InGovern: Consumer Trust to Drive Festive Online Shopping Trends

As urban Indian households gear up for increased online shopping during the festive season, customer trust will be king in defining platform selection amid ongoing regulatory flux, shares InGovern Research Services, a leading corporate governance advisory firm. Drawing on insights from a recent LocalCircles study, InGovern highlights that platforms with strong governance practices are best placed to capture festive demand despite tariff changes, GST revisions, and other policy uncertainties.

The LocalCircles study highlighted Amazon India as the most trusted e-commerce platform, with nearly 4 in every 5 consumers rating it as their preferred choice for online shopping, driven primarily by transparent and efficient return and refund policies. This preference comes as the study projects a 115% increase in the number of urban households primarily shopping online during the 2025 festive season.

The study shows that 89% of urban Indian households rate trust, spanning product quality, pricing transparency, and ease of returns, as “very important” when deciding where to shop online. A further 79% prioritize reliable return processes for high-value purchases. This reinforces InGovern’s view that seamless, consumer-friendly policies are a critical differentiator, creating higher consumer confidence, especially among first-time online shoppers.

"In a landscape of regulatory flux with discussions around tariff changes and GST slab revisions, consumers are gravitating toward platforms that not only offer competitive prices but also inspire confidence through established trust and robust consumer protection," said Shriram Subramanian, Founder and MD, InGovern Research Services. "Our analysis indicates that platforms emphasizing transparent policies and seamless customer experiences are poised to capture a significant share of the estimated ₹2.19 lakh crore festive season spending."

InGovern’s governance assessment framework finds that companies investing in transparent policies around return, refund, and product authenticity create measurable competitive advantages that become particularly valuable during economic or regulatory uncertainty. Subramanian added: "These consumer-centric initiatives may involve short-term costs, but they create long-term value and resilience, helping platforms withstand market disruptions."

As regulatory discussions continue around e-commerce policies, InGovern notes that platforms like Amazon that have invested in building consumer trust through consistent service quality and customer-friendly policies are likely to benefit most from the projected 18% increase in urban India's festive season spending compared to 2024.

"Looking ahead, we anticipate that regulatory changes may create short-term market uncertainties, but platforms that have established governance frameworks prioritizing consumer protection will maintain their leadership positions," concluded Subramanian. "The festive season is likely to widen the gap between platforms that have invested in trust and those that haven't."