All you need to know about B2B ecommerce models

Currently, our B2B ecommerce market is estimated to reach $ 40Bn this year and expected to reach 2.5 times of B2C ecommerce market in 2020. B2B ecommerce segment is showing signs of rapid digital acceptance which is going to feed the considerable rise of entrepreneurs and MSMEs from the Indian hinterland. Also, many MSMEs are exploring the era of online selling and thus, accessing new customers across the country.

All you need to know about B2B ecommerce models_WebBlog

(Source: ‘THE GREAT INDIAN ECOMMERE BAZAAR’ by Ecumen)

It has been observed that MSMEs which adopt advanced level of digital engagement, experience annual revenue growth that is 27% higher than those of offline businesses. This is because of factors such as reduction in marketing and distribution costs, shorter time to market, etc.

Aggregator Model

It’s an ecommerce business model where a firm doesn’t produce or warehouse any item but collects (aggregates) information on goods and/or services from several competing sources at its website.

The aggregation mechanism works best in the following settings:

  • Purchasing is done through pre-negotiated contracts.
  • The supplier universe is highly classified.
  • The cost of a purchase order process is higher than the cost of items procured.
  • Products are not commodities but are specialized.
  • The number of individual products or SKUs (stock-keeping units), is extremely large.
  • A meta-catalog of products carried by a large number of suppliers can be created.
  • Buyers are not sophisticated enough to understand dynamic pricing mechanisms.

Business Purchasing Pattern

Purchases can be classified into-

  1. Manufacturing inputs: Raw materials and components that go directly into a product or a process as from industry to industry, these goods vary considerably. And these goods are purchased usually from industry-specific or vertical distributors and suppliers.
  2. Operating inputs: On other hand, they’re not the parts of finished products. Often called MRO (maintenance, repair, and operating) goods, they include things like spare parts, office supplies and services. They’re frequently purchased from the horizontal suppliers – vendors such as Tolexo.com and Industrybuying.com.

In business purchasing, the second snag is how services and products are bought. Companies can either engage in spot sourcing or systematic sourcing. As far as spot sourcing is concerned, the buyer’s goal is to accomplish an immediate requirement at the lowest possible cost. This approach is exemplified by commodity trading for products such as steel, energy and oil. Spot transactions seldom involve a long-term relationship with suppliers and surprisingly, buyers on the spot market often don’t know from whom they’re buying! Systematic sourcing includes negotiated contracts with qualified suppliers as the contracts incline to be long-term, the buyers-sellers mostly develop close relationships.

Future of Aggregator Model

With the steady rise of B2B ecommerce in India, the aggregator model is playing a key role in bringing equilibrium within organized space across various sectors. While still at an emerging stage, it can be concluded for now that the aggregator model will witness greater adoption among numerous market players in the near future, enabling the creation of an ecosystem that benefits all parties involved.

Today, any ecommerce business is thriving on the subsidies and incentives that they give customers and suppliers to gain market share and traction. Even the major players will not sustain if the trends continue to remain. The aggregators will have to actually test the model by eliminating subsidies and incentives and then, figure out whether it’s doable or some twigging is required in the model.

Key Challenges

Unorganized Almost 95% of ecommerce B2B market is unorganized and dominated by local vendors. Lack of education on using right technology among customers (to buy) and sellers (to list) create a disadvantage for the sellers because they don’t have access to buyers via internet. Plus, small-scaled sellers aren’t able to scale up and sell to the multinationals at more competitive rates than those of higher-scale producers. Critical feedback for these small sellers to improve operations is also lost by remaining offline.
Preference for credit Historically “Credit” is a preferred mode of payment in offline B2B transactions where payment in offline trade is made 30 days after receipt of goods. However in B2B ecommerce, payment will have to be made upfront and at the most, Cash On Delivery will be accepted.
Nomination for PSE (Public Sector Enterprise) Currently there is a lack of a transparent and efficient competitive bidding route to choose the PSEs. It restricts Public Sector entity or Public Exchequer from getting the best options for service providers.
Lack of expertise in peripheral activities As the merchants move to online channels, they lack expertise in peripheral activities where they seek the support of ecommerce platforms and logistics partners such as managing inventory, handling invoicing and providing consumer insights.

