Ecommerce Laws

Government Tightens Laws On Online Sellers To Help MSMEs – A Detailed Look

Come February 2019 the new amendments to India’s FDI (Foreign Direct Investment) policy for online marketplaces will come into force.  The new norms were introduced to ensure a level playing field for the MSMEs to participate in and benefit from the growing digital economy.  The amendments were made in the wake of several complaints by the domestic sellers on the unfair market practices of large foreign e-commerce players that resorted to deep discounts.

Let us understand how the large foreign e-commerce players took advantage of the earlier rules and how the new norms would check further violations of the policy.

What do the revised rules say?

  • Online market players funded by 100% FDI are allowed to operate only under a market place based model. This means that they can only act as a facilitator between sellers and buyers but cannot have any control or ownership of the inventory of the goods and services being sold. An online seller is considered to control the inventory of a seller if more than 25% of the purchases of the vendor are from the same online seller. In such case, the online platform will be considered under the inventory-based model, for which 100% FDI under automatic route is not allowed.
  • Any vendor with equity participation from an online marketplace (or its group companies) will not be allowed to sell its products on the same e-platform.
  • Any services that the e-tailer provides to entities directly or indirectly controlled by it should be done in a fair and non-discriminatory manner.
  • The e-marketplace cannot mandate any seller to sell its products exclusively on its platform only.
  • Cash back provided to the buyers by the group companies of the e-marketplace should be fair and non-discriminatory.

The new amendments will cause changes for all the players involved

For starters, customers will have to bid adieu to Flipkart’s “Big billion days sales” and Amazon’s “Great Indian festivals”.  The deep discounts and offers that lured price-sensitive customers to e-marketplaces will no longer be offered.  This may see some discount-driven customers going back to the brick and mortar markets.

Amazon and Flipkart, the two giants in the e-marketplaces will bear the major impact. They will no longer be able to offer preferential services and exclusive sales through their sites. Smartphone and electronic brands like Xiaomi, OnePlus, ASUS etc, which have exclusive sales and model launches on these sites will no longer be allowed. Walmart, which acquired a stake in Flipkart will not be able to sell its wares on Flipkart.

Due to the restrictions on vendors with an equity investment from e-commerce companies, sellers like Appario (Amazon – Patni Joint venture) and Cloudtail (Amazon – Catamaran Ventures joint venture) will no longer be able to sell on Amazon. Similarly, Flipkart –Myntra affiliated sellers such as WS Retail, RetailNet, OmniTech Retail will have to reduce their sales on a single online seller to less than 25%.

Benefits like faster delivery and special discounts for Amazon Prime customers would no longer be possible. As the portals cannot discriminate among vendors, Amazon fulfilled, Flipkart assured sale of products will have to stop.

The future plans of these businesses, which include promoting their private labels to accelerate growth, will have to be put on hold. Owing to the new amendments, foreign e-marketplaces may have to bring major structural changes to their business models.

MSMEs, which till date could not compete with the continuous discounts and pricing strategies of the large, cash-rich, foreign e-commerce players will now be able to leverage the advantages offered by e-commerce.  Also, the rules provide an opportunity to offline players to regain the market share they lost to online sellers.

The new rules may thus prove to be win–win for MSMEs and traditional sellers while proving a setback for large foreign e-commerce retail players. For customers, they offer a mixed bag.

Ezeetrak GST TCS on Ecommerce

TCS LIABILITY ON E-COMMERCE OPERATORS UNDER GST

Virtual marketplaces like Amazon, Flipkart, Snapdeal, etc are very popular today owing to the various advantages they provide to both the customers and suppliers of goods and services. E-commerce, as it is known, is witnessing growth in leaps and bounds all over the world. In the process of bringing such transactions under the purview of taxes, the Central Government, under the Central Goods and Services Act, 2017 (CGST) has made it effective for the operators to collect TCS (Tax Collection at Source) from its suppliers w.e.f 1st October 2018.  Here are a few points, which clarify and summarize the GST laws applicable for e-commerce operators.

Defining e-commerce and its operators:

According to Section 2(44) of CGST Act, Electronic Commerce is the supply of goods or services or both, including digital products or electronic network.

The players in e-commerce can be categorized as e-commerce operators and suppliers.  The CGST Act, Section 2(45) defines e-commerce operator as any person who owns, operates or manages the digital or electronic facility or platform for e-commerce. Eg, Amazon, Flipkart, Paytm Mall. An e-commerce supplier is any entity that uses the e-platform to supply its goods and services.

