Amazon most popular e-com site with highest orders from Bengaluru: Survey

Products reviews by influencers play a large role in driving online retail among gen z and millennials

A recent consumer study conducted by CyberMedia Research (CMR), a technology market research, found that Amazon emerged as the most preferred e-commerce platform at 73 per cent, closely followed by Flipkart (70 per cent), Meesho (30 per cent), and JioMart (20 per cent) among e-commerce websites.

The "CMR Consumer Aspirations and eCommerce in Bharat" was conducted in May 2023 with 3006 consumers from Delhi, Mumbai, Bangalore, Bhubaneswar, Nagpur, Coimbatore, Lucknow and Guwahati.

Key Highlights:

• Average money spent online in the last six months by Tier II buyers (Rs 20,100) is on par with Tier I buyers (Rs 21,700).
• Consumers spend an average of two hours and 25 minutes per week shopping online, spending nearly 16 per cent of their income
• >55 per cent consumers from Tier II cities purchase tech products online, with 62 per cent prioritising 5G phones.
• Smartphone premiumisation is on rise, with 24 per cent buying premium smartphone online (>Rs 20,000).
• Amazon is preferred for its attractive prices (54 per cent), easy returns (52 per cent), brand trust (40 per cent) and nationwide convenience (38 per cent).

The study also found that consumer satisfaction rates for these sites were reportedly at 63 per cent for Amazon, 52 per cent for Flipkart, and 46 per cent for Reliance Digital.

 

Amazon's popularity appears to stem from attractive prices (54 per cent), an easy return/exchange process (52 per cent), brand trust (40 per cent), and the convenience of shopping across various pin codes in India (38 per cent).

Also read: The top 6 online furniture ecommerce sites in India

Over the past six months, 73 per cent of consumers from both Tier II and Tier I cities have made purchases on Amazon.

In the release of this survey, Prabhu Ram, the head of industry intelligence group at CMR, stated, "The wide range of choices, convenience, and comfort provided by e-commerce has empowered emerging young consumers in Aspirational India (Tier II, Tier III cities and beyond) to shop more online, and to fulfil their aspirations. Major players like Amazon and Flipkart, niche market players such as Meesho and others, and conglomerates like Tata and Reliance are fiercely competing in these markets."

Time spent on online shopping

The study found that these consumers spend an average of 2 hours and 25 minutes per week shopping online, spending approximately 16 per cent of their income.

Tier II cities such as Guwahati, Coimbatore, and Lucknow stand out for the amount of time their residents dedicate to e-commerce. Among Tier I cities, Bengaluru leads the pack with a weekly average of 4 hours and 2 minutes spent on online shopping.

The study also revealed that women entrepreneurs and others spend an impressive 149 hours per year shopping on e-commerce platforms. Among these individuals, 29 per cent have purchased smartphones in the price range of Rs 15,000 to 20,000 online, the intent being to find the right value for their money.

The study also revealed that Gen Z tends to shop online more frequently (51 per cent) than Millennials (47 per cent).

Clothing and electronics are the most popular items

The study revealed that 62 per cent of consumers purchase clothing and accessories online, while 54 per cent opt for electronics and electronic gadgets.

In Nagpur, a majority of 81 per cent of respondents stated that they preferred purchasing electronics and electronic gadgets. Coimbatore and Bhubaneswar exhibit similar trends, with 62 per cent of their online shoppers choosing electronics and electronic gadgets.

The top three electronic gadgets purchased online are smartphones at 37 per cent, headphones/earphones at 23 per cent, and smartbands/smartwatches at 21 per cent.

Average money spent online

The CMR study that was conducted in May 2023 showed that over the past six months, two out of three consumers had made online purchases worth up to Rs 20,000.

The average amount spent on online purchases by Tier II buyers (Rs 20,100) is nearly equivalent to that of Tier I buyers (Rs 21,700), indicating the growing importance of e-commerce across different city tiers.

Among the Tier II cities, Mumbai leads with the highest average spend of Rs 24,200, closely followed by Nagpur and Coimbatore, which show similar upward trends with an average spend of Rs 21,600.

For smartphones, 24 per cent of buyers choose devices priced above Rs 20,000 compared to only two per cent who opt for affordable smartphones priced below Rs 7,000. This indicated a growing demand for premium smartphones.

Wireless earphones that are priced up to Rs 5,000 are the most preferred at 61 per cent.

However, among home appliances, consumers did not show much preference for premium products. 16 per cent of consumers opted for premium models of washing machines priced above Rs 30,000. 27 per cent of buyers prefer premium TVs with a display size of 48 inches and above, priced above Rs 30,000, with LED TVs are the top choice at 70 per cent, followed by QLED TVs at 64 per cent and OLED TVs at 57 per cent. 20 per cent of consumers preferred premium refrigerators priced above Rs 30,000, and 29 per cent of buyers showed a preference for premium air conditioners priced above Rs 60,000.

What makes online shopping so popular?

The primary triggers for online shopping identified are attractive prices (57 per cent), convenient return and exchange processes (57 per cent), and "irresistible offers" (49 per cent). These factors play a significant role in motivating consumers to make online purchases.

Furthermore, reviews and influencers play a large role in consumer purchasing decisions. 86 per cent of online shoppers rely on reviews from influencers or publishers to guide their purchase choices.

The study also revealed that men appeared to be more attentive to influencers, with 90 per cent following them diligently, compared to 80 per cent of females.

Sugandha Srivastava, senior manager of the industry consulting group at CMR, surmised that "In a large, diverse market such as India, both online and offline retail will continue to co-exist."

"As consumers continue to gain digital fluency, the e-commerce boom will also significantly benefit small business owners as well. This will contribute to the rise of India's trillion-dollar internet economy," Srivastava added.