From Small Shop to Modern Retail Format: How Small Sellers can Make the E-Commerce Transition on ONDC Platform

India's thriving retail sector, which contributes significantly to the country's GDP and employment, is undergoing a transformation. The rise of e-commerce, especially as a result of the pandemic, has created new opportunities for small retailers who have traditionally operated in the unorganized sector, including family-run neighborhood shops.

According to Invest India, the country's investment promotion arm, the retail sector accounts for 10 percent of India's GDP and 8 percent of its employment. With a population of 1.3 billion, India has a growing base of young and affluent shoppers, also making the country an attractive destination for retailers.

The Indian retail sector is divided into two categories: the unorganized sector, which includes small, family-run shops, and the organized sector, consisting of large brick-and-mortar retailers and online shopping sites. The domestic e-commerce market is expected to reach $200 billion by 2027, with the grocery and fashion apparel sectors poised to drive this growth.

Even in Tier II and III cities, e-commerce has become increasingly popular due to services like cash-on-delivery, free home delivery, deep discounts, flexible payment options, and buy-back policies. The availability of a wide variety of products has also contributed to the popularity of e-commerce. Small-format retailers can greatly benefit from this growth by adopting digital technologies and e-commerce models.

For small retailers looking to transition to e-commerce, the ONDC platform offers a seamless and cost-effective solution. ONDC provides a single platform for sellers to list their products, manage orders, and track shipments. It also offers marketing and promotional tools to help sellers reach a wider audience.

By leveraging the power of e-commerce, small retailers can expand their customer base and reach new markets. ONDC provides an excellent opportunity for small sellers to make the transition to digital retail and participate in India's growing e-commerce market. Small retailers can take some simple initiatives to succeed on this new platform.

Find a Niche or Competitive Angle: Establishing a niche for selling products can prove to be a smart business decision for small retailers looking to establish themselves in a crowded market. Targeting a specific group of customers can help create a loyal customer base that identifies with their brand and offering, resulting in a higher likelihood of repeat business.

Moreover, entering a niche market can minimize competition, allowing them to differentiate themselves from larger companies competing for the mass market. This can be particularly beneficial for those who may lack the resources to compete with big names and instead can focus on delivering an exceptional product and service.

Another advantage of niche marketing is the ability to reduce marketing costs. By knowing precisely who the target audience is, small retailers can cut down costs by running targeted ads and campaigns specific to their audience's needs. Niche marketing also helps build better relationships with the audience, creating a more personalized experience that can lead to increased customer loyalty.

It also helps sellers establish themselves as experts in their field, rather than providing generic products or services. By demonstrating expertise and thought leadership in a specific area, they can stand out from the competition, attract relevant customers, and establish trust with their audience. Catering to a niche market also increases profits. By creating a niche market business, retailers can charge higher rates for products or services due to the supply and demand ratio, particularly for those pioneering a new industry sector.

Building a Comprehensive Product Catalogue and Listing: In the world of e-commerce, a comprehensive product catalog can make or break a business. With so many options available to online shoppers, having a refined and dedicated product catalog can help customers make confident purchase decisions without any hesitation. A product catalog is essentially a marketing tool that lists all the essential details about a product, such as features, dimensions, price, availability, color, and customer reviews. By providing this information in a standardized format across all sales channels, merchants can reinforce customer trust in their brand and increase the chances of making a sale.

Managing a product catalog for e-commerce requires a strategic approach to ensure that the quality of product data remains consistent across multiple platforms. For example, a clothing retailer can create dedicated product data for each outfit, which can be used uniformly on various e-commerce platforms. This process involves curating, standardizing, and publishing product descriptions in a way that resonates with customers and meets SEO best practices.

While some sellers may have in-house content teams to create and manage their product catalog, outsourcing this task to a third-party organization can be a more economical and efficient solution. However, it is essential to ensure that any third-party partner chosen has expertise in SEO tactics and optimization to avoid any counter-productive effects on the brand page and name.

A well-managed product catalog can directly impact the page experience of customers. Merchants who use rich text, high-quality images, and provide detailed product information can improve their user experience and sell better. On the other hand, tactics such as keyword dumping and substandard product data can negatively impact SEO ranking and harm a merchant's brand reputation.