What does the law say?

According to the CGST Act, the e-commerce operator is required to collect one percent of the net value of the taxable supplies made through it, where the operator collects the payment for such supplies. The amount so collected is known as Tax Collection at Source (TCS).

The rate of TCS is 1% for an intra-state supply (0.5% CGST and 0.5% under SGST). For an inter-state transaction, the TCS rate is 1% (under IGST).

An example:

A garment manufacturer from Hyderabad sells garments worth ₹10,000 (excluding GST and commission) on Amazon.  Amazon charges a commission of 5%.  The GST is 12%.

Amazon’s commission (5% of ₹10,000) ₹500
GST (12% of ₹10,000) ₹1200
Total amount inclusive of tax and commission ₹11,700
TCS (1% of ₹10,000) ₹100

Amazon will deduct an amount of ₹100 as TCS from the supplier.

Filing of Returns:

The e-commerce operators are to deposit the tax collected to the credit of the respective government and further file the returns by the 10th of next month in which TCS was collected. Along with the monthly returns, the operators should also furnish annual return of TCS.

When to deduct TCS:

TCS is to be collected when the supply is made through the e-commerce operator, irrespective of when the actual collection of payment is made. In the earlier example, assume the garments were supplied on 30th November 2018 but the payment was received in December 2018. The TCS has to be collected and reported in the statement for November 2018.

Registration Requirements for operators and suppliers:

As TCS is applicable for both inter-state and intra-state transactions, the CBIC (Central Board of Indirect Taxes and Customs) required both domestic and foreign e-commerce operators to register in each state. In a later clarification by CBIC, the states/UTs will indicate one administrative jurisdiction where all the e-commerce operators having a business (but no physical presence) in that particular state will register. Foreign operators with no physical presence are allowed to appoint an agent on their behalf for the purpose of TCS registration.

Exceptions:

TCS provisions are not applicable to the following:

  • Housekeeping services like carpentry, plumbing etc (unregistered suppliers). Not exempt if the service provider is liable to register under GST laws.
  • Services providing transportation of passengers by cabs, radio taxis, motorcycles
  • Commercial places for lodging or residential purposes such as clubs, hotels, inns etc. Not exempt if the service provider is liable to register under GST laws.
  • E-commerce operators need not collect TCS from suppliers whose turnover does not exceed ₹20 lakhs. This is in accordance to GST law, which specifies that suppliers using e-commerce platforms are not liable for registration if their turnover in a financial year does not exceed ₹20 lakhs (₹10 lakhs for specified special category states).

These new provisions in terms of registrations, reconciliations, monthly returns by suppliers and e-commerce operators require the players to employ well-integrated systems to ensure smooth running in the day to day business. For the government, it should result in checking tax evasion as the tax is collected for every transaction.

 

 

 

5 Ways to Encourage Your Employees to Use Technology

‘Technology’ can bring out different emotions in different people. While some find it indistinguishable from magic, there are some who think life was simpler when Apple and Blackberry were just fruits.

The great ‘technology debate’ may have merits on a philosophical level, but it fizzles out when it comes to corporations and offices. The pro-technology verdict is pretty much clear and is evident from the rising investment on IT by big and small organizations alike.

Huge investments on new tools and technology can bring returns only when your company’s employees are fully onboard and see technology as an ally. While the new and younger workforce may be quick to adapt, your older employees need to be encouraged and trained.

Here are some ways to get your employees excited about new technology.

#1 Do Your Homework

Before you start convincing your employees to use new tech, do thorough research yourself on the merits of investing in new tools. Draw out pros and cons and be very clear what you are trying to get to out of the new technology. While most big sized organizations have a defined process and a dedicated team to evaluate new technologies, often people doing the groundwork lose sight of the big picture or fail to compare against existing processes. The result could be rolling out an ill-suited, expensive technology which creates more problems than solutions. The best way to get a favorable employee response to new technology is to have one that is really relevant for your organisation and not just something touted as the next big thing.

 #2 Know The Current Expertise

The current technical expertise of your employees should ideally be factored in before investing in new tools. As such, this step should be carried out in parallel to the first step. Assessing current technical skills could be done in the form of a survey (filled out by employees themselves or their managers) or a test depending on the kind of tool you are looking to introduce.

