E-commerce Satisfaction Metrics: A Comparative review of Buyer and Seller Perspectives

E-commerce has transformed the global retail landscape by providing convenient and efficient avenues for buying and selling goods and services. As these platforms continue to gain prominence, the satisfaction of both buyers and sellers has emerged as a critical determinant of success. Buyers demand high-quality products, competitive pricing, timely deliveries, and seamless customer service. Sellers, on the other hand, expect fair policies, effective marketing tools, user-friendly interfaces, and minimal operational risks. While both stakeholders interact within the same ecosystem, their satisfaction metrics often diverge due to their differing priorities and expectations.

Despite the growing importance of satisfaction in the e-commerce domain, the methods to measure and evaluate it remain fragmented and often biased toward one stakeholder. This review aims to bridge this gap by comparing satisfaction metrics for buyers and sellers, identifying overlaps, and highlighting areas of conflict. The insights derived from this study are crucial for creating balanced, efficient, and equitable e-commerce systems.

Many new ways of conducting business and enjoying life have emerged with the advent of the internet. Actually, the existence of E-commerce cannot be achieved without the internet. Definitions of "E-business" and "E-commerce" are sometimes murky. Both terms are used synonymously by them. Here are a few ways in which online business and online shopping vary. E-business refers to a company's online presence, whereas e-commerce refers to economic transactions that take place via the internet. When it comes to the internet, there are two main camps: e-commerce, which focusses on outward-facing activities like communicating with customers and suppliers, and e-business, which encompasses both e-commerce and internal activities like managing inventory, risk, and production.

The term "e-commerce" refers to the exchange of products and services conducted entirely online. "Electronic commerce is the symbiotic integration of communications, data management, and security capabilities to allow business applications within different organisations to automatically exchange information related to the sale of goods and services," state Daniel and Emma Minoli. Production, distribution, marketing, sales, or delivery of products and services via electronic means is defined as "e-commerce" by the World Trade Organisation (WTO). The OECD defines e-commerce as "commercial transactions involving organisations and individuals that are based upon the processing and transmission of digitised data, including text, sound, and visual images, and that are carried out over open networks or closed networks that have gateway onto an open network." This definition also applies to transactions involving individuals. "Broadly speaking, electronic commerce is a modern business method," said Andrew B. Winston and American Rowe Kara Dakota about e-commerce. The goal of this strategy is to satisfy the demands of government agencies, producers, and consumers for affordable products and services by enhancing product and service quality and reducing service delivery times. Finding information via computer networks to aid in decision-making is another application for it.

It is crucial for any organisation to have improved business communication and easier data transfer. Decisions are made by businesses based on the quality and amount of customer-facing information. This company has been using a plethora of digital resources to meet its information and communication needs, and it is now expanding into online sales.

Considering the expansion of online shopping and its continued use of the Internet's many features. The structure of industries and national economies may be significantly impacted. Everything from the transfer of products and services to the transfer of information is done over the internet. Depending on the parties engaged in the transaction, the following are common e-commerce models:

●       Business to Business (B2B).

●       Business to Consumer (B2C).

●       Consumer to Consumer (C2C).

●       Consumer to Business (C2B).

And that's not even including the models that regulate interactions between governments and private entities like businesses, individuals, and other governments.

●       Business to Government (B2G)

●       Government to Business (G2B)

●       Government to Citizen (G2C)

●       Consumer to Government (C2G)

●       Government to Government (G2G)

There are two main types of technology-based e-commerce businesses:

●       Peer to peer group

●       M-commerce

India is home to 462 million internet users as of July 1, 2016, making it the world's second-largest user base, second only to China. Also, in 2016, the penetration rate of the population rose by 34.8%. The percentage of internet users in India is 13.5%. This graph displays the number of internet users in India during the last six years.

