A Deep Dive Into The Shift of Consumer Behaviour in Purchasing A large portion of consumers spend between INR 500 and INR 2000 monthly on online purchases

e-Commerce has dramatically reshaped the shopping landscape in India, offering consumers unprecedented access to a wide variety of products from the comfort of their homes. As Internet penetration deepens and smartphone usage becomes ubiquitous, Indian consumers are increasingly turning to online platforms for their shopping needs. A recent consumer report prepared by PIF titled, "Assessing the net impact of e-Commerce on employment and consumer welfare in India" sheds light on the intriguing insights into the growing dominance of e-Commerce in the country.

The report reveals that a significant majority of consumers spend considerable time on e-Commerce platforms. Over 90 per cent of respondents spend more than an hour per week on the internet, with nearly 40 per cent dedicating over 10 hours weekly to online activities, much of which involves browsing e-Commerce sites. Notably, more than half of the respondents spend upwards of two hours per week shopping online, with a marked tendency among young adults aged 18 to 25, particularly those from Tier 3 cities.

In terms of expenditure, a large portion of consumers spend between INR 500 and INR 2000 monthly on online purchases. Interestingly, while men spend more time on these platforms, women are more likely to subscribe to paid services and make frequent purchases. This trend is particularly pronounced in Tier 3 cities, where consumers exhibit higher spending levels compared to their counterparts in Tier 1 and Tier 2 cities.

Popular platforms and shopping preferences

Flipkart emerges as the most popular e-Commerce platform in India, followed closely by Meesho, Amazon and Myntra. These platforms are especially favoured in smaller cities, where Flipkart dominates online sales. While Flipkart and Amazon are more popular among men, Meesho has a stronger following among women, with over 60 per cent of female respondents reporting frequent use of the platform.

The preference for specific platforms also varies by income level. Consumers with annual incomes between INR 3 lakh and INR 12 lakh show similar platform preferences, while higher-income individuals tend to avoid platforms like Myntra and Snapdeal. Social media platforms like Instagram and WhatsApp also play a role in e-Commerce, with a notable number of consumers using these channels for purchases.

Traditional over modern shopping

Despite the rise of e-Commerce, traditional brick-and-mortar stores continue to hold their ground, especially for frequent purchases like groceries and fast moving consumer goods (FMCGs). The report highlights that while high-frequency purchases are still more common in physical stores, consumers increasingly turn to online platforms for planned and bulk purchases. Categories like apparel, electronics, and personal care products see higher online engagement, driven by the convenience and variety offered by e-Commerce platforms.

The covid-19 pandemic accelerated the shift to online shopping, with many consumers who started buying online during the pandemic continuing the practice post-pandemic. This trend is particularly strong in categories such as clothing, electronics, and groceries, where the convenience and safety of online shopping became crucial during lockdowns.