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Govt. increases export incentives to Rs. 5 lakh/consignment

Govt. increases export incentives to Rs. 5 lakh/consignment

Categories
Ecommerce

To boost exports and encourage small scale e-commerce platforms, the government has increased the export incentives from Rs. 25000 per consignment earlier, to Rs. 5 lakh per consignment now for sales taking place through online platforms. The increased incentive will provide major boost to exporters and the relaxed norms is set to benefit handloom products, books, leather products, fashion garments and toys.

The Government of India introduced the Merchandise Exports from India Scheme (MEIS) through the Foreign Trade Policy (FTP) in April 2015. It seeks to promote export of notified goods manufactured/ produced in India. MEIS is a major export promotion scheme of GOI implemented by the Ministry of Commerce and Industry.Rewards under MEIS are payable as a percentage (2, 3 or 5%) of realized FOB value of covered exports.

The low cap earlier at Rs 25000/ consignment often resulted into mismanagement of export data with exporters opting to categorize the product as a gift since they would have to file a shipping bill and go through customs. A cumbersome task for small scale exporters with low-value shipments. The increased incentives would attract more small and medium scale exporters and the governments expects the change to bring and encourage more number of exports which boosts local handlooms and products.

Time’s up for heavy online discounts?

Time’s up for heavy online discounts?

Categories
Ecommerce

Have you ever wondered how major gameplayers in the e-commerce industry offer over the top discounts in so many products? This phenomena of providing unrealistic discounts is called “Deep-Discount” which has put companies like Amazon and Walmart-Flipkart in a complex loggerhead with the Rest of India.

The e-commerce market has almost reached to 100 billion dollars and is set to almost double in the coming decade. Indian government has proposed an “India First” policy, a draft which proposes the end of “deep-discounts” from a specific date. Food Deliver sites like Swiggy and Zomato will also be covered in the proposed legislation. The draft has been brought in after numerous grievances from micro, small and medium enterprises of unfair game from e-commerce giants. The legislation has a number of proposals:

-Group Companies of online marketplaces to be barred from influencing prices

-Bulk buys by related party sellers to be banned

-A ‘Sunset Clause’ defining the duration of discounts

-FDI: Restricted inventory based-model for funder/foreign companies

-ED to look into violations

-CCI to overlook competition distorting M&As

-Data to be hosted in India

The Indian law restricts foreign companies from holding inventory although it allows 100% FDI in market place model. The new policy proposes that Indian-owned and Indian controlled online marketplaces shall be able to hold inventory provided the product are 100% domestically manufactured. There is also a plan to instil a Consumer Protection & Grievance Redressal system. The proposal would not please Amazon and Walmart who have invested 5 billion and 16 billion dollars respectively. It will significantly intervene in their business, decision making and slowing down business operations. Local etailers are also in a limbo with the ambiguity of the draft.

The heavy discount mechanisms of these e-commerce giants are complex. The three major e-commerce companies, Amazon, Flipkart and Snapdeal, all operate as marketplaces since the law doesn’t allow FDI in e-commerce sites selling directly to customers while the same is allowed in a marketplace which links sellers and buyers. A marketplace also provides payment, storage and delivery something which is not possible for a foreign funded e-commerce site. Direct Retail is banned in India and marketplaces are forbidden to exercise control over the price of sellers, including discounts.

Non-regulation of the prices and discounts have impacted small-scale business adversely and the draft will come as blessing in disguise for many who feel e-commerce giants have gained the monopoly of the retail sector. The proposed legislation is set to overhaul the e-commerce industry in India and it would be interesting to see how it impacts both the Small-scale business and heavyweights of the industry.

