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Amazon Prime Day 2023 Early Results are In, Numerator Reports

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eCommerce, Global Logistics, Global Trade Daily, News

Amazon Prime Day 2023 Early Results are In, Numerator Reports

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68% of Prime Day Shoppers Extremely or Very Satisfied With Deals; Average Order Size and Household Spend Up From 2022

Numerator, a data and tech company serving the market research space, has published early read results from the first 32 hours of Prime Day 2023. Data is updated throughout the two-day Prime Day event on Numerator’s live Amazon Prime Day tracker and includes: verified spend, order, item and basket metrics; shopper demographics; and verified Prime Day buyer survey data, powered by Numerator’s omnichannel consumer purchase panel.

Prime Day purchase data findings:

  • The average Prime Day 2023 spend per order is $56.64 (compared to $53.14 from the same period on Prime Day 2022). So far, 39% of orders were placed for $20 or less, and 30% were for more than $100.
  • Over half (57%) of households shopping Prime Day have already placed 2+ orders, and 11% placed 5+ orders within the first 32 hours of Prime Day.
  • The average household spend is approximately $134, with 1 in 5 households (20%) spending more than $200.
  • Among the top five items sold, two are household or grocery products and one is Amazon branded: Temptations Cat Treats, Amazon Fire TV Stick, Liquid I.V. Packets, Apple Watch Series 8 and Melissa & Doug Toys.
    • Additional items in the top 10 are the Echo Dot 5, Laneige Lip Products, Celsius Sparkling Drinks, Orgain Organic Protein Powder and Energizer Batteries.
    • On Prime Day 2022, three of the top five items were Amazon branded, and on Prime Day 2021, all of the top five items were Amazon branded.
  • The typical observed Prime Day shopper is a high income, suburban female, age 35-44.

Prime Day verified buyer survey findings:

  • Nearly 9 in 10 Prime Day shoppers (89%) said they were Amazon Prime members, and 86% have been Prime members for more than a year. Four-fifths (81%) have shopped Prime Day events in the past.
  • Nearly all Prime Day shoppers (97%) knew it was Prime Day before shopping the event, and 60% said Prime Day was their main reason for shopping on Amazon today/yesterday.
  • Two-thirds (68%) of Prime Day shoppers said they were extremely or very satisfied with the deals offered this year. 67% said this year’s deals were better or the same as last year, while only 15% felt they were worse than Prime Day 2022 (19% were unsure).
  • Over half (55%) of shoppers compared Amazon’s prices to other retailers before making their Prime Day purchases.
    • 35% compared prices at Walmart, 26% compared to Target, 13% compared to Club retailers, 10% compared to Department stores, 9% compared to Best Buy, 5% compared to eBay and 5% compared to Temu.
  • 65% of Prime Day shoppers said they have or plan to shop at other summer sales— 37% will shop Target Circle Week, 32% Walmart+ Week, 20% will shop Costco’s member’s only sale and 11% will shop Best Buy Black Friday in July.
    • 35% said they do not expect to shop any other summer sales besides Prime Day.
  • Top categories that Prime Day buyers reported purchasing are Home Goods (27%), Household Essentials (26%), Apparel & Shoes (25%), Consumer Electronics (21%) and Beauty & Cosmetics (20%).

Amazon Prime Day 2023: Categories Purchased
Percentage of Prime Day Buyers Responding as of 7/12/23 at 8am ET

Categories Percentage of Prime Day Buyers Purchasing
Home Goods 27%
Household Essentials 26%
Apparel & Shoes 25%
Consumer Electronics 21%
Beauty & Cosmetics 20%
Health & Wellness 19%
Toys & Video Games 16%
Pet Products 13%
Smart Home Devices 13%
Small Appliances 12%
Groceries 12%
Office Supplies 10%

 

Source: Numerator Prime Day Survey

Data on the Amazon Prime Day Tracker will continue to be updated throughout the duration of the Prime Day event. At the time of this release, Numerator purchase data insights were based on 36,079 Prime Day orders from 15,239 unique households. The Numerator Prime Day 2023 survey was fielded to verified Prime Day buyers beginning 7/11/23 and had 1,400 responses at the time of this release. 

About Numerator:
Numerator is a data and tech company bringing speed and scale to market research.  Numerator blends first-party data from over 1 million US households with advanced technology to provide 360-degree consumer understanding for the market research industry that has been slow to change. Headquartered in Chicago, IL, Numerator has 2,000 employees worldwide; 80 of the top 100 CPG brands’ manufacturers are Numerator clients.

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eCommerce, Global Logistics, Global Trade Daily, News

Floship to Demonstrate Circular Supply Chain Solutions at Sustainability Week U.S.; Ceo Josh Tsui to Share on the Future of Circular Supply Chains

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Company To Address Key Challenges Leading Brands Have In Creating More Sustainable Supply Chain Systems.

Floship, a leading global circular supply chain ecosystem solutions provider, today announced its participation in a key panel at the upcoming U.S. leg of The Economist Impact’s global event series – the 3rd annual Sustainability Week U.S. The event focuses on helping businesses become sustainable faster while taking advantage of green subsidies and will take place in a hybrid format on 30 May and 1 June virtually, with an in-person day on 31 May at the Renaissance Hotel, Downtown, Washington D.C.

