The popularity of online shopping is undebatable. With close to329.1 million people projected to buy goods and services online in India by 2020, it has undoubtedly transformed the way we all shop. However, in spite of the convenience, the low operational costs, and the improved quality of service that eCommerce offers, it still lags behind in offering an experience similar to in-store shopping – a kind of social experience that binds people with similar tastes, and brand loyalties together. That’s where social media or social commerce has started playing a role, with popular brands displaying products on popular social media sites like Facebook and Twitter, and incorporating a “buy now” button. The result? More brand awareness, more people talking about your product/company, more peer recommendations and views, and, therefore, more sales.
Issues with Social Commerce
As social commerce gains popularity across the world, customers expect payment and delivery of goods to be easy, efficient, and safe. But the scepticism and nervousness around social media payments and the issues associated with them are widespread:
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Security: Stolen or hacked cards are often used to make multiple purchases, wanting products to be shipped internationally or in bulk. As customers enter their card details for an online purchase, what is the guarantee that card details will not be misused?
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Customer Support: For customers who are new to online shopping, or have just got their first credit card often err while entering the card details. If a payment does not go through, how easy is it to get in touch with a grievance redressal team, and how soon does the issue get resolved?
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Privacy Concerns: For many consumers, social media means less privacy. They are worried about their personal details and date being captured and used for profit. It will need a lot more investment in education and infrastructure to assuage these concerns.
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Connectivity Issues: Although the quality of Internet services has improved drastically, there are rare occasions where customers face connectivity issues just as they are making an online payment. What happens to an online purchase if there is intermittent network connectivity, or if the payment gateway is loaded?
The Preference for Cash-on-Delivery
With India predominantly being a cash economy, customers still prefer to buy products using the cash-on-delivery or COD payment option. Other payment modes like Net Banking, Credit & Debit Cards and e-wallets combined contribute to a meagre percentage. The reasons for this could be many:
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Fear of online payment not going through
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Internet connectivity issues
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Lack of trust in social payments or lack of trust in a brand
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Fear of not receiving the product delivery
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The joy in ordering anything, especially with a low bank balance