#3 Have a Customized Training Plan

Once you know how skilled your employees are, you may have to create separate tracks of training plans that cater to different skill sets. For tools that need extensive training, you may need to have both beginner level training and expert level training (for experienced employees). Some tools might require only basic introduction and orientation. These can be managed by holding lunchtime talks or formal mandatory sessions.

#4 Make Technology Fun

Training courses are usually one way and even if you hold tests at the end of the course, you cannot be sure if the employees will exploit the new technology fully. Periodic re-enforcement of basic concepts in the form quizzes, hack-a-thons, games can build a tech-savvy culture at your workplace while making technology fun. These events can help employees a great deal in learning technical concepts and come with additional benefits of team building, collaboration, etc.

#5 Make Technology Worth Their While

Giving incentives have been universally proven to work. Depending on how critical the adaptation of technology is to your organisation, you can tie the technical expertise of your employees to their promotions, bonuses and salary revisions. Giving out employee recognition awards once a year or even periodic like tech master of the month, etc go a long way in boosting morale and encouraging employees to take technology seriously.

Technology is here to stay and it is impossible to match pace with the world by turning your back to it. Leveraging on technology frees up your time to work on other problems. This applies to everyone from organizations to individuals in their personal and professional lives.

A Survival Guide for Third-Party Sellers on Amazon, Flipkart

Business as usual is becoming difficult or coming to an end for many third-party sellers. Competition on Amazon.in or Flipkart is reaching new heights and it’s only going to get worse from here.

The original categories of top third-party sellers have saturated. So they’re entering new categories – categories you may be selling in – and all of the systems and resources that took them to the top of their original categories are coming with them.

The supply chain is shrinking fast. Manufacturers and brands are cutting out the middleman – you and other third-party sellers – and going direct. According to Forbes: “The number of manufacturers selling directly to consumers is expected to grow 71% this year to more than 40% of all manufacturers.”

All this increased competition has resulted in a ‘race to the bottom’ in many categories on Amazon and Flipkart. Top third-party sellers, manufacturers and brands, however, have more pricing flexibility with lower costs and higher margins. Many third-party sellers are finding that they have to work harder and harder to generate the same top line sales but are not receiving the same bottom line profit.

When you add it all up, it’s easy to see that the long-term viability of the reseller model is very much in doubt. The situation isn’t hopeless, however. This guide lays out what you can do as a third-party seller to put your business in the most competitive position possible.

To stand a chance of surviving, you must do one of two things. The first is develop a unique sourcing advantage. There must be something unique about your supply chain or how you source products to sell. But what if you can’t negotiate exclusive distribution agreements with your suppliers or don’t want to create your own private label products?

You Need to Achieve Economies of Scale to Last Long as a Third-Party Seller

Achieving economies of scale isn’t the only thing you need to do to stay relevant. There are several other things you need to do, or do differently, keeping in mind that speed and accuracy are now basic competitive requirements.

Now, more than ever, you need to protect your margins and Buy Box ownership. There should never be a time when your products are overpriced or under-priced.

You never want to be at the mercy of only one fulfillment method, one or two suppliers, or a handful of products. You need to develop the capability to quickly diversify your fulfillment, product and channel mix

Underdeveloped Categories are Under Attack

Many suppliers don’t limit the number of resellers who can sell their products. This means competing with dozens, hundreds, and sometimes even thousands of other sellers who are offering the same products at the same or lower prices.

What’s worse, many top third-party sellers who started out selling clothing or books or hardware are using their expertise and tools to enter other categories – because their original categories are starting to saturate.

Category expansion was how Amazon and Flipkart became household names.

According to Forrester: “Many retailers are increasing the number of SKUs they sell online by a factor of 5-to-10 times. Brands too are increasing the number of SKUs they offer with new sub-brands, private label products, and a general diversification of product lines.”

If you have trouble winning the Buy Box now – imagine how much more difficult it will be in one, two or five years.

Shrinking Supply Chain

If you’ve made exclusive distribution agreements with your suppliers, you’re in a better position than most third-party sellers – at least for now. However, the number of manufacturers and brands willing to do this is steadily decreasing. And there’s a good reason why this is happening. You now have to watch out for those you may have considered allies!

The supply chain is shrinking because more and more manufacturers and brands are cutting out the middleman and selling directly to consumers. This undeniable shift is already wreaking havoc on businesses of many third-party sellers.

