Product ratings and reviews on e-commerce platforms play a huge role in influencing consumer purchasing decisions. However, amid the ever-expanding digital marketplace, a formidable challenge looms large: the proliferation of fake or biased reviews, which steer customers towards ill-informed purchasing choices. According to the latest survey conducted by LocalCircles, a striking 56% of online shoppers have noted positively biased ratings on e-commerce platforms in the past 12 months. However, this is a notable decline from the previous year’s figure of 69%.
Similarly, 60% of Indians have identified bias in reviews on e-commerce websites or apps over the last 12 months. Comparing these results with previous years, it becomes apparent that government guidelines aimed at curbing biased reviews have had only a marginal impact. Despite efforts to promote voluntary compliance with these guidelines, the percentage of positively biased reviews has slightly decreased from 64% in 2023 to 60% in 2024.
On the other hand, only 15% of respondents admitted to disregarding product ratings, while 10% overlooked product reviews during their e-commerce transactions in the past 12 months.
The LocalCircles survey garnered more than 54,000 responses from users of e-commerce websites and applications in 344 districts across India. These websites and apps include Swiggy, Zomato, Amazon, Flipkart, Jiomart, Ajio, Big Basket, Milk Basket, Country Delight, Blinkit, Zepto, Pharmeasy, Tata 1MG, Practo, Make My Trip, Google, Facebook, PolicyBazaar, Urban Company, Tata Neu, Myntra, Uber, Ola and many others.
Root Cause: E-commerce Platforms Hide Negative Reviews
Now, you must be wondering why there’s only a slight decrease in biased product reviews on e-commerce platforms in India despite the government’s implementation of strict guidelines. Two primary factors contribute to this trend:
Firstly, certain brands and sellers employ external agencies to manage their online ratings and reviews. Alarmingly, some of these agencies resort to unethical tactics, such as instructing their employees to purchase the product and leave positive reviews. This practice capitalizes on the limitation imposed by many e-commerce platforms, which only allow ratings and reviews from verified purchasers.
Secondly, a staggering 52% of surveyed Indians reveal that their negative ratings and reviews were not always published by e-commerce platforms. Despite regulations prohibiting the deletion of negative feedback, the percentage of users encountering this issue has risen from 45% in 2023 to 52% in 2024.
Many e-commerce platforms employ an approval process for customer reviews, scrutinizing them for certain keywords or content that may be unfavourable to sellers. Unfortunately, this often leads to rejection and non-publication of reviews, particularly in cases of seller misconduct. Examples of such misconduct include selling products above the MRP, providing false information such as expiry dates, or engaging in fraudulent activities such as shipping a different product than advertised.
Addressing the Gaps
Do all e-commerce sites/apps have interfaces in place to easily identify sponsored, incentivized, or influencer reviews?
Surprisingly, out of the 10,879 people surveyed, a notable 46% responded with “NO, none of the apps/websites did that” in the last 12 months. This underscores a significant gap in the ability of e-commerce platforms to effectively identify and address potentially biased reviews.
The voluntary adoption of ratings and reviews guidelines, as issued by the Department of Consumer Affairs in November 2022, does not appear to have yielded significant results. This is evident from the substantial number of complaints regarding fake and paid reviews, sponsored content, and censorship of negative reviews on e-commerce websites and apps over the past few years.
To address this challenge, e-commerce companies must leverage artificial intelligence (AI) technology to filter out fake or paid reviews and ratings on their platforms. By implementing advanced AI algorithms, platforms can enhance the quality of product information available to consumers, thereby boosting trust and confidence in the platform. This, in turn, is likely to lead to increased spending from existing users and attract new users to the platform.
Have you ever purchased the wrong product because of fake or biased reviews on e-commerce websites/apps? Share your experiences in the comments below!
