FY-23 Will Be the Year of D2C for the Post-Pandemic Indian Market

FY-23 Will Be the Year of D2C for the Post-Pandemic Indian Market

There are over 800 successful D2C brands in India today, with a sector valuation of $44.6 billion (as of 2021) – according to a KPMG report. The valuation of these D2C brands refers to those of online first brands such as Lenskart, Wakefit, PeeSafe, Ozaiva, Candes and others.

This is supposed to grow to over $100 billion by 2025. This activity also explains the attention from some of the eCommerce roll up brands like Mensa / GOAT Brand Labs, in this sector.

However – our prediction for FY23 is that offline first / omnichannel brands (the likes of FabIndia, Bodyshop, Biba, Pothys, Soch, and others) would get super serious about the D2C channel. 

They will make more investments in this channel – they will hire better talent dedicated to this channel.

After China and the US, India had the third-largest online shopper base of 177 million in 2020 – which I’m guessing now would be pushing closer to 200 million in 2022. 

The pandemic really accelerated this trend. There were a few factors for this: 

  1. Brands had to figure out how to reach out to customers: During the early 30 – 60 days of the lockdown (April and May ‘2020) there was no way for the brands to do business except for their D2C channels. Those that didn’t have it – launched a quick and dirty version online. Those that did – focused on it straight away.
  2. Brands had the time: With stores shut – they found the headspace to focus on their D2C initiative. So that focus itself upped the customer experience of the D2C store.
  3. Restricted access for brands on Marketplaces – for non-essential items: Customers had time as well and with shopping restricted to essentials on marketplaces – a lot of customers were open to explore the world of D2C brands (partly also due to the fact that time being spent online skyrocketed).
  4. Brands seeing some traction – started to spend some more money on their D2C initiatives fueling further growth of traffic and awareness of the channel.
  5. 2 – 3 months of focus by the Brand’s management team on the D2C channel was enough for that change to stay – especially when it was the only source of revenue for an entire quarter.

So by the end of FY21, along with Brand Stores, MBOs, Marketplaces – D2C channels also firmly became a key channel in the brands omnichannel journey.

Like mentioned above – the D2C channels were set up / optimized at fast turnaround time – while establishing a functional D2C eStore, the customer experience was still lacking in many ways. Post the 2nd wave in mid 2021, the brands started implementing the upgraded versions of their D2C platforms.

Digital budgets went up. The management got involved in actively understanding the metrics of the D2C channel. The channel got more focus and the revenues being driven from it has been surprisingly good for many retail leaders. 

In FY22, the focus was still on learning and smaller digital marketing investments – it was about understanding the ROI for the channel, what kind of metrics to track for the D2C channel. And then as the buzz around the valuation of the online first D2C brands started becoming louder – omni channel brands have now set higher goals and targets for their own D2C revenues. 

So what does a bigger focus in FY23 on D2C look like? 

  1. Better UI/UX – Where design and technology meet. Cleaner interfaces that load fast across devices.
  2. Upgrade of Platforms – More openness to invest in enterprise grade platforms of Magento and Shopify.
  3. Better Coordinated Creatives for Promotions (Banners / Emailers / Push Notifications) – Better coordinated planning of creative shots
  4. Conversion Rate Optimization – Critical aspect – but the most ignored one by brands
  5. Hyperlocal deliveries in multiple cities – With Quick commerce expanding, brands will definitely try this out in cities where they have stores.
  6. Higher Digital Spends – Having done some trials last year – brands this year will spend a lot higher.
  7. Increased Spends on Marketing Automation – More adoption of tools which can help personalize the experience better

Analytics – More brands want to know how analytics can help them scale – but they’re not sure how to embed that capability around their day-to-day.

At the most recent Retail Leadership Summit organized by the Retailer Association of India, heard from Domino’s India President, Rajneet Kohli, that by the time the person adds a 4-cheese pizza and goes to checkout – there is a 92% chance of that order converting, so they start doing the prep work for the Pizza, and that piece of actionable data allows them to delivery 3 – 4 minutes faster. And that increases the NPS even higher (already at a 70%+ positive rating).

Tenovia’s Six-Point Plan to Simplify Your Ecommerce Journey

What does it take to succeed in the ever-evolving world of ecommerce? As technology advances and competition heats up, you will need to look beyond the tried-and-tested strategies that used to work for ecommerce businesses. What you need today is end-to-end ecommerce marketplace support managed by experienced professionals who can look at the big picture and the finer details to support your ecommerce business. But just because the technology or strategy is complicated, doesn’t mean that the journey has to be. 

Here are six ways Tenovia can help simplify the process for you and become invaluable to your ecommerce business.

Analytics

While data is valuable, the ability to analyze and draw strategies from it is priceless. That’s exactly what analytics can do for your business. With data, you can identify what’s working for you and what’s not, and unlock ways to boost your revenue. Tenovia’s ecommerce analytics services can help your business across various functions including merchandising, supply chain, inventory, technology, marketing, and regional utilization. 

What gives our marketplace management services the edge is the methodology. We track and publish over 180 metrics across all functions, give you a detailed understanding of the various pain points and bottlenecks in your business, and create a plan of action to unblock these revenue streams through actionable insights. We also help you prioritize and monitor the progress of the executed actions. 

