Friday Explorer: eCommerce

A virtual extension of the offline Commerce, eCommerce is –

‘Buying and selling of goods and services’

conducted over an Electronic medium

eCommerce is the SALES part of a larger system called eBusiness

eBusiness

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WebsiteSocial Media

Presence

eCommerce

India is on the verge of an eCommerce boom

Source: ASSOCHAM report

− eCommerce industry is valued at $12.5 Bn as on 2013

− It has a staggering growth rate of 85% in 2013

- Every 3 out of 5 internet users in India shop online

- India has a young eCommerce audience with 90% in the age group of 18-35 years

Current eCommerce Scenario

Source: ASSOCHAM report & KPMG Report

- India will have World’s 2nd largest user base in June 2014 with 243 Million users surpassing U.S.

- eCommerce to contribute around 4% to GDP in India by 2020

- The sector will generate 1.5 Million jobs by 2020

- eCommerce is pegged to be worth $56 Billion by 2023

- And will control 6.5% of the total retail market by 2023

Future of eCommerce in India

Different eCommerce models

B2C B2B C2C C2B

eCommerce Transaction Process

Payment Gateway Process flow

40% of digital transactions are abandoned at the payment stage due to doubts that credit card details

are secure

Growing influence of M-Commerce in India

Mobile internet users in India to reach 185 million by June 2014

50% of all active Internet users access it via Mobile

Source: IAMAI, Jan 2014

E-tailing or Online retailing is driving the Ecommerce Industry

e-Commerce

e-Travel e-Tailing

Inventory Model

Marketplace Model

e-Classifieds Digital Downloads

How often people shop Online in India?

75% of respondents buy online at least once a month

Source: Baggout.com, Online Shopping Trends India Survey

2/3rd of online shoppers in India buy Clothes and Accessories

Electronics is the 2nd biggest e-tailing category with 62%

Why do people Shop online?

81% of respondents shop online for Discounts and Cashbacks

What stops online shoppers from buying online?

55% online shoppers fear low quality/fake products while buying online andan equal number miss checking the look and feel while buying the product

Does friend recommendation influence online buying?

55% online shoppers fear low quality/fake products while buying online andan equal number miss checking the look and feel while buying the product

Do people want to see social recommendations while shopping online?

Over 2/3rd of respondents would like to see personalized shopping recommendations based on what their friends are buying

Factors driving

E-tailingin India

For Consumers

Coupons Sites Deal Aggregator Sites

Price Comparison

Sites

19 percent of consumers leave a store and look for lower prices online

2 out of 5 women have searched for a product because of an online coupon.

For Retailers

Online Marketplaces

eCommerce Platforms

GOSF

A Google's initiative, ‘Great Online Shopping Festival’ is

India's version of Cyber Monday of the west

GOSF 2013 reached 16 million Indian shoppers in 4 days

The GOSF website received 2Mn unique visitors with 60%

1st time buyers

62% of shoppers in the age group of 18-34 years with 50%

women

The 4 day event saw a conversion rate of 10%

Take-away for Advertisers and Marketers…

10 essentials for an Ecommerce portal in India…

1. Offer enticing Deals & Offers

2. Maximum details of Products/Services

3. 360° viewing

4. Quick load time

5. Customer support numbers & Chat support

6. Social Media Links

7. Cash on Delivery / Cash before Delivery option

8. Secure Payment System: SSL certificates, Trust badges

9. Flexible Return policy

10.  Stock Meter

Usability + Visibility + Conversion = Successful eCommerce business

Increase Usability

1.  Use Beautiful Photography, 360-degree view for your

Products and Services

2. Merchandize Your Products and Services

3. Make Your Website Easy to Navigate

4. Deliver One of a Kind Customer Services

Increase Visibility

1. Use Pay Per Click Advertising as a Balance to Search Engine Optimization

2. Pay Per Click Advertising: Use it to balance Search Engine Optimization

3. Integrate Social Media Sharing into Your Store

4. Build a list of loyal customers and offer regular discounts, offers & communication via E-mail Marketing

Increase Conversions

1. Master A/B testing to find out what works best on your website

2. Focus on the right copy

3. Offer maximum payment options

4. Every Customer is a King

5. Analyze Conversions

Key Learning

‘Personalization’ is the key to eCommerce

Geo-Targeted offers is the need of the hour

Mobile shopping is the future of eCommerce

Enable customer friendly experiences with enhanced filtering and

searching

Create an eCommerce experience for the consumer which is:

Mobile, Social and Visual

A customer is weighed in terms of it’s ‘Lifetime’ value

Very soon Brick and Mortar stores will be merely ‘SHOW’rooms with

purchases happening online