Figure 1: Indian Internet Users

Source: Internet Live Stats

Kant predicts that by 2030, an extra 350 million people would relocate from rural to urban areas, and by 2050, an additional 700 million will do the same. Half of India's gross domestic product (GDP) will come from the middle class by the year 2025. In the next five years, the e-commerce industry is expected to reach a value of $100 billion, growing tenfold because to factors including increasing internet and smartphone adoption and the extension of digital networks into rural areas. With the expansion of digital networks into rural areas, the e-commerce sector in India, which is now valued at around $10 billion ('65,000 crore) according to a report titled 'Direct selling; Mapping the business throughout Indian states,' might reach $250 billion in the next decade.

Figure 2: Mobile Internet Users in India Urban vs Rural

Online Shopping

"Online shopping" (or "e-shopping") is a sort of electronic commerce that relies on the use of web browsers to facilitate transactions between consumers and sellers. Some of the alternate names for an online store are e-web-store, web-shop, internet shop, web store, web store, virtual store, and online sort.

Traditional Shopping

The ability to physically inspect and choose an item or product, together with its attributes and look, is a benefit of traditional purchasing. Traditional shoppers have the advantage of being able to study products up close. There is more trust between buyers and sellers in traditional buying because of the personal encounters that take place in person.

Brief Comparison of Online & Traditional Shopping

At its core, "online shopping" encompasses any kind of sale that happens on the web. Without a doubt, buying has taken on a whole new significance with the rise of the internet. Anyone or any company with an internet connection may now offer their goods to buyers all over the world via an online store. Customers also have the option of using online banking, so they can never again fret about where to turn for the conversion of physical currency, in addition to the many payment methods already offered. These days, even the most elusive things may be found with only a customer's search criteria. Worried about the destination of your goods? Not a problem; logistic companies are also getting on board, so their products will reach every corner of the globe. Actually, the reasons why people choose online shopping over more traditional ways are starting to emerge.

Some consumers just aren't interested in purchasing anything, even when they visit the internet site. This can be because of a lack of trust, inadequate physical touch, or worries about safety.

Analysts anticipate tremendous growth in the next years for India's nascent e-commerce industry. New companies have emerged, the ecosystem supporting online shopping has expanded, and venture capitalists have been pouring money into India's e-commerce industry. If companies can master the country's peculiar financial and logistical challenges, they should do well.

India’s online shopping market is small but will grow strongly

More and more multinational firms are paying attention to India's thriving e-commerce industry as the country's infrastructure improves and its economy rises. With the eleventh-biggest economy in the world and the fourth-largest emerging economy (after BRIC nations Russia, Brazil, and China), e-business companies are starting to include India as an important international market. Attractive to multinational corporations looking to sell online via English-language websites is India, home to an estimated 125 million English-speaking individuals (census 2011). The government is building infrastructure to expand and enhance connection in both urban and rural regions, even though the Internet penetration rate is just 10%. Customers in urban India now prefer to purchase online. At least once a month, 59% of urban Indian internet consumers buy something online; most of this expenditure goes toward electronics, books, and vacation packages.

The online shopping Market in India Is Poised for Rapid Growth

The online retail market in India will increase its income by about 500% from $1.6 billion in 2012 to $8.8 billion in 2017. Despite having a smaller GDP than both China and Japan, Forrester predicts a much higher compound annual growth rate (CAGR) for India than any other nation in the Asia Pacific region. In this expansion, the following factors are involved:

1. Venture capitalists are bullish on online shopping growth

For instance, according to a partner at one of India's leading early and mid-stage venture funds, the country's online population consisting mainly of upper and middle class individuals has progressed far beyond the initial stage of online shopping. In 2011, venture capitalists invested US$177 million in online shopping in India, surpassing recent estimates of online shopping investment in Russia. Additionally, investment corporations are branching out to tackle offline retail areas that have been struggling: Online lingerie sales, for instance, are likely to soar since customers may shop in complete anonymity.

2. Online grocery shopping is starting to appeal to the upper and middle-class consumer

Contrary to the usual trend of bringing this category online at the latter stages of e-commerce development, online food shopping is seeing explosive growth among urban Indians from middle- and upper-class backgrounds. Sales are low right now, but they have a lot of room to grow.

