Convenience will soon take over pricing in Indian Ecommerce says Morgan Stanley

The Indian consumers are rapidly advancing towards adopting technology. E-Commerce has become a key driver to create new markets in erstwhile unreachable geographies. Improved data connectivity in both urban and rural parts of India, has further fostered e-tailing in India. As per Morgan Stanley, the online market after 2019 will be driven by convenience as compared to the today’s scenario where pricing plays the pivotal role. This change will help the e-commerce firms to make more money.

The merchant banker’s research arm interpreted in its recent report that Internet espousal has recently occurred in India with fewer than 70 per cent of total internet users in India having less than five years of experience. Ecommerce may be driven by various factors as that of new age technology, convenience, higher adoption rates and larger reach but price plays a dominant role in luring the customers. The AlphaWise survey in 2015 discovered that 70-75 per cent of online shoppers with fewer than two years of history on the Internet got engrossed to online shopping due to attractive prices.

Morgan Stanley, the global financial services firm believes that 2019 will be the year when convenience could outstrip pricing within Indian Online shoppers. The firm believes that the more mature users preferred convenience factor of online shopping and their survey had further confirmed that this factor will surpass the pricing factor which plays a prime role for online shoppers with over five years of Net history. This American multinational firm further speculated that the section of internet users with the usage history of less than five years will stay high at over 70 per cent for the next couple of years, implying pricing could be of dominant importance to them. But by 2019 and beyond, more than 40 per cent of India’s Internet user base would have been using the Internet for over five years, and that is when convenience is likely to outshine pricing. This will also be the time when e-commerce companies can tap in more profits and encounter the enhancement in price metrics.

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