Ecommerce players in India are gearing up for the Indian festive season with occasions such as Rakshabandhan, Diwali, Christmas and New Year lined up for the rest of the year. Such events are expected to lift the shopping euphoria in market and guide a surge in the revenue pie of ecommerce companies. Tracking the buzz, a joint study by ASSOCHAM and Deloitte found that every 30 seconds the global ecommerce industry generates over USD 1.2 million revenue.
Interestingly, social media is leading this rush in ecommerce with Facebook contributing USD 5483, Pinterest USD 4504 and Twitter USD 4309 to the ecommerce pie, globally. According to the report, developments in the social media space have made it suitable platform for online sales.
Social media pages provide information regarding new products in the market, user reviews and ratings of the product, recommendations, and information technology products. Social media also fosters communication within consumers while making an online purchase decision.
“Social media also helps e-tailers to build brand awareness by responding to customer queries. Seasonal sales and offers are displayed in social networks to reach maximum number of people. E-tailers have even started to motivate customers with reward points to provide feedback on the product on social networks,” said D S Rawat, Secretary General ASSOCHAM.
According to analysts, product reviews and ratings, as well as product recommendations, were the most popular social commerce features integrated into leading e-commerce sites as of August 2013. Social media sites have links to ecommerce portals integrated on to the platform which carry complete details about the product that will help the potential buyer to make a purchase.
Social media also serves as an engagement platform for the e-tailers as they can connect with the consumers via advertisements, build brand awareness, develop a community of trusted user, spread word-of-mouth and foster customer feedback.
The payment gateways help the e-tailers receive payment instantly and they don’t have to wait for Cash on Delivery payment. Therefore, it reduces the pressure of theft or fraud. Retailers are gradually moving towards payment gateways for improved security related to financial transactions.
The banks as well as the e-tailers are offering different offers like cashback and easy monthly installment (EMI) to encourage customers for digital payments. Further fostering the digital payment drive in the country, platforms such as Paytm and FreeCharge are providing mobile wallets while almost every commercial bank is providing the option to pay online via credit or a debit card.
Digital payments come handy when a transaction is made for big-ticket items such as furniture, electronic and any other white good. The EMI option can be availed by credit card users to pay online upfront for high-value items. Online payments involve security measures such as One Time Password (OTP), CVV in case of debit/credit card, CC Avenue and Tech Process.
Mobile is also emerging as an important tool for digital payments in India. Through technology features such as Near Field Communication, Quick Response code, sound wave or Bluetooth, low energy technologies payments via the mobile have proved to be safe and secure, according to the report. Point of Sale device is enabled to process on-premises payments using these technologies.
Ecommerce platforms are also employing analytical feeds such as basket size analysis, average order value and conversion ratio to provide actionable insight around overall digital customer experience. Such methods are effective in fetching details across all departments such as marketing, sales, customer service, finance and the supply chain for gaining better insights and making strategic business decisions.
On back of advancement in the technological space, ecommerce barons such as Flipkart, Amazon and Jabong garner 50 per cent of their revenues from consumers shopping on their mobile phones. Furthermore, predictive analytics provide better solutions in real-time which enable compelling user experience even on mobile screens.