3. Online shopping is expanding into nonmetropolitan India

To cater to the increasing number of customers who live outside of India's main cities and make purchases online, e-commerce businesses in the country are pouring a lot of money into the networks that connect cities. Outside of India's main cities, demand for garments from Myntra.com is on the rise: Its sales are split evenly between urban areas and rural areas of India. By constructing warehouses in less-populated places, retailers are attempting to test out delivery methods that may reach customers in rural areas. For customers without bank accounts, they also provide payment alternatives including cash on delivery (COD). Finally, they are targeting clients in semi-urban and rural regions with these possibilities.

4. Large retailers are looking to build an online presence

Even traditional stores are starting to see the potential in India's booming e-commerce market. In response to the limitations imposed by India's foreign direct investment (FDI) regulations, major consumer electronics retailer Croma expanded its product offerings online. Meanwhile, multinational, multi-brand retailers such as Walmart are closely monitoring developments in the country in order to seize opportunities as they emerge.

5. Social media and mobile are helping accelerate online shopping adoption

The latest global mobile and social trends are also creating quite a stir in India. With 51 million users, India ranks third globally for Facebook audience size, behind only the US and Brazil. It did play a big role in attracting consumers and getting them involved with the business.

In India various online shopping websites are offering shopping facilities to customers, out of those some of the prominent websites are as follow:-

1. Amazon.in

Established on the World Wide Web in July 1995, Amazon.in is run by Amazon Seller Services Private Ltd, an associate of Amazon.com, Inc. In February 2012, Amazon Seller Services entered the Indian market with the launch of Junglee.com. The www.amazon.in website first went live in India in 2013. The city of Bangalore is home to its Indian registered office. In addition to books, DVDs, music CDs, videotapes, and software, Amazon also sells a wide variety of clothing, baby gear, electronics, gourmet foods, groceries, health and personal care items, kitchenware, jewelry, watches, lawn and garden tools, musical instruments, sports equipment, tools for the car, and toys and games.

2. Ebay.com

Located in Goregaon (East), Mumbai, eBay India Private Limited first opened for business in 2006. eBay is the most popular online marketplace in India, where users may engage in person-to-person transactions via auctions, fast buys, and ads. Among the many categories offered on eBay India are: Art & Antiques, Apparel, Bollywood, Books & Magazines, Automobiles & Motorcycles, Computers, Home & Personal Loans, Electronics, Cameras & Optics, Movies, Music, Health & Beauty, Gifts, Household, Jewelry, Mobile Phones, Real Estate, Toys & Baby Products, Travel, and many more. eBay India is wholly owned by eBay Inc.

3. Flipkart.com

Flipkart is an online marketplace based in Bangalore, Karnataka, India. Sachin Bansal and Binny Bansal started it in 2007.The head of Flipkart is Kalyan Krishnamurthy. Initially focused on selling books online, Flipkart has branched out to electronic items and a wide variety of other things. Credit cards, debit cards, net banking, e-gift vouchers, and, most importantly, Cash on Delivery are all accepted payment options on Flipkart. Among Flipkart's most notable innovations is the cash-on-delivery approach. In India, the use of credit cards and online banking is somewhat limited.

4. Junglee.com

In February 2012, Amazon.com introduced Junglee.com, an e-commerce platform. More than eleven million products were available for purchase on Junglee.com when it first went up, from over three hundred different vendors representing two thousand different companies in the media, consumer electronics, clothing, and other industries.Users of Junglee.com are able to easily search for items and compare prices offered by many online and offline vendors. Buyers may evaluate products according to several criteria, such as popularity, relevancy, overall cost (including delivery), and reviews left by previous buyers. At this time, Junglee.com does not support direct purchases. Customers are instead sent to the websites of the sellers where they may finalize their purchases.

5. Snapdeal.com

Snapdeal is a leading online marketplace, headquartered in new Delhi, India. Snapdeal features products across categories like mobiles, electronics, fashion accessories, apparel, footwear, kids, home and kitchen sports, books; and services like restaurants, spas & entertainment amongst others. The company was started by KunalBahl, a Wharton graduate and RohitBansal, alumnus of IIT Delhi.

