Chat-Based Shopping: Revolutionizing the Way Consumers Shop Online

In the rapidly growing mobile and internet economy of India, a new trend is emerging that is reshaping the way consumers shop online. Chat-based shopping, a concept that allows customers to browse products, ask questions, and make purchases through messaging platforms, is gaining popularity among the country's young population and the increasing number of mobile phone users. With its convenience, personalized assistance, and potential for reduced customer acquisition costs, chat-based shopping is revolutionizing the e-commerce industry.
The driving force behind the rise of chat-based shopping in India is the young demographic, particularly those under the age of 25, who engage with messaging apps on a daily basis. This tech-savvy generation is increasingly comfortable using chat platforms not only for communication but also for making informed purchasing decisions.
Let’s hear from a cross section of stakeholders on this.
Shankar Iyer, Director – Customer Services, India, Infobip

The way we communicate through devices has undergone an exponential transformation, from its early use as a means of interpersonal communication on messaging platforms, to the current era where chat apps are at the forefront of driving business growth. We are at the crossroads of a revolution with 5G and increasing smartphone usage. With everything available with a touch on the screen, people find it more convenient to communicate with businesses and brands on channels they already use and trust the most. Customers’ demand for personalization and real-time communication further gave birth to the concept of conversational commerce. Conversational Commerce enables customers to browse, select and purchase products without ever having to leave the comfort of their own home – or their favourite messaging channel/chat apps, thereby providing a more convenient and engaging shopping experience.

Earlier, the in-store conversations converted leads into purchases for businesses. However, nowadays, brands are using chatbots and Artificial Intelligence to offer a smoother customer experience by connecting with consumers via popular channels like WhatsApp, Facebook Messenger, and Instagram. Consumers can easily enquire about a product/service through these channels before purchasing. Additionally, Conversational Commerce enables businesses to alert customers about abandoned carts and help them checkout through their preferred channels. It gives that personal touch to their online shopping experience, which otherwise just involves scrolling through the website's product page.

Conversational Commerce is not just limited to enabling purchases or sharing information about products and services. Consumers’ preference for resolving their queries on chat has led businesses to provide customer support services on conversational channels. It is gaining much popularity, and the statistics prove that. Our recent research based on 449 billion communications interactions on Infobip platform across 2022, has shown the rapid growth of interactions on chat apps. Further analysis revealed a 73% increase in messaging interactions on the WhatsApp Business Platform in 2022 compared to 2021, while for customer support, the interactions increased by 91%.

It is quite evident that ‘conversational everything’ is becoming the norm in customer communications. From marketing and sales to customer support, every conversation between a brand and a customer happens on users’ preferred communication channels. In this way, customers benefit from a personalized and superior brand experience. Companies, on the other hand, get loyal customers and increased sales.

Saurabh Anand, COO of Quarks Technosoft
Retailers are embracing chat-based shopping as a means to connect with customers on a deeper level. By leveraging chatbots and AI-powered systems, businesses can provide real-time support, answer queries, and offer personalized recommendations. Bhaskar Ganguli, Director of Sales and Marketing at Mass Software Solutions Pvt. Ltd., emphasizes that this technology enables retailers to gain insights into customers' preferences and behaviors, allowing them to refine their product offerings and enhance customer service. Furthermore, the convenience and ease of chat-based shopping attract customers who seek a frictionless shopping experience, ultimately driving customer loyalty and repeat purchases.
The benefits of chat-based shopping extend beyond the customer experience. Merchants can efficiently handle customer inquiries, communicate seamlessly, and make sales through messaging platforms. The opportunity to reach new customers is another advantage, as retailers can directly engage potential buyers within their target market. By leveraging chat-based shopping, businesses can build stronger customer relationships, gain valuable insights into consumer behavior, and reduce customer acquisition costs.
As the trend continues to gain traction, retailers are exploring innovative ways to enhance the chat-based shopping experience. Virtual try-on experiences and personalized styling advice based on customer preferences are just a glimpse of the advanced features that may become commonplace. Recommendation engines, powered by AI, are expected to play a pivotal role in assisting customers with finding the perfect products and creating a tailored shopping journey.
Chat-based shopping represents a fundamental shift in the e-commerce landscape. It blends the convenience of messaging platforms with personalized assistance, fostering an engaging and interactive shopping experience. With its ability to connect retailers with customers in real-time, offer tailored recommendations, and improve customer service, chat-based shopping is poised to revolutionize the way consumers shop online. As India's mobile and internet economy continues to grow, chat-based shopping is expected to soar in popularity, reshaping the future of e-commerce.
Quarks Technosoft COO Saurabh Anand
India is a rapidly growing mobile and internet economy, and chat-based shopping is emerging as a popular new way to shop. The concept of chat-based shopping is simple: customers can use a messaging platform to quickly and easily browse products, ask questions, and make purchases.
In India, the trend of chat-based shopping is largely driven by the country’s young population and the growing number of mobile phone users. The majority of Indian consumers (particularly those in the under-25 age group) engage with messaging apps on a daily basis and are increasingly comfortable with using them for shopping.
In addition to convenience, this type of shopping allows customers to ask questions and make purchases quickly and conveniently. Chat-based shopping provides merchants with an efficient way to communicate with customers, handle customer inquiries, and make sales. By utilizing chat-based shopping, merchants can create a more personalized customer experience, build customer relationships, and gain insights into customer behavior. As more and more customers become comfortable with the idea of chat-based shopping, this type of e-commerce is likely to continue to grow in popularity.
Furthermore, chat-based shopping can help retailers to reach new customers. By leveraging the messaging platform, retailers can quickly reach out to potential customers in their target market. This makes it easier for them to acquire new customers and build relationships with them. Finally, chat-based shopping can be used to reduce customer acquisition costs.
Bhaskar Ganguli, Director, Sales and Marketing, Mass Software Solutions Pvt. Ltd
Chat-based shopping is an innovative approach to e-commerce that provides a more engaging and interactive shopping experience for customers. It enables retailers to communicate with their customers in real-time, answering their queries and providing personalised assistance that can help drive sales.
Moreover, chat-based shopping can help businesses gain insights into customers' preferences and behavior. By analyzing chat logs, retailers can identify common customer queries and pain points, enabling them to improve their product offerings and customer service. Chatbots and AI-powered systems can learn and adapt to customers' preferences, providing increasingly personalised recommendations and assistance. Recommendation engines are becoming very popular for e-commerce giants to help customers buy what they want. The emergence of chat-based shopping is a natural evolution of the way people communicate online. With the rise of messaging apps and social media platforms, people have become more comfortable communicating through text-based channels. This has created an opportunity for retailers to engage with customers in a more personal and conversational way.
The convenience and ease of chat-based shopping make it an attractive option for customers, especially those who prefer to avoid the hassle of traditional online shopping. By providing a seamless, frictionless shopping experience, retailers can encourage customers to return and make repeat purchases.
Overall, chat-based shopping is a trend that is set to revolutionise the e-commerce industry. It provides retailers with a powerful tool to connect with customers, enhance their shopping experience, and ultimately increase sales and revenue.
Chat-based shopping is a rapidly growing trend revolutionising how consumers shop online. This form of e-commerce involves using chatbots or live chat features to communicate with customers and guide them through shopping. As more retailers adopt chat-based shopping, we will likely see more advanced features and capabilities. For example, chatbots could provide virtual try-on experiences or offer personalised styling advice based on customer preferences.