Sustainability Week brings together executives, key decision, and policymakers from both private and public sectors and showcases the most practical strategies to turn sustainability plans into tangible actions. Furthermore, it analyzes the success of not only best practices but also investigates the answers to difficult questions, such as making sustainability a priority across the entire organization and its supply chains.

Floship will demonstrate its holistic circular supply chain solutions at the conference, illustrating how it connects every core component across the value chain from the manufacturer, warehouse systems, delivery mechanisms, and returns solutions through a wholly integrated platform. The company’s intelligent portal incorporates a customer-based automated rule engine — enabling users to establish rules across their entire supply chain for a much more structured and smoother shipping process. The customizable automation rule engine makes supply chain management much simpler, minimizes the risk of human-made errors, and is less time-consuming for ecommerce owners, enabling them to focus on maximizing their brand’s growth opportunities.

Circular supply chains involve a company reusing or repurposing waste and customer returns to convert those resources into new or refurbished products. Circularity aims to minimize the use of raw materials and minimize discarded waste materials. Rather than discarding the waste generated at the end of the traditional linear supply chain, the waste (as well as customer returns) connects that endpoint back to the beginning creating a circular supply chain and cutting down on the need for new raw materials.

About Floship

Floship’s global circular supply chain ecosystem solutions cover all aspects of the global supply chain, ensuring minimal operation effort for e-commerce businesses while exceeding their expectations, allowing business owners to concentrate on driving growth and investment flexibility while gaining peace of mind.

e-Commerce: Last mile delivery india profit 8fig amazon logistics
Global Trade Daily, News

8fig Raises $140M to Propel Ecommerce SMBs During Economic Turmoil

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The company, which developed a combined model for funding and management, has channeled over $500 million into ecommerce businesses to date

8fig, the continuous funding and management platform for ecommerce businesses, announced the closing of a $140 million Series B funding round in combined equity and credit facility led by Koch Disruptive Technologies (KDT) with participation from existing investors Battery Ventures, Localglobe, Hetz, the Jesselson family, and Silicon Valley Bank, a division of First Citizens Bank. This brings 8fig’s total funding to date to $196.5 million.

At a time when many online sellers are struggling with cash flow crunches due to flailing economic conditions and reduced consumer spending, 8fig is focused on directly contributing to the sustained success of the ecommerce businesses in its network. This includes delegating more capital to finance ecommerce businesses and enhancing its supply chain management platform for online sellers.

8fig provides ecommerce businesses with bespoke funding plans that are optimized according to their supply chain and cash flow needs to accelerate growth. Online sellers can manage their funding and remittance schedules using the 8fig platform, which also offers tools for supply chain management, financial planning, and freight and logistics coordination. The funds from 8fig are disbursed incrementally and on an ongoing basis, and is equity-free. Using insights from 8fig’s platform, online sellers can quickly and easily respond to real-time industry changes such as fluctuations in demand and shipment delays and can change their funding plans accordingly, if necessary.

Since its inception, 8fig has delivered over $500 million in funding to online sellers. Its success has resulted in tremendous growth for the company, which increased its client base and annual revenue by 900% and 800% respectively in 2022. Over the same period, 8fig grew its global workforce threefold to 90 employees and further developed its platform’s capabilities, most recently releasing a mobile app version and a freight management and payment functionality. 

With the latest round of funding, 8fig will expand its growth efforts and scale its funding capabilities to support an increasing number of ecommerce businesses – helping them to continue growing amid economic uncertainty. Additionally, the company plans to implement enhanced financial management capabilities with new banking solutions and cash flow prediction models that will include alerts and insights based on business performance, as part of its quest to become a one-stop shop for ecommerce business management. 8fig is also collaborating with ecommerce marketing agencies on a financial tool to evaluate their clients’ cash flow requirements and mitigate risks by providing alerts and actionable insights.

 

 

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Archives, Global Logistics, Global Trade Daily

The Key to eCommerce Success: Improving Gross Profit Margin through Effective Strategies

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In the eCommerce sector, gross profit margins (GPM) vary depending on business verticals. While many of the larger sites like Amazon, eBay, and Zillow have GPMs of between 48 and 61%, most other eCommerce businesses’ GPM sits at around 20-50%. 

Regardless of what eCommerce vertical you fall under, your business’s GPM is one of the most essential metrics. It determines your venture’s financial health and profitability within the context of your industry. More specifically, knowing your gross profit margin allows you to evaluate how efficient your production and operational strategies are in comparison to and your leading competitors.

GPM is usually determined as a percentage of your eCommerce business’s net sales. It indicates how much money you’ve made after deducting your direct costs of operating the business, also commonly known as the cost of goods sold.

A financially viable company should have a gross profit margin that allows revenues to cover its costs of production. However, this is the base threshold that you should reach. Ideally, your GPM should leave you with profits at the end of the day to facilitate your venture’s growth and development. In this article, we’ll share the most effective strategies to use to improve your gross profit margin and achieve eCommerce success.

Calculating Gross Profit Margins

Your gross profit margin shows your company’s overall sales performance based on the efficiency of its service delivery and production processes. GPM is calculated by deducting your direct costs from your revenues, then dividing the resulting figure by your revenues and multiplying this figure by 100 to reach a percentage.