Jabong started operations in 2012, co-founded by Arun Chandra Mohan, Praveen Sinha, and Lakshmi Potluri after which Manu Jain, and Mukul Bafana joined the organization. The company head office is in Gurgaon.Jabong.com is an Indian fashion and lifestyle e-commerce portal, selling apparel, footwear, fashion accessories, beauty products, fragrances, home accessories and other fashion and lifestyle products.

6. Quickr.com

Quickr was launched in 2008, and is currently present in 940 cities across India with its Headquarters in Mumbai. Quikr is an India-based online marketplace that allows people to post and respond to free local Classifieds Ads and Want Ads for Housing, Apartments, Furniture, Matrimonial, Pets, Jobs, Resumes, Cars, Services, Events, Discussions and more.

7. Shopclues.com

Shopclues.com team operates from their head office in Gurgaon. It is an Online Shopping Store for Mobiles Phone, Computers, Tablets Pc, home Appliances, Digital Camera, Bike & Car Accessories, Fashion Store, Health and Beauty Products in India.

8. Homeshop18.com

HomeShop18 was launched in 2008 in India. It‘s Founder and CEO is Mr. Sundeep Malhotra. Its Headquarters is in Uttar Pradesh, India. It sells Automobiles, Cameras & Accessories, Clothing, Computers & Tablets, Electronics, Fashion Accessories, Footwear, Gifts And Flowers, Groceries, Health & Beauty, Home And Kitchen, Household Appliances, Jewellery, Mobiles Services, Sports & Fitness, Stationery & Office Products, Toys & Baby Gear and Watches.

Online shopping has emerged as a popular method of purchasing goods in this age of rapidly expanding internet infrastructure. According to what Cox and Dale have defined, the focus of modern e-businesses and enterprises is on competitiveness, employee and customer happiness, and the achievement of long-term success. The rapid growth of e-commerce platforms like Amazon, Taobao, and eBay is a clear indication of how quickly the industry is expanding throughout the globe. Customers are satisfied with internet purchasing for obvious reasons: cheap cost and ease.

The convenience and speed of shopping online has led to its widespread adoption as a preferred method of buying and selling goods and services. Competition is heating up in the e-commerce space due to the enormous marketing potential of the sector, while the necessity of ensuring happy customers is rising in tandem. In the real world, it has been stressed that satisfying customers financially is critical to success; in the digital realm, this may be seen as no different. Customers are becoming more satisfied with internet shopping as a result of its growing conveniences, and they are increasingly forgoing in-store purchases in favor of online ones.

There are a number of quantitative metrics used to assess the success of a retail space, with one of the most important being the level of service provided to customers, both subjectively and objectively. Although several writers have proposed models for evaluating service quality, the one most often used is Parasuraman's service quality model.

According to this model service quality has following dimensions:

Tangibles: The appearance of physical facilities, equipment, personnel and information material.

Reliability: The ability to perform the service accurately and dependably

Responsivenes: The willingness to help customers and provide a prompt service

Assurance: A combination of the following:

●       Competence: having the requisite skills and knowledge.

●       Courtesy:  politeness, respect, consideration and friendliness of contact staff.

●       Credibility: trustworthiness, believability and honesty of staff.

●       Security: freedom from danger, risk or doubt.

Empathy: A combination of the following:

●       Access (physical and social): approachability and ease of contact.

●       Communication: keeping customers informed in a language they understand and really listening to them.

●       Understanding the customer: making the effort to get to know customers and their specific needs.

The review highlights the multifaceted nature of buyer and seller satisfaction in e-commerce, emphasizing the importance of a balanced approach to metric evaluation. While buyers prioritize affordability, quality, and delivery efficiency, sellers value platform fairness, profitability, and operational support. The study underscores the need for e-commerce platforms to adopt holistic evaluation frameworks that cater to the needs of both stakeholders. By addressing the shared and unique concerns of buyers and sellers, platforms can foster trust, enhance user retention, and drive long-term growth. Future research should focus on integrating emerging technologies such as artificial intelligence and blockchain to improve satisfaction assessment and ensure transparency in buyer-seller interactions.