Marketing 

Ecommerce marketing has evolved from just branding and performance advertising. Today, you will also have to consider omnichannel cross-platform marketing with accurate targeting. When done right, it can dramatically improve your brand’s awareness, engagement, trials and sales, and customer loyalty. That’s why, we offer full-funnel ecommerce marketplace support through customized marketing campaigns on Amazon, Flipkart, BigBasket, Myntra, Snapdeal, Google, YouTube, Swiggy, Blinkit, and social media platforms. 

What does it exactly entail? Everything from understanding the stock positions and availability of your products, competitor offerings, customer behaviors, product rankings, as well as reviews and ratings of your products. At Tenovia, we make it a point to align to your business’ strategic objectives – be it new product launches, seasonal or special events, or sustainable marketing. 

Marketplace support 

When it comes to effective ecommerce marketplace support, speed of execution is everything. And for ecommerce businesses, creating a talented in-house team can take time and slow down your growth plans. To help mitigate these uncertainties, Tenovia’s experts can step in to help you manage marketplace accounts, list products with optimized content and visuals across channels, and identify actions that boost your revenue. Currently, we offer marketplace support in three main domains – account management, channel strategy, and content creation. 

Digital transformation 

If rapid ecommerce growth is on your priority list, you will need to invest in the right structures – that’s people and processes. Tenovia’s gamut of ecommerce consulting services includes helping businesses with organizational design to track and prioritize key metrics across functions. 

If you’re still new to the ecommerce business transformation process, we will help you find answers to a few all-important questions related to making changes in the organization, necessary investments, technology, marketing, etc. We bring experts from various domains and functions to help you create digital demand and turn it into a revenue opportunity. 

Here’s how our process works:   

  1. We start by understanding your brand, team, processes, and current metrics. 
  2. Next, we initiate education sessions for your teams and functions and highlight how your brand can improve.  
  3. We then guide your team and identify or co-create projects that will boost key metrics and maximize impact. 
  4. We take over project governance and deliver sustainable transformation for your organization.
  5. We also coordinate with you to enable structural changes based on the project’s progress, not shying away from recommending difficult changes. 
  6. Once your team is fully equipped to take it forward, typically within 4-6 months, we transfer IP to your internal teams. 

Platform integration 

If you’re looking to run your ecommerce business on platforms such as Magento or Shopify, you’ve come to the right place. We’ve helped build hundreds of websites for ecommerce clients across industries and platforms, keeping in mind various complexities, current and projected revenue sizes, team sizes, technological capabilities, and many other factors. Our ecommerce marketplace support services include design thinking-led UI/UX experiences, agile practices and methodologies, and setting up key metrics for optimum measurability. 

Technology products 

Tenovia’s marketplace management services also include two in-house technology products to boost your ecommerce presence and revenue. ‘Tensight’ is a central ecommerce dashboard that gives you complete control of your ecommerce business and empowers you to make informed decisions through data-driven analytics. ‘10commerce’, on the other hand, is an automated ecommerce platform for B2B manufacturers and wholesale distributors that enables them to reduce time-to-market and boost ROI with better business discovery. 
Ready to up your ecommerce game? Make Tenovia’s marketplace management services a part of your blueprint and let the results speak for themselves!

How to Get Started with Flipkart Ads

How to Get Started with Flipkart Ads

If you’re looking for a product in a physical store, what’s more likely to catch your attention? Yup, the ones displayed front and center. And they’re not there by accident. To maximize sales, stores usually reserve this spot for top-selling products or those being pushed by certain brands through paid marketing. It’s the same in an ecommerce store such as Flipkart. 

70% of all product searches on ecommerce websites are generic in nature, and not driven by brand names. This means that you have the same opportunity to push your brand to the millions of customers who visit the website every day as other brands. And a little bit of paid advertising on Flipkart can go a long way in giving you that extra nudge.

How does Flipkart advertising work?

Flipkart ads are a performance-based marketing tool that can help you meet your business goals. Flipkart sponsored ads help you stand out from the competition, boost your chances of being seen by the most number of customers, and get the much coveted ‘Buy Now’ button. This is especially useful when you want to launch new products, push slow-moving items, and have better control over your budgets. To put it in perspective, we’re talking about 35 crore registered customers that visit Flipkart regularly. 

Here are four of many scenarios in which Flipkart ads prove useful to your business: 

  • Launching new products: When you launch a new product, you start with no ratings, reviews, or set price points. It can be difficult to catch a customer’s attention without this foundation. Given Flipkart’s pricing algorithm, you will also need to have some sales in order to get your product tagged on daily promotions or other discount-led events. Your best bet to put your products in the spotlight is to run a promotional campaign.  
  • Improving performance score: Flipkart decides a seller’s quarterly performance scores in three tiers – gold, silver, and bronze. If you want to improve your products’ visibility and revenue, you will need to aim for the gold. And in order to meet your quarterly sales targets, paid advertising on Flipkart can be a boon.
  • Targeting specific products: If you’re keen on selling more volumes of a specific product than your competitors, you can use Flipkart’s product latching option through a paid campaign. 
  • Acquiring actionable insights: When it comes to online sales, actionable data is the most valuable currency. Flipkart’s performance matrix offers sellers relevant data such as the number of product views, sales, product quality reviews, clickthrough rates, etc. This data is especially critical when you’re launching a new product so you can improve your catalog – be it in terms of product listing, images, or pricing. With a paid Flipkart campaign, you can get this information in less than 48 hours, allowing you to optimize your campaign and drive more sales at breakneck speeds. 