According to Forbes: “The number of manufacturers selling directly to consumers is expected to grow 71% this year to more than 40% of all manufacturers. And over a third of consumers report they bought directly from a brand manufacturer’s web site last year.”

By creating direct-to-consumer (DTC) channels, they gain more control over their brand image, pricing and the way their products are presented. With the customer information collected, they can consistently improve the brand experience, sharpen their marketing strategy and offer lower prices.

Also, research shows consumers prefer buying directly from manufacturers and brands instead of from third-party sellers who offer multiple brands. Millennials drive this shift in buying behaviour because they view the product content of manufacturers and brands as being more reliable and appealing.

Battle of Efficiency and Margins

The sharp rise in competition is causing a ‘race to the bottom’ in many categories. Top third-party sellers, and manufacturers and brands have more pricing flexibility because their costs are lower, and margins are higher. Some third-party sellers are finding out they have to work harder and harder each year to generate the same top-line revenue but are not receiving the same bottom-line profit. It’s no one’s fault – it’s the nature of these marketplaces. It’s designed to be easy for anyone to list products for sale, and their Buy Box algorithm gives preferential treatment to the most efficient and profitable sellers who can offer the lowest price.

Here’s what it will take for you to have a realistic chance of success selling on Amazon, Flipkart and other marketplaces from now on.

What It Takes to Win

To survive and prosper, third-party sellers must develop a unique sourcing advantage. There must be something different or special about your supply chain. This is typically done by negotiating exclusive distribution agreements with suppliers or carving out a niche and creating your own private label products.

You want to be the only authorised reseller, or one of a select few. And you want to get your supplier to agree to not compete against you. This is easier said than done because not only is it becoming easier and easier for suppliers to sell direct – it’s also in their best interest! And creating your own private label products comes with its own set of challenges. One of them being the fact that you’re highly dependent on your supplier in terms of quality and production.

Achieving Economies of Scale

If you can’t negotiate exclusive distribution agreements with suppliers or create private label products, you need to achieve economies of scale to compete long-term as a third-party seller. You need to buy and sell in larger quantities. To do this, you must lower your costs, then your prices. There are three costs that you have a realistic chance of lowering: product, shipping and operating.

Price Your Products Correctly

You need to ensure your products are never overpriced or under-priced. You must be able to precisely raise or lower prices as soon as possible after your costs – or your competitors’ prices – change. You never want to be guessing or slow to react. You must make it your mission to always be selling at the right price no matter who you buy from, where you sell, or how you ship. To do this you need to use a repricer.

Diversify How You Ship and What You Sell

Use alternate fulfilment methods such as cross-docking or drop shipping to test the viability of large numbers of new products – without having to purchase them in advance. Once you find out what sells and at what price, and what doesn’t sell, you can better decide what to stock in your warehouse or FBA/FA.

You don’t want to be at the mercy of only one or two suppliers, or a small number of high performing products. Look into streamlining and automating the processes you use to seek out new suppliers and list new products. To be competitive, you should be able to change what you sell at any time by quickly identifying the best new suppliers and listing their products for sale.

How Do I Do All of the Above?

All of these processes are complex, but complexity also creates opportunity. If you can automate or eliminate the majority of the work so you only have to deal with exceptions, you’ll gain a competitive advantage over those doing it the longer, slower way. To do this, the front- and back-end of your business must be connected.

Driving Operational Innovation and Efficiency

You’ll find the operational innovation and efficiency you need by replacing disconnected point solutions and processes with a single unified platform. A multi-channel eCommerce solution like Ezeetrak that connects every area of your business – from purchasing to fulfillment. Top third-party sellers have agile and resilient businesses because they have a single source of truth.

With a single integrated platform like Ezeetrak you can:

Achieve Economies of Scale, avoid hiring employees and run your business for less than your competitors. Maintain or lower operating costs and offer lower prices. Out-price and outsell competitors. Use sales volume increase to lower product costs with suppliers. Offer lowest prices and dominate your category.

Grow your eCommerce Channel with Funnel Analysis

In a sentence: Funnel Analysis is a powerful method of online data analysis which shows you the most important conversion steps of a user one by one.

A funnel is a well-defined flow on your website – the checkout process, registration, lead generation – anything where users take a series of actions before reaching some sort of goal.

So, the very first thing to do is find where these funnels occur. This obviously varies depending on your business, but almost everyone can benefit from figuring out their funnels and how users flow through them.

