Online fashion retail is one of the biggest drivers of Indian e-commerce. Research conducted by a major ecommerce player saw the emergence of 60 million online fashion shoppers in a pool of 200 million online shoppers. The dominance of online shopping will continue to expand and is projected to grow to $14Bn by 2020.
Thanks to the prevalence of smartphones and well-designed apps, many users are continuously in fashion browsing mode. In between meetings or during their commute, people are ceaselessly searching for new designs and better deals. Fashion retailers encourage such engagement by offering flash sales, new style notifications and more. Such engagementleads to increased impulse purchases, whichin turn drives more traffic and GMV for online merchants.
When users are ready to act on their impulse, merchants have to make sure that their platforms can provide instant gratification,without any friction. By providing a smooth and superior experience consistently, merchants can build loyalty and retention. Sadly, such well-crafted experiences come undone on the checkout page. The friction and number of steps involved in paying online mean high rates of payment failure, and even higher cart abandonment rates. Whether it’s your network dropping or an OTP that’s not coming through, online retailers currently make do with extremely high drop off rates. But some merchants are solving this by borrowing from a long accepted concept in the informal economy – that of a khata.
Imagine a situation where a user reaches the checkout page, andinstead of going through a multi-step process of making a payment, the user just has to tap once to place the order. No payment failures, insufficient wallet balances or delayed OTPs to contend with. This is what platforms like Simpl enable for merchants. Simpl gives users their own digital ‘khata’. They can skip paying every time they buy. Instead, all the purchases are added up to one bill, which they can pay once in 15 days.
Online fashion merchants like Nykaa, StalkBuyLove, Fynd, The Label Life, Henry & Smith, The Bag Talk, Redesynand Purplle have already tied up with alternate payment modes like Simpl. By shortening the checkout funnel, cart conversions improve dramatically, and merchants can build loyalty with their regular users. By separating the buying from the paying, they’re giving their customers a superior experience, while allowing them to truly act on their impulses.
The article has been penned down by Chaitra Chidanand, President & Co-Founder, Simpl