Use this formula to calculate your eCommerce business’s gross profit margin:

[(Revenues – cost of goods sold) / revenues] x 100 = GPM

Remember that your gross profit margin indicates how much profit your services or products bring in, per dollar or fiat currency unit, after subtracting the cost of goods sold. This means that it only takes into account the direct costs of sales, and not other operational expenses such as taxes, salaries, and rent and marketing expenses. 

Say, for instance, you pay $20 for a product at wholesale and sell it to your target customers for $40. This would give you a GPM of 50%, as half of the revenues earned were used to cover the direct cost of the product. Ultimately, GPM should be used as a metric to assess the performance and profitability of individual products and services.

Strategies to Improve Your Gross Profit Margin

1: Assess and Audit Your Current Strategies

The only true way to improve your profit margins is to enhance and streamline the processes that could be holding your business back. That means that the first step to boosting your profits is to know exactly how your current strategies work and what plans you can implement to improve them.

Take a close look at your business’s expenditure, product production processes, service delivery processes, acquisition, and retention methods. Also, look at any other critical processes that could be hindering your ability to generate revenues or driving excessively high production costs. 

Assess your expense reports to identify costs that can be reduced or mitigated. Spot gaps in your sales processes that could be leading to a loss of sales prospects and identify ways in which your marketing strategies can be improved to generate more leads and conversions. 

2: Raise Your Prices

Increasing prices may not be a suitable approach for every eCommerce business, but in some cases, it can certainly help to boost gross profit margins. Before you adjust your prices, thoroughly assess your competitors and their pricing structures. 

Find out what they offer, and then offer your own customers something better suited to their needs, be it a niche product or service or an exclusive boutique offering. This approach will allow you to raise your prices while still offering your target audience value that aligns with your pricing.

3: Reduce Your Operating Expenses

Expenses have a direct impact on your GPM, and if you can reduce them, you can improve your profit margin. There are many effective ways to slash your costs, including:

  • Restructuring your staff force and reducing unnecessary staffing where possible
  • Paying invoices on time or early to take advantage of vendor discounts
  • Removing subscriptions or services that are not used regularly from your budget
  • Investigating the possibility of part or full remote work for your teams to reduce office rental and equipment costs
  • Identifying new vendors that can provide more cost-effective products, services or materials compared to your current suppliers. 

You can also use automation tools to reduce your operational expenses without sacrificing efficiency or productivity. Automating processes like billing and invoice processing, accounting, marketing, customer relationship management, and inventory management can free up your team members’ time and resources, allowing them to focus on creative pursuits and expansion plans while AI takes care of repetitive and time-consuming tasks.

4: Update Your Brand’s Identity

If your customers are willing to pay more for your products or services, your profit margins will increase automatically. However, you’ll need to shape your brand’s identity and reputation in a way that compels your prospects to spend more money.

The best way to do this is to position your brand as a premium option within your industry or vertical. You can achieve this by adding extra functions and features to your products that your competitors do not provide, by implementing a prestige pricing system, or by aesthetically redesigning your brand to exude a more high-end identity.

5: Adjust Your Sales Mix

Are there certain products or services in your inventory that perform better than others when it comes to sales? Identify those that provide you with the highest gross profit margins and focus your efforts and resources on marketing them to your target audience. 

Adjusting your business focus may be the key to finding the ideal combination of products and services that maximizes your eCommerce business’s profitability.

The Takeaway

Your gross profit margin will vary widely depending on the nature of your industry, your vertical, and the target audience you are appealing to. With that said, improving your GPM will always result in a stronger business at the end of the day. 

Use the effective strategies listed in this article to refine your approach and give your profit margins the boost they deserve.

 

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Archives, Global Trade Daily, Software

BairesDev Presents Five E-commerce Trends Based on 150% Increase in Software Projects

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The new report is based on the analysis of software development projects over the last 20 months and highlights a focus on user experience, new generation demands, and scalability.

BairesDev®, a nearshore software solutions company, has released a new whitepaper highlighting upcoming trends in software and e-commerce. The report’s analysis is based in part on a 150% increase in Bairesdev’s own software projects over the past 20 months – a period marked by challenges and innovation in online retail.

While e-commerce grew globally during the pandemic, Southeast Asia and Latin America experienced the highest growth in 2022, with over 20% in each region.

The report highlights five major trends:

  1. Brick and mortar is NOT dead. However, retailers must change how they operate. 54% of consumers prefer hybrid shopping, in which clients view a product online and purchase it in a physical store. With this in mind, retailers need to build an omnichannel presence to stay competitive. Companies need to take advantage of new technologies to reach the consumer creatively.
  2. Personalization or nothing. AI drives personalization, putting consumers at the center of the e-commerce experience and prioritizing their unique needs. Using augmented reality (AR) in an online store can increase sales by up to 71%. Immersive and interactive technologies that make the user experience more engaging (and easier) will only increase.
  3. Digital-conscious consumers demand ethical shopping: Gen Z and Millennials demand products and services prioritizing privacy, security, sustainability, and ethical practices. AI-based technology enables companies to improve their diversity and sustainability efforts.
  4. It’s all about data: Data-driven decisions are key to boosting business success, especially for retailers. As data-driven organizations are 23x more likely to acquire customers, 19x more likely to be profitable, and 6x more likely to retain customers, retailers should continue to invest in cloud computing technologies as businesses can access a wealth of data, using this information to make decisions in real-time.
  5. Mobile device usage is crucial to e-commerce: Mobile sales account for 43.4% of total e-commerce sales. To stay competitive, retailers must prioritize optimizing their e-commerce experience for mobile devices and delivering exceptional customer experiences. Companies failing to optimize their online shopping experience for mobile devices risk losing significant revenue and  engagement.

