What are the factors driving India’s astounding e-commerce growth in the next two decades?

E-commerce in India has been experiencing remarkable growth, successfully changing the way people transact. The online market space in the country is burgeoning in terms of offerings ranging from travel, movies, hotel reservations and books to the likes of matrimonial services, electronic gadgets, fashion accessories and even groceries. Eyeing this e-retail opportunity across multiple segments, investors have been aggressively funding the e-commerce sector.

We live in a world where we communicate with each other over mobile phones than we do face to face. For keeping in touch, shopping, hailing a cab, or ordering food… everything begins and ends with that smartphone. This growth has been fueled by rapid adoption of technology, improving standards of living, an increasing young population, and economically advancing middle class, besides increasing access to the Internet through broadband and use of smartphones and tablets. E-retailers use web interferences to differentiate themselves from their competitors.

However, though this Indian online market is growing at an exponential rate, but what is the pattern of consumer psyche behind online shopping. An article on ‘Effects of Online Shopping Values and Website Cues on Purchase Behaviour’ from the journal Vikalpa applies the concept of the stimulus–organism–response to explain Indian buyers’ online shopping behaviour, besides examining the importance of design elements in enabling website satisfaction (WS). Using a survey method to test the research model, primary data were collected from five Indian metropolitan cities of Delhi, Mumbai, Kolkata, Bengaluru, and Hyderabad during the months of May and June 2015.

Findings of the article suggest that both internal and external elements have direct influence on WS. As the mediating variable, WS affects purchase intention. This research highlights on why and how ‘satisfaction with website’ matters in the contribution of shopping values and website atmospherics to behavioural outcomes by presenting its mediating role.

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