 

Furthermore, Aggregator Model assures small and large enterprises to fulfill their product requirements in the simplest, most efficient and transparent manner. Major three roadblocks for any SMEs during procurement are:

  1. Sourcing
  2. Logistics
  3. Financial Credit

All these three individual processes are challenges for SMEs. In India, Metal Junction and MMRTC only are focusing towards this model through auction model. If SMEs are able to provide benefits to both buyers and suppliers through streamline value chain, it can bring success in near future. Their value chain precisely focuses on reduction of time, cost, inventory and people through transparency and better pricing mechanism.

In B2B ecommerce era, companies are also exploring MRO (Maintenance Repair & Operation) Model, but in this model also, there are some major challenges such as:

  1. Sourcing and Procurement
  2. Inventory Management
  3. Supply chain Management
  4. Govt. & Legal policies

If you want to know which model will suit best for your ecommerce business, talk to our expert ecommerce consultants!

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Never-failing e-mail strategy for combating cart abandonment

Being in ecommerce sector, you spend a million of bucks every day after marketing your business and to attract potential customers. But have you looked back at your site whether it has gotten proper ecommerce development? Whether it has a user-friendly design? Whether it has right navigation? Whether the checkout page is designed in a way that it can convince your site visitors and turn them into customers?

Do you know that improper checkout page design may result in cart abandonment? Well there might be some other issues as well but this is the key reason behind shopping cart abandonment. There might be some issues with your ecommerce website development that result in cart abandonment. You need to shoot these issues as soon as you can. Apart from this, you can also learn to write a perfect e-mail which can help you reduce the shopping cart abandonment. To know what you should include in your e-mail, go through this infographic:

Never-failing-e-mail-strategy-for-combating-cart-abandonment_WebBlog_Ecumen_Infographic

 

We, at Ecumen, can help you reduce your cart abandonment rate and earn more sales. Talk to our experts now!

Courtesy: SaleCycle

Things to keep in mind while developing an ecommerce mobile app

Ecommerce is gaining traction day by day and in such a scenario, you cannot forget your mobile-friendly audience. It can make you lose a huge consumer base and an easy profit as well. Again, just a responsive mobile website won’t work; you need to have a fool-proof mobile app for your online store.

So how should be your mobile app? It should decently showcase your products and offers. Plus, it should be designed in such a way that it offers easy and the most memorable shopping experience to the users.

Below are a few pointers that would help you in ecommerce app development:

The app should not be slow

An ecommerce app is not all about good images or just discounts! If it’s slow, nobody is going to use it. Because users would want to check the products, browse and compare different products in a few minutes and if the app can’t deliver that speed, forget about the sales!

Using location intelligence is good

Location-based technology helps retailers serve the customers in a more personalized way. An ecommerce app using location will help the retailers to reach their customers in real time. This way, they can push some special discounts, coupons and loyalty rewards to the customers.

A purchase should be easy and simple

Purchasing a product through an app should be a seamless procedure and should be successfully completed with least taps or clicks. Don’t make your user search for the information to place an order. The buttons and navigation should be designed in a way that the user can easily head towards the checkout page.

Be assured that customers’ data remain safe

Security is also an important concern because after all, it is about the personal information of your customers. It’s vital to keep their personal and financial data safe. So make sure that the ecommerce mobile app you are developing, is safe and complies with regulations.

Whatever you do, just be assured that whatever mobile app you develop, should be full-fledged. Plus, you should go innovative to stands out because a lot of apps are there already!

If you want any guidance or want us to help you develop an ecommerce mobile app, reach us anytime!

Want to increase your sales? Pick this color!

Do you know that a specific color has a specific effect on a human brain? Well, that applies in case of ecommerce as well. If you ask an Ecommerce Marketer or a Graphic Designer of your company about this, they would certainly agree!

Specific hues tend to trigger certain emotions in the customers, which help them decide whether they should buy from you or not. Hence, if you want to motivate the purchases and create a brand presence, then your ecommerce marketing strategy has to have a planned use of certain colors.

So let’s see how different colors affect your ecommerce marketing campaign:

RED for POWER

Red has the power of attracting your audiences and holding them. Companies use this color for marketing their products. But while using red, you need to take care that you never overdo it!

