87% of product companies are now selling products online through ecommerce
Ecommerce platforms are going nowhere. In fact, they are only getting robust and personalized.
What is an Ecommerce Platform?
Ecommerce platforms transform a generic website into a marketplace for buying and selling of products.
Its global B2C ecommerce sales will reach $1.5 trillion by 2021 year, a 20 percent increase from 2013.
If ecommerce is important to your business then the solution you choose is arguably one of the most important business decisions you will make.
Why adopt Ecommerce Platforms?
At its simplest form, ecommerce software enables a business to sell products and services online.
Traditionally, businesses had to purchase on-premise, standalone ecommerce software that required extensive IT setup and in-house management with specialized development teams.
These solutions were generally costly, not scalable, challenging to work with, and time consuming to customize and integrate with other systems.
Impact of Digital on Ecommerce Platforms
For the unparalleled growth of the ecommerce market, fast, secure, and effective payment options are essential.
Studies show that about 69% of shopping carts are abandoned on an e-commerce platform by the customers. A tedious and complicated payment procedure is one of the reasons why it happens.
Hence, an e-commerce platform needs to have an efficient and easy payment procedure.
The payment mode usually varies according to the region, like in Canada and the US market, credit cards are popular, but digital funds and debit cards rule the European market. Though the developing economies are largely cash-based, they are rapidly making their way towards digitalization.
Providing a better customer experience is the major goal of every e-commerce company and it can be achieved through personalization.
It is because of social media that the customers and e-commerce platforms are closer than ever before. Social media platforms like Twitter, Facebook, and Instagram allow the customers to view e-commerce products via images and have links that direct to e-commerce platforms with a click.
As the use of mobile devices like tablets, laptops, and smartphones has increased, they have become a crucial part of a business’s day to day operations. Research says that over 90% of mobile device users keep them within their reach every time.
Hence, targeting these mobile devices paves the way for the growth of the e-commerce industry. With the development of faster internet networks, digital experience has reached new heights, and the global mobile e-commerce industry is unstoppable.
For any store, eCommerce data management, and timely delivery of the products is the key factor for growth. Hence, optimizing the supply chain management of the market under spiked demands and digitizing data management is very important.
E-commerce data management software like Looker and Shopify provide a digital platform where all the industry-related data can be managed effectively. This is important as a thorough understanding of customer data facilitates informed business decisions and helps in the growth of the company.
Know Your Ecommerce Platform – A Quick Guide
Understand ecommerce platform types is key to adopting the right approach to your business
Open-Source- Open-source ecommerce platforms are solutions in which you can modify all aspects of the code.
This type of ecommerce platform is popular with development and IT heavy organizations who want control of their ecommerce environment.
SaaS – This removes much of the complexity from running an online business. Instead of building and developing a custom solution or an open-source solution, you can rent the platform.
Headless – This is a version of CaaS ecommerce in which the shopping cart is decoupled from the CMS.
Use Cases for Ecommerce Platform Digitalization
Use Case 1 – Demand Forecasting
The use of retail analytics to analyze sales performance and optimize the processes is very critical for any business.
With the help of a business intelligence tool, a company can dive deeper into their data, analyze patterns & correlations into their sales data & identify outliers through visually appealing & intuitive dashboards.
Market basket analysis uncovers associations between items; it may be because these are complementary products or have a tendency to be bought together. With the help of these insights, the store owners can create a tailored assortment of products and play with the margins by clubbing expensive (high margin) items with less selling discounted items.
Use Case 2 – Pricing & Promotion Planning
Identifying customer trends is very crucial for retailers. It requires analysis of a huge set of data, having a robust retail data analytics platform boosts the efficiency in planning and rolling out these promotional activities.
All this has been made possible as the consumers are leaving information through multiple touchpoints before the actual transaction happens.
These different touchpoints enable marketers to develop a more detailed customers persona and interpret customers to want. Customer Analytics allows retailers & e-commerce players to push out relevant offers to each customer in every stage of their buyer’s journey.
Use Case 3 – Inventory Management
The importance of supply chain enablement and strategizing is ever-increasing for ensuring a seamless experience for the customers.
With omnichannel strategy fuelling retail, an agile supply chain that can deliver products within hours of purchase and nimble reverse supply chains that allow flexible returns is need of the hour. It requires building a trustworthy supplier network.
With retail analytics systems, retailers/e-commerce decision-makers can create a repeatable framework for Unbiased Vendor Evaluation.
For example, the decision-makers can create a vendor evaluation scorecard against some crucial aspects like Cost-Margin, Lead Time, Credit Rating, Distribution Network and other hygiene factors.
Use Case 4 – Product Release Plan
It’s essential for companies to listen to what customers want. The supply chain is ‘pulled’ by the customers demand rather than the traditional ‘push’ strategy driving the trends.
Analytics is also very crucial to analyse the success factors driving a product’s sale. A benchmarking of these factors could go a long way in building a successful new product strategy.
The impact of cannibalisation through scenario analysis is also a very crucial step before a new launch. These modules can help retailers to limit or expedite the investment in a new product launch.
Use Case 5 – Ecommerce Analytics
Heatmaps improve website/store layout. They are a crucial feature of business intelligence tools.
These maps are a lot more visual, which can make them easier to analyse at a glance. These maps draw a gradient on website UI or store layout, the darker spaces represent higher traffic while lighter shades showing lesser traffic.
Decision-makers could gauge the behaviour of their existing customers and take optimum business decisions.
For example, an e-commerce player can observe what is appealing to his/her customer or from where he/she is bouncing off. What works for a business/product may not work for others. So, e-commerce players can use this information to formulate a standardized strategy for their business.
They can analyze the areas from where users are bouncing off, understand why it is happening (some technical issue or some designing flaws) & most importantly A/B test what is working for them.
Got a project?
We create lasting impacts and change perceptions by taking brands on a power-packed journey from where they are to where they need to be.