To analyse this funnel, you have to find a few different things:

  • Current conversion rates (do you know this?)
  • Current drop-off rates

The conversion rate is pretty obvious – what percentage of users who hit the registration page are registering? – but the drop-off rates are less so.

At every stage in the funnel, you lose some people. Generally, a lot of people. Even if your front page is entirely focused on getting people to try your demo or sign up, you will likely lose at least half of your visitors before they make it to the next step. You will also lose people who make it to the purchase page or registration page, who will just decide not to continue. It’s important to be able to figure out where you stand before you do any tweaking.

In each case the keyword is linearity. With funnel analysis we try to model processes where users can’t skip through certain steps (those strictly follow one another), and where they can reach their goal on a straightforward path. On an eCommerce website, for instance, this path can be set up easily:

  • Landing page.
  • Browsing through the products.
  • Visiting a specific product.
  • Adding the specific product to the Cart.
  • Filling out the purchase details.
  • Confirming the order.
  • Payment.
  • “Thank you for your purchase!”

How to create your first funnel analysis?

Step #1: Define the steps of your funnel

For ease of understanding, We would suggest tracking between 5 to 10 steps. If you have a lot more, you risk getting lost in the data; if you have a lot less, then you don’t have a funnel.

Step #2: Pick your funnel analytics tool(s)

It can be practically any software. If you want to go with an easier setup process, you can use smart tools like:

And you can always analyse funnels with your own tools. Even Excel or Google Spreadsheet can do the job, but if you are using an advanced data coding tool like SQL, Python or bash, you can use some built-in packages, or you can build your charts with some 3rd party data visualisation tool like Tableau, GoodData, Chartio or anything, that fits your needs.

Step #3: Visualise your funnel

Once you are done with all of the above, choose the simplest and easiest to understand funnel visualisation:

FunnelFunnel

How can you get actionable insights from funnel analysis?

This is a key question. Each online research and data analytics is done so we can make changes and improvements – and eventually create a better user experience!

But how can we get useful information from Funnel Analytics? 

One is the so-called bottle-neck-check. Here we are looking for where the chart drops the most. If we see that during the registration everyone provides their name, email address and password, but almost everyone disappears at captcha, then we can suspect that there is a problem there (e.g. the captcha is not readable). But of course, it’s not always this easy. There are steps where we actually expect our users to churn. E.g. entering bank card details during check-out comes always with a big drop. So, we should not search for the “bottle neck” where most users disappear in absolute numbers, but where drop out is the highest relative to our expectations. (Our expectations could be based on many things – we can use our “common sense,” but using market benchmarks or historical data is more recommended).

Another one is how much time it takes for someone to add a product to the cart, starting from the first visit on the product page… This could tell us a lot about our product and our communication as well. Deciding to purchase a Rs.20000 laptop will never be as quick as buying a Rs.200 battery. But if you provide enough information (good content, good pictures), you will help your users to make a better decision faster.

The third recommended funnel analytics practice is segmentation. If we can find user-segments who are more successful at certain steps than others, then we receive great insights on who to target in the future, as well as on why other users may have gotten stuck. For example, if we can see on our jewellery e-commerce business that men buy dress for women without a problem, and a large portion of women eventually don’t buy any, then it may be worthwhile to think about our target audience and our main message: “husbands, buy your wife some dress.”

Conclusion

Figuring out your funnels is one of the most important things you can do to increase your quantitative understanding of your website. It’s critical to get the starting measurements – the drop-off and conversion rates – before you change anything. That’s the only way you can know the effect of the changes you make.

By constantly tweaking and measuring, you should be able to really improve your number of conversions.

ezeetrak B2b

Common Mistakes to Avoid in B2B eCommerce

An B2B eCommerce Store is an effective method to grow a business. Using an online store makes operations more efficient, costs less and strengthens customer relationships. Because online sales don’t require many additional resources or funds, it is a great option for many businesses. However, making mistakes can end up costing you even more money.

Keeping Your Page Hidden:

One of the most important aspects of a successful eCommerce business is to ensure the search engines can find and crawl your site to index it. Instead of creating a public page, they use a hidden page to sell to prevent their competitors from seeing what they are doing. This can cost you in search engine rankings and traffic.

Not Using Advanced Analytics:

It is important to always have your finger on the pulse of your business. When you used advanced analytics as part of your marketing and sales plans, you will see what is working and what is not. With advanced analytics, you can track what your customers are doing, what they are buying and how they interact with you, so you can tailor the experience to best meet their needs. This allows you to create customized promotions, build customer loyalty and learn how to upsell and cross-sell to your customers.

