Product Reviews and Secure Payments Drive Online Consumer Trust for D2C Brands
Product Reviews and Secure Payments Drive Online Consumer Trust for D2C Brands

More than 70 percent of consumers shop from D2C brands because of a favorable user experience.

The latest survey by Instamojo outlines various trust-building strategies for D2C brands to build long-lasting and profitable consumer relationships. While 55 percent of respondents said they shop online at least once a month, 78 percent of the respondents said they are still hesitant to shop online because of the inability to physically assess the product.

The leading factors for online shopping favourability were evenly distributed between better prices, discounts and offers, comfort and convenience as well as a wider variety of options.

From the stage of discovery to payment, the leading reasons that gave consumers the momentum to move forward were intent and reviews.

  • Intent – 39 percent of consumers completed the purchase because they felt the product would fulfill their need
  • Reviews – 49 percent of buyers completed the purchase because there were enough reviews of the product

consumer behavior

In the consumer journey, the biggest reasons for dropouts and cart abandonments were attributed to:

  • 71 percent of the consumers said a website with a bad user experience is a key reason for cart abandonment
  • 66 percent of respondents said poor reviews of the product are a big reason for dropping out
  • Over 50 percent of consumers said a payment platform that is not secure or recognizable  will result in dropouts and cart abandonment

“Building trust is the most important precursor to nurturing sustainable customer-brand relationships. Today, e-commerce transactions are at an all-time high, however, for independent businesses to grow online, there needs to be a deeper understanding of what consumers want and how businesses can serve their needs in the most effective manner without burning cash. As the survey reveals, 55 percent of consumers shop online at least once a month. This frequency denotes their comfort levels for buying products and services online. Therefore, the focus needs be on providing optimal online user experience to ensure purchase closures and customer satisfaction,” said Sampad Swain, CEO and Co-Founder, Instamojo.

He further added, “For independent DTC online sellers, recognizing what the consumer wants and giving it to them in the simplest manner possible is the ultimate magic potion. This is a great way to build successful eCommerce brands and transparent long-term relationships with customers. As we witness the online shift of DTC businesses, we aim to support the growth journey of more than 7,00,000 small businesses over the next year, as they strive towards becoming digitally independent.”

From the nano entrepreneur’s perspective, it comes as no surprise that they face an even stronger ordeal when building an e-commerce brand from scratch.

consumer behavior

The top four factors influencing consumer trust on e-commerce platforms according to the survey include:

  • Authenticity: Respondents specified that an elaborate ‘About Us’ page, describing product details with business address, and references to key team members are crucial.
  • Professionalism: A challenge for these nano business owners is to adopt professional and systematic elements, such as assigning a proper order number, giving an approximate delivery window, and making returns/refunds very transparent.
  • Digital Literacy: Lack of awareness of the various online payment gateways/options that are widely used is one of the biggest hindrances to online sales in developing economies.
  • Payment Gateways: There needs to be more efficient customer support for small businesses. Small businesses need immediate grievance redress if payment is stuck at the buyer's end or the receipt does not arrive from the seller's end in a timely manner.

Instamojo offers unique Do-It-For-Me solutions. If a business does not want to build its store or is not comfortable with DIY services, the Instamojo expert team builds the store with hand-picked features that would support the business' growth and help them scale.

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