BLUE for TRUST

Blue is the color that will help you establish your brand. When you want to establish trust and faith for your brand among your customers, pick blue!

GOLD for PRESTIGE

Gold represents royalty, which makes it perfect to lend a touch of prestige and elegance to your ecommerce marketing materials.

GREEN for VERSATILITY

Green, denoting prosperity and wealth, is a warm and versatile color. It gives your customers the warm and inviting feeling when you represent this color before them.

PINK for WOMEN CUSTOMERS

If you’re vying for the attention of young female demographic, then choose pink! It is the right color for fun, frill and females!

BLACK for MODERNISM

Another versatile color black is modern, exciting and relaxing. It can be used as a contrasting color for whatever promotional material you want to use. Black is best as it will add a drama to whatever mood you want to cast for your customers.

So next time when you plan your ecommerce marketing campaign, choose your colors wisely!

Knowing your ecommerce competitors better

In any field, staying ahead of your competitors is required in order to be loved by your customers and maintain a profitable business. But for that, you need to analyze your competitors. You need to understand their strategies. You need to know their strengths and weaknesses. You need to know their every single move so that you can counteract.

But do you think all this is possible? Yes, and even simple! We will make it simple for you. You just have to know the types of your competitors and their strategies which would help you plan your strategies. In this post, we are going to give you an opportunity to know several kinds of your ecommerce competitors in a better way.

1. Technical gurus

Entrepreneurs who have vast technical knowledge often start an ecommerce business as they are best at doing so. Some crucial technical challenges which might frustrate other businessmen will be fun solving for such technical gurus. These kinds of ecommerce entrepreneurs are more prone to try new technologies and tools. They can give the best shopping experience to their customers. Knowing what they are doing on their site may help you compete the companies.

Strengths: Features, design, performance
Weaknesses: Product selection and marketing

 2. Industry gurus

Many industry experts who have passion for a particular sector have entered in the market with their online business. For example, a semi-professional passionate fashion designer, starting her apparel ecommerce has great potential to succeed. Monitoring such ecommerce experts can give you better idea on hot fashion trends.

Strengths: Product selection and industry knowledge
Weaknesses: Technology and marketing

3. Business gurus

In order to earn easy profits, even good businessmen start their online store and most of them easily succeed, may be because of their excellent entrepreneurship expertise. They better know what to and how to feed the customers. As they know the marketing and business knowledge, they can easily reach potential consumers and make the profit.

Strengths: Core business values, marketing expertise and customer service
Weaknesses: Industry and technology knowledge

4. Retail gurus

It is observed that most of the retail transactions belong to traditional brick-and-mortar stores. And when they move online, they hold an added advantage of already knowing their customer base and their needs. As they are already best at handling the customers and profit values, they can probably run a successful ecommerce business. Brick-and-mortar retail gurus are better at addressing the questions and queries of the customers.

Strengths: Experience and better customer service
Weaknesses: Sometimes they lack resources and hence, lose the focus.

If you also want to take your business online, we can help you. Along with updating you on the future of your product niche and current market trends, our expert ecommerce agency would also help you to be ahead of your industry competitors. With the help of our best ecommerce solutions, we assure you to become your success partner!

This Chinese ecommerce giant is all set to enter Indian market

After investing in many Indian start-up companies, the Chinese ecommerce giant, Alibaba is now planning to capture the $38 billion Indian ecommerce market and for this, the first step has already been taken.

Alibaba considers that the Indian market is most important after China and hence, venturing into the Indian ecommerce scenario has been on their agenda since a long time. Apart from launching an incubator for mobile startups and strategic partnerships in order to expand their user base, they also launched the ‘SMILE’ program last year to entice more than 1 crore Indian SMEs with their world-class fulfillments and delivery services.

According to reports, it is known that Alibaba is aiming to launch their own online marketplace in India by the end of this year and with a view to fulfilling this, they have also started holding meetings with Government officials. Alibaba’s management is holding some high-profile meetings with Indian Government officials and in near future, they are going to announce a major takeover.

Last week, a meeting was held between Alibaba Group President, Mr. Michael Evans, and the Telecom and IT Minister, Hon. Shri Ravi Shankar Prasad. The Minister sounded positive when he said, “Ecommerce is a rising phenomenon in India, growing at 50% plus with a huge catchment area, which shows the potential of a big aspirational market. We will give Alibaba full cooperation.”

