Future of B2B eCommerce in a fast growing digital ecosystem
Future of B2B eCommerce in a fast growing digital ecosystem

With the emergence of non-banking players in the payments industry and innovative vertical specific startups, the Indian eCommerce market is expanding at a rapid pace. The digital commerce market in India has grown steadily from $4.4 billion in 2010 to $23 billion in 2015.

Increasing mobile and internet penetration, mCommerce sales, advanced shipping and payment options, exciting discounts, and the push into new international markets by e-businesses are the major drivers of this unprecedented growth.

The big retailers are increasingly focusing on their digital strategies in order to gain the obvious benefits of online platforms – wider reach, always on, personalisation to name a few. The eCommerce companies are concentrating their efforts on increasing the penetration of their mobile apps for higher growth. Big players in this space claim to have more than 50 per cent of their revenue coming from mobile apps.

The supply chain and logistics in eCommerce business are highly complex to manage in a vast country like India where infrastructure is not well-developed to reach every remote and rural area. The taxation policies for the e-businesses are not well-defined depending on different business models and transaction types. The complexity has further amplified with transactions happening across borders for online selling of goods and services. Moreover, e-businesses do not take sufficient steps to deploy a security solution, which is hindering the consumer from transacting online.

Increasing internet and mobile penetration, growing acceptability of online payments and favourable demographics has provided the eCommerce sector in India the unique opportunity to fundamentally alter the way companies connect with their customers. Due to this digital revolution, the eCommerce sector in India has become 4 times its size, from $3.8 billion in 2009 to $17 billion in 2014, growing at a CAGR of 37 per cent. The sector is expected to cross the $100 billion mark within the next five years, contributing over 4 per cent to India’s GDP.

Mobile commerce (mCommerce) is growing rapidly as a stable and secure supplement to the eCommerce industry. Shopping online through smart phones is proving to be a game changer, and industry leaders believe that m-commerce could contribute up to 70 per cent of their total revenues.

The Government’s ambitious ‘Digital India’ project that aims to offer a one-stop shop for Government services will further bolster the sector by introducing internet and broadband to remote corners of the country and increase trade. This initiative through a targeted investment of nearly $17 billion will transform India into a connected economy and also attract investment in electronics manufacturing and create millions of jobs.

It is therefore important to overcome challenges in Financing, Infrastructure, Logistics and focus on building Customer Loyalty to usher in the next wave of sustainable growth in e-commerce. Dedicated eCommerce laws are required to address issues in the sector’s legal and regulatory framework and Banks must play a leading role as ‘Facilitators’ by offering cost effective cash management solutions, secure payment gateways and other relevant banking services.

B2B markets in India

In line with the government’s digital growth plans, online B2B can be a wide platform with lots of scope however there are many hurdles it faces. Apart from policy ambiguity, B2B works on thin margins, hence, there are concerns about its scale and operation. In India, there will also be a taxation hurdle which exists for interstate transactions.

The biggest barrier that will be faced when B2B eCommerce takes over the market will be trust and flexibility. Brand will make a big difference and will also determine how successful the venture is. Another factor that will also have its effect felt is flexibility of the business model that the organization has in place. While deviating into B2B eCommerce, companies need to keep in mind that they need to control a lot of sub-bodies like pricing, sales, channel and distribution and hence should take help from a specialized sales body while developing the online portal.

Newer technologies that could significantly bring a paradigm shift in the online businesses are analytics, autonomous vehicles, social commerce, and 3D printing. Companies have started to invest in data analytics to gain real-time insights into customer buying behaviour and thus offer personalised user experience. The eCommerce companies are building communities on social media networks to better understand customer needs and to drive effective marketing strategies.

The eCommerce industry is an exciting place with the interplay of social, mobility, analytics, cloud (SMAC), digital, 3D and, virtualization. The current high valuations, in spite of losses, perhaps, are indicative of the future potential. The most important aspect of ECommerce is identifying your customer segment and having a strategic plan to ensure appropriate proposition to each segment. The company should also have its long term goals clear.

After considering the essentials for a successful B2B eCommerce venture, the likelihood of an eCommerce era in India is high. Firstly, because the government will be for the proposal as it is part of their digital growth plan and secondly because it proves to be beneficial to both organizations. It will help cut overhead costs and other variable costs while at the same time making the process of obtaining the goods easier and faster. India being a developing country is prone to such change and evolution.

The article has been authored by Tejinder Oberoi , Founder Director, m1Order.

 
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Same Day Delivery: The Best Way To Grow Your Online Store in 2023
Same Day Delivery: The Best Way To Grow Your Online Store in 2023
 

In today's fast-paced world, where convenience and speed are paramount, same-day delivery has emerged as a crucial factor in the success of online businesses. As an online store owner, implementing a reliable same-day delivery service can significantly enhance your customer experience and drive growth for your business. This article will explore the importance of same-day delivery and provide valuable insights on how to leverage this service to grow your online store in 2023.

