Comercio electrónico

Let’s just agree on the fact that customers returning a product is an inevitable factor of an eCommerce business. Customers can be dissatisfied with your product more than you anticipate. A study suggests that 30% of products bought online are returned for many reasons.    Many eCommerce owners dread returned items; as they cut into the profit and gut conversion rates by adding the logistical cost of handling a returned item. In fact, some business owners hate returns so much that they complicate the return process. Believing if the return process is complex, customers might give up the thought of returning the item.    Returns don’t have to be dreadful after all. There are ways in which you can turn the tables and use returns to your brand’s advantage. Of course, managing returns incurs hidden charges that come to your attention after some time; however, consider it a necessary investment for the greater good of your brand in the longer term. Because the way you handle your returns creates an impression of your brand in the market.    In a survey, 92% of consumers said that they are likely to buy again from the brand if the product return process is easy. The reason behind this is consumers feel confident, and secure buying from an eCommerce store in which getting back the money is as easy as spending it on an item. Therefore, streamlining your returns management process is imperative if you want customers to keep coming back for more.  What is Returns Management process?  Returns management, also referred to as reverse logistics, is the process of managing the end-to-end cycle of a returned product. The cycle starts with the end-user initiating the return to the seller deciding what to do with the item. Whether to salvage, refurbish, or add it back to the inventory based on why the customer has returned the product.    A customer might return your product for various reasons; a dress that didn’t fit well, tampered packaging, broken goods, mismatched items, delay in delivery, unsatisfactory quality, or customer having a change of heart are a few of the common reasons why products are returned.    Understanding Controllable and Uncontrollable Returns   Returns are classified into controllable or uncontrollable based on why a product is returned. It is essential to be aware of your business’s total controllable or uncontrollable returns if you plan on reducing them.     Controllable Returns Products that have been returned due to the mistake of the seller, which can potentially be controlled by improving internal processes, better handling and storage of goods, and better inventory management, are called controllable returns.    One considerable advantage of controllable return is that it provides feedback on why the product is being returned. This allows the company to rectify its mistake that happened the first time.    Some of the most commonly occurring errors of sellers or their shipping partners: Manufacturing defect Item breakage during transit Poor or tampered product packaging Product quality doesn’t match the description displayed in the online store Item mismatched at the warehouse Delay in delivering the product     Likewise, a business can control these types of issues by increasing the quality of material used to package the product, by explicitly displaying pictures and descriptions of the product on the website, educating the staff for better inventory management, and by partnering with an experienced 3PL provider to ensure on-time delivery.    If you think your product description and pictures accurately display the details of your product and still you are getting a high volume of returns, then there has to be some issue with the quality of the product. First, assess the quality of your products and if it does not match the standard quality, it’s time you tell your manufacturer to improve the product’s quality.    Uncontrollable Returns   Uncontrollable returns are those returns that are out of your control, which means you cannot do anything about it. Typically, Customers initiate these returns when they have a change of heart or have ordered multiple variations (different sizes and colors) of a single item. To check which one fits and looks the best and return the rest of the variations.    The apparel industry witnesses the most uncontrollable returns; wherein the customers tend to return due to misfitting or color dissatisfaction. To be honest, there is nothing much you can do about uncontrollable returns other than reducing the time for returning the product.    Well, this is not a sold foolproof plan for reducing returns, but it is based on the theory that the more time a customer spends with the product, the less likely they will return it, as people tend to grow an attachment to it.    Though uncontrollable returns will cost you the extra money of handling, reverse logistics, and storage of goods, uncontrollable returns have to be entertained if you want to keep your customers satisfied.    Why is Returns Management Important?  Customer Retention:  Well, this one comes as a no-brainer. As mentioned above, with the help of a solid returns management process, you can retain customers while reducing the impact of returns on sales. Customers are most likely to come back to you to buy more products when they are confident that they can return them if they don’t like them.    Customer Satisfaction: Imagine being stuck with a product you don’t like because it doesn’t fit well, doesn’t match the description shown on the website, or doesn’t fulfill the purpose you ordered it for. Sounds unsatisfying, right? Want to make your customers feel the same? I hope not.    Brand Loyalty:   Customers feel loyal to the brand that accepts returns as quickly as it accepts a sale. Therefore, initiating quick refunds and simplifying your return process will help you win your customers’ loyalty for a long time.    Steps a Product Will Go Through in a Return Process  Customer initiates return stating the reason why they wish to return the item. A return is initiated when the customer is not satisfied or happy with the item. Perhaps the item was broken, or in the case