As per the news, Alibaba is going to launch a model which combines both, online as well as offline retail. And later on, they would come up with a comprehensive ‘retail solution’ which would be targeted to small businesses.

This Chinese ecommerce giant is also trying to invest in Flipkart and acquire some stake in it so that when they launch their own ecommerce store, they have enough engagement and reach to make a dent!

Alibaba is an intelligent player and is going to make a strong foothold in the Indian market. Now this news can surely give some sleepless nights to other ecommerce companies in India!

Top 3 Points you should not miss in Ecommerce Website Development

Ecommerce web development services must excel in three core areas: Efficiency, Ease of Use and Security.  Are you looking to expand your ecommerce business and grow online?

Ecommerce website development demands strategic UX/UI design, development and execution that is best delivered by a combination of expertise and efficiency of an experienced ecommerce website development company. Irrespective of the ecommerce format you may choose, single store or a marketplace, there are 3 critical aspects in ecommerce website development that help sustain your success. Read more to know about these three crucial aspects of ecommerce website development:

Appropriate Ecommerce Platform:

In ecommerce website development, the choice of a platform that offers ease of access, simple, clean navigation and multi-device compatibility is very critical for success. Further more hiring the right ecommerce website development company with expertise and experience in particular ecommerce platform niche is crucial to leverage the benefits of the platform.  Ecommerce websites exists across a wide spectrum from the single product ecommerce to a multi-vendor service marketplace and the one thing that runs common in their success is user-friendliness and ease-of-use.

It is essential to have users at the forefront of your UX/UI design, the various aspects like content, product images, search, navigation and product images all work in unison. This demands an in-depth research about the target customer and their buying cycle behavior, how they search online, type of devices they use to enable better conversions at each level of the online store. Thus content, design, functionality and performance when designed keeping the end consumer in mind cement your chances of success.

It is for this reason that Magento is the most preferred ecommerce website development platform world-wide. The high-performance, scalable ecommerce platform has feature-rich out-of-the-box functionality that help create engaging shopping experiences and enables Magento developers to curate a personalized shopping experience.

 

Security:

A high volume of personal information is provided on ecommerce website with a complete trust that it will not be misused. An ecommerce website must therefore ensure the appropriate steps to secure user’s private data and confidential details of payment and contact details.  It is advisable to have (Secure Socket Layer) SSL/ (Transport Layer Security) TLS and compliance with PCI-DSS (Payment Card Industry Data Security Standard) on your payment pages.

When SSL is on the server, the address URL changes from HTTP to HTTPS and further the address bar in an ecommerce payment page equipped with ‘Extended Validation certificate will turn into green color bar. Adopting SSL/ TSL and compliance with PCI-DSS helps in three major ways:

  • Secured against risks: It not only makes your website more secure, verified and protected, it also reduces your risk to eavesdropping, (Man-in-the-middle attacks) MITM attacks and sniffing attacks.
  • Perceived as safe and secure: Customers also perceive your online store as more safe and secure. It reinforces your credibility, thus users feel more secure in transacting online on your website thereby resulting in higher conversions. Further, it not only increase business authority but also increases the business trust.
  • Meet SEO Guidelines & Boosts SEO: Google has recently updated its Transparency Report that focuses on the use of encryption on Google’s own site and across the web. The search giant also shows active support to industry-wide efforts, like EFF’s ‘Encrypt the Web’ that aims to bring more of the web to HTTPS. Google considers it as a step towards a safe and secure web browsing experience and considers it as one of ranking factors of page rank. Therefore it is a wise decision to shift to HTTPS, SSL/ TLS.

 

SEO + Digital Marketing:

The competitive landscape of ecommerce website development India demands an appropriate digital marketing partner agency which is sensitive to the unique needs and way of working of the ecommerce market. Apart from optimizing URL, Meta-Tags, images, content, headings, title-tabs, title tabs, it is equally important to follow all of the search engine guidelines as also utilize all the various tools of digital marketing to consistently rank higher in the search social results.

It is not sufficient to do Digital Marketing because doing it right is important. An effective digital marketing strategy help build a sales channel and build a loyal online community. Ecumen, the specialist ecommerce agency helps you with SEO, SMM and works with you to set the right digital marketing for your ecommerce store.

