Brands must market themselves through advertising, performance marketing, affiliate marketing, e-mail marketing, and social media marketing or can avail the services of e-commerce enabler platforms to do so.
Over the past few years, the e-commerce space has undoubtedly become crowded, with several brands switching to the online business model. Consumers, too, are increasingly leaning towards online shopping owing to the convenience it offers. The pandemic has further accelerated this, and the e-commerce sector is booming. In fact, India’s e-commerce sector is one of the largest and fastest-growing in the world, projected to reach USD 111.40 billion by 2025, according to IBEF.
However, as more and more brands/sellers take the e-commerce route, the market is witnessing cut-throat competition. This kind of intense competition can have an adverse impact on businesses if they don’t strategize and implement their ideas correctly. If you are looking to drive revenue and make your brand profitable, here’s what you can do.
Research and analyze for better customer experience
Before venturing into anything, it’s important to conduct thorough research and analysis. It’s imperative for brands to research for the right niche based on price and consumer demand and conduct a SWOT analysis to understand the gaps in the industry. Additionally, today’s consumers prefer a personalized shopping experience, so it’s important to analyze consumer insights to gauge their behavior, preferences, etc., to cater to them accordingly.
Through better technology integration, marketing strategies, customer journey mapping, and garnering feedback, brands can offer a more personalized customer experience. E-commerce brands also need to focus on customer retention and track repeat customers’ data to provide a better shopping experience while reducing customer acquisition costs. Customer retention and satisfaction will improve LTV (Lifetime Value) and boost AOV (Average Order Value).
Bolster your marketing approach
Marketing plays a crucial role in a brand’s journey to success and profitability. Brands must market themselves through advertising, performance marketing, affiliate marketing, e-mail marketing, and social media marketing or can avail the services of e-commerce enabler platforms to do so.
Further, they can also leverage consumer data to fuel their marketing campaigns and create a product roadmap to deliver an impeccable experience. Innovative marketing campaigns can also be of assistance when a brand is trying to identify its customers’ requirements. Featuring customer testimonials, leveraging marketplaces, and brand websites can provide a major boost in increasing brand visibility and reach.
Organize, build, and grow
Just like marketing your brand, building a brand identity is crucial to the sustained growth of the brand. Customers tend to prefer brands whose identities they are aware of and trust – this builds brand loyalty and boosts customer retention – an aspect that can be immensely beneficial, especially in times of an unexpected crisis. E-commerce brands also need to plan with the flexibility to scale up easily and manage day-to-day operations efficiently.
Apart from these, organizing every aspect – right from logistics and fulfillment (manufacturing, packaging, shipping, and order return) to legality (LLC, TIN, Tax responsibility, etc.), will go a long way and avoid any confusion, negative customer feedback for delayed deliveries, etc. Last but not least, brands need to choose the right business model – B2B, B2C, Marketplace, Door-shipping, D2C, etc., that aligns with their goals and requirements.
To make operations more efficient and seamless without incurring additional costs that exceed the budget, it’s best for brands to focus on their core product/service and tie-up with e-commerce enabler platforms for other functions such as warehousing, website, brand store management, performance marketing, and more. With the services of an e-commerce enabler, the unit economics will become viable for brands even at a low scale, alongside driving revenue and growth. The aforementioned tips can help brands thrive amidst the increasing competition and boost profits.
Source: Business World