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Nearly 94 per cent of mobile shoppers visiting direct-to-consumer (D2C) brand websites in India leave without making a purchase, highlighting a major challenge for online retailers despite the country's rapidly growing mobile commerce market, according to a report by AppMaker, which recently joined StarApps.
The report said smartphones have become the primary shopping platform in India, with 78 per cent of D2C traffic now coming from mobile devices. It noted that India's digital commerce market continues to expand, supported by around 750 million smartphone users and a 20 per cent year-on-year growth in shopping app sessions. It stated, "India's D2C brands are building for the wrong screen. Every visitor who leaves mobile web without buying never comes back. 78 per cent mobile, 94 per cent unconverted." Despite the strong shift towards mobile, the report pointed out that most brands are unable to convert visitors into buyers. It said the average mobile website conversion rate stands at just 1.5 per cent, leaving around 94 per cent of visitors without completing a purchase. In comparison, mobile applications record an average conversion rate of 4.5 per cent, offering nearly a three-fold improvement over mobile websites. According to the report, app-based shopping also delivers stronger customer engagement. It said one-tap UPI checkout improves conversion rates by 34 per cent, while the average order value on apps is 1.35 times higher than on mobile websites. Customers entering through deep links convert at twice the rate of those landing on a homepage. The report said retaining users remains another major challenge. It noted that 73 per cent of users uninstall shopping apps within seven days if they are not engaged early. However, 52 per cent of users who engage within the first 48 hours develop a retention habit, making the initial customer experience critical for long-term growth. The report also highlighted that while app users account for only 1-2 per cent of a brand's total customers, they generate an average of 28 per cent of total digital revenue across categories. It further said 78 per cent of future mobile revenue is expected to come from the top 20 per cent of existing customers, underlining the importance of customer retention. Looking at category-wise trends, the report said Food & Grocery recorded the highest in-app revenue share at 52 per cent, followed by Health & Nutrition at 49 per cent, Beauty & Cosmetics at 42 per cent, Fashion & Apparel at 35 per cent, Home & Living at 22 per cent, Jewellery at 16 per cent, and Electronics at 11 per cent. The report concluded that as mobile shopping continues to dominate digital commerce in India, improving customer conversion and retention on mobile platforms will remain a key focus area for D2C brands. (ANI)
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