About 45% of people in the 31-54 age group, who also happen to be the highest spenders online, prefer online payment; cash-on-delivery is a popular option for consumers younger than 30 or older than 55, a recent survey issued by Ernst and Young, a market research company, reveals.
As much as 60% of all ecommerce transactions in India are still paid for in cash, higher than 40% in China, 28% in Indonesia and 24% in Brazil, said the EY survey.
Ecommerce in India is still driven by discounts and incentives. About 61% of the respondents said they will stop buying online if discounts cease to exist. The government has announced its initiative to allow 100% foreign direct investment in online marketplaces through the automatic route, livemint.com reports.
In order to build a sustainable business, ecommerce firms should look to offer targeted discounts, develop a hybrid pricing strategy by introducing measures such as introductory pricing and peak pricing, as well as offer bundled products to encourage higher consumption at lower operational costs, the report outlines.
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