Click here to download the full report: https://www.bairesdev.com/blog/take-your-ecommerce-to-the-next-level/

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Archives, eCommerce, Global Trade Daily

Three-quarters of eCommerce Businesses are still Struggling to Optimize their Payments

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New research from Nuvei and Edgar, Dunn & Company highlights the opportunities Payment Orchestration brings to revenue growth.

Nuvei Corporation (“Nuvei” or the “Company”), the Canadian fintech company, has revealed that three-quarters of eCommerce businesses (75%) say they need greater levels of support to optimize their payments function due to a reliance on an increasing number of payments providers.

This data is available in Nuvei’s latest whitepaper Payment Orchestration: A practical guide to optimizing payment performance. Nuvei partnered with Edgar, Dunn & Company (EDC) to survey over 100 international businesses across a variety of verticals that sell online to consumers.

Capitalizing on the benefits of the multi-vendor model

In an increasingly complex landscape, more than half (54%) of online businesses are now using at least six payment providers to optimize their checkouts as they look to scale into new markets, win new customers, and grow revenue. A third (33%) have direct acquiring relationships with at least five banks.

The rise of this multi-vendor model is a direct result of eCommerce businesses understanding that there is a real opportunity to accelerate growth. Harnessing the power of best-in-class payments technology in every market they operate, and for every relevant payment method, is critical for businesses to optimize their payments performance.

But businesses are also aware that a lack of coordination and optimization of these complex set ups may have a negative impact on their revenues as well, including permanently losing customers. The research shows that 59% of businesses believe that customers who have experienced a false decline will not give businesses a second chance. It also shows that alternative payment methods are becoming more important to eCommerce, with only 23% of online businesses’ checkouts now have three available payments methods or less.

Understanding Payment Orchestration

There is a clear role for payments orchestration in providing the control online businesses need to effectively optimize their backend payments flow. Without Payment Orchestration businesses are unable to set specific and intricate rules for payments acceptance to boost conversion and revenue, and they also do not have full visibility of their performance with which to make informed decisions.

This is evident in the whitepaper research. Businesses told Nuvei they have a variety of specific motivations for implementing a Payment Orchestration solution, including a reduction in the cost of payment acceptance, greater efficiency internally, and a wider acceptance of more payment methods. Many merchants intend to optimize payment conversion with smart routing capabilities to increase revenue.

Nuvei’s practical guide helps eCommerce businesses implement and get maximum value from their Payment Orchestration Platform (POP). When integrated effectively, Payment Orchestration can enable businesses to improve their overall payment performance through enhanced efficiency, security, flexibility, and scalability.

Download Payment Orchestration: A practical guide to optimizing payment performance here.

Methodology

Edgar, Dunn & Company conducted the research in Q4 2022 and in early Q1 2023. This involved conducting primary and secondary research, including the completion of in-depth interviews with large multinational B2C businesses. A survey was also conducted at the beginning of 2023. The survey has been administered online to more than 100 international businesses that sell online to consumers with a sample of respondents working in the finance, payments or commercial fields. The questionnaire included a mix of pre-qualifying information, multiple choices, and open-ended questions regarding their experiences and views on the topic of Payment Orchestration. All data was collected anonymously.

About Nuvei 

Nuvei is the Canadian fintech company accelerating the business of clients around the world. Nuvei’s modular, flexible and scalable technology allows leading companies to accept next-gen payments, offer all payout options and benefit from card issuing, banking, risk and fraud management services. Connecting businesses to their customers in more than 200 markets, with local acquiring in 45+ markets, 150 currencies and more than 600 alternative payment methods, Nuvei provides the technology and insights for customers and partners to succeed locally and globally with one integration.

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Archives, Education, Global Trade Daily

Realities of eCommerce Fraud – Can you Protect your Business?

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Commerce businesses have a long history of dealing with fraud. Since the first retailer decided to open its business, a malicious actor was there waiting to exploit them and steal their profit. Even though the industry has evolved and expanded to the digital world, the threat remains the same. 

Fraudsters and cybercriminals are constantly looking for new opportunities for their malicious actions, and the development of eCommerce has opened new doors for them. This is why online security needs to become a priority for every eCommerce company that wants to stay in business and protect themselves and their customers from online dangers. By learning to recognize the signs of eCommerce fraud and developing proper strategies for mitigating the problems, you will be able to stop them before they can cause any damage. 

What is eCommerce fraud? 

The term covers different fraudulent activities in which fraudsters and scammers exploit merchants and their customers for their gain. While this causes significant financial loss for the merchant, this is not the only consequence they will experience. Falling victim to an online commerce scam can also cause reputational damage and loss of trust from current or potential customers. Nobody wants to interact with a company they don’t trust can keep them or their data safe. 

