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95% Online Shoppers Are Attracted To The Cashback Concept [Survey]

95% Online Shoppers Are Attracted To The Cashback Concept [Survey]

According to IAMAI Report 2013 the ecommerce market grew by 33% to Rs.62,967 Crore and is expected to see a further rise over the next five years!

A recent ‘Cashkaro Online Shopping Trends’ survey revealed that more than 60% online shoppers use Discount Coupons and Cashback, While discount coupons registered 33% votes, Cashback received 29% votes with respondents having used the offer recently. What’s more, Indians are also spending big – more than 40%  Indian customers spend over Rs 10,000 online (exclusive of travel) each year and 10% online shoppers declared spending a massive Rs 50,000, on an average each year!

RelatedHow Ecommerce In India Has Made It Big With Deals And Discount Portals

Rohan Bhargava, Co-founder, adding to the Survey said, “With India’s e-commerce market projected to grow manifold in future with improving Internet infrastructure, it will become easier for the country’s nearly 200 million online population to shop on – the – go. With this survey, our belief that India is price sensitive, has been proved again and Indians are now realising the potential of Cashback and Coupons a lot more.”

The ‘Online Shopping Trends Survey’ of more than 3200 online shoppers revealed some other interesting facts:

Lucrative Savings an Impetus

  • Results displayed that 95% online shoppers were attracted to the Cashback concept.
  • 27% of the respondents stated that they use Cashback and Deals because of lucrative savings.
  • Lower Prices came second with 25% and 22% chose ‘Convenience’ as an encouraging factor.
  • 16% said it was the ‘Variety’ online whereas 10% preferred to shop online for the Easy Returns Policy

Hottest categories

  • ‘Electronics’ garnering highest 23% votes. ‘Fashion and Apparel’ came second with 21%
  • ‘Mobile Re-charge’, which is more of a service, registered with 20% and Books with around 11%.
  • Travel Bookings & Ticketing registered 10% and Health & Beauty came next with 9%.

Favourite Online Destination

  • Netty shoppers ranked highest with 26% votes; was positioned at second place with 21%.
  • Fashion & Apparel leader received 20% votes. Competitor Jabong followed suit with 15% popularity.
  • While Paytm received 12% votes, Other Sites received a consolidated 6% votes.

Important Criteria or Concerns when Shopping Online

  • 30% respondents chose ‘price’, whereas 29% said ‘quality of product / service’ is priority.
  • ‘Payment Security’ stood third in the list with 17% and ‘Delivery’ was voted fourth with 15%.
  • ‘After-sales Service’ followed next with 8% and ‘Presentation’ on the site received a marginal 0.71%.

Preferred Payment Method

  • Cash-on-Delivery was the most preferred with 44% respondents followed by Debit Cards rated No.2 with 25%

Hotspots in India

  • Most shoppers were from the larger cities such as Delhi/NCR registering 23%,
  • Mumbai with 12%, Bangalore and Hyderabad with 9% each followed by Kolkata, Chennai, Ahmedabad and Jaipur.

Here is a infographic revealing these facts: - Online Shopping Trends Survey - May 29, 2014

Related: We aim to cross the Rs. 5 Cr mark in cashback paid to members by end 2015, Swati Bhargava, CEO,


Team Inc42

Inc42 Staff

Inc42 is a leading Indian media and information platform, known for its end-to-end coverage of the Indian startup ecosystem. Starting 5 years ago, Inc42 has now become the gateway to the Indian startup ecosystem, having published more than 20,000 stories and touching the lives of more than 20 Million people in India every month.
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