The impact of reviews and ratings on sales on e-commerce websites

Abstract

ECommerce space is picking up in recent times. There is still a segment of customers who feel hesitant to buy from eCommerce platforms as they don’t get to experience the product (“touch and feel” of the product). Given these circumstances, ratings and reviews are very critical in influencing non-category users and also acts as a “motivating” factor for category users to purchase. Different customers perceive ratings and reviews differently, and there are many qualitative factors involved in this process, this paper provides a quantitative relationship between the sales and ratings and reviews from a specific category from amazon.in. Also, objectively correlated how negative online ratings (or reviews) could impact sales substantial than how positive ratings could boost sales. We also observed that positive ratings could support customer’s decision, but a negative review are treated as a deciding factor in the customer purchase decision-making process. The paper also talks about how a brand perception and celebrity marketing could alter the mindset of the customer. This objective correlation could be used in multiple ways to benefit the sellers and or eCommerce platforms. This can be helpful for the eCommerce platforms in increasing their sales. Various marketing techniques can be employed to overcome this effect, and the paper aims at providing a “red signal” about a product based on its ratings and reviews.