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Attention Impulsive Shoppers! Know This Before You Shop Next Time.




When shopping online, it's an unspoken rule that you can’t leave a website without purchasing one or two items spontaneously out of nowhere. It is like a giant wheel of fortune, except you are the one who is paying, but the products depend on the website’s algorithm. This happens more on the quick commerce apps, like Blinkit and Instamart where you will sometimes be tempted to add on things you weren’t planning on buying, a marketing tactic many online sellers employ. 


Clever placement of ads, product pricing, and FOMO-inducing terminologies like limited stocks and period sales make us act spontaneously. These unplanned purchases in the spur of the moment are called impulse purchases. These impulse purchases now account for 30% of the Average Order Value (AOV) for q-commerce platforms, according to industry players and consultancies such as Deloitte. 

Impulsive Buying makes up 30% of Purchases


According to Deloitte, five years ago this number stood at a mere 5-7% of the Average Order Value, which has now risen to about 5-6 times. For specialty retail websites such as home decor, furnishings, decor, and cosmetics, impulse purchases are around 15-20% of AOV. However, this number could rise as the priorities of online players change from acquisition to retention and profitability. 


Algorithms Tricking you?


Impulse buying was once only limited to offline stores, but now it is more prevalent online due to machine learning algorithms. These machine learning algorithms are trained to understand customer behavior, their likes, and dislikes, and show them options based on their choice. This is why you are targeted with ads that look exactly like your wishlist, sort of like a Genie granting you wishes, except you have to pay for it. For Q-commerce companies, the focus is to optimize delivery costs as the focus on unit economics grows.  


According to a Bain report India’s E-Commerce market is expected to cross $160 billion by 2028 from $70 billion as online shopping booms in tier 2 and 3 markets. To capitalize on this Q-commerce players are expanding their dark store networks beyond metros and tier-1, while e-commerce players are increasing their fulfillment centers and warehouses to cater to more cities. This is also pushing players to increase their average order values he adds. 

Social Media Creating FOMO 


Social media platforms play an important role in creating hype for products, and e-commerce platforms add fuel to the fire by introducing limited-edition products and limited-period sales. This creates a sense of urgency and a fear of missing out on the trends you see your friends engaging in. 


Social media trends put pressure on both companies and consumers. Companies want to capitalize on these trends and stay relevant, which can compromise their brand name if they don’t meet customer expectations. All of this leads to overconsumption, which in the long run pollutes our planet because large-scale production uses too many natural resources too quickly and inefficiently, which puts our planet in danger. 


Way Forward 


Going forward making sustainable choices and adopting a minimalist lifestyle is key if we want to have a better and secure future and save the planet. Businesses need to play their part and manufacture sustainable products that are durable and can stand the test of time.






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