Imagine you have spent a fortune and plenty of resources running countless campaigns over various channels to promote your products. And finally, when you have successfully created a hype and customers are looking for the product, your worst nightmare comes true when your products run out of stock. Such a situation may arise due to the lack of a proper demand planning strategy.    What is Demand Planning?  Demand planning is an integral part of supply chain management that enables an organization to forecast future demand and effectively optimize the organization’s output based on the demand forecast. Explicitly, demand planning is the process of adjusting product or service availability according to the demand anticipation.    The main purpose of demand planning is to maintain a proper supply and demand balance, meaning the store inventory is supposed to contain just as many products as the demand side seeks. There is a thin line between sufficiency and surplus, and demand planning strives to achieve that thin line in an organization. Demand planning also includes constant marketing and promotional efforts to increase demand for the products or services.    Why Is It Important for Your Business? For online stores and e-commerce sites that have just started, demand planning may not be necessary at this stage. But it is absolutely essential for a rapidly growing e-commerce business. Still wondering whether you should really implement a demand planning strategy? The following points might change your mind.   To Keep Customers Satisfied It is hard to retain a customer once they have had a bad experience with your online store. However, with a solid demand planning strategy, you can ensure that your customers keep coming back for more.    For any business, keeping its customers happy is priority number one. And would your customers be happy and satisfied with your business if it cannot fulfill their demands?    Therefore, it is essential to avoid customer dissatisfaction and retain customers.     To Maintain Ample Inventory Levels Demand planning allows you to be aware of exactly how much stock you need to hoard. So that your bestselling products never run out of stock when you need them the most. With a proper demand planning strategy, you will be able to order a new batch of stock at your supplier before your inventory runs dry.   For Meeting Increasing Customer Demand E-commerce business is like a herd of sheep; it grows at a meteoric rate under optimum conditions. Demand planning will help you keep up with the rising customer demand when you have started getting traction in your e-commerce business with more customers looking for your products and increasing product demand.   Steps Involved in Demand Planning Process Demand planning in itself is a vast subject. It will become vague if we don’t break down the complex demand planning process into smaller, more understandable elements.    Collecting Past Data It all starts from here – Collecting data!    Putting together the past data of your business enables demand planners to understand products’ demand patterns from a historical perspective. Demand planners research both internal and external factors to gather the necessary information to forecast demand.    Internal sources are company sales, customer trends, seasonal data, and historical sales. On the other hand, external factors that impact the demand for a product include but are not limited to labor force change, natural disasters, pandemics, economic shifts, global crisis, etc.    Modeling Past Data Creating a demand prediction by feeding your company’s past data to an algorithm or an artificial intelligence built to predict the future demand for your products.     Weighing Demand Forecast Against Inventory This is where the magic of demand planning happens; in this step, planners realize how much stock they need in order to hoard to match the demand, including a little bit extra as buffer stock.     Trade Promotion Trade promotion in terms of demand planning is a process that exists between retailers/wholesalers and manufacturers rather than the end customer.    It refers to the various methods of marketing and promotion directed towards retailers by manufacturers to increase the demand in retail stores. Trade promotion offers retailers special discounts, free display racks, gifts, incentives to keep good relations with retailers.   Product Life Cycle Management Product life cycle management is the process of managing the product’s lifecycle right from its introduction to retirement. It plays a vital role in demand planning since it allows demand planners to understand the impact a new product has on its existing product.    Replenishment Planning Replenishment planning is the process of balancing the inventory level with the demand. In layman’s terms, the process of reordering or restocking your inventory to exactly match the demand. However, replenishment planning is not just limited to reordering your stock. It also helps you understand the stock level necessary to avoid building up surplus products.     In addition, replenishment planning tells demand planners exactly when to place an order, considering the time required by the supplier to deliver the products to you. With the help of replenishment planning, you will be able to restock your inventory before it runs out.    Popular Demand Forecasting Models Speaking succinctly, demand forecasting methods are broadly categorized as qualitative and quantitative. Generally, qualitative demand forecasting methods are implemented by businesses when historical sales data does not exist. On the contrary, in the quantitative forecasting method, advanced technologies like machine learning and artificial intelligence churn out mountains of data to predict the future demand of your product.    Trend Projection Trend projection is the method in which the sales data of the last few fiscal years (minimum 2-3 years) is used to predict the future demand for a product. It is the easiest and most straightforward method of demand prediction.    Trend projection forecasting, however, has its own limitation – Unexpected Changes! This forecasting model does not include some external factors that affect the sales of a product, like a natural disaster or a pandemic in the equation.    Sales Force Composite Sales force composite is a forecasting method in which the demand forecast of a product is generated by consolidating the

