Online Shopping Trends: eCommerce On The Rise In Emerging Markets

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Almost all developed countries have made the shift to online shopping. Online shopping is proving to be so successful that it’s forcing retail stores to either launch an online shopping portal or wind up business. The developing countries are still emerging markets in eCommerce, but according to the latest data from a survey conducted by Jana, people are relying more and more on online stores. Developing countries are notorious for their distrust on any business conducted digitally, they find the traditional method of in-store shopping more satisfying. But it seems that they’re finding value in online shopping, let’s have a look and analyze the survey data regarding online shopping trends.

The survey included a population sample of 3000, 600 people from 5 different countries to analyze the online shopping trends there.

Online Shopping Trends: Frequency of Buying Products Online

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Online shopping trends showed that almost half of the surveyed population of India, South Africa, Kenya and Nigeria showed an inclination towards buying products from an online source. Whereas half of the interviewed population of Philippines stated that they had never bought a product online.

Reason for Buying Products Online

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Convenience is the leading cause for products online. Technology superstores are still rare in developing countries and it is often quite a problem for the techie to find desired products in the local market. Furthermore, the local market often over-charges on products and the pricing is also very inconsistent. An online shopping store not only gives you the convenience, but also provides an easily accessible way to browse products all being advertised at reasonable and internationally competent rates.

Reason for NOT Buying Online

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Delivery time and faulty/non-existent internet connections are on top of the list as obstacles in online shopping. This seems to be a problem with the whole infrastructure of these countries. Delivery time is dominated by the state of transport, so it might not be the store company’s fault. The same goes for lack of internet accessibility. If these countries focus on developing a large internet infrastructure, it will give a boost to online shopping as well.

Method of Payment

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Cash on delivery is the dominant mode of payment in the emerging markets. The reason is simple: the people don’t trust the companies. They’re still skeptical and are not willing to spend the hard-earned money on an expensive gadget from a company that’ll just vaporize. So they believe in conducting the transaction personally, from the ease of their doorsteps.

Websites Used for Buying Products

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Each country has their own choice of a shopping webstore. But it seems that even websites that advertise second hand used items are booming. Companies like OLX are investing heavily in these developing countries as the people always like to buy cheaper alternatives to the product they’re looking for. Still, these emerging markets present an excellent business opportunity. There is still a blue ocean as far as e-commerce is concerned. The companies usually have strict return policies. A multi-national company like Amazon would do better in economies like India due to the massive customer base. If the companies can give customers a peace of mind regarding the delivery time and easy accessibility, there is a good chance they’ll lead in these markets.