Essential terms and acronyms to know

Pay-per-click (PPC) ads on Flipkart can be boiled down to this – you only pay for the ad when your potential customer clicks on it. If 10 shoppers view your ad and only three click on it, you only pay for the three. When you begin your PPC campaign on Flipkart, your ad is discreetly placed in the search results. The position of this ad is determined by your cost-per-click (CPC) bid. Needless to say, the greater your bid on the ad, the higher your product visibility. CPC is the most efficient tool in helping you control your ad’s visibility. 

But wait, before you start working on your Flipkart advertising strategy and get some experts on board, you should know a few basic terms associated with the process. Here are some important ones:  

  • Conversion rate: This number determines the percentage of customers who purchased your product after clicking on your ad. 
  • Action rate: This term calculates how many times your ad gets clicked vs. how many times it’s viewed. 
  • Seller ratings: This rating determines how happy your customers are with your product. 

Let the experts lead your advertising on Flipkart

At Tenovia, we offer end-to-end marketing services on Flipkart through customized campaigns that engage users, convert shoppers, and drive loyalty. Depending on your brand’s unique objectives and targets for PPC advertising, we can create strategic roadmaps to help you increase sales, launch new products, and boost your seller performance. 

But it’s not enough to simply learn how to create and launch Flipkart ads. It’s even more important to learn from it and correct your course as you move along. That’s exactly what Tenovia does for you. We offer cutting-edge data analytics services through our platform Tensight in real time and give you a better understanding of how you can perform better on Flipkart, and stay one step ahead of your competition. 

Ready to arm yourself with the power of advertising and the right team to back you up? Get in touch with the experts at Tenovia and click your way to ecommerce success today!

4 Strategies to Boost Visibility and Drive Sales on Flipkart

4 Strategies to Boost Visibility and Drive Sales on Flipkart

What started as an online platform dedicated to selling books soon became the biggest homegrown ecommerce marketplace in the country. Today, Flipkart offers unparalleled reach and a competitive market across retail categories, serving as a one-stop shop that takes your business to the next level. So if you are looking to find success in ecommerce, we have narrowed down four main strategies to help you drive sales on Flipkart.   

1. Create an effective product catalog 

Needless to say, your product catalog plays a key role in influencing shoppers. And to effectively convert traffic into sales, you need to understand your customer’s psyche. Most people search for products online to save time and money, which means that your product catalog should be crisp, concise, and clear. If you want to increase sales on Flipkart, it is vital that your customers find your products quickly and easily. 

Since customers don’t have the luxury of being able to hold the product, your catalog should answer all their questions. It shouldn’t take them too long to understand what you are selling and how your products add value. Ensure that you: 

  • List the product in the right category and subcategory 
  • Add relevant and most commonly used keywords in your product title 
  • Include a content-rich product description, along with features, materials, and dimensions 
  • Use high-resolution product images with a clean background and include as many angles as possible  

In short, think of your product catalog as an elevator pitch – anticipate and prioritize your customers’ needs, give them the information they need, and get to the point fast.

2. Get the Flipkart ‘advantage’ 

It is obvious that most online businesses cannot compete with the logistical prowess of ecommerce giants such as Flipkart. That’s why, Flipkart Fulfillment (previously known as Flipkart Advantage) is a boon for smaller businesses. This is an additional service that allows sellers on the platform to use Flipkart’s massive resources – from warehousing and shipping to logistical services. It is ideal for online businesses that: 

  • Don’t have dedicated warehouses or those located in metro cities
  • Struggle to retain warehouse teams or achieve fast shipping turnaround time
  • Are not optimized for day-to-day B2C shipments  

By offering best-in-class fulfillment centers and associated services, Flipkart Fulfillment can help your business drive sales on Flipkart with additional storage space, stringent quality checks, faster delivery, optimized sales vs. returns ratios, and an overall better customer experience. What’s more, you will also get the ‘Assured’ badge on your products, which has additional benefits ranging from higher search rankings to better acceptance rates from customers. When you are assured by Flipkart, you are more trusted by shoppers. 

3. Join in on promotions and spike sales 

Flipkart oftens hosts shopping events known as spike sales, during which they offer discounts and offers on virtually all categories. During this time, shopper traffic and order volumes reach all-time highs on both the website and the app. Spike sales are a great opportunity for your business as it helps you boost your sales and expand your customer base. The real push here comes from additional logistical support and widespread promotions on TV and online platforms that give your brand unparalleled visibility. 

Another way you can grow business on Flipkart is through freebies. These are products that you can offer shoppers free of cost with certain conditions and on certain products. In addition to boosting sales, freebies also contribute to lowering order returns.     

4. Run product ads and campaigns 

The tech behind ecommerce is complex, but the math is simple to understand. To drive sales on Flipkart, you need more eyes on your products. And to achieve that, you need to run sponsored campaigns. 

