Digital Marketing in 2018. Be prepared with good infographic from @MDGAvertising
Tag: retail
Enjoy this simple video that summarises an easy way to go online, fast.
In our earlier post – Business not online? Get ready to pack up – we shared that if you’re in the business of selling products, there really is no excuse for you to not have an online presence. 31% of consumers indicated that online shopping is their preferred mode of shopping and the trend is rapidly going upwards.
Many retailers usually start out by listing on the online marketplaces or e-marketplaces as they are called, such as Amazon, Flipkart, Ebay, Snapdeal, Myntra, Jabong etc. What most vendors don’t realise is that there are many hidden expenses and opportunity costs that could add up to ruin your business. These expenses are especially damaging if you are a small business competing with large multinational companies who have access to the massive budgets to spend on marketing and sales.
The best margins for selling online are usually attained by selling through direct channels. These include
- Build your own website with shopping cart facilities from scratch
- Utilise custom built templates or platforms already available to create your own e-commerce store
- Hire a professional to build and maintain your website (External consultants or internal dedicated employee hire)
There are significant benefits of selling through direct channels
- Showcase entire range: With your own online-store, you have better control and flexibility over the showcasing of all your products.
- Build Loyalty: Your own online store helps build brand loyalty. Loyal customers and repeat customers prefer reaching direct to store online and offline.
- Higher Profitability: Around 30-40% margin of online sales are eroded in commissions on other sites. Additionally, competition driven pricing and discounting cuts into profits through marketplaces.
- Increase your Valuations: Having your own store helps differentiate brand value and valuations flexibility, offerings.
- Analytics can be used to Grow Business: Ability to gain insights and analytics on buyer behaviour by driving targeted online campaigns.
- Lead generation: You have a chance to capture customer details through your landing pages and cross-sell more products.
Whether you have just one product with multiple SKUs or multiple products it is beneficial and worthwhile to build your own channels. This is especially true if you already have a loyal fan following or if your strategy involves creating a strong brand for your products.
As with anything, there are tradeoffs to this approach
- Initial capital will need to be set aside and invested to set up the various components involved. These can easily compound if invested in components that are not right for the business.
- A significant amount of time and energy might have to invested especially if one is learning about these tools for the first time.
- Driving customers to the site may prove to be big challenge if the brand is not yet well established in its niche. However, this can be mitigated by utilising the various digital marketing tools available.
Final note
If you are willing to invest the time and effort to understand and build your own online sales store, the benefits of this channel can result in a dramatic boost to your bottom line.
Remember that no matter what method you choose to go online, you don’t need to be restricted to just one channel. Selling through your own e-commerce store doesn’t mean that you cannot also sell your products through a marketplace to reap the benefits of both; Nor are you restricted to listing in only one marketplace. Many successful retailers, especially the larger ones, prefer to be involved in multiple channels. However, each additional route takes time, money and energy to understand its processes and maintain it. What is important is that you take the time to consider the options available and formulate a strategy that works the best for YOUR requirements. I will continue to tackle the pros and cons of each strategy, along with the tradeoffs in further posts.
#emarketplace #ecommerce #marketing #digitalmarketing #sales #onlinesales #onlineshopping #retailer #tips #amazon #flipkart #snapdeal #myntra #ebay #retail #jabong #koovs
This post was first published on LinkedIn, by Karina Pais, Consultant with Futureshift on Karina is an MBA graduate from UK and engaged with us a a consultant in digital marketing.
#emarketplace #ecommerce #marketing #digitalmarketing #sales #onlinesales #onlineshopping #retailer #tips #amazon #flipkart #snapdeal #myntra #ebay #retail #jabong #koovs
As we’ve talked about before, if you’re in the business of selling products, there really is no excuse for you to not have an online presence. 31% of consumers indicated that online shopping is their preferred mode of shopping and the trend is rapidly going upwards.
Most vendors have thought about listing in one or more of the online marketplaces (like Amazon, Flipkart, EBay, Snapdeal etc.) at some point. Listing on these sites is appealing on several fronts.
- The well-known marketplaces are high traffic channels with millions of active buyers. It is the preferred mode of shopping for many buyers who enjoy the variety and seamless buying experience.
- Merchants gain increased exposure for their products which can lead to higher sales volumes.
- It opens doors to acquiring new customers who accidently stumble across your products while looking at competitors or simply while browsing randomly.
However, there are many hidden expenses and opportunity costs that could add up to ruin your business
- Retailers, especially the smaller ones, end up paying around 30-40% margin of their online sales to online marketplaces. This includes even lesser known ecommerce platforms like Koovs, Jabong and Myntra. These margins are high even when compared to rental spaces in the brick-and-mortar stores
- In addition to the high margins, marketplaces regularly push retailers to give an additional 15-20% discounts.
- Competition will be crazy. You will be ruthlessly compared with other competitors, product wise, with price being the biggest differentiator in a marketplace. This will force price wars at the expense of quality and brand name.
- Furthermore, if you come up with a unique product or idea, it will soon be copied and mass produced at lower rates. Even if your product has a patent, its enforcement and prosecution will be time consuming and cash hungry.
- It will be difficult to build up a brand or generate loyalty for your products.
