Earlier Business Standard reported that Indian online shoppers spent an average of $224 in 2017, which was less than a tenth of what the average user spent online in the US at $2,237 in the same year.
Indian customers prefer offline to online transactions
The report listed out the prospective Indian customers who avoid making online transactions showing that the majority (56 per cent) of non-transactors are males. 60 per cent of them are from urban areas out of which, 80 per cent are under the age of 34.
Out of 160 million non-transactors or those who left after transacting online once and left, 30 million are categorised as online dropouts. Another 30 million from this lot are ones who come online to research but do not transact.
Another survey showed details of the service transactors. Out of 60 million service transactors, 24 million have purchased a product online but then stopped. the remaining 36 million never moved to purchasing products online.
Moreover, out of the 80 million product transactors, 40 million are customers whose first online purchase was a product. Usage to purchase wait time is 3-4 months.
What made customers prefer offline to online purchases?
The report stated some key points for non-reliance on online purchases.
Lack of trust in getting the right products online: 18 per cent of respondents mentioned as a top concern
No touch and feel for the product/service when brought online
Offline channels more convenient—main point highlighted by 12 per cent of respondents
Grievance redressal (how to return a product, money refund, etc.) also a major concern with 10 per cent of respondents
Who are the non-users?
The report stated that the majority crowd is from rural areas, which is around 65 per cent. For non-users from urban centres, 50 per cent are from urban small towns.
Women form the majority of the non-users