The Rise of Same-Day Delivery

In recent years, same-day delivery has become a game-changer in the e-commerce industry. Customers now expect their purchases to arrive quickly, and businesses that can meet these expectations gain a competitive edge. Same-day delivery offers the convenience of instant gratification, eliminating the waiting time between purchase and delivery. By providing this service, online stores can enhance customer satisfaction and loyalty.

The Benefits 

Implementing same-day delivery for your online store comes with a myriad of benefits. Firstly, it gives you a significant advantage over competitors who offer only standard shipping options. By providing fast delivery, you increase customer satisfaction and loyalty, leading to repeat purchases and positive word-of-mouth. Additionally, same-day delivery enables you to tap into the impulse buying behavior of customers who prefer instant gratification.

Implementing Same-Day Delivery for Your Online Store

To integrate same-day delivery into your online store, you have several options.

  • Partnering with Local Delivery Services: One approach is to collaborate with local delivery services. By partnering with established courier companies in your area, you can leverage their existing infrastructure and expertise in handling last-mile deliveries. This partnership allows you to offer reliable and efficient same-day delivery to your customers without investing in delivery operations.
  •  Utilizing Third-Party Logistics Providers: Another option is to utilize third-party logistics providers (3PLs) specializing in same-day delivery. These companies have extensive networks, advanced tracking systems, and expertise in time-sensitive deliveries. By outsourcing your delivery operations to a trusted 3PL, you can focus on your core business while ensuring reliable and speedy order fulfillment.
  • Establishing In-House Delivery Operations: For larger online stores with high order volumes, establishing in-house delivery operations may be a viable solution. This involves hiring and training your own delivery personnel, acquiring delivery vehicles, and optimizing your logistics processes. While it requires a significant investment, having full control over the delivery process can offer greater flexibility and customization.

Overcoming Challenges in Same-Day Delivery

While same-day delivery offers numerous advantages, it also presents challenges that need to be addressed to ensure smooth operations.

 

  • Managing Inventory and Warehousing: Efficient inventory management and warehousing are critical for successful same-day delivery. It is crucial to have real-time visibility of stock levels and optimize your warehousing locations. Consider taking advantage of the 3rd Warehousing concept by establishing warehouses in different cities to minimize transit time and improve delivery speed.
  • Optimizing Delivery Routes and Logistics: Planning efficient delivery routes and optimizing logistics play a vital role in same-day delivery. Utilize route optimization software and leverage data analytics to identify the most efficient routes and streamline your delivery operations. This ensures timely deliveries while minimizing costs and resources.
  • Handling Customer Expectations and Support: Customers have high expectations when it comes to same-day delivery. It is essential to set realistic delivery timeframes and communicate them clearly to customers. Additionally, provide proactive updates on order status and offer exceptional customer support to address any concerns promptly. Transparency and responsiveness are key to maintaining customer satisfaction.

Tips for Successful Same-Day Delivery
To maximize the benefits of same-day delivery, consider implementing the following tips:

  • Investing in Technology and Automation: Leverage technology to automate various aspects of your delivery operations. Utilize inventory management systems, order tracking tools, and delivery management software to streamline processes and improve efficiency. Automation reduces errors, enhances visibility, and enables faster order processing.
  • Ensuring Efficient Order Processing: Efficient order processing is crucial for same-day delivery. Optimize your order fulfillment workflow to minimize processing time. Implement systems that enable seamless order capturing, inventory updates, and order prioritization based on delivery deadlines. This ensures quick and accurate order processing, setting the foundation for speedy delivery.
  • Adopting a Customer-Centric Approach: Place your customers at the center of your same-day delivery strategy. Understand their preferences, anticipate their needs, and personalize their delivery experience. Offer delivery options such as time slots or on-demand delivery to cater to their convenience. By providing a delightful and hassle-free delivery experience, you foster long-term customer loyalty.

Conclusion

In the competitive landscape of online retail, offering same-day delivery is no longer a luxury but a necessity. By implementing a reliable and efficient same-day delivery service, you can differentiate your online store, enhance customer satisfaction, and drive growth. However, it is essential to address challenges such as inventory management, logistics optimization, and customer support to ensure successful same-day delivery operations.

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Naveen Pandey, MD, AIPEX WORLDWIDE (OPC) PVT LTD

Naveen Pandey is an accomplished Managing Director with a proven track record of success in the logistics and supply chain industry. He currently serves as the Managing Director at AIPEX WORLDWIDE (OPC) PVT LTD, a leading company in the field.

 

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