Product Listing Ads can help you grow business on Flipkart by boosting the visibility of your products and exposing you to a larger customer base. And the process is fairly straightforward. What you need to do is choose a product to highlight, create an ad campaign, and have Flipkart showcase it in the ‘Featured Products’ section. When a potential buyer sees your ad while browsing for the relevant category, they are more likely to click on your product.   

Bring in the experts to get the best strategy 

Whether you are new to ecommerce or want to focus on your business instead of gaining mastery over the nitty-gritties, you will need the right expert by your side to help you increase sales on Flipkart. With Tenovia, you can get end-to-end support through our services. We offer tailored and targeted solutions to help you grow your business and scale revenues – from paid and organic advertising, data-driven analytics and reporting, setting up of processes, inventory management, competitor analysis, and so much more. 

So take the first step to your success journey on Flipkart by onboarding the right experts who can help you achieve your short-term and long-term objectives. Get in touch with us today!

Shopify’s Latest Updates for Partners and Developers in 2022

When you enter the competitive world of ecommerce, you will realize that a lot more goes on behind the scenes than you first imagined. And getting it right is a make-it-or-break-it situation. 

From purchasing domains and setting up product pages to integrating payment processes, as well as marketing and SEO tools, there’s a ton of work to do. In this instance, an already built platform that offers templates and customization options can be a lifesaver. And when it comes to quality of features and range of options, Shopify development company is the clear champion. After all, 1.75 million merchants in 175 different countries can’t be wrong. 

Despite being the most popular ecommerce platform in the world, Shopify refuses to be complacent. Every year, a slew of new features and updates are introduced to improve the merchant and customer experience. Here are a few highlights from the latest updates in 2022.  

  • Shopify Flow 

Shopify development company created Flow – an e-commerce app – to help developers build automations and connect workflows to other apps. While the app already offers common templates, its true potential lies in customized workflows that use trigger, condition, and action-based building blocks. It has applications in marketing campaigns, inventory management, customer service, loyalty programs, as well as fraud detection. Simply put, Flow can access any data on the platform and allow you to create endless connections between its tools and applications.

Earlier, Flow was only available to Shopify Plus merchants but soon, it will be open to Advanced Plan merchants too. Handling over 1 billion workflows each month, Flow will now serve a much larger audience. 

  • Better search experience 

According to Shopify, almost half of all search queries made by merchants are for brand names of apps, and the rest comprise use cases and categories. In a bid to improve the search experience for merchants, Shopify development company is working on making this feature quicker, smarter, and more personalized. Some of these improvements include recommending app names, improving search keyword suggestions, better support for non-English search terms, category recommendations, and past searches. 

  • Personalized POS on the Partner Dashboard 

Shopify’s latest update will add a personalized POS component to the Partner Dashboard to better support brick-and-mortar merchants. The new custom Shopify development feature will provide insights, resources, and guidance to drive revenue. 

  • Theme app extensions 

More and more merchants in the ecommerce space are adopting Online Store 2.0 themes, making seamless integration with storefronts even more important. The good news is that Shopify web development now includes theme app extensions that will allow you to manage, adopt, and uninstall apps without spending time on custom code removal or theme-specific solutions.

  • Order and fulfillment workflows on Facebook and Instagram

Shopify recently introduced a new checkout process on 31 January 2022, giving merchants using Facebook and Instagram an option to migrate from Facebook Payments to Shopify Payments as the main gateway. This transition in order and fulfillment workflows will undoubtedly change the way orders are processed. To better manage the migration, the Shopify web development is working on keeping potential automation issues to a minimum. 

  • Enhanced channel attribution (available in Beta)

Shopify development company is adding new fields for sales channel attribution APIs, specifically pertaining to orders, checkouts, and draft orders. Channeling the right data to the right fields can therefore help improve the accuracy of order source reporting and reduce significant amounts of time in organizing and fulfilling marketplace orders. 

  • Global selling through General Availability (GA)

What does Shopify Markets moving to GA mean for merchants? Merchants can now sell around the world from the same store, as long as the customer is buying from them on Shopify. International storefront experiences will be tailored to the shopper’s country using dynamic URLs and country-specific content, pricing, and currency. 

Make the best of Shopify’s updates with Tenovia

If you’re considering migrating to Shopify for your ecommerce business, Tenovia’s long-standing partnership, as well as expertise in creating value-driven and user-friendly storefronts, is your best bet. Our long-term association with Shopify has allowed us to amass an unmatched knowledge base and helped us sharpen our offerings. 

Our Shopify web development builds include everything from design, setup, and theme customization to advanced app development, third-party API integration, and migration to Shopify Plus. Here’s why you should choose Tenovia to handle all your Shopify needs:

  1. Our custom Shopify development team can complete the building and deployment process of a Shopify website within days
  2. Whether you’re new to the ecommerce world and are looking to set up your first online store or want to migrate from your existing marketplace to Shopify, we can help you build a seamless experience across devices
  3. We offer tailored customization and integration services, as well as post-launch support for day-to-day operations and busy sale periods. 

Excited to work with our experts and make your store a Shopify success story? Get in touch with us today!