Having Subpar Content:

Your eCommerce store needs content that is designed to attract customers. The right content is essential to drive sales to your store. The more quality content you provide, the better the results will be. Most importantly, you need to keep the content fresh to keep the attention of the search engines.

No SEO Tactics:

SEO is one of the most critical aspects of your store. Search engines want to see websites that properly use keywords and provide a quality experience for Internet users. You need to make sure your website offers easy navigation, a rich experience and fast load times to ensure it is ranked well with the search engines for optimal success.

Ignoring Your Competition:

Many eCommerce stores concentrate on their own site and fail to get a good look at the sites of their competitors. This can be a major mistake. If you don’t know what your competition is doing, you won’t be able to make your site better than theirs. Don’t be lulled into a false sense of security that your competition is not a threat.

Leaving Out Online Payment Options:

New payment methods are always popping up. If you are the first business to accept them, you will see greater success. In addition to accepting traditional payments, such as purchase orders and credit limits, you need to accept online payments as well, including PayPal, Paytm and BHIM. Failure to do so often results in lost sales.

Running Your Processes Separately:

Running a physical store and an eCommerce store can be complicated if you don’t integrate everything together. Integrating both these systems into one allows you to reduce the work that must be done and save you money. Integrating your ERP and CRM with your online store will create more accurate data and ensure your business operates more smoothly for greater efficiency and profits. Even better is to have one single system like ezeetrak.

Ezeetrak ERP

Is your ERP helping your business?

Customer expectations have reached dizzying heights while globalisation, regulation and rapidly fluctuating economies are a double-edged sword of opportunity and uncertainty. Efficiency, simplicity and agility are the three goals a business hopes to adopt to address its customers’ needs and optimize its operations and cost.

Backend systems, when designed and integrated properly, will help you achieve those goals. The next generation of Business management systems, like Ezeetrak, has arrived and if your business has not migrated, it will become increasingly difficult to remain competitive. Here’s why:

Innovation vs. Maintenance

When having an on-premise Business Management Application requires an IT department focused on maintenance and work with the application provider to constantly align the system with the ever-changing demands of the business climate. Analysts from Forrester and Gartner have concluded that maintenance costs range from 50% to 90%+ of the typical organization’s IT budget. These costs, which are largely related to the patching and makeshift repairs of an older system, often outweigh those from a strategy of continuous innovation.

Keeping up With Evolving Tech

Frequent changes in regulations for data protection, financial guidelines and information security require constant costly changes. It becomes extremely difficult for older systems to survive with such changes as they require time-consuming patches or additional manual procedures. Moreover, an outdated system is unable to react and take advantage of rapid change and lacks the agility that is essential in omni channel business.

Access from anywhere is the Future

The future belongs to the next generation of powerful mobile devices offering web access regardless of place and time. Forrester reports that up to 50% of businesses will increase the number of mobile applications available to employees, customers or partners as part of their latest IT priorities. An outdated on-premise system will not be able to meet the demands of such technology, creating operational inefficiency and customer dissatisfaction.

Real-Time Business Reports

An informed business decision is only as good as the information on which it is based. Slow reporting by an aging on premise system forces organizations to manually generate reports and create budget or forecast spreadsheets. The latest systems like Ezeetrak feature real-time business intelligence and analytics that provides the organization access to key performance indicators.

Customers Won’t Wait

Customers and suppliers are no longer content to wait on the phone to check an order. They want to get their online, updated order status immediately and judge today’s business by how responsive and easily accessible it is. If the operation is not properly interconnected with customers, suppliers and employees retrieving real time information is impossible.

Ezeetrak Is the Remedy

Ezeetrak has leveraged our vast business experience and real-world trouble-shooting to produce a single SaaS application which can run your entire organization. This next-generation system enables its users to remain on top of the latest technological advances, while simultaneously introducing operational efficiencies.

If your ageing ERP solution is unable to keep up with the ever-changing demands of modern business, please feel free to contact us at sales@ezeetrak.com

ezeetrak ecommerce b2b

E-commerce for Manufacturers, Wholesalers & Distributors

With the rate that technology is advancing nowadays, E-commerce has certainly become an indispensable part of every business—from the manufacturers down to the retailers. Some businesses may not work directly with consumers, but the companies with which they deal or sell to are expecting the same experience consumers typically do. Having a B2B platform allows them to remain competitive and successful in today’s digital world.

