Indian consumers are struggling with restrictive return policies and persistent issues of counterfeit goods in online shopping, according to a study by LocalCircles.
The survey revealed that Amazon emerged as the most trusted platform for returns and refunds, with 79% of respondents endorsing its policies. By contrast, platforms like Meesho and Ajio were rated the least favourable, securing a meagre 2% and 1% consumer preference, respectively.
The study revealed that 48% of respondents were stuck with wrong products in the past year due to restrictive return policies, while 20% reported receiving counterfeit goods at least once during the same period.
Flipkart, another leading e-commerce player, received just 3% support, and Myntra garnered a slightly better 6%. Feedback highlighted issues with non-returnable product categories, where sellers exploit the system to ship incorrect or counterfeit items.
The study found that counterfeit goods are particularly prevalent in categories such as shoes, cosmetics and fragrances. Alarmingly, only 39% of consumers who received fake products managed to secure replacements, while 41% were stuck with them due to unclear or restrictive seller/platform terms.
Moreover, 43% of respondents reported that e-commerce platforms lacked a clear mechanism to report counterfeit products, enabling bad sellers to evade detection and continue their practices.
In the quick commerce sector, Big Basket ranked highest, with 22% of respondents rating its return policies as the best, followed by Swiggy Instamart (13%) and Blinkit (13%). However, 31% of consumers expressed dissatisfaction with the returns and refunds processes across all quick commerce platforms, signaling a critical gap in customer service.
India's e-commerce sector, valued at $70 billion, represents 7% of the total retail market and is poised to grow exponentially, with 500 million shoppers projected by 2030, according to Invest India. Yet, the industry risks losing consumer trust due to the twin challenges of counterfeit products and poor return processes.
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