Ecommerce Automation Could Change The Game For Your Business

Online marketplace management is a constant juggling game – from managing inventory, fulfillment, shipping, marketplace listing, order processing and dispatch, marketing, and customer service. But time is your most precious asset. The question you must ask yourself is how you can make the best use of your time, all the while giving each task the necessary attention. The answer is automation.      

Cool point, but is automation really necessary?

Short answer: yes. As you scale, so do the complexities and expectations of your ecommerce marketplace management processes and capabilities. Old systems that used to work just fine break down and become inefficient. When that happens, companies often use workarounds that can be expensive or time-consuming – such as expanding recruitment. 

Unfortunately, employees cannot scale like technology. That’s not to undercut the importance of people. In fact, it reinforces the value talented employees can bring to the table. When automation takes over repetitive, mundane, and time-consuming tasks, your team can instead focus on creative ideas and strategies, and big-picture thinking.  

Transform marketplace management with automation

Ecommerce automation can be defined as the use of software and other technological tools to convert manual tasks into automated processes and workflows – all without human intervention. 

This could include setting up notifications to internal supply chain stakeholders when critical metrics need attention, flashing alerts when top sellers are flagged ‘out-of-stock’, scheduling discounts automatically, and triggering alerts when your catalog is not live on specific platforms. These changes driven by automation may appear minor, but have a compounding effect on marketplace management. By strategically leveraging automation, you can:  

  • Save time 
  • Improve quality of leads 
  • Get better quality insights through data analysis
  • Optimize delivery speed and costs 
  • Streamline operational structures and processes
  • Enhance customer satisfaction and reduce churn rate
  • Boost employee productivity and engagement
  • Fine-tune marketing campaigns 
  • Maintain a consistent brand identity
  • Scale easily and instantly

This list of benefits is not exhaustive. When it comes to automation, the possibilities are endless, as new and improved technologies come to the market to solve emerging problems. 

Start with the A of automation 

If you’ve been thinking of introducing automation to your online marketplace management practices, here’s a quick guide to getting started. 

  • Look at the big picture

When you’ve seen all aspects of your business up close, it can be a little tricky to step away and look at the bigger picture. But figuring out workflow bottlenecks and other shortcomings in your processes is the all-essential first step to successfully integrating automation. Take a minute to reflect on what your customers, employees, and markets are saying and address those needs first. 

  • Figure out what you can automate 

Once you’re sure about where you need to improve, start identifying the processes that should be automated. Focus on tasks that are repetitive and time-consuming, and require significant manual handling – such as inventory management, order processing and tracking, updating product information, routine order alerts, etc. 

  • Choose the right partner 

Finally, ensure that you choose an experienced partner who can introduce and manage automation solutions for you. Take time to explore vendors and their case studies to ensure their objectives align with yours. After all, choosing the right automation partner can mean that you can step away without a worry and use your time for better pursuits.  

Integrate automation with purpose using Tensight

Tensight, our proprietary analytics platform for end-to-end digital and ecommerce solutions, offers a multitude of automation-centric marketplace management services ranging from supply chain optimization, ecommerce technology, online marketplace listing, analytics, metric management, and more. And in the past few years, we’ve helped some of the biggest brands in the country track their critical KPIs, run analytics and make online marketplace management both scalable and profitable. 

Here are three of our success stories in the realm of digital and automation solutions: 

  • To help an international denim brand boost their conversion rate and marketing ROI in India, we helped with enhanced content and listing optimization to better engage customers. With our digital services, we enabled a 2x growth in conversion rate and a 3x boost in clickthrough rate (CTR).
  • We implemented an automated bin system in the warehouse of a prominent innerwear and apparel brand in a bid to reduce order fulfillment turnaround time (TAT) from 48 hours to 36 hours. With Tensight, the brand was able to achieve a 33% reduction in TAT and saw a significant boost in the number of processed orders per day. They also processed 99.8% orders within SLA.   
  • Tensight also helped a national footwear brand with logistics optimization to reduce cost per shipment. After a detailed cross-comparison study, we created a mixed partner approach to reduce costs. This exercise reduced delivery time by 2-4 days on average and cut costs by 45%. 

Interested in integrating automation into your ecommerce business? Get in touch with our experts today!

Riding the Subscription Wave with Magento Ecommerce Development Services

Riding the Subscription Wave with Magento Ecommerce Development Services

The era of subscriptions may have started long ago, but gained significant momentum only recently. It all began with the rise of software-as-a-service (SaaS) offerings such as online streaming services for content and music, but has since expanded to other industries ranging from fitness, fashion, beauty, and food. 

ResearchAndMarkets forecasts that the global subscription ecommerce market will grow at a whopping 71.45% CAGR by 2025. Paired with GlobalData’s projection of a 21.5% growth of the Indian ecommerce market in 2022, it is wise for your business to consider subscription models seriously. And if you’re already using Magento website development services, you can easily integrate subscription strategies into your offerings.

How does the subscription model work?

Explained simply, subscription ecommerce is a business model that helps your customers ‘subscribe’ to your products or services at regular intervals – daily, weekly, monthly, or yearly – by paying a predetermined fee. Needless to say, a customer who buys from you every month helps generate more revenue than someone who buys once, or occasionally. This model identifies repeat purchases and pushes better deals – in the form of discounts, bundles, free products and services, add-ons, etc. – in a bid to persuade customers.    