Selling internationally has always been the dream of eCommerce businesses of all sizes. However, international eCommerce selling comes with its own set of challenges. Nevertheless, done right, international eCommerce selling will take your business to the next level. Ergo, we are writing this article to list the best practices for selling your products internationally.  Why should you consider selling your products internationally? When the pandemic struck, all countries were locked down one by one, businesses across all the industries hit rock bottom. But the eCommerce industry kept rising at a meteoric rate. Needless to say, the pandemic acted as an active catalyst for the growth of e-commerce businesses around the globe.    The modern consumer’s dependence on home delivery and eCommerce has increased, presenting eCommerce owners with a plethora of growth potential. Take a look at the pace eCommerce has grown over recent years. These statistics prove the potential of the global eCommerce industry. With such massive numbers, business owners find it hard to resist the urge to sell their products online internationally. Moreover, thanks to the advancement of technology and cross-border transportation, many local merchants are taking their business global, eager to capture new international customers.    If you too, are planning to expand your business operations overseas, then you have come to the right place.    So, without further ado,  Step by Step Guide for International eCommerce Selling Every great business was once an idea, and an idea needs to be executed strategically. Therefore, the first thing to do before opening your doors to the world is to plan your business operations.    We thought these tips might help you plan your business expansion internationally, Research and identify your target market Do your homework before stepping into the international market!    Selling your products in every country on this planet might actually not be a very good idea. And it is better to limit your area of trade considering numerous limitations, such as    The demand for your product in that particular country – for example, you might be selling ski boards and snow blades primarily purchased in the countries where it snows. It is pointless to market them in countries where it doesn’t snow and has practically no demand for ski boards. Similarly, before entering the market for a particular country, try to analyze if that market has demand for your products.      Language barrier – Needless to say, not all countries speak the same language. There are a lot of French and Spanish-speaking countries. When you target such countries, you will have to curate your marketing content in the relevant language. Also, you have to make sure that you are conveying the right message to the audience. Using google translator to translate your content might change the context or meaning of your content.   Your country’s trade relationship with the targeted country – Unfortunately, some countries are not on good terms with each other. Selling your products in those countries is impossible unless you want to smuggle them into that country. The US has banned all kinds of trade with countries like the Republic of Cuba, Syria, Iran, North Korea, and Venezuela; therefore, selling products in these countries is a no-go for eCommerce businesses based in the US.  Select the Channels Best Suitable for You After you have finalized which countries you will sell your product in, it’s time to choose the channels you will market and sell your products through. When we say ‘channels’, do not get confused between marketing and sales channels.  Marketing channels are primarily social media platforms, email newsletters, Google ads, Facebook ads, etc. At the same time, sales channels comprise third-party eCommerce sites like Shopify, Etsy, eBay, native mobile applications for your eCommerce, and your official website.  So, deciding which channel you will sell through is absolutely crucial. In some countries, you can easily sell your products through the Facebook marketplace and google shopping. However, in China, Baidu is more popular than Google and Facebook. Similarly, in Russia, Yandex is dominant.  Thus, based on the countries you are focusing on doing business in, choose the best suitable channel for your business model to sell your product.   Pay Attention to Marketing Marketing is the only ray of hope while building your customer base and acquiring new customers. Marketing and branding are the keys to the growth of your business. Hence, pen down a solid digital marketing strategy with your team and put your best foot forward. And needless to say, when you are selling internationally, the best option to promote your product is digital marketing.    There are a plethora of digital and content marketing strategies that will help boost the traffic to your official website. And the best part is that you can harness the advantage of running digital ads on various platforms. For budding businesses, digital ads can provide great support in increasing sales. Along with paid ads, you can use the power of social media to increase brand awareness and customer interaction.   Choose The Right Payment Option There are certain challenges a business needs to overcome when it comes to payment. The first challenge you must overcome as an online business is – offering enough payment options. Research by Baymard Institute has found that more than two-thirds of online shopping carts are abandoned due to insufficient payment options. So, make sure you don’t lose potential customers for this particular reason.    In addition, consumers’ choice of payment options differs from country to country. For example, European people prefer paying through Visa, American Express, Mastercard, whereas Asian countries strongly prefer cash on delivery.    Furthermore, payment options like “buy now, pay later” are becoming popular. See if it fits your business model.    Now, addressing the elephant in the room – currency!    You have to consider the local currencies when planning to take your business abroad. Offering consumers the option to pay in their local currencies is the best solution to overcome this problem. Or, perhaps you can receive payments through PayPal. However, your customers will have to pay a