With global eCommerce constantly growing and sales expected to reach $5.55 trillion in 2022, the danger will only become greater. As stated, predictions for e-commerce fraud total losses in 2022 were already high at $41 billion, but 2023 will bring a record high with $48 billion in losses globally.

Before you can start protecting yourself from malicious actors, you must know what you will be dealing with. Let’s look at the most common types of eCommerce fraud online retailers will most likely experience.

1. New cybercrime trends taking over the eCommerce world 

Ecommerce is continuously changing, implementing new technological developments to reach as many customers as possible while providing the best service they can and maximizing their profit. But, unfortunately, they are not the only ones changing. Fraudsters and scammers are also constantly evolving their malicious activities. While there are types of fraud that have been present since the beginnings of e-commerce, such as account takeover or card testing fraud, that will most likely remain one of the biggest online threats; new threats are slowly taking over. From application fraud, BNPL fraud to the use of synthetic identities to commit fraudulent actions, new cybercrime trends will soon start presenting more significant danger than we thought possible. 

2. Chargeback fraud

This type of fraud happens when customers purchase a product or service from your website but request a chargeback from their bank soon after. This might be an example of friendly fraud when the item wasn’t what they were expecting or it wasn’t delivered, but more often, it happens due to fraudsters trying to scam you.

Regardless of the reasoning behind the chargeback request, chargeback fraud has a severe financial impact on the company. They will have to pay the chargeback fees, administrative costs, and banking fees while accepting the loss of merchandise and shipping costs. Sometimes, when a business receives many chargeback requests, their account provider might cancel their contract, considering them high risk. 

3. Card testing fraud

Card testing fraud happens when fraudsters gain access to stolen credit card information and use your website to determine if they work and if there are any funds on it. They use stolen credit card details to make small and low-value purchases, which are harder to notice by either a merchant or cardholder. Once they confirm the card is working, they continue making bigger purchases on your and other eCommerce sites.

Because they are making small purchases, they often go undiscovered until they start making bigger purchases. When anyone gets the chance to react, they can already get away with a significant amount. 

4. Account takeover fraud

Account takeover is a type of identity theft that happens when fraudsters gain access to a customer’s online account and use it for their own advantage. Once they manage to get access to the account through illegitimate means, such as a phishing attack or buying their details from the dark web, they will have their hands free to do anything they want with it. Their options are limitless, from using the account details to breach other accounts that might share the same login details to making purchases or withdrawing funds. 

5. Triangulation fraud

This type of fraud is a severe issue for any kind of eCommerce business. It happens when fraudsters create a fake site or ads that sell your products for a lower price. After the customer purchases that item, fraudsters gain access to their payment details they can use for further fraudulent actions. They use a separate stolen credit card to buy the item from your site and ship it to the customer. Customers receive the item without realizing their payment details are compromised; fraudsters get away with the money while the merchant needs to deal with the aftermath. 

How can you protect your business?

A prevention strategy in place is a must-have for any business dealing with online payments as it takes the whole payment ecosystem to fight it. By detecting and preventing fraud before it even happens, you can ensure your customers’ safety while avoiding any financial loss. 

1. Familiarize yourself with warning signs

The best step for protecting your business from fraud is to identify it before it can cause any damage. Keep an eye on the following red flags, and you will have a better chance of doing it: 

  • Low-value transactions that might indicate credit card testing
  • Customers using different cards for several purchases 
  • Several declined transactions
  • Higher order volumes
  • Billing and shipping address not matching
  • Unusual IP locations

While these potential red flags might just be a legitimate customer having a problem with their card or purchasing a present, it is always better to be safe than sorry when it comes to cybersecurity. 

2. Make sure you have clear and easy-to-understand policies on your website

While you might think that nobody reads your security policies, the truth is that fraudsters are very much interested in them. For example, a badly worded return policy can open the door to various fraudulent activities. Your policies need to clearly state how your business works and your terms and conditions without leaving any space for misunderstanding, especially regarding the refund policy and password policy.

3. Use fraud detection solutions.

Cybercrime is constantly evolving, and it is becoming harder and harder to stay ahead of cybercriminals. To keep up with them and fight back, you must also evolve to give yourself a fighting chance. Many businesses simply do not have time or resources to conduct their own cybersecurity procedures, such as manually checking every transaction, and luckily they don’t have to. Implementing efficient fraud detection solutions can detect, identify, and prevent fraud in real-time.

4. Limit your orders.

Determine your standard order quantity and amount of money spent on average transactions, and limit any order that goes over those numbers. You can either block them entirely from purchasing on your site or contact them with the request for additional verification. 

5. Request proof of delivery 

Request proof of delivery from your delivery partner for every product you sell to ensure your customers have actually received their items. This can significantly reduce the number of chargeback requests from customers claiming they never received a product.

Conclusion

Ecommerce fraud is here to stay, especially with the growth the eCommerce industry will continue to experience. Start taking steps in the right direction to protect yourself from fraudulent activities, especially new cybercrime trends. 

About the Author

Ana Galic is a freelance writer with interests in all things technology such as IoT, fintech trends, big data, machine learning, and cybersecurity. In her free time, Ana is an avid bookworm who enjoys traveling and exploring new places and activities while staying busy with her lifestyle and parenting blog.

