Saturday, September 10, 2011

"Trust more important than lower prices"

E-commerce or online shopping is expected to grow by 47% this year. A whole bunch of websites have been increasing marketing spends and most of it is visible in some high frequency TV advertisements.
One of the leading companies in this pace is Flipkart. The co-founders and chief executive officer Sachin Bansal joins from the headquarters of the company in Bengaluru to talk more about online shopping and Flipkart. Here is the edited transcript of his interview. Also watch the accompanying videos.

What has been propelling this huge surge in online shopping? What has changed in the environment resulting in this spurt?
Customer trust has become much better in the whole medium. E-Commerce in the last decade has been suffering from a lack of customer, which has changed now. More and more e-commerce players with better services, better product selection and better prices are driving the market.

Low prices of the books category are one of the key attractions for people on Flipkart. Are low prices not the biggest driver for Flipkart’s sales?
Low prices are secondary to trust. If the consumers trust in your service is low, low prices will not help you much. We did a lot of experiment with prices earlier on when we started.
Most of the experiments and research showed that the first hurdle for consumers was trust and after that, the consumer thinks about prices or selection.
We are giving out three messages to our customers right now – one, helping with any problem related to the products; two, willing for a replacement and promising cash on delivery and card on delivery for customers; and third, providing customers with original product and a warranty.
Here, customers don’t have to pay upfront and then worry about the product not being delivered. When we combine all these factors, we see a very smooth shopping experience online as well as offline. All these factors would lead to growth for the company.

Full interview here Moneycontrol

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