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Unmasking the #1 Reason Behind the Failure of Indian E-commerce Sites

"Discover why Indian e-commerce sites struggle amidst growth, learn the top cause hindering their success, and how Cpluz helps boost online business performance"


3 min readCpluz

Unmasking the #1 Reason Behind the Failure of Indian E-commerce Sites

Indian e-commerce has grown exponentially over the last two decades, a significant milestone of having crossed over $100 billion in sales – almost a quarter of the country's retail sales.

However, despite this incredible growth, many Indian e-commerce sites still turn out to be flops, leaving millions of investors with significant financial losses. The scenario is quite disconcerting, given the high customer traffic on e-commerce sites coupled with the ever-increasing purchasing power of the Indian consumers.

So, what is the main reason behind the failure of Indian e-commerce sites? In this article, we will delve into the crucial aspects that most entrepreneurs and business owners fail to address – and find out the #1 reason that is turning their dreams into nightmares.

Substandard User Experience: The Primary Culprit

As per a report by Baymard Institute, a staggering 69.57% of e-commerce websites across the world fail to meet the bench-mark for checkout usability. Similarly, an ePaper and Bangalore-based Indian Institute of Management (IIM-B) report found that just 10% of Indian e-commerce websites passed the five critical usability tests that are imperative for a seamless online shopping experience.

Indeed, user experience is an overarching term covering aspects such as website ease of use, website navigation, and site search. Many Indian e-commerce sites lack in this crucial department, displaying a meagre attention towards understanding the psychology of their customers.

Despite being aware of the concept of a "customer-centric" approach, many Indian e-commerce businesses neglect this crucial aspect, ultimately leading to customer frustration as they seek answers to their potential questions. Cpluz, with its emphasis on creating meaningful brand-consumer connection, strongly advocates for prioritizing user experience over the glance-based designs seen in the market.

Key areas which highlight the importance of user experience in the Indian E-commerce

Indian e-commerce lacks cohesion and clarity in making crucial decisions regarding product display, pricing, and payment options. The user interface should be clutter-free and prominently display all the relevant details such as price, delivery, and return policies. Users need to be guided at each step with consistent results offered by the site.

Indian e-commerce sites need to direct users tactfully towards achieving a positive user experience. Some key areas to focus on include clean website design, product features laid out in a clear and concise manner, a user-friendly navigation, fast load times, engaging visuals and concise product descriptions, and availability of secure and straightforward payment options. 

What ails Indian E-commerce? Major mistakes and how to avoid them

While the competition in the Indian e-commerce industry is cut-throat, the common thread between the successful sites in the market – resembling unicorns, is the focus on providing an excellent user experience, ensuring the improvement of customer satisfaction and loyalty.

Some mistakes that the Indian e-commerce industry should avoid include prioritizing sales over user experience, ignoring the diverse preferences of their growing customer base, failing to provide smooth user interface, making conspicuous design errors, and taking customer FAQs for granted.

Conclusion – A Bird's Eye View Before You Take the Leap

A robust e-commerce platform focusing on a satisfying user experience is ultimately the key to turning the faucet of profits in your favor. Indian e-commerce sites flouting the principles of providing a poor user experience may be witnessing their downfall in the already competitive market.

Customer-centricity, clean website design, user-friendly navigation, product descriptions immersed in engaging visuals, quick load times, and secure and straightforward payment options are just a few of many more factors to elevate the bar in the race of providing adequate services to their customers.

Expertise in providing an extraordinary customer experience plays a vital role in competing with other established e-commerce companies both in India and worldwide. Connect with Cpluz today and let's set up your Indian e-commerce site to thrive!

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