On line shopping in India has miserably failed in India due to the fact that the vendors don t possess any credability worth talking or mentioning. Secondly the fear of revealing one's credit card no to such unworthy vendors too have dangers of its own. The online transactions have however been highly successful in case of online trading, banking and IRCTC. What are the lessons a marketing organisation needs to learn to make online transaction more successful.

PRODUCTS OR BRANDS : The online sales will be successful for a branded product like Sony, Godrej, Videocon, Eureka Forbes, Hindustan lever, P & G etc. If one checks out the features of a Sony Camera at Reliance digital and other places, with 3 years warranty in place, the consumer is bound to go for online purchase. Now it is for Sony to ensure that the consumer is directly linked to their company, logistics of delivery can be taken care either by door delivery or consumer collecting the product from nearest showroom or dealers outlet. This would obviously lead to better customer satisfaction and ensure that company is fully responsible for delivery of the product. The current scenario of shady vendors dealing with outdated Sony products, for higher profit margin, speaks bad of the company policy.

ONLINE PAYMENTS : The vendors encashes the customers fund through credit card which is once again is the cause of loosing faith in the vendor and indirectly affecting brand reputation. Whereas the company like sony can have their own online bank account and encash the funds on online transfer. When the company encashes the money they behave more responsibly. It obviously means the company should be sure of the model in stock, whereas the vendor will not bother to check out whether stocks are available or the product is archived. For example H3 model of Sony which was very popular has been archived. The company will never put up the model for sale, because it is aware that it cannot be delivered. But whereas unetchical vendors even though they know the products are archived will never delete the product from online catalog, becaue they want to ensure encashing of funds. They can arm twist the customer into something inferior and make a killing. Never go for online shopping unless you know that you are dealing with a reputed company directly seems to be morale of the story.

COMPANY BENEFIT : Many companies sell their products on credit to the vendor, like airline companies in earlier days. There is immense heart burn when it comes to collection. The dealers or vendors literally squeeze the brains of the company personnel for releasing the fund of a sold product. In case of direct online transaction the company will directly receive funds and the logistics of delivery will be taken care by vendors through check and balance mechanism in place. This is an ideal marketing logistical model. The credit note for profit to vendor can be passed on. The vendors can be tightly regulated rather than falling into their trap. The airline industry has successfully adopted this policy to cut their losses.

AFTER SALES SERVICING :  A reputed branded company will ensure quick and prompt after sales service.  Twice I had the benefit of Sony after sales service, because of 3 years warranty.  Once the query or complaint is routed through the vendor rarely the complaint gets attended to.  Once i had to threaten directly a police FIR will be filed against the MD of the company manufacturing RO water filter.  Since i had made payments directly to the company, i had every right to threaten the company.  The complaint with the vendor went to thin air.

This article is based on the innumerable complaints based on real user experience.  There are lot of sob stories if one is interested to learn about the pitfall of online shopping in mouthshut.com and admanya.  Students who are conducting research can refer to these websites for proper feedback.  One can always make out a fake review and real user experience.

Online shopping has to go a long way to get its act together. The onus is on the branded companies to set the ball rolling. This will ensure that vendors will act as facilitators for logistical delivery rather than acting as owners of successful brand. I don t know how many branded companies will have the courage to experiment and get this online shopping or selling strategy right. Until that time the gullible customer is going to suffer endlessly and a sales person will be constantly on tenter hooks following collections.