How will it help your ecommerce business?

In a world where risk and uncertainty are at record levels, businesses should do everything possible to minimize variables. Changing purchase patterns and behaviors, economic volatilities, and global events like the pandemic have made modern-day consumers more wary of their spending habits. They want the best bang for their buck, with the least effort possible. 

A subscription model addresses all these variables and offers a viable solution for ecommerce businesses, by ensuring the following. 

  • Greater customer retention: It’s no secret that acquiring new customers is more expensive and difficult than retaining existing ones. With Magento ecommerce development services, you can create a more loyal customer base and eliminate the need for customer acquisition to a large extent.  
  • Enhanced shopping experience: Magento web development services can help you offer superior shopping experiences – with effective marketing campaigns, strategic bundling, and personalized recommendations. And where there’s a better shopping experience, there’s a committed, loyal, and long-term customer.  
  • Better provisioning and inventory management: When you know how much and how often your products sell out, inventory management can become seamless. With Magento web development services, you can create an easy and hassle-free process to track what your customers buy and predict future orders.  
  • Accurate cash flow forecasting: Perhaps the greatest gift of the subscription model is business predictability. Apart from ensuring consistent cash flow, a subscription model helps remove guesswork in finance management. 
  • More upselling opportunities: If your subscription model allows for product curation, this is a great opportunity for you to cross-sell or upsell. A customer who’s already happy with your subscription options is more likely to be open to other suggestions. 

How does it appeal to customers? 

Subscription models are a great idea not just for businesses, but end-users too. Here are a few reasons why your customers might prefer it. 

  • Convenience: When a customer subscribes, they can just set it up once and forget about it. And when the products they need arrive at their doorstep without them having to remember it, customer satisfaction becomes customer delight.
  • Budgeting: Oftentimes, subscription ecommerce offers opportunities for product bundling, wherein you can combine related or frequently purchased products and services, or discounts and offers. Regular discounts and flat fees mean that customers can avoid unexpected costs and stay within budget.  
  • Personalization: Studying your customer’s habits can not only help you cater to their interests better, but also upsell other products and services relevant to them. 
  • Flexibility: A subscription model allows your end user to adjust their order according to their needs, any time they want. This flexibility is also available when it comes to billing terms and options, frequency of delivery, and more.    

So, how do you set up a subscription service?

If you’ve never offered subscription-based products and services before, it can seem a bit daunting to try it. But if you’re sold on the idea of subscription ecommerce for your business, there is a world of opportunities for you. Magento development company offers a wide range of extensions that can be easily integrated into your ecommerce store – either as a template or a custom extension. With Magento ecommerce development services, you’ll be able to: 

  • Manage flexible subscription plans 
  • Append subscriptions to a wide selection of products
  • Set up payment gateways for recurring purchases 
  • Integrate AI-driven recommendations
  • Save shipping costs by grouping subscription deliveries
  • Notify and update customers on billing details via email 

And that’s just scratching the surface. Magento offers a plethora of features and benefits to businesses and end users alike. To know more about how you can leverage Magento website development services to boost your ROI, get in touch with the experts at Tenovia today!

Rolling Out An Effective Amazon Sponsored Brand Campaign

Imagine the average customer on Amazon. They’re on the hunt for something specific and when they begin their search, they’re inundated with innumerable choices. This can get overwhelming for customers – who may take longer to make a purchase decision – and for brands – who can lose out on a sale because of the sheer number of competitors.

So how do you cut through the noise and make it all about you? The answer is Amazon Sponsored Brands. With Amazon Sponsored Brands and its ever-increasing array of marketing services, you can create a customized branded experience for your customers and a formidable brand presence on this competitive marketplace. But before we jump in, let’s get to the basics.

What exactly are Amazon Sponsored Brands?

Formerly known as Headline Search Ads, these keyword-based pay-per-click (PPC) ads are placed on top of the search results. Amazon Sponsored Brands contain your brand’s logo, products, and message – making them strategically invaluable during a shopper’s journey. These ads help build brand awareness and enable new customer acquisition by giving you a space to showcase those offerings that are relevant to a search query.

Amazon Sponsored Brands ads are available in three formats:

  • Product Collection: This type of promotion allows you to highlight three products at once, giving you the option to choose products and their order. It also has a custom image option that allows you to insert lifestyle images, along with a headline. 
  • Store Spotlight: Similar to the above category, this format allows you to feature stores. Store Spotlight is a great option for your brand if you carry a wide selection of products that can be segregated by type, style, theme, use case, age group, etc. You can also use these ads to highlight unique brand propositions with custom content that can be educational or motivational. 
  • Video: With video content already proven to be more effective than static content, it makes sense to focus on this format. These video ads allow you to advertise one product with a direct link to the product page. If you already have product videos that feature your top-sellers, you should leverage this option without question. 

What makes these ads particularly effective are their placement in the Amazon advertising funnel. At this stage, your potential customers are already familiar with your category and interested in making a purchase, even if they’re not familiar with your brand. With the right marketing plan in place, you can jump the queue and guide your customers toward a specific product category or listing, or your Amazon store.

