How Has No-Cost EMI Changed The E-commerce Market


No cost EMIs (equated monthly installments) has changed the E-commerce landscape by leaps and bounds. It has gone from 5% to 20% over the past 2 years, according to estimates by finance and e-commerce companies that Business Standard spoke to. During the sale period it has been observed that 75% of the EMI option chosen were No Cost EMIs. The big E-commerce players have however said that they would rather go for No cost EMIs than spend on advertising their platforms. Most of the new buyers are making their way to the market as they now have the option of monthly payments. The no cost EMIs provide a direct discount to the buyer equal to the interest they supposedly had to pay if they chose the alternate option. This cost is beared by the manufacturer, seller, credit card companies and e-wallets.

How does it work?

The monthly installments are based upon the final cost of the product and the tenure the buyer chooses to pay. It has three independent parties; Bank, customer and retailer. It works as pre-approved loan, the no cost EMI option is mostly for products with a higher value like Electronics, high end appliances, and the market favourite mobile phones. Sometimes there is also a minimum purchase value to enable the option of no cost EMIs. It is usually set from the 3000-5000 INR mark. A no cost EMI is offered in alliance with a bank or an NBFC (Non Banking Financial Company). Any online marketplaces offering you no cost EMIs with a bank or an NBFC has to offer the loan facility and have a tie-up with a credit card issuer. Online marketplaces have a tie-up with banks. EMI amounts are deducted from your credit card and you have to make repayments within the billing cycle.

How does it make it the best option to lure more buyers?

The credit card companies in the past used to offer EMIs but also charge interest for the same, which make it a bitter option. The new structured EMI helps the buyer to have an expensive item without the wait and a financial setback. Fashion as a category generates more business in volume but Electronics surpasses it in value. The buyers have a need to have the latest mobile phone or  laptop is very easy to tap by providing a more economic option. The Electronic market mostly comprises of young demographic (students and working professionals), who cannot afford to pay large amounts.



Customer base will increase because of No cost EMIs, which will help generate more revenue and more business. Most of the opted No-Cost options are during the sale period. It is easier to lure buyers and gain more app downloads. While advertisements and other promotional offers might look promising, the ROI states otherwise. Retailers and e-commerce entities offering No cost EMI is gaining more loyal customers who are choosing an interest free and pocket friendly module. ')}

How Emergence Of Retail Technology Is Changing Traditional Shopping

How Emergence Of Retail Technology Is Changing Traditional Shopping

According to a modern study, a majority of shoppers prefer online shopping over the traditional in-store shopping. The number of businesses lured into the modern e-commerce market is constantly on the rise.

However, with the constantly increasing number of businesses, the competition is growing fast as well. So, to survive in this cut-throat competition, businesses need to step up their game in every department to offer a seamless shopping experience to the customers. Technology, being at the forefront of it all.

Technology has had a huge impact on the retail market. Be it the way, the customers interact with the retailers or the way the retailers build their brand, everything has been revolutionized by the emergence of retail technology. In this post, we will take a quick look at some of the key areas where the emergence of retail technology is changing the traditional shopping:

The Rise Of Smartphone Shopping

Smartphones have taken over. Not in a Terminator-esque sense, but pretty much in every other sense. A majority of modern shoppers use a smartphone for their shopping needs. While some of them buy directly from their favourite e-commerce website, a majority of them prefer doing a thorough online search before making the purchase. Some of them even search the local retailers and do not restrict their hunt for the perfect product to the online market alone.

The smartphones have become the primary mode of engagement between the brands and the customers. From reading reviews and ratings to searching for the product at the best available price, pretty much everything takes place on the smartphone screens. This is why it’s very crucial for the advertisers and marketers to offer attractive prices and engaging content for their brands. In order to thrive in the modern market, it’s very important that the brands offer a pleasing, updated, and convenient mobile experience for the shoppers.

Efficient Use Of Analytics

In our previous post, we saw how machine learning applications are changing the modern e-commerce world. One area where the implementation of machine learning applications has created serious impact is the mobile world. With the growing comfort level of shoppers with online shopping, the use of customer behavioural analytics, web analytics, and the sheer amount of data accumulation that comes with every purchase makes it easier for the marketers to use machine learning to put all that analytics to work.

Shoppers like to do extensive research on products, sellers, and services on offer before assigning their loyalty to an e-retail store or a brand. Business can use the rich data based on the customer’s shopping trends to engage with them and accordingly carry out relevant advertising, marketing, and other strategic decisions to capture them.

However, not every business in the market is technologically equipped to use the behavioural analytics for their business gains. This is where online product discovery platforms like Taglr play a vital role. Taglr offers rich behavioural analytics to the advertisers on its platform to help them create engaging content for the potential customers and use them for their business gains.

Dynamic Pricing Strategy

The modern retail market is highly price-sensitive, whereby even the slightest change in pricing can significantly boost the chances of a retailer attracting the shoppers as opposed to its counterparts. In such competitive market, the dynamic pricing strategy by the e-retailers could give them a slight edge over the e-tailers going by the traditional pricing route. To help you understand, dynamic pricing strategy allows the retailers to change the pricing of their products based on the market trend, the inventory, or the sales targets.

As soon as the retailer identifies a fast-moving product, she can decide to inflate the price to avoid stock depletion or vice versa. In a similar way, in order to meet the sales targets, the retailer might also choose to lower the prices of their products.

By using dynamic pricing strategy, the retailers can also keep a tap on the pricing strategy of their competitors to make beneficial pricing decisions. For example, when a competitor is running low on the stock of certain products, they can choose to increase the price and attract better sales and profit margins.

The best implementation of dynamic price strategy is the real-time price updating, which a lot of e-commerce stores use to capture as many customers as they can. But nowadays a lot of small and medium-sized enterprises have also started adopting the strategy.

Artificial Intelligence

Managing customer interaction is the biggest challenge that the modern e-commerce firms face. And this is where Artificial Intelligence comes into the picture.

Artificial Intelligence can be employed to handle customer interaction in a much more efficient manner through chatbots or automated response to make sure the customer interaction is a lot more personalized, efficient, and effective.

At the same time, AI can also be used to handle huge chunks of data to analyze the customer behaviour, market trends and the factors influencing the customer behaviour.  This not only makes online shopping a lot more personalized and safe as well.

One fine example of this is Amazon’s virtual assistant, Alexa, which helps the retailers to offer better suggestions to their customers to help them boost their sales. Some of the areas where artificial intelligence has helped the retailers include product recommendations, post-sales support, and helping the customer make a purchase faster.

To sum it all, retail technology and its evolution will continue to revolutionize online shopping, which will enable modern businesses to innovative ways of customer engagement. In coming days, it will be the differentiating factor between the leaders and laggards in the world of retail. ')}