The Indian e-commerce landscape is moving away from just offering attractive discounts. Today, success is defined by ‘data-first’ precision. While flashy apps and big sales catch our eye, the real engine of growth is something invisible: high-quality, standardised data.
For any brand looking to grow in a crowded and competitive market, the gap between a loyal customer and a lost sale often comes down to how reliable the information is behind the screen.
Many businesses fall into a dangerous trap: assuming that more data automatically means better insights. In reality, much of the information flowing through digital channels is not standardised or verified. This is often called ‘dirty data’—data that is incomplete, inconsistent, or inaccurate. For example, a product description may list the wrong size, an image may not match the actual colour, or specifications may be missing. When businesses rely on inaccurate data, they risk misunderstanding customer needs and making choices that don’t match real shopping behaviour.
If a system misreads what a shopper wants or fails to sync their online and offline habits, the marketing strategy becomes a shot in the dark. In a country as diverse as India, where consumer preferences change every few hundred kilometres, relying on speculation instead of accurate facts is a quick way to lose relevance.
The double-edged sword
The most obvious victim of poor data is the warehouse. Running out of stock or over-ordering is not just a small hiccup; it is a massive financial drain. When data is not accurate or accessible, a brand might tell a customer in Lucknow that an item is ‘in stock’, only to find the actual product is stuck in a Bengaluru warehouse with no way to get it there on time.
Overstocking is just as bad, as it ties up money in goods that lose value the longer they sit. By adopting global data standards, businesses can achieve a seamless balance between their physical stores and digital platforms. This ensures that what the customer sees on their phone is exactly what is sitting on the shelf. Without this accuracy, the dream of an efficient supply chain remains out of reach.
The fragility of brand loyalty
We often think brand trust comes from engaging ads or emotional stories. But today, loyalty is built on a foundation of reliable data. Shoppers expect that what they see is what they get. The product shown online should be the same product delivered to their doorstep, and it should be available when promised.
Every time data fails, whether a package arrives late, the wrong item is shipped, or the product looks different from its online description, trust is broken. Without accurate data, brands cannot deliver as assured, and loyalty quickly fades.
The modern Indian consumer has endless options. In physical stores, shoppers can check products directly. Online, that trust depends on creating a digital twin—a digital identity that matches the physical product. Brands that use a standardised, unique identity for every product ensure that what customers see online is exactly what they get. That accuracy is the real foundation of lasting trust.
Precision vs. guesswork
Advertising without precision is no longer effective. As digital ad costs climb, every rupee spent has to count. Yet, a huge chunk of ad budgets is still wasted on unproven guesses.
Winning brands are those that use verified data to guide their spending. When data is clean and standardised, AI and analytics tools can actually do their job and predict what will sell.
But when the data is messy, these high-tech tools only make the mistakes bigger, leading to missed opportunities resulting in impact on the topline and bottom line.
The steep price of ‘dirty’ data
Shipping errors are like a ‘hidden tax’ on e-commerce. From wrong addresses to mismatched items, the cost of these blunders is staggering. It isn't just the original shipping cost; it is the cost of the return (reverse logistics), potential damage to the goods, and the extra office work needed to fix the mess. Most of these headaches start because the data was not standardised properly at the very beginning.
As we look toward the future, especially with the shift to next-generation 2D barcodes by 2027, the goal is simple: building trust through trusted data. By moving away from disconnected systems and using a unified global language of trade, everyone from small Indian MSMEs to large retailers can build a stronger business.
Reliable data is not just a technical detail; it is the bedrock of consumer safety, smooth operations, and long-term sustainable growth in our fast-moving economy.
S. Swaminathan
The author is the chief executive officer of GS1 India, a standards organisation set up by the Union Ministry of Commerce and Industry, along with other apex trade bodies.
The opinions expressed in this article are those of the author and do not purport to reflect the opinions or views of THE WEEK.
