To Buy or Not to Buy – Challenges with Online Shopping and Simple Solutions

The adoption and penetration of information and communication technology (ICT) across the globe have impacted almost all kinds of businesses. This increasing prevalence of technology has fueled the adoption of online shopping, which has then reshaped the traditional way in which people shop. With the entry of numerous online retailers into the Indian market, customer retention and repeat purchases have become the key challenges for online retailers. Therefore, online retailers have implemented various strategies to attain competitive advantage by focusing on policies related to logistical capabilities.

However, despite the massive penetration of online commerce, the “touch and feel” factor remains one of the biggest challenges for online retailers, particularly in developing countries such as India. To overcome the challenges posed by the “touch and feel” factor, online retailers have deployed various initiatives including return policies (Pei et al., 2014), virtual try-on (VTO) technology, and in the specific context of a developing context such as India, the POD mode of payment. 

Through this study, a model is proposed and validated to understand the impact of Virtual-try-on technology, return policies, and pay-on-delivery (POD) mode of payment in stimulating online purchases. The study provides significant implications for online retailers because the return policy and POD mode of payment emerged as a significant predictor of trust, and thus its key impact in generating trust and repurchase intention. On websites, these policies must be elaborated to ensure that online shoppers can overcome the apprehensions related to online shopping due to the “touch and feel” factor. Liberal return policies not only increase sales but also increase trust in the online retailer. The emergence of POD as a significant predictor indicates that people remain apprehensive about online payments. Therefore, POD must be extended to the entire country through active support from third-party logistics providers. This will assist retailers in the hassle-free and quick delivery of products.

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