Online retail segment is 1.5 times more than online travel.
According to the report, most of the top 10 players include horizontals and multi-category retailers. Jabong,11.6 Mn is the most visited retail site followed by Flipkart, 10.7 Mn, Amazon, 10.7 Mn, Myntra, 9.3 Mn and Indiatimes Shopping,6.4 Mn.
As far as top retail sub-categories are concerned, Apparel is the fastest growing sub category registering a 208% growth. While Home Furnishing, Healthcare and Retail- Movies have registered over 100% growth, Electronics and comparison shopping also have reached a sizable audience.
In terms of payment modes, though the Cash/COD continues to dominate, there are early signs of reduction in COD revenues. The average retail transaction size has fallen from $40 to $36 in 3 months. The report found that Retail transactions grew over 2X in 9 months in 2012 and are expected to contribute over 20% this quarter.
The report also found that Product delivery time was one of the top factors influencing a online shoppers decision. While around 42 percent of shoppers have abandoned their shopping carts because of delivery dates, around 1/3rd of shoppers are ready to pay a fee for faster delivery. An easy to understand return policy is another key factor for online shoppers. Almost 63 percent shoppers look at a retailers return policy before making a purchase and around half of shoppers are likely to recommend a retailer with a lenient and easy to understand return policy. The quality of shipping service also plays an important role in a shoppers’ purchase decision.