Have you ever come across a product that you can buy with a single click while scrolling Instagram? Probably yes, right? This is one of the new trends of eCommerce. Targeting your right audience on the social media platform is becoming the new normal for the eCommerce industry. Social commerce is about engaging customers in an effective way. In this blog, let’s explore what it incorporates, its benefits, and some top tips for establishing an effective omnichannel social commerce.     Fundamentals of Social Commerce   Social commerce is the convergence of eCommerce and social media. Brands in social commerce use social media to sell and drive sales for their eCommerce business. But is it worth it? Will people continue to use it? Well, the answers to these queries are YES. According to Statista, sales through social media platforms were approximately $560 billion in 2020. And that’s just the beginning. It’s forecasted that social commerce sales will reach about $2.9 trillion by 2026.   This figure shows that social commerce is a booming industry and is highly likely to grow in the near future. Therefore, it is the right and profitable time to jump into the industry.   What is Social Commerce? Social commerce is the process of selling products directly through social media. The integration of social experience and eCommerce is enabled through social commerce. It is generally mistaken with social media marketing. There is a difference between SMM (social media marketing) and social commerce. When you promote your brand and drive the customers to your eCommerce website, that’s marketing. On the other hand, social commerce is to generate sales and revenue completely through social media. Social commerce ensures a seamless and easy experience for digital shoppers.   Though social commerce and social media marketing go hand-in-hand, you can manage everything from social media, from selling, displaying products, creating catalogs to resolving customers’ queries hassle-free. Hence, it is easy to sell and manage your business without a website.   Social Commerce Ecosystem  When your social commerce setup is fully developed, shoppers can complete the process of payment and checkout without ever leaving the platform. Shoppers can even connect with the customers via the social media app’s messaging features or with AI-driven chatbots.    Social commerce engages customers in 3 principal ways:   Content-Driven: Social media posts with content related to the latest products and services. It leads to brand discovery, engagement, and action.   Experience-Driven: In today’s technology-driven era, there are numerous experience-driven channels like Livestream and AR/VR. If you include the latest technology, it enhances your visitors’ and customers’ experience.   Network-Driven: When you are driving a network-driven community like Meesho and Alibaba, you make your brand fun, valuable, and purpose-driven for your customers.   Whether you are a brand or an individual, the social commerce market has growth potential for you. It is efficient, rapidly growing, and cost-effective.   Benefits of Social Commerce   Social commerce is becoming the new normal of today’s world because of the immense benefits it offers. Some of them are:   Drive Authentic Engagement   Social networks allow businesses to relate, not just sell. Showing up in your customers’ news feed consistently creates an opportunity for you to interact with your customers. It further allows you to enhance the authenticity of your business and helps consumers make an informed purchase decision.    Engaging content like videos, polls, stories and contests can do wonders for your brand. It makes your audience feel connected to your brand.   Build Trust and Loyalty   When you are on social media sharing engaging content and showing people the person behind the brand, it is highly likely that your consumers will trust you. Moreover, people trust other people more than brands.   If your numerous satisfied customers are leaving good reviews on your social media page, potential customers are highly likely to trust you more and purchase your products. Therefore, focus more on posting reviews and feedback, behind-the-scenes video clips or Livestream, who you are as a person, and more content that helps you connect with your audience.    Make Buyers’ Journey Frictionless   At the core, social commerce is all about making the buyers’ journey easy. When consumers shop on social media, it is frictionless for them to follow through from product discovery to purchase. It removes the potential for uncertainty and cart abandonment, which is higher in traditional eCommerce stores.   Buying from social media is a seamless experience. For example, in Pinterest’s checkout process, the consumers browse the platform and save the products/posts they like. From there, they can press the ‘Buy’ button and purchase the product right there. The payment process is smooth, making the complete buying journey seamless.   Make Your Brand Global   When you sell from social media shops, you make your brand global. That is the best thing about social commerce; it has no geographical boundaries. So to target the international audience, there is no better platform than social media.    Social platforms make it easy for brands to expand their reach and market their products internationally. To make this happen for your business, you need an effective social commerce plan and strategy. People from all over the world are on social media and changing the way they shop online, and this is the time for you to make the most out of it before it’s too late.   Tips for Effective Social Commerce   Social Commerce is a win-win for everyone. However, it can be tricky. Therefore, here are some effective tips to help you win through the social commerce game.   Price Matters   If you are selling luxury products or high-end appliances, you will likely not receive the same engagement and sales as lower-priced retailers. In the social commerce space, lower-priced items sell better.   You can sell multiple products at different price points and use your ad spend for lower-priced products. Moreover, while your customer is making a purchase, don’t forget to grab an email address. So, you can sell them a bigger ticket item later on.   Automated Bot Checkout   Having an AI chatbot automates as much as 80% of your customer support conversations. An AI

If you want to thrive in the industry, it is vital to keep up with the latest trends. Here’s a blog with the top eCommerce trends for 2022.