International Journal of Engineering Research and Development e-ISSN: 2278-067X, p-ISSN: 2278-800X, www.ijerd.com Volume 11, Issue 07 (July 2015), PP.71-83 71 Online Shopping Behaviour in India Mukhar Gupta 1 , Pooja Manvikar 2 , Saurabh Sharma 3 , Shivangi Shroff 4 IBM India Pvt Ltd, Bangalore, India. Abstract:- Recent years have seen a remarkable transformation in the way India shops and trades. The advent of this disruptive revolution among Indian consumers has led to a new wave in organized retail. E-commerce has taken the world of retail by storm and captivated the imagination of an entire generation of entrepreneurs, with e-commerce ventures with various business and commercial models. With this optimistic change in Indian e-market, there is humongous potential for ecommerce companies owing to the growing internet user base and advancements in technology. The primary objective behind the current study is to understand the online shopping behaviour in India and how the e-retailers can accelerate their growth in India. Keywords:- Ecommerce, Online shopping, Indian customers, Mobile, Analytics, Big Data, e-Tail, Marketing strategies, Technology, e-Retailers, I. INTRODUCTION India is at the cusp of a digital revolution. Internet has become an integral part of the growing urban Indian population. We are billion people country with a mobile penetration of almost 80% and now 40% of them are on smartphones which means a sizeable population is internet ready. The e-commerce industry is one of the fastest growing sectors in the country today, spurring first generation entrepreneurs, large scale manufacturing by SMEs, jobs and most importantly impacting the infrastructure growth of the country. The rising inflation rate in recent years has not slipped away the performance of online shopping industry in India. The facility of comparing your product with competitive products on the basis of price, colour, size and quality is one of the biggest benefits of online shopping. These days Mobile commerce or m-commerce is also one of the popular means of shopping. India’s one of largest fashion store, Myntra has recently been made ―App only‖, providing its usage to mobile application only. The facilities of various coupon and discount scheme are also fascinating the customers in online shopping. Online shopping is available for customers around the clock comparing to traditional store as it is open 24 hours a day, 7 days a week is also a reason in increasing growth of e-households in India. Given customers rarely have a chance to touch and feel product and service online before they make decision, online sellers normally provide more product information that customers can use when making a purchase. Customers put the weight on the information that meets their information needs. In addition to get information from its website, consumers can also benefit from products’ reviews by other customers. They can read those reviews before they make a decision. The increase of internet technology in India has colossal potential. It will trim down the cost of product and service delivery and lengthen geographical boundaries in bringing buyers and sellers together. The boost in use of internet by the customers in younger age bracket in India has provided a promising outlook for online retailers. Although the trend of e-Commerce has been making rounds in India for 15 years, the appropriate ecosystem has now started to fall in place. The e-Commerce market in India has enjoyed phenomenal growth of almost 50% in the last five years. Key factors driving the growth story of e-Commerce in India include:  Considerable rise in the number of internet users  Growing acceptability of online payments  Proliferation of internet-enabled devices  Favourable demographics In India, cash on delivery is the most preferred payment method, accumulating 75% of the e-retail activities. However, COD may harm e-commerce business in India in the long run and there is a need to make a shift towards online payment mechanisms to a higher percentile. The following facts can help the academicians and researchers to understand the size and performance of Indian e-commerce industry.  The ecommerce sector in India has grown by 34% (CAGR) since 2009 to touch 16.4 billion USD in 20142. The sector is expected to be in the range of 22 billion USD in 2015.