 

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Archives, Education, Global Trade Daily, Trade Cycle

7 Things to Plan When Choosing a Third-Party Selling Strategy

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The business landscape is looking better and better for businesses that want to sell online. Morgan Stanley predicts that the global e-commerce market could reach $5.4 trillion by 2026. If it does, that would represent a nearly 64% increase from 2022 figures—in just four years’ time.

This should make you take notice if you’re involved in e-commerce or want to be soon. It’s an enormous pie. Yet getting a slice isn’t as easy as it might seem. There are many obstacles and challenges involved with trying to gain momentum as an online seller. Perhaps the biggest of all is cutting through the noise and getting your organic and paid content seen.

It can be very difficult to work your way up to the top of search engine results. Even if your company already has a little visibility and traction, you may want to take a proven tactic to break into the mix: Move to a third-party selling strategy.

Third-party selling is exactly what it sounds like. Your company sells merchandise via a third-party site rather than on your own site. (Certainly, you can still sell on your own site, too.) The benefits can be huge, but only if you take a little time to plan your approach. Below are several tips to keep in mind.

  1. Study potential third-party seller sites.

Before assuming that any third-party seller is the right fit for your products, get to know what it’s like to partner with the seller. Go on a full-blown investigation, right down to making a list of pros and cons. The more educated you are upfront, the fewer surprises you’ll experience later.

For instance, say you want to get involved with Amazon. It’s a great choice, given that Amazon is the largest third-party selling platform on the planet. Unless you do a deep dive on everything from distributor costs to listings and catalogs, you can’t create a well-informed Amazon marketing strategy first draft. Or, if you can’t spare the time, hire a consultant to help you get a fast education on your top third-party sellers.

  1. Decide how much e-commerce control you want.

Third-party sellers can provide you with a ton of services such as warehousing and drop-shipping capabilities. However, the more services you need, the lower your profit margins are likely to go. Therefore, you’ll want to start thinking about how much control you want to keep. Even if a third-party seller promises lots of add-ons, you may still prefer to keep some processes in-house.

Let’s say you sell a boutique line of women’s clothing. It may be important for you to keep all the packaging and shipping on-site. In that case, you want your third-party to take care of nearly everything up until the fulfillment. From that point on, your team takes over.

  1. Upgrade all dated visual content.

Unless you have superb images of your content, set aside money for better photos. You don’t need to hire an agency or professional photographer, but make sure your products look amazing. People scroll quickly when they’re shopping digitally. You want them to be captivated by what they see.

Some third-party sellers allow you to upload both traditional images and videos. Take advantage of this opportunity. Wyzowl research from 2021 shows nearly eight out of 10 marketers have found a link between video and increased sales. Video gives you the chance to show the product in action, answer common questions, and build some branding. Nothing brings merchandise to life faster than a short but memorable marketing video.

  1. Ensure a third-party platform can sell your products where you want.

You can’t gain as much from e-commerce if you can’t sell to anyone, anywhere. Never assume that a third-party seller can automatically sell your product across international lines. Many companies have ended up surprised by how few places they could sell their products.

Along these lines, be sure your products are even allowed to be sold abroad. Case in point: If your product is made of wood, you may have to jump through hoops to sell it to Australian consumers. This doesn’t mean it can’t be done, but you have to be aware of possible hurdles.

  1. Factor in all the “fine print.”

E-commerce can be extraordinarily effective in ramping up your revenue streams. Unfortunately, countless companies have ended up selling millions of dollars’ worth of products online—only to see very little in terms of profit. Frequently, the underlying reason was that they failed to factor in all the “fine print” costs.

When budgeting as part of your e-commerce third-party selling strategy, always include all the obvious and hidden costs. These costs could be anything from third-party logistics to advertising. Make sure that you’re folding returns into the mix. Touting free shipping and free returns may make people buy but plenty of businesses have found out the hard way that paying for refunds can wipe out margins.

  1. Protect the name of your brand.

Not all companies that sell on third-party sites offer consumers branded merchandise. If you do, plan to protect your brand. Otherwise, nefarious sellers may try to besmirch your brand name through a variety of means, including posting fake negative reviews or flagging your product content. (This is another reason to work with a third-party selling consultant if you anticipate selling millions in merchandise online each year.)

Software programs can help you keep tabs on your brand across digital channels. The more you know about what’s happening with your brand, the easier it will be to shut down issues. In addition to protecting your brand, construct a brand personality and branded content guidelines. That way, everything you put online will have a sense of alignment.

  1. Watch your data in real time.

Watching the real-time developments of your e-commerce sales can feel a lot like watching the stock market ticker. Though you shouldn’t get too scared by dips, you should find a way to stay on top of any anomalies. Those anomalies might not be anything important, but you never know.

You don’t need to ask a team member to stay glued to digital reports. However, you should set up analytics software that can be monitored 24/7. Choose your top KPIs and track them to get a baseline. Once you have your baseline, you can note any variations quickly and, if desired, take action.

Before you think you need to turn your website into an e-commerce store, think again. Third-party sellers have done all the hard work for you. Yes, you’ll pay for their expertise and “real estate.” But with the right planning, you’ll recover your investment in the form of global sales.