- You need to have a corporate tax identity before selling on most e-marketplaces. This isn’t feasible if you are just starting out and selling from the back of your garage or house.
- The supply and operations process to list and distribute your product is cumbersome
- A fairly large amount of precious capital will need to be set aside to make sure you have enough stock and inventory and to order the MOQ (Minimum Order Quantity) from suppliers.
- It will take time, money and effort to find the right strategy that features your product over others. The strategy will have to be tweaked between marketplaces since each platform’s promotion algorithm differs.
These expenses are especially damaging if you are a small business competing with large multinational companies who have access to the massive budgets to spend on marketing and sales.
There are other options available to sell your products online or even just to channel traffic to increase sales offline
- Use social media to build brand awareness and direct traffic to offline stores
- Build your own website with shopping cart facilities from scratch
- Utilise custom built templates or platforms already available to create your own e-commerce store
- Hire a professional to build your website (maintenance problem)
Final Note:
Listing your products on an online marketplace does have its benefits, but, the hidden costs add-up to create a big dent in profits. What’s more, it is a constant uphill battle to monitor pricing and stay on top of latest platform related tweaks to make sure that your product is placed ahead of competitors. Selling through a marketplace doesn’t mean that you cannot also sell from your own e-commerce store to reap the benefits of both; Nor are you restricted to listing in only one marketplace. What is important is that you take the time to consider the options available and formulate a strategy that works the best for YOUR requirements. I will tackle the pros and cons of the other strategies, along with the tradeoffs in further posts.
This post was first published on LinkedIn, by Karina Pais, Consultant with Futureshift on Karina is an MBA graduate from UK and engaged with us as a consultant in digital marketing.
If you’re in the business of selling products (even if primarily in the physical world), there really is no excuse for you to not have an online presence. This is regardless of whether you are an established brick-and-mortar business with years of sales experience or if you’re a part time retailer working out of the back of your garage.
Having your products displayed online is necessary because
- It helps you interact with a much wider audience and even have a global reach.
- You can set up your own social media channels in a few hours and the rest in a few days.
- Your customers can access your store at times that are convenient to them and at places that they already are.
- It complements your presence in the physical world to maximize sales.
- It is one of the more cost effective ways to get additional marketing and exposure for your brand.
These seemingly small gains are especially important when you are a small retailer and do not have access to the massive budgets that large multinational corporates can freely employ on marketing.
There are many options available to sell your products online or even just to channel traffic to increase sales offline
- Use social media to build brand awareness and direct traffic to offline stores
- List on a marketplace like Flipkart/Snapdeal/Myntra/Ebay/Amazon
- Build your own website with shopping cart facilities from scratch
- Utilise custom built templates or platforms already available to create your own e-commerce store
- Hire a professional to build your website (maintenance problem)
Whether you have just one product with multiple SKUs or multiple products it is beneficial and worthwhile to build your own channels. This is especially true if you already have a loyal fan following or if your strategy involves creating a strong brand for your products.
However, many businesses still don’t even have a social media account for their commercial enterprise. This simple to set-up and easy to use should undoubtedly be the low hanging fruit that is first targeted. Once this is tackled the next steps tend to become a little fuzzy. Is it better to sell on an online marketplace or is it more worthwhile to have your own personal platform? If you are going to create your own personal platform should you take the time to figure out how to do it yourself or is it better to use readymade solutions available out there? I will tackle the pros and cons of each strategy, along with the tradeoffs in further posts.
At the very minimum it is worthwhile to have your own website in addition to just a Facebook or other social media account. Having your own online sales channel along with this, whether through a shopping cart on your website or an entire online store by itself will be a great value add.
Final note
Once you do go online you don’t need to be restricted to just one channel. Selling through your own e-commerce store doesn’t mean that you cannot also sell your products through a marketplace to reap the benefits of both; Nor are you restricted to listing in only one marketplace. Many successful retailers, especially the larger ones, prefer to be involved in multiple channels. However, each additional route takes time, money and energy to understand its processes and maintain it. What is important is that you take the time to consider the options available and formulate a strategy that works the best for YOUR requirements. I will tackle the pros and cons of each strategy, along with the tradeoffs in further posts.
#emarketplace #ecommerce #marketing #digitalmarketing #sales #onlinesales #onlineshopping #retailer #tips #amazon #flipkart #snapdeal #myntra #ebay #retail #jabong #koovs
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This post was first published on LinkedIn, by Karina Pais, Consultant with Futureshift on Karina is an MBA graduate from UK and engaged with us a a consultant in digital marketing.
Businesses lose a chance to sell to over 95% visitors to a store. As visitors come and spend time with your retail sales personnel, and precious time is used to educate them about your products and services, little or no system exists to convert that effort into a sale. Subsequently, the visitor walks away with no follow-ups made.
Strike-a-deal is a simple way to engage the prospect and ensure that each visitor to your store is followed up to make a sale and nurture loyalty.
Download Strike-a-deal free Here – We can help customize the same for you – https://play.google.com/store/apps/details?id=com.conduit.app_6911a50bc5ad43799f9e8b1a12dfbb6d.app
Futureshift is an evolution, and we are excited to have you as part of this journey