India might have a growing internet population but it is not transforming into online shopping. In the last 12 months, around 54 million users did not purchase anything after their first purchase.
This has cost e-commerce business about loss of $50 Bn, according to a combined research by Google, Bain $ Company and Omidyar Network.
In those 54 million, most of them are first time online shoppers lower income groups who are more comfortable with vernacular languages than English.
Among the major reasons for dropout are language barrier and complex user interface, outlined the nine-month research. The user interface for sites and apps is mostly in English. This rules out a very large number of new internet users.
According to the research, the absence of touch and feel experience in online, is a major reason why so many Indians became digital dropouts.
It will be huge challenge for the e-tailers to get them back. It might take up to five years to get these internet users back to regular online shopping.
According to experts, many of first time users are unaware of things present online on various sites. They can’t relate to sites. They offer around $50 billion of realisable e-commerce opportunity.
At present, in India merely 28 per cent (50 Mn) are connected online. This is a huge challenge for e-tailers. Most people have not done actual transactions online. Among 50 million active online shoppers in India, women are almost half the number. In rural areas still, women do not go online or shop online.
E-tailers need to find a way to connect to the rural population, which offers a huge sum of business, the report added.
The development was first reported by ET.