How have they helped brands so far?

According to Amazon’s internal data, advertisers have seen significant improvements in returns, conversion rates, and click-through rates (CTR). Advertisers who used video ads saw a whopping 108.1% increase in their CTR. Sellers who used a combination of custom images and Store Spotlight ads recorded a 57.8% increase in conversion (in comparison to advertisers who used only one ad format). What’s more, advertisers who used a combination of video, custom images, and Store Spotlight ads saw a noticeable return on ad spend (ROAS) of 5.5%.

Another advantage of using Amazon Sponsored Brands is that you can measure your campaign’s performance with ease since the ‘promotion to conversion’ process is all happening on the same platform.

Great, how do I get started?  

While there is a science and an art to running an effective campaign on Amazon Sponsored Brands, there are a few strategies that can help you get a running start. Here are three such tricks:  

  • Harvest the right keywords: An effective campaign is all about harvesting specific keywords, which come in three main varieties – specific keywords (“organic cashmere wool sweater”), generic keywords (“sweater”), and branded keywords (“Mango cashmere sweater”). If you’ve already run a Sponsored Products campaign before, you’re already a few steps ahead. All you need to do is harvest keywords that recorded the highest conversion rates and use them for your new promotion.
  • Segregate branded and non-branded searches: If you’re using headline search ads, a key strategy you must adopt is separating searches by intent i.e. branded vs. non-branded keywords. For example, if the customer is searching for “Mango cashmere sweater”, it makes sense to drive traffic to the store page instead of individual products.
  • A/B test your campaigns: When you’re just starting out, it’s smart to run two promotion campaigns simultaneously with only one differing variable to figure out which strategy works better in terms of CTR. This will help you optimize ad spends and visibility. 

Keen to get started? The good news is you don’t need special tools or techniques. If you’re already a seller with a verified account on the Amazon Brand Registry, you can execute your advertising strategy right away. To know more about developing and rolling out an effective Amazon Sponsored Brands advertising strategy, reach out to our experts.

Make Your Online Marketplace Listing More Valuable with Market Basket Analysis

Let’s say you’re an FMCG brand and your customer is searching for ingredients on your marketplace listing to make Poha. While they’re adding flattened rice to the cart, they realize they may also need some peanuts, oil, and spices, maybe even some spicy sev. What if you could automatically predict this behavior and suggest additional products as your customer is viewing your online marketplace listing? It would certainly mean more value for your customer and more sales for you.

Say hello to market basket analysis (MBA)

With analytics now playing a bigger role in digital marketing, upselling and cross-selling have become ubiquitous in online marketplace management, and market basket analysis is a must-have tool to derive valuable customer insights.

  • What exactly is it?

To put it technically, market basket analysis is a data-mining technique that can help you understand and predict purchasing patterns in a retail space by showing you how customers connect different items on a marketplace listing.

  • How does it work?

At the heart of market basket analysis is association rule learning, a machine learning technique that creates relationships among variables within a dataset. If your customers are looking for notebooks, they’re also likely to purchase pens. If they’re looking for a smartphone, they’re probably also looking to buy screen guards, earphones, or power banks. If they’re buying a sandwich, they may want a beverage to go with it. Market basket analysis discovers these connections and establishes relationships between products using statistical affinity calculations.

  • How does it help?

Analyzing your customers’ behavior and purchase patterns allows you to make improved product recommendations and promotional campaigns, as well as fine tune product bundles and placements on your online marketplace listing. Ultimately, when done right, market basket analysis can help you improve customer engagement, customer experience, sales, and ROI.

The A to Z of MBA: Basic terminologies to know

Before you jump into finding the right marketplace management services for you, it is important to equip yourself with the right knowledge, or at least the right terminology. Here are the most important ones:

  • Itemset: A collection of products your customer purchases
  • Antecedent: The first product that your customer purchases or places in the checkout cart
  • Consequent: The product purchased as a result of the antecedent item
  • Support: The probability of the antecedent event occurring, or the general popularity of the product
  • Confidence: The measure of the probability that your customer will purchase a ‘consequent’ item after the ‘antecedent’ item
  • Lift: The efficiency of the rule in finding consequences, as compared to a random selection of transactions 

The formula for market basket analysis The most popular algorithm used in market basket analysis is Apriori. It conducts frequent itemset mining as well as association rule learning, which we mentioned above, used with relational databases. Apriori leverages a bottom-up approach by extending frequent items one at a time and testing them against available datasets (explained in the formula below).

Revisiting the example of the delicious Poha, the Apriori algorithm uses this rule of association formula and tells you to promote spices and other items when customers search for ingredients – thereby increasing your average order value. 

Three types of market basket analysis techniques

There are various other algorithms used for market basket analysis, the primary difference being how differently datasets are utilized.

  • Descriptive MBA
    The most commonly used approach, this technique derives customer insights based only on past data. Descriptive market basket analysis uses statistical modeling (unsupervised learning) to rate associations. It does not make any predictions.  
  • Predictive MBA

This technique uses sequential data to identify cross-selling opportunities. Predictive market basket analysis uses supervised learning models such as regression and classification, mimicking the market to analyze cause and effect.  

