EBM News
EBM News

Online spending falls 16 per cent during lockdown

BENGALURU: The average spending by Indian consumers on various online platforms went down by 16 per cent during the lockdown period even as a majority remains confined to their homes. During the Janta Curfew on March 22, when the Prime Minister asked people not to venture out in the wake of the Covid-19 pandemic, Indian e-commerce witnessed 30 per cent decline in sales, a survey by California-based Wibmo Inc, which studied the consumer behaviour through card transactions during the lockdown period, stated.

It further said that the week following the Janta Curfew witnessed the e-commerce market in India gaining back only 50 per cent of the overall loss in normal volumes. The average ticket size of an order also reduced by 25 per cent during the lockdown period.  There was a stark difference in the consumer shopping behaviour with a majority (72 per cent) spending money for payment of bills online.

As compared to utilities (bill payments) constituting 55 per cent of the total online transactions before lockdown, there was 7 per cent jump in bill payments online to 72 per cent during the lockdown. As hoarding of essential supplies became the new normal during the lockdown, especially groceries and health hygiene products, online food purchase saw 2.2 per cent increase.

During lockdown, while online bill payments increased, food and beverage delivery apps and financial services took the most hit. Categories such as gaming and entertainment stayed steady for the most part. Online shopping saw consistency primarily driven by grocery and daily essentials, the survey stated. Online travel spending shrunk by nearly 9 per cent during the lockdown whereas food and beverage delivery apps saw over 4 per cent drop.