Growth of Indian e-commerce industry by 2016

 

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With over 50% of total online orders coming from mobile, its quite evident that by the end of 2015 transactions from mobile devices will far exceed those from desktops. The leading online fashion retailer, Myntra has already announced its plans to convert into a mobile-only marketplace by the end of the year. Snapdeal receives around 65% of its orders from mobile and expect it to increase to 90% by the end of this year. E-commerce merchants just cannot afford to overlook these figures and need to embrace it at the earliest.

It’s true that e-commerce is still growing in urban markets but exponential growth is coming from Tier II & Tier III cities. While we are still struggling to provide internet connections to a billion laptops, we have successfully managed to serve data on one billion mobile phones. For many consumers in tier II and III cities, it is the only device that helps them connect with the rest of the world.

Thanks to Android based platforms, even the low-income segment is able to afford a smartphone which acts as an internet device. According to IAMAI, 65% of internet users are e-commerce customers. E-commerce has made it very easy for small town consumers to access and demand branded products.

Cash-on-delivery has opened up an all new array of opportunities for e-commerce in India. The small town and rural consumer who does not have a credit card can now easily pay for online shopping with cash-on-delivery.

Hence, its no surprise that India is one of the largest mobile commerce markets in the world. Smaller merchants are following the footsteps of giants such as Snapdeal, Flipkart and Myntra and adopting mobile in a big way.

Mobile shoppers are perceived to be very demanding and impatient. 57% of users won’t recommend and 40% will run to a competitor in case of a bad shopping experience on mobile.

They will not wait for more than 4 seconds for a page to load, and the conversion rate goes down by 7% for every second delay in page load time.

Needless to say mobile shoppers are very hard to please and businesses need to undertake special efforts to please them. Reduced page load time can work wonders for almost all e-commerce sites. Today’s consumer is highly sensitive to page load times and tend to care more about speed than the beauty of the site. Speed tends to have a long term and persistent effect of consumer behavior.

The actual push to mobile shopping has come from the customer side and not from the retailers side. The consumers expect everything to be mobile ready and tend to form perceptions about the brands on the basis of their experience.

To tackle the issues of accessing a website on mobile many retailers have developed interactive mobile apps. These apps have proved to ensure a better experience and even increased conversion rates for many retailers. A well-built mobile app targeted towards the right audience can achieve outstanding levels of engagement.

Mobile platforms have the unique ability to integrate seamlessly with some of smartphone’s inbuilt features like Click-to-Call, Barcode scan, GPS, etc. Taking advantage of these mobile only features can lead to some really cool functionality designed to enhance the user experience.

Mobile has also opened up new possibilities for engagement that were once closed to merchants. By analyzing customer activity on the app, retailers can send targeted push notifications, in-app notifications and email with product recommendations. A well targeted mobile marketing campaign can lead to unprecedented amount of user engagement.

Online merchants are well aware of the “go mobile or go home” e-commerce landscape, particularly in India. However they are still struggling to understand and implement the concept. It means doing everything it takes to acquire, engage and retain mobile customers.

Source: DB Unmetro