 

Ecumen, India’s leading ecommerce website development company, provides you industry’s best resources to build a profitable online venture, a smartly designed website, flawless payment gateways and ongoing maintenance. At Ecumen we don’t just help build and manage online selling portals, we build ecommerce brands.

Do you need help in understanding on how to get started with ecommerce? Contact us today! Visit www.ecumen.in for expert and affordable ecommerce website development solutions.

27 Ways to encourage visitors to be the customers

If you are running an online business, you obviously know how difficult it is to attract and convince customers to buy a product from your website. People have become smart today, they are hard to convince. Sometimes it happens that they visit your e-store, stay there for some time but return without making a purchase. Many possible reasons lead to this – may be they didn’t find a discount, may be your site doesn’t show in top search engine results, may be your online store doesn’t look professional or it may be something else!

But don’t worry! If you cannot find out the loophole, try to work out on everything together, right from revising your shipping policy to improving your marketing strategy.

The following infographic covers useful information with which you’d be able to convert a visitor into the customer. Have a look.

Ecommerce Development

Courtesy: visualistan.com

Knowing digital body language of your customers is possible!

When it comes to running an online store, it is tougher than running a physical store because there are many things which you don’t get in the former. In a physical store, you can see your customer walking in. You can welcome him/her whereas the online store doesn’t give you this opportunity. Also, you cannot keep any salesperson to talk to and convince the customer to make a purchase. Sometimes, observation of the customer gives you an idea whether he’s interested in whatever you’re showing. But is it possible in case of online store? Yes, if thought slightly out-of-the-box! How?

Take a look to this infographic:

Ecommerce Development

 

While it is much easy to handle and manage or even convert a walk-in customer in a physical store, doing that for an online customer is quite difficult but if you have the right gauging of their body language, it’s just like another day, walking in the park.

Courtesy: visualistan.com

Guess who the largest ecommerce player in India is? Get ready to be surprised!

Many of us have underrated and criticized IRCTC (Indian Railway Catering and Tourism Corporation) for various issues while booking tickets from their online portal. You might have received some funny memes and jokes about time-out sessions during online booking. But do you know that IRCTC is India’s biggest ecommerce player in terms of revenue?

Yes, you heard it right! In 2014-15, they earned a total amount of Rs. 20,620 crores from ticket fares which is even more than the total revenue filed by one of the topmost ecommerce players of India, Flipkart. Yes, Flipkart India has reported a revenue of Rs. 9,351.7 crores – not even half of IRCTC’s revenue!

In the year 2015, IRCTC saw many huge stats. In that year, they introduced a mobile application which currently witnesses about 2.5 lakh logins per day. And in the same year, more than 18.3 crore tickets were booked through their e-ticketing portal.

Moreover, the IRCTC website is currently available in Hindi and English only. But for the ease of users from different regions, it would be made available in other six regional languages – Bengali, Gujarati, Marathi, Telugu, Tamil and Urdu by the end of this year. Last summer, the website added five more servers to the layer of its passenger reservation system. And now, the site can handle three lakh simultaneous user connections.

The team has also revamped their e-ticketing tech system and given it the name of ‘Next Generation e-Ticketing (NGeT) system’, responding to the widespread criticism of limited capacity and frenzied systems. Traffic handling is however still a problem, particularly during Tatkal (short notice) bookings because this session sees the heaviest demand which often strain the servers up to their limits. According to Sunil Kumar, the Group General Manager at IRCTC, Tatkal bookings have two hour long booking windows and first 10 minutes of each are the most hectic ones of the entire day for IRCTC’s staff. The organization has employed about hundred engineers for the system at Delhi to deal with traffic, downtimes, security and other such issues.

For preventing any misuse of the online booking facility, IRCTC has introduced a new ticket booking rule. According to it, only 6 e-tickets can be booked per user per month because it is felt that a genuine passenger doesn’t need to book for more than 6 times in a month.

IRCTC has been facing the brunt of customers’ anger due to its slow speed and other technical issues since years but with this NGet coming in to the rescue, it has truly enhanced the ticketing experience for the citizens of India and it will continue to do so effortlessly.