Here are the top reasons why manufacturers, wholesalers & distributors must have a B2B E-commerce strategy in place.

Potential

According to prnewswire report Global business-to-business (B2B) eCommerce sales are predicted to reach over $6.6 trillion by 2020, surpassing business-to-consumer (B2C) valued at $3.2 trillion by 2020. The United States (US) alone will generate over $1.9 trillion in sales by that time. With this rise in B2B eCommerce and the digital commerce world, B2B is predicted to become more like B2C.

Content is King

There’s no getting around the fact that content is critical to the B2B purchasing process. As more wholesalers, distributors, and manufacturers offer a B2B eCommerce website to allow their customers to place orders online 24/7, the ability to access high quality, detailed content online is more important than ever.

B2B purchase decisions are much higher stakes than their B2C equivalents, and buyers want to back up those decisions with information––product specs and descriptions, reviews, inventory levels, and pricing.

In fact, it’s partially due to this content credibility and availability that more B2B buyers are making purchases directly from the brand or manufacturer, rather than distributors and other channels. According to Forrester, 45% of buyers prefer to buy a product directly from the brand/manufacturer, and 62% say that the brands that manufacture products often have the best information about that product available online.

Operating cost and Efficiency

B2B e-commerce operates in an efficient pace, which will save you cost.

  • Cost of sales representatives
  • Cost of order entry
  • Cost of printing and emailing invoices and marketing materials
  • Order entry errors
  • Promotions and discounts
  • Substitute and cross-selling

Expand the market opportunities

Through the e-commerce, you have chances to access to more customers at home and abroad. Business market may be expanded. You can connect with more potential business partners.

Meet Expectations Set by B2C E-commerce Portals

You might expect B2B and B2C e-commerce portals to be very different, but the fact remains that even the retailers who buy from you should be treated like consumers. This means offering the same features that a B2C portal will. These features include personalised high-quality service, easy-to-navigate interface and a quick and convenient business processing. Hence, it is important for businesses to retool their B2B e-commerce portal in order to deliver a B2C-like service while offering a pleasurable shopping experience to their users.

Amazon for Business

Amazon for Business is one of the leading B2B suppliers in today’s competitive e-commerce market, offering several industrial and business products to their customers. Smaller distributors see a serious threat in the form of Amazon business, which increases the need to invest in a competitive e-commerce platform. Simply put, wholesalers who wish to compete with industry giants will have to step up their game in the form of an enhanced e-commerce presence.

Increase Sales

B2B businesses have survived for ages because of their on-field sales personnel. However, due to high operational costs, these businesses have also been restricted to serve customers with smaller order sizes. With the right e-commerce infrastructure in place, these customers can now be brought on board and even encouraged to make larger orders.

Keep Up with Trends

Mobile platforms such as smartphones and tablets are already beginning to make a serious impact on the field of e-commerce. Customers who are already demanding B2B e-commerce will soon start to expect mobile commerce as well.  Naturally, you can’t move on to mobile commerce without having an e-commerce site in place. Running both operations at the same time can be a real drag so be sure to work on your e-commerce first and include mobile commerce in the second phase of your e-commerce strategy.

How Ezeetrak can help?

To know more about an single end-to-end solution for Manufacturers, Wholesale and Distributors feel free to contact us at www.ezeetrak.com or drop us an email @ sales@ezeetrak.com.

 

Pre-requisites for Omni-Channel

Retailers are facing tough business, competitive, and customer pressures today than ever before. Need of the hour have compelled them to develop Omni-channel capabilities. Key component that need attention while building one’s brand through Omni-channel retailing is the power of a personal connection. Shoppers should experience the same quality service from retail or brand representatives that they do via social media and vice versa. Retailers should be able to provide a level of knowledge about products or services that meets or exceeds the information available to shoppers across a company’s digital and physical channels – all while providing top-quality customer service. Important is to have the same information across channels so that the customer find the same product info on mobile and buying it in-store.

Integration or a single application like Ezeetrak is required for the retailer to ensure a rich Omni-channel experience and yes, all the respective systems need to coordinate synchronously to have uniform information everywhere.

eCommerce store

If you want your customer to find you online, this is the first place they expect you to be in. With Omni-channel experience, shoppers would love to have the same product information here as it is in your brick & mortar store.

