According to a 2010 Nielsen report to examine global online shopping trends, India is expected to emerge as the next hotspot for ecommerce. Although the online shopping activity in India is significantly lower than that in the US and European nations, it is expected to boom by 2012. With internet penetration increasing in the country, coupled with a fast growing economy, India is expected to witness a paradigm shift from shopping in brick and mortar markets to virtual webshops.
Here are some of the key findings of the report that provide an insight into the upcoming online shopping space in India:
- More than 25% of the respondents spend approximately 11% of their monthly income for online purchases.
- Books, music and movie videos are the hottest products being sold in India online. In the services section, hotel or restaurant bookings, travel reservations, computer repairs and health services lead the chart.
- More than 50% of internet users rely on recommendations through social networking sites to buy products or services online.
- Approximately 29% of the online buyers read expert and user reviews about a product or service before making a purchase.
The Nielsen report is highly important for retail businesses as it defines the areas where they should focus to increase online sales. However, one fact which is loud and clear from this report is that the online shopping industry is set to boom. It is time for retailers to start investing in alternative routes to selling products and services to be able to take a bite of the large online shopping pie.
Online Shopping Websites that can Drive Sales
Retailers can employ a two-way approach to attract a large percentage of internet buyers. The basic approach is to create an ecommerce website and set up an online store for your products and services. An ecommerce website displays products or service packages of the retailer in a catalogue form. Internet buyers can browse through the catalogue and purchase products or services by making payment online through authorized gateways.
Another approach is to use dedicated online shopping websites to drive sales. Such websites can be categorized in different classes for better understanding:
B2B Marketplaces
B2B marketplaces belong to the internet era when social networking was a distant concept. These websites allow businesses to search for service providers online. The idea of B2B marketplaces became a popular phenomenon as became great marketing tools for SMEs to export products or services. IndiaMART and Tradekey are the most successful B2B marketplaces in India.
Ecommerce Websites
Here ecommerce websites mean online shopping stores that allow an internet buyer to choose from different brands or service providers. Theoretically, the popularity of online shopping is credited to the development of such ecommerce websites (Amazon.com and eBay.com). You can enroll as a seller with these websites and post your products for buyers. Some of the most popular ecommerce websites in India are Amazon.com, Sify.com, Naaptol.com, eBay.in and Indiaplaza.in. You can get listed on these websites for a range of products, such as books, electronics, home décor, clothing, hardware, auto parts, health products and sports equipment.
Online Directories
A listing in a popular online directory can drive qualified leads. JustDial and Clickindia are two of the most popular online search directories in India. Since the businesses are listed based on location, there is a higher probability of attracting local customers with these online directories. Both Clickindia and JustDial allow free registration and let you create a profile page. Optimize the profile page for product and service descriptions. Add contact details, photographs and videos to drive traffic from these websites.
Community Shopping Platforms
Community shopping has become a rage among internet buyers in the US and European countries. The credit goes to the excitement created by Groupon.com. These websites collaborate with businesses to sell discount coupons for services or products to internet buyers. Every coupon is considered an individual deal and requires a minimum number of buyers to make it active. Once the minimum number is achieved, the deal becomes active and discount coupons are sent to buyers online. In India, the concept is pioneered by Dealsandyou.com and SoSasta.com (powered by Groupon).
Retailers can strike a deal with such websites to sell discount coupons for their products and services. This will help build brand identity and can attract repeat customers.
Based on the products and services on sale, retailers should employ both the approaches to drive sales through the online channel. It is also essential to focus on other pointers mentioned in the Nielsen report, such as social media optimization and products or services reviews to convert to maximize online sales.
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