Author’s Bio

Jason Streiff is president of Streiff Marketing, which has deep roots in the Amazon seller and vendor space and helps brands succeed on Amazon Retail and Amazon Marketplace.

 

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Archives, Global Trade Daily, News

Online Marketplaces in India to Reach $350 Billion in Gross Merchandise Value by 2027

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Upstream business-to-business (B2B), fintech, and shipping and logistics are emerging as the most exciting areas for future growth

With a large addressable market, growing online shopper base, and increasingly digitized MSMEs, online marketplaces in India contribute more than $100 billion in gross merchandise value (GMV), with B2C e-commerce marketplaces being the single largest segment, contributing $50 billion. Over the next five years, the marketplaces sector is expected to more than triple, to reach $350 billion in GMV. These marketplaces will be creating $400–$500 billion in enterprise value, contributing more than 5% to India’s GDP, enabling more than 15 million micro, small, and medium enterprises (MSMEs) to grow their businesses online, and creating 7 million jobs by 2027. These are among the findings of a new report “The Rise of Digital Bazaars in India”, released by Bain & Company and Accel today.

Marketplaces have created tremendous value for individual buyers, for businesses, and for the economy alike. Arpan Sheth, Partner at Bain & Company and co-author of the report said “Marketplaces have contributed to India’s growth story by offering greater access to capital and innovative financing solutions for traditionally underserved segments; enabled MSMEs to transact online, with an increased pan-India reach; and have provided employment opportunities to more than 3 million gig workers in India.”

India has cultivated a vibrant and successful marketplace landscape, demonstrated by the sheer breadth of more than 300 funded marketplaces across multiple categories like retail, education, healthcare, travel, financial services, etc. Almost 20 marketplaces reached more than $1 billion in GMV and many players are turning profitable.

While online marketplaces will continue to be dominated by B2C e-commerce with 40% of the total GMV in 2027, the B2B e-commerce marketplaces GMV is slated to grow by five times its current size to reach $55 billion, followed closely by online food delivery which will almost triple in size to reach nearly $22 billion.

Not just for buyers and sellers, marketplaces have also seen significant traction with investors in recent years, having received cumulative funding of $30 billion between 2018 and October 2022. B2C e-commerce, B2B e-commerce, and online food delivery were among the highest- funded marketplaces sectors, together accounting for close to 60% of total funding received in the last 5 years. From B2C e-commerce marketplaces leading the share of deal volumes in 2018, B2B e-commerce marketplaces emerged as the frontrunner in 2022, with deal volumes growing to 31% of the total deals in the year so far.

2021 was a landmark year, which saw funding in marketplaces reaching $16 billion, growing four times compared to 2018 and deal volumes doubling in the same period. However, in 2022 year-to-date (YTD) marketplace funding activity has been moderate at $4.5 billion, given the tempering of 2021 highs, valuation corrections, and muted sentiments in global public markets.

Prabhav Kashyap, Partner at Bain and Company and co-author of the report said, “Dealmaking in the short to medium term is likely to be more measured and valuation multiples will see some degree of rationalization. The future of marketplaces, on the other hand, is robust and with strong growth in their GMV and continued interest from investors, we expect the segment to see ample opportunities and a strong pick up. While the marketplace model is popular across multiple categories, upstream business-to-business (B2B), fintech, and shipping and logistics are some of the most exciting areas. These sectors show evidence of successful marketplaces as well as significant headroom for growth of new or emerging players.”

Upstream B2B presents as a $1 trillion+ opportunity and a high margin potential; with fragmented supply, need for disintermediation, and government initiatives being key growth drivers. Fintech marketplaces have also grown owing to the low penetration of financial/insurance products, digitization of user base, and availability of easy-to-use digital platforms. An approximately $200 billion addressable market and supply chain inefficiencies have resulted in a surge of tech-based shipping and logistics marketplaces.

Anand Daniel, Partner at Accel and co-author of the report said, “India is one of the world’s fastest growing and most dynamic emerging markets. Our report on the country’s digital bazaars reveals the extent to which marketplaces have grown in this market across both business-to-consumer and business-to-business segments. More than 1/3rd of large outcomes in our start-up ecosystem have been marketplaces and contribute to more than

$100 billion in GMV. Accel India is fortunate to have partnered with many of these marketplaces from seed to scale. We have invested more than $700 million in these companies, and continue to look for more such opportunities.”

The report highlights that the next wave of scale marketplaces has the potential to emerge in two additional major categories— (1)‘Bharat-first’ models driven by participation from tier- 3+ cities, and (2) global cross-border models addressing the export potential India has.

Gaming, caregiver services, creative content, Web 3.0, have large-scale marketplaces in mature markets, but are currently nascent in India. They represent future trends in the Indian marketplace landscape, and are a precursor for these segments to grow large in India given proof of scale in US and China, where multiple unicorns are present in these areas.

About Bain & Company

Bain & Company is a global consultancy that helps the world’s most ambitious change makers define the future. Across 64 cities in 39 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition, and redefine industries. We complement our tailored, integrated expertise with a vibrant ecosystem of digital innovators to deliver better, faster, and more enduring outcomes. Our 10- year commitment to invest more than $1 billion in pro bono services brings our talent, expertise, and insight to organizations tackling today’s urgent challenges in education, racial equity, social justice, economic development, and the environment. Since our founding in 1973, we have measured our success by the success of our clients, and we proudly maintain the highest level of client advocacy in the industry.