E-commerce markets are growing at noticeable rates. The online market is expected to grow by 56% in 2015–2020. Customers love eCommerce as it helps to overcome geographical barriers and allows them to purchase products anytime and from anywhere.

ERP/CRM

Customers want to feel they are dealing with a single person for all their needs, across all their products. They want you to know their personal profile, including devices, services and content purchases across the entire portfolio and across all accounts—personal and business. Metrics and incentives will therefore need to expand to include holistic customer value, with comp “customer” sales becoming as important as comp “store” sales. So, you need to have your ERP/CRM strong and stable and integrated well enough with different systems so that any information that a customer appends, or changes is reflected across channels in no time.

Third Party Marketplaces

Customers, these days, expect online retailers to provide them a range of options to choose their desired product from. By offering shoppers flexible delivery options (e.g. buy online/pick-up in-store), online retailers enable consumers to browse, purchase and receive items on their own terms, without relying on anyone. Omni-channel strategies today include achieving a broad presence across third-party online sites like Flipkart, Amazon, etc. to maximise opportunities to showcase the brand through consumer purchase journeys. Information remaining same across all digital channels of an organisation helps the customer to select their product from any channel without hesitation. Third party marketplaces help retailers win new customers.

Social Media

Each channel’s features are combined to help you achieve your overall business objectives. Today, social media is extensively used by retailers to have a strong grip on floating customers. All you need is to integrate social media within your Omni-channel strategy. To make sure that your strategy is as efficient and effective as it should be, it’s important to make your brand as visible as possible. It’s time for people to know your brands social media presence – using of icons on your website, including them in your email signature and displaying them on online and offline marketing communications appeal customers.

Business circumstances have changed with technological advancements and the changing needs of the customers. It’s no longer okay to have one strategy for online activities and another for offline. Today, customers expect uniform information for a single product in all channels they traverse through.

eCommerce Fulfilment Ezeetrak

eCommerce Success – Focus on Fulfillment

According to IBEF India’s internet economy is expected to double from US$125 billion as of April 2017 to US$ 250 billion by 2020, majorly backed by eCommerce.

But to cope up with the increasing competition in most markets, even the best eCommerce players need to strategise well to add stability to their businesses. And while looking for stability, you look for ways to increase revenue and optimise profit; but most importantly you need to look for ways to attract customers. Irrespective of the business you are in, Customer is the crux to your business. Looking for new customers is definitely an option but holding the ones you already have for future sales is of utmost importance.

According to Harvard Business Review , depending on which study you believe, and what industry you’re in, acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one. For sure, you can definitely do a lot to retain customers but interestingly, all such efforts pertain to improving customer experience.

Order fulfillment can be the last part of theeCommerce transactions but definitely not the least in terms of value it adds to your business. Like helping customers in store, quick fulfillment time is also a form of customer service. The faster you deliver, the more you create loyal customers. But the million dollar question is how you do it? One way is to bring in visibility in your supply chain systems. But with so many systems these days, you end up with silos of isolated information. Many small to medium size eCommerce businesses have a volume that’s unmanageable; they mostly find handling such large volume of orders a major drag on productivity. But with Ezeetrak eCommerce solutions you have options to focus less on volume of information and more on your core business.

Handling your own order fulfillment is not a small decision, as there are multiple steps between a business receiving an order and the customer receiving their ordered products. You need to revolutionise your business to cater to latest needs; a transparency for all your stakeholders including your end customer can change the course of your business. Tracking inventory or shipments, giving your customers an option to deciding on a shipping service, generating invoices, or even implementing drop shipping or order end-to-end fulfillment service needs an integrated approach to your business.

Benefits of a single integrated System

  • Cost effective
  • Scalable
  • Improves customer satisfaction,
  • Minimize order aging,
  • Gain competitive edge,
  • Become a global brand,
  • Better cross-sell and up-sell, and
  • Enable Omni-channel experience

The Future – Omni-channel Commerce

Omni-Channel is a multichannel approach to sales that seeks to provide customers with a seamless shopping experience, whether they’re shopping online from a desktop or mobile device, by telephone, or in a brick-and-mortar store.  Imagine businesses with One system like Ezeetrak consolidating orders from all the sales channels without significantly increasing their costs and operational overheads.

Do you use multiple systems to run your business? Interested in exploring the world of integrated Systems? Contact Ezeetrak today. We guarantee you, our simple and powerful SaaS based application Ezeetrak will revolutionise the way you did your businesses.