Why do not all internet users trust online transactions?
According to the findings, it takes three to four months for a typical internet user to make the first online transaction.BY Shwetha Satyanarayan | Aug 22, 2018 | comments ( 0 ) |
If you have more often than not looked for a product on ecommerce marketplace, liked it, moved it to the cart and left the website, then alas, you are one among the new age buyers’ tribe that usually follows this retail routine. And you are not alone in this shopping sojourn. For, only 40 per cent of the digital buyers in India complete an online transaction, suggests the report ‘Unlocking Digital for Bharat: $50 billion opportunity’, by Bain&Company, Google and Omdiyar Network.
According to the report, 390 millioninternet users transact online in the country. However, 60 per cent of them or 230 million to be precise do the complete the research online, engage in the content and finally turn to offline channels to complete the transactions.
Interestingly, it highlights that India on an average, annually adds up to 40 million new internet users, but the number of people doing online transactions is still considerably low.
Further, talking about the huge opportunities for digital transactions, it says thatmore than 500 million new internet users and shoppers are expected to grow, but there are several barriers to cross to reach the big number.
Speaking about the untapped digital opportunities for commerce, Vikas Agnihotri, Industry Director, Google India, said, “With the user growth and adoption story on a fast growing trajectory, there is a need to grow consumer confidence to make digital a medium of choice for services and transactions for users across the country.”
Journey of trust
Although internet penetration has been growing at exponentially in India with thrust to digital payments; in a big revelation, the report suggests that not all internet users trust digital transactions.
According to the findings, it takes three to four months for a typical internet user to make the first online transaction, which makes it very critical for companies to retain customers through content. The trust in the channel increases as the user spends more time on the internet.
“Among the users, only those who have been in the internet for more than two years make online digital transactions. Even here, it is as much as 61 per cent of them who transact online and not all who have used internet for two years. Also, as less as 27 per cent among the new users make a choice to make online transactions,” the report suggests.
Suggesting that the onus is now on the entrepreneur to build the trust in online consumers, Siddharth Nautiyal, Investment Partner, Omdiyar Network, says, “The key to build trust once a user comes online is through content engagement. Once engaged, the users that spend more time tend to transact more. The key is to build solutions aimed at those who are coming online over the next five years. Entrepreneurs must focus on long-term, sustainable solutions that put trust and engagement on front.”
Unlocking new users
The report suggests that apart from creating access and awareness, retailers should also increase user engagement through locally relevant solutions. “Building locally relevant solutions across content and cases to drive user engagement will unlock as much as 130 million new internet users and also increasing the internet penetrations in rural areas,” it says.
The industry experts suggest that retailers should increase user trust across touchpoints. “Through omni-channel presence, reinforcing product quality in brand messaging and addressing concerns on product returns, businesses can build trust,” they say.
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