  • Differential MBA

Ideal for competitor analysis, differential market basket analysis determines interesting customer behavior patterns by comparing purchase histories across stores, seasons, time periods, days of the week, etc. It can help you identify intangible customer preferences – such as why customers choose a specific marketplace, even when the same product is available at the same price on both platforms. The answer could be delivery time, customer experience, warehouse volumes, or another factor that was previously unknown.

Integrate market basket analysis easily with TenSight

Not sure how to begin integrating market basket analysis into your business?

TenSight – Tenovia’s central ecommerce analytics dashboard – allows you to make data-driven business decisions that are better, quicker, and more accurate. The dashboard comprises centralized data from all major ecommerce platforms and offers actionable insights.

With our expertise, we’ve helped a global denim brand achieve a 3x boost in conversion, 3x clickthrough rate, and 15% growth in brand SOV. We’ve helped a national footwear brand achieve a 40% boost in profitability and over 1 Cr in savings. TenSight has also helped increase regional utilization in ecommerce warehouses, and reduce delivery time and cost per shipment. To know more about TenSight and our marketplace management services, talk to us today.

7 Important Ecommerce Statistics To Boost Your Sales in 2022

Ecommerce has been experiencing immense growth in the past decade but since early 2020, its meteoric rise has intensified competition and pushed ecommerce service providers to go the extra mile. What’s more, global events – be it the pandemic, Brexit, the Suez Canal crisis, the rise of 5G, or even climate change – have all had an impact on ecommerce.

Over time, purchasing habits change, supply chains can get disrupted, and new technologies such as AI can transform ecommerce. There’s a lot you need to keep track of to be a successful online seller. That’s why, we’ve chosen 7 vital trends and statistics that can help you boost your numbers this year.

1. India could be home to 228 million ecommerce shoppers by the end of 2022

With more people than ever staying at home due to the COVID-19 pandemic, the country has seen a 45% increase in the current consumer base. According to a study conducted by Recogn (the research division of WATConsult), YouTube and WhatsApp are leading platforms for ecommerce service providers. It’s also interesting to note that younger consumers prefer platforms such as Instagram and Facebook whereas older shoppers prefer WhatsApp and Facebook. So when you’re planning your next ecommerce advertising solution, remember where your audience is.

2. Mobile ecommerce accounts for 61% of online retail traffic

Smartphones have undoubtedly become the go-to online shopping tool for consumers today. But there’s an interesting twist to this statistic. While a majority of the traffic comes from mobile phones, online sales are still largely completed on desktops. What this means is ecommerce sites that are not mobile optimized will eventually lose out where it really matters – the checkout. So focus on making a user-friendly, mobile-friendly interface to grab your customer’s attention and increase your chances of them becoming paying customers.  

3. Purpose-driven brands have higher market share and 3x growth compared to competitors

With more brands using narratives such as ‘vocal for local’, ‘shop local’, and ‘support small businesses’ in their marketing, it’s clear that businesses driven by purpose and a unique voice are becoming more common. A study by Deloitte showed that today’s consumers make choices based on how brands treat employees, communities, and the environment – giving brands more incentive to follow ethical practices. In addition to higher market share and multi-fold growth, purpose-driven companies also report higher customer and employee satisfaction. So if growth is on your agenda, make your ecommerce advertising solution all about purpose.   

4. Almost 50% of users abandon shopping due to unexpected expenses 

Cost is perhaps the second most important factor for the success of ecommerce, after convenience. Your customer’s smile may turn upside down when they think they’ve found a great deal, only to be confused by extra costs such as taxes, shipping, or other service fees. They may also abandon their carts due to long checkout processes, mandatory account creation, slow delivery, and lack of trust or clarity. Ecommerce solution providers should focus on maintaining cost transparency and highlight benefits such as easy returns, free shipping, etc. 

5. 3D images of your products can boost conversion by 250%

The ability to pick up items and inspect them by hand is something online stores cannot replicate. Buyers are naturally less likely to buy something if they are not able to get a feel of the item. But with good product photography and a 360° view, you can get closer to the real deal.

6. Fast shipping vs. free shipping: 85% of consumers choose free

Of all the keywords that drive the popularity of ecommerce, ‘free’ is probably the most powerful. Free shipping has proven to be the biggest edge ecommerce has over traditional retail. Many studies even prove that consumers choose online shopping solely because of these benefits and aren’t willing to pay for shipping, even with expedited delivery times. However, free shipping isn’t always a practical solution for ecommerce service providers, especially for international orders. One solution here is to harbor local fulfillment centers located closer to customers.

7. 9 out of 10 customers are more likely to make a purchase when guided by an associate

While influencer and celebrity plugins do help boost sales, they can be costly as an ecommerce advertising solution in the long run. Instead, a surefire way to increase sales and retain customers is authentic and efficient customer assistance. Brands that employ a trained team of associates to quickly answer questions and recommend products will instill greater trust and confidence in the brand.  2022 will continue to be a year of evolution and transformation, especially so for the ecommerce sector. And with each emerging trend, there’s a world of learning to be discovered. What will make the difference for your brand is how quickly you can catch on to these trends and make concrete changes to your marketing strategy. If you’re ready to get started with ecommerce marketing services that will empower your brand in a sea of uncertainties, talk to us today.