Three reasons why it is interesting for a manufacturer to have an online store

31/08/2017

Angela de la Vieja

On many occasions we assume that all brands have taken the step towards e-commerce, however this is still very far from the reality.

For example, luxury brands are still reluctant to sell online, because they believe that they cannot get online that experience of exclusivity that they do get through the physical stores. It may be a compelling reason, however the pressure to increase the volume of the business is getting some of these brands to begin the process, slowly but steadily. This particular sector is close to a turning point, as reflected in the McKinsey & Company report on the luxury sector, and soon we will see large exclusive brands fighting for their online space like any other firm.

Unlike the luxury sector, brands hesitate to embrace online sales or do not do so by arguing for other reasons: channel management and digital experience. The manufacturers know that they will have to generate a digital sales channel that they do not have, and in addition to this they must define new rules for the physical channel, so that everything works in a harmonious way. Manufacturers also know that they need to acquire knowledge of online markets and accelerate their digital transformation to be truly competitive.

But among so many doubts and arguments, some brands seem to only see the half empty glass and not the opportunities they are wasting. That's why we will give three reasons why a manufacturer should have interest in having an online store:

1. The sale margins in ecommerce it is evident that they are superior to those of the sale through the channel. It is true that an ecommerce requires an investment that needs to be amortized, but with the proper management the numbers work out.

2. An ecommerce is not only a transactional space, although its function is essentially the online sale. An ecommerce allows you to deploy the full power of the brand and manage the catalogue products, which is beyond the scope in the commercial channel. Many brands have quickly learned how to get additional benefits in addition to the strictly monetary ones. An example is the pre-ordering or pre-sale campaigns, in which a brand reserves for its own ecommerce, the launch and pre-sale of its star products before marketing them extensively through the channel. This selling in advance is a tactic that is used in many sectors, such as consumer technology, video games or the publishing industry, among others. The benefits of this practice can be multiple if it is also managed with good content, from the impact of the brand on media to, of course, anticipated sales revenue.

3. The direct relationship with the buyer is probably one of the most valuable assets that a brand can have, and an ecommerce is the direct channel to know first-hand the needs of the customer. The study of online shopping behaviour, information on customer usage preferences, complaints, ratings and comments on the product page, responses to newsletters are just a few of the possibilities that go hand in hand with an ecommerce and that allow that direct relationship that allows you to know the client to learn and offer better products.

Some time ago in this same blog we published the article 'The five basics of a successful ecommerce' how to plan those first steps to start in online commerce. Getting an online store to succeed can seem like a complex task (in fact, it is), but in this digital and e-commerce world, ecommerce can no longer be a pending subject for any manufacturer.

11/11/2022

Consumer behavior: How can behavior tracking be effective for setting the right pricing strategies?

Behavior tracking is becoming massively popular today. As a result, pricing strategies born from studying consumer behavior are a merchant's dream come true. If done right, it can conquer every market for the business quickly. With abundant data available, the strategic makeover of the pricing models is becoming easy for companies.

What is behavioral tracking, and how is the data beneficial in pricing?

For a quick understanding, behavioral tracking refers to gaining in-depth knowledge and insights into consumers through their web data. Their browsing habits, spontaneous decisions, shopping interests, and preferences come under behavioral tracking.

How can enterprises use customer behavior data?

Companies can use customer behavior data as a tool to strengthen their hold on the market. A customer’s preferences, values, and tendencies allow businesses to work in sync with them through the collected data. Apart from this, customer behavior can also aid in:

Tailoring customer needs for customer retention

Personalization is becoming the heart of a company’s growth. No matter in which area an enterprise is functioning, tailoring the services, products, and solutions is becoming increasingly crucial. Uniqueness and personalization attract the crowd like no other.

Increasing the overall value

One of the best ways customer behavior data affects a business is by upgrading the value of customers for the business. The customer’s characteristics allow the company to target the people that match the business prospects well.

Optimizing every type of content

Everything that is up for digital display requires content. You must have seen companies unveiling their products or services through advertisements and making the initial public appearance. Two essential sales strategies – upselling and cross-selling comes through content optimization.

Pricing Strategy

Last but certainly not least is the influence of customer behavior data on the pricing strategy. The pricing strategy essentially constitutes content derived from data analysis. Companies need to have a dynamic approach to the pricing system to attract the right customers.

17/02/2015

Saint Valentine’s Day, always a good opportunity

V-Day is looming, a long-awaited date for all and also a good occasion for the eCommerce. According the study conducted by Prosper Insights and Analytics, it is forecasted the average consumer expense that day will be the highest in last years. Furthermore, 25% of them will buy online, which means an increase of 4% regarding 2014 (The US department of Commerce). This is, therefore, a key date where market competitiveness increase and which could be assumed as a big opportunity for our business or, a big fail if we do not adopt the correct strategies.

How to turn this event into an opportunity? To achieve this goal, we need to adapt our prices to this hostile environment, i.e. we need to develop an appropriate Dynamic Pricing strategy that allows us to adapt our prices to the variations produced in supply and demand and to position us ahead of our competitors. In V-Day, the frequency in changes will be higher, carrying it out each hour or even each minute. It is estimated that 65% of leader retailers have the ability to respond quickly at these variations, such Amazon. For this reason, it acquires great importance the correct use of a software specialised in price motorisation of competitors. Do not miss the time and adapt your business to new adversities.

28/12/2022

Which are the best footwear marketplaces to sell on?

Footwear marketplaces are booming. The last decade has seen the launch of new specialized marketplaces with millions of different users. Among them are Spartoo, Sarenza and Farfetch, portals with international reach. Their main value is that they unite hundreds of footwear brands, as well as offering clothes and accessories. Although each has its own characteristics, they are all vertical marketplaces, i.e., they focus on a specific area, and their sales categories are interrelated. For sellers, these portals provide an opportunity to expand sales channels and drive the globalization of their e-commerce business. We explain how to sell on these footwear marketplaces so that you can assess whether they align with your plans for the future and then start defining a possible pricing strategy.