Investing in a comprehensive product catalog and taking a strategic approach to product catalog management is crucial for success. By providing customers with detailed and accurate product information in a standardized format, small retailers can increase customer trust and sales while building and maintaining a strong brand reputation.

Branding is Crucial for Success: Establishing a strong brand is essential for any business, particularly for small retailers in the online selling arena. A brand is more than just a logo or a name; it represents the values and personality of the business and creates a memorable impression on consumers. In a crowded marketplace, branding is what sets you apart from the competition and communicates to potential customers what they can expect from your company.

For small retailers, branding is particularly important, as it helps to establish credibility and build trust with customers. A well-crafted brand sends a clear message about your business and what you stand for, allowing you to connect with your target audience on a deeper level. By creating a brand identity that resonates with your customers, one can foster strong relationships that lead to increased customer loyalty and repeat business.

Another benefit is increased recognition. By creating a visual image and associations, you can make it easier for customers to remember and identify your business. This recognition can lead to increased visibility and brand awareness, driving new business and ultimately boosting brand value. But perhaps the most important aspect of branding is the ability to sell a story rather than just a product. By focusing on the values and personality of your brand, you can create a narrative that resonates with customers and builds an emotional connection. This connection leads to increased trust and ultimately drives sales.

Using Data Analytics to Understand Customer Behavior: In the world of eCommerce, data analytics can be an incredibly powerful tool to help small retailers understand their customer base and improve their business. By studying the data around website traffic and effectiveness, retailers can gain a complete picture of their business and make informed decisions to improve it.

One key aspect of data analytics is the ability to analyze a wide range of metrics, including discovery, acquisition, conversion, retention, and advocacy. By analyzing these metrics, retailers can better understand how efficiently customers find the products they are looking for, what brings visitors to their website, what motivates buyers to make a purchase, what encourages loyalty, and whether customers are recommending their store to others.

This information provides valuable insights into the trends and patterns of customer behavior, helping retailers to identify areas where they can improve their customer experience. For example, if the data shows that customers are struggling to find the products they want, retailers can make changes to their websites to improve the navigation and search functionality. Alternatively, if the data shows that customers are not making repeat purchases, retailers can introduce loyalty programs or special offers to encourage customer retention.

Overall, using data analytics to understand customer behavior is a powerful tool that can help small retailers to grow their businesses and build a loyal customer base. By analyzing a range of metrics, retailers can gain valuable insights into their customer base and make informed decisions to improve their customer experience.

Promoting Products on Social Media: Social media platforms are quickly becoming a critical component of e-commerce marketing strategies. For small retailers, social media can provide an efficient and cost-effective means of promoting products, building brand awareness, and engaging with customers. By leveraging popular social platforms, small retailers can extend their reach and target their desired audience with precision.

One of the most effective ways of promoting products on social media is by driving traffic to the e-commerce website or branded app. Retailers can create enticing posts that highlight their products' features, benefits, and unique selling points, thereby encouraging users to visit their website or app to make a purchase. Additionally, by selling products directly on social media, retailers can provide a seamless and convenient shopping experience to customers, increasing the likelihood of a sale.

Engaging with customers and prospects on social media is another critical tactic for small retailers. By responding to customer inquiries, comments, and complaints in a timely and professional manner, retailers can build a loyal following and establish trust with their audience. Social media also provides an opportunity for retailers to collect valuable insights about their industry and market, including customer preferences, behavior, and trends.

Finally, building an online social media community around the brand can help retailers foster customer loyalty and drive sales. By creating a space where customers can share their experiences, connect with other users, and engage with the brand on a deeper level, small retailers can build a loyal and passionate fanbase that will spread the word about their products and services.

Small retailers can succeed in the e-commerce market on the ONDC platform by following these steps and leveraging the available tools and resources to their advantage. By finding a niche, understanding their target audience, building a comprehensive product catalogue, establishing a strong brand, using data analytics, and promoting products on social media, small retailers can thrive in the online space.