About Accel

Accel is a global venture capital firm that aims to be the first partner to exceptional teams everywhere, from inception through all phases of private company growth. Accel has been operating in India since 2008, and its investments include companies like BookMyShow, BrowserStack, Flipkart, Freshworks, FalconX, Infra.Market, Chargebee, Clevertap, Cure Fit, Musigma, Moneyview, Mensa Brands, Myntra, Moglix, Ninjacart, Swiggy, Stanza Living, Urban Company, Zetwerk, and Zenoti, among many others. We help ambitious entrepreneurs build iconic global businesses.

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3pls, Archives, Global Logistics, Global Trade Daily

Protecting Your Cargo from Costly Last Mile Delivery Mishaps

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E-commerce hasn’t slowed down since the boom experienced at the onset of the pandemic. Statista predicts online shopping to grow 56% over the next four years, and Insider Intelligence believes it will make up 22.3% of total retail sales worldwide by 2023 — now just around the corner.

The growth in online shopping has had a huge impact on customer shipping expectations. From the moment they check out to the second they see the product on their front doorstep, customers expect a fast and seamless purchase journey. With  75% of online shoppers concerned about their orders being stolen off their front doorstep this holiday season, you need to ensure your shipping process is streamlined and painless. Last mile delivery is the final step in assuring that efficient experience. 

Unfortunately, it doesn’t always go according to plan. According to Loqate, 8% of first-time deliveries fail in the U.S., and 68% of businesses say a failed or late delivery is a “significant cost” to their operation because they then must pay to redeliver the product, or offer the customer a refund or discount. 

This can happen for a variety of reasons. Many shippers struggle to overcome crowded streets or ports, lack tools to track shipments or communicate with other stakeholders, and face snags they can’t anticipate because they don’t have enough visibility into supply chain workflows.

Last mile delivery is becoming more complex and dynamic with increasing customer demands. If shippers are unable to provide tangible solutions, disgruntled businesses will turn to other options. Shippers need to effectively protect cargo, ensure a seamless delivery process and save money during last mile delivery, which accounts for 53% of total shipping costs. Let’s take a look at some ways your business can successfully mitigate costly last mile delivery mishaps. 

Invest in technology 

Technology is the key to improving supply chain management and avoiding problems during last mile delivery. It helps shippers increase efficiency and effectively thwart off any potential issues by providing greater visibility. 

Real-time delivery tracking is a game changer when it comes to protecting your cargo. It allows customers to see precisely where their delivery is at any point within the logistics process, putting them in the driver’s seat. DispatchTrack says 90% of customers want the ability to track their order, but only 66% of customers were able to do so. 

While giving the customers greater insight, technology integrates all management systems so you can quickly spot any issues that might be going on with a delivery. DispatchTrack found that six in 10 consumers are unlikely to purchase from a retailer again when a previous order misses the scheduled delivery window, so having greater visibility into deliveries gives you the opportunity to get ahead of the problem and solve it — before the customer ever knows something was wrong. 

Optimize communication capabilities

As supply chain disruptions continue to wreak havoc, you need to be able to communicate with customers the moment an issue arises. 

Technology platforms allow for customizable and automated notifications to tell a customer when a package is out for delivery. This lets the customer plan accordingly, cutting down one of the most costly and persistent issues: missed deliveries. 

If the delivery needs a signature and the customer isn’t home, that package is sent on the costly journey back to the shipper. Loqate says 63% of consumers have dealt with a missed delivery, and failed deliveries cost U.S. businesses over $193,000 last year. 

If the customer isn’t home and the package can be left at the front door, it could be damaged by the weather or stolen by porch pirates. Improving communication capabilities is critical to ensuring this doesn’t happen.

On top of that, you need to make communication with logistics experts easily available and accessible. DispatchTrack found that half of consumers blame negative delivery experiences on poor communication. For customers and businesses alike, having ready access to a team of experts can mean the difference between a long, complex logistics experience and a smooth shipping process. 

Find reliable logistics partners 

With online shopping orders only growing, you must be able to distribute the increasing shipping workload that comes with it. 

The Customized Logistics and Delivery Association (CLDA) and the Transportation Intermediaries Association emphasize the need for third-party logistics (3PLs) and last mile delivery fleets to work closer together so you give customers a “seamless delivery experience on the scale of Amazon.” Collaboration allows critical needs to be quickly solved in the first, middle and last mile of supply chains. Penske and NTT Data found that 71% of shippers say using 3PLs has also contributed to improving their customer service.

Many fleets in the last mile sector belong to the CLDA, which has a “Find a Delivery Partner” service on its website that shippers and 3PLs can use to find last mile partners for delivery needs across the country. Utilizing a reliable logistics partner to deal with those short last mile deliveries allows you to focus on other important operations to scale your business.

It’s imperative that last mile delivery is a smooth, efficient experience for the customer, and mitigates any costly issues on your end. Investing in technology for greater visibility on shipments, improving communication capabilities and outsourcing reliable logistics partners will help you save money during last mile delivery and keep customers happy throughout the holiday shopping rush.