Introduction:
The coupon redemption rate is nothing but the number of people using coupons in their online shopping. This rate depends on the availability of coupons, ease of applying coupons, and many other factors. In this report, we will learn deeply about the coupon redemption rate of online shopping in India for April 2024 and the factors affecting this rate.
What are coupons and their Types:
Coupons are a series of numbers or characters. When applied, it allows users to get a discount on their online purchase. There are numerous types of coupons available online, which include percentage off coupons, minimum purchase, payment discounts, etc.
Merchants provide these coupons to increase their site engagement by offering discount on their offerings. For valid coupons, users can visit the official merchant’s sites, online coupon websites, subscribe to newsletters, or take advantage of payment offers.
The availability of online shopping coupons varies depending on categories like travel & bookings, beauty & personal care, fashion, food delivery & groceries, and electronics.
Importance of Coupons for Online Shopping:
Coupons are important while shopping online. You can consider them as your offline shopping bargains. While shopping online you can’t bargain the prices so using coupons will allow you to get discounts on your purchases. Getting discounts and saving money, these are benefits of using coupons for users. But for merchants, coupons are the way to boost their sale and engage more people through promotions.
Factors Affecting Online Coupons Redemption Rate:
There are several factors that are affecting online coupon redemption rate:
The availability of coupons is the first thing that affects coupon redemption. If the coupons are easily available on the merchant’s site or any other place, the chance of people using coupon increases.
The ease of applying coupons can also affect the coupon redemption rate. If the user has coupon for their purchase but the process of applying coupon is somehow difficult or not easily understandable, then the user can not redeem the discounts.
Sometime the technical glitches at the merchant’s site can also be the reason for unsuccessful coupon redemption.
Reference:
We carried out survey of 4000 people in urban areas who frequently shop online using coupons. From this, 3700 people participated in our survey and helped us get this helpful information about the coupon redemption rate.
So, here are the stats we acquire through the survey we carried out,
| Major categories of online shopping | Coupon Redemption Rate |
| Travel and Booking | 37% |
| Beauty and Personal Care | 23% |
| Fashion | 19% |
| Food Delivery And Groceries | 13% |
| Electronics | 8% |
From our data of total 3700 people participated in the survey, here are the things we can understand.
People search for coupons for 5 major online shopping categories which include, Travel & Booking, Beauty & Personal Care, Fashion, Food Delivery & Groceries, and Electronics.
From these categories, the highest coupon redemption rate is in the Travel & Booking category. The reason behind this can be the availability of coupons in travel and booking category. If you observe, you can see the travel and booking sites offer more coupons and promotions than any other category. For example, if you visit travel booking sites like Cleartrip, EaseMyTrip, or Ixigo, here you will see the amount of coupons and offering on the sites are more. So, as the number of coupons for every booking is there users can easily use these coupons to redeem extra discounts.
The coupon redemption rate for beauty and personal care category is 23%. The factors that affect coupon redemption rate of Beauty and Personal care category is the fact that most women still prefer offline shopping for their beauty care products. Also, the availability of coupons for beauty and personal care products is occasional.
When it comes to Fashion category, the coupon redemption rate is 19%. Nowadays, both men and women shop online for their fashion needs. But as we discussed for beauty care category, the availability of coupons for the fashion category is also limited. Online fashion stores like Ajio or Myntra only offer discounts on branded products during special occasions or feative season. So, this can be the reason for the low coupon redemption rate in the fashion category.
The coupon redemption rate for Food Delivery And Groceries is 13%. This category do not offer frequent coupons for their users. Food delivery and grocery apps mostly offer discounts for new users and first time purchases. Also, the coupons available here have many terms and conditions to apply. So, the coupon redemption rate of food delivery and groceries category is lower.
Last but not the least, the coupon redemption rate of Electronics category is 8%. The coupon redemption rate of electronics category is lowest in our survey. When we searched for reasons, we found out that the availability of coupons for electronic products is lowest. Merchants do not actively offer deals or discount offers for the Electronics category, leading to its low coupon redemption rate.
Key Takeaways:
The availability and ease of using coupons are the major factors affecting the online coupon redemption rate in India.
Through our survey, we understand that the Travel and Booking category has the highest coupon redemption rate. As 37% of people actively get discounts on this category using coupons.
The Electronics category has the lowest coupon redemption rate in India. Only 8% of users are able to get discounts on the electronic products using coupons.
References
