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Accelerated growth of e-commerce, in which processes you should invest.
As we enter the last quarter of the year we begin with reflections and conclusions about the behavior of the economy, in terms of e-commerce we have seen an unprecedented acceleration, during 2020 and 2021 this type of commerce in Mexico grew by 81% in comparison with 2019. In total sales figures, an amount of $ 316 billion pesos was reached, which represents 9% of total retail.
In a single day, a smartphone user draws the ideal online purchase line; In the morning he looks for products for sale according to his interests, in the afternoon he evaluates and outlines his options, finally at night he converts by making a purchase.
These indicators make us reflect on the areas of opportunity for improvement, and that in many cases it is not only an economic investment, but also the implementation of processes aimed at making other existing processes more efficient.
What strategies could you pay attention to and invest in?
Marketplace , evaluate the viability of entering it, the first question you should ask yourself is, if you are willing to pay the commission charged by the company that manages the Marketplace
- Does the profit margin exceed the cost of the product added to the cost of the commission?
- Will the expected increase in sales volume offset the reduction in profit margin?
- Will the Marketplace boost your sales, but punish your profitability?
As an additional to the commission, consider that the Marketplace also has a term to transfer the sales income, this term varies from 2 to 45 days counted from the delivery of an order.
Consider these factors and do a financial viability analysis before deciding whether the Marketplace is worth investing in.
OmnichannelHow we know is the possibility of selling products on many channels and platforms at the same time, but offering a uniform shopping experience everywhere; A deeper approach is to understand that it refers to the relationship and knowledge of our ideal client in a 360-degree vision to be able to serve them and offer them what they need in an almost infinite attention mode.
Why is omnichannel essential? The user increasingly manages a greater number of channels and consults them simultaneously when making purchases through digital means (and even when visiting physical stores). According to Harvard Business Review, 73% of consumers make their purchases by combining several channels. ROBOs (Research Online, Buy Offline) have also proliferated: consumers who make inquiries online but buy in a physical store.
So a successful omnichannel marketing strategy can help a business realize significant benefits such as:
- Increase customer loyalty
- Improve brand recall
- Increase in income
Fullfilment is one of these important processes in e-commerce since it is basically the term used to define the process of receiving, packaging and shipping goods.
In this sense, companies that sell online have the option of outsourcing the Fulfillment and distribution process or creating an internal department that is in charge of this process. There are also Fulfillment companies that offer complete solutions that take care of picking up products from the warehouse, packing, delivering to carriers, and then sending an automated email response to their customers notifying them that their products are in transit.
These companies also have the ability to manage credit card processing, supply current inventory levels to the e-commerce site, reorder products, even offer call services, manage shipping notices and returns; a complete solution.
When your operation grows at accelerated steps, having this outsourced logistics and distribution support can make a difference in terms of the rating that your users will give you at the end of the purchase associated with their user experience.
Last mile , let’s talk about how to optimize the distribution of products during this stage of online shopping, this process is one of the most important and, above all, one of the most expensive for companies. Depending on various factors and process characteristics, costs in last-mile logistics can address between 13% and 75% of total logistics expenses.
If we look at the different processes in the supply chain, the last mile is considered the most expensive, inefficient and polluting stage, but at the same time it is one of the most vital for companies, and it is because this stage is where online customers have a physical and direct contact with a person who represents the brand (the driver).
Here are some of the strategies you should refine, automate, and / or outsource for a successful last-mile distribution process:
- Use of mobile and cloud technologies
- Fleet management and route planning
- Control and management of the last mile
- Tracking the product to the customer’s door
- Communication with the client in real time about the status of their orders
As we can see, these strategies are interdependent on each other; logistics, transportation and warehouses in many cases will base their success on the implementation of technological tools that will add to their expertise and management capacity.
Having a vision of an integral logistics in your e-commerce will give you alternatives to improve each stage of the online purchase, the selection of suppliers that will support you must be well structured, and based on strengths that add value to your processes and your businesses At AMERISA LOGISTICS we share that vision, with well-defined processes we reduce time and costs, turning your logistics into a simple and efficient process; which allows you to focus on your customers, improving competitiveness in a dynamic and saturated market.
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