Online Shopping in India is in its nascent stages and is expected to rise above $700 million by the end of March 2010, promising a bright future. However, many people still locate information on the internet and purchase products offline at traditional stores, conversion rate being very low. This paper attempts to investigate the factors influencing customer perceived risk of online shopping in Indian context. Reliability coefficient for the scale was satisfactory and factor analysis generated 6 major factors: Monetary, Performance, Time, Source, Social, and Psychological. Monetary and performance risks have highest mean scores and social and psychological risks being the lowest. Further T test confirmed that all of these factors had significant impact. Managerial implications and measures for improvement are discussed.
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