SaaS Metrics – Key to Growth

SaaS Metrics – Key to Growth

Categories
Ecommerce

Software-as-a-service industry has been steadily growing for two decades now. The industry is expected to grow at a rate of $76 billion per year with SaaS IPOs doubling over the last decade. The industry has grown exponentially and is also witnessing fierce competitions in an ever-changing industry. It’s not easy to make and break as a SaaS company. According to a recent study, a software company that grows only at a rate of 20% has a 92% of ceasing operations in the coming future. Even 60% yearly rise could lead to a 50% chance of surpassing $1 billion in revenues.

In such a demanding market and competitive environment, it is important to maintain and study essential metrics. These metrics could help in improved customer satisfaction, increased revenue and better management. The three essential steps to become a successful SaaS Company is to acquire, retain and monetize customers. We’ll discuss about the key metrics derived from these steps to successfully run a Saas company:

  • Revenue:
    Newly founded Saas companies have to bear heavy losses in forming years in lieu of acquiring customers and promoting the product. Customer retention heavily affects the revenue and growth rate and analysing your revenues closely could prove a long way in
  • Customer Lifetime Value (CLV):
    Any software has a or a subscription in it has a lifetime after the expiration of which the customer is expected to renew his account to avail the services. This is the Customer Lifetime Value (CLV). It is the average amount of money the consumer pays the company during the entire engagement. Finding out the ‘average revenue per account’ could also be instrumental in increasing profits.
  • Customer Acquisition Cost (CAC):
    The average cost spent on acquiring new customers is called the Customer Acquiring Customer Cost (CAC). CAC along with the CLV determines if any business is profitable. The number of sales divided by the marketing expenses gives the Customer Acquisition Cost. CAC is one of the most important steps for a new SaaS company.
  • CAC to CLV ratio:
    The CLC to CLV ratio determines the growth of any SaaS firm. It displays the lifetime value of your customers and the total amount spent on acquiring them in one metric. The CLC to CLV ratio helps in identifying successful and unsuccessful campaigns and products.
  • MQL & SQL:
    Marketing Qualified Leads (MQL) and Sales Qualified Leads (SQL) are the base of the SaaS company as it helps them identify potential buyers. The process is time-taking and could range from few days to years. Thorough grasp of lead’s qualifications could boost the business.
  • Customer Churn
    Tracking losses is vital for any business. The customer churn are the consumers who have cancelled their respective subscriptions. Tracking components and reasons behind customer churns helps sales immensely.

Inculcating Data Science and the SaaS Metric could give wings to your new or struggling software business. Taking care of minor nuances could result into big time profits and save huge capital and effort.

How to Boost Ecommerce Sales on shopify

How to Boost Ecommerce Sales on shopify

Categories
Ecommerce Shopify

The best thing is to check out Shopify’s marketing guide called 50 Ways to Make Your First Sale – it is full of tips and marketing ideas to Boost your store.

Apart from that i would recommend

  • Build Content Strategy based on your Customer Persona (Target Audience)
  • SEO and Social Media always gives long term return and its worth investing if its targeted very well
  • Some of the Marketing Apps you can use form Shopify App store for example Loyalty, Reward , Instagram follower app etc
  • Even you check with Kit, lot merchant uses very well you can check out their videos and functionalities. Kit can now create Dynamic Product Ads that retarget shoppers on Facebook who left your site without purchasing. You can find a step-by-step guide here on how to use Kit’s retargeting features and I would definitely recommend setting this up for increasing your sales.
How to take advantage of the booming Ecommerce markets across the globe

How to take advantage of the booming Ecommerce markets across the globe

Categories
Ecommerce

Ecommerce markets across the globe are buzzing with a lot of profitable returns and finding out new innovations to overcome the hurdles. Online retail is growing amazingly and hence the predictions are up that it will further keep growing at the rate of 8 -12 percent every year. The estimated sale to reach by the end of the year is expected to be between $427 and $443 billion as per the reports by National Retail Federation. Online retailing has taken a new high by focusing on efficient automation, seamless branding and giving excellent customer service. Let us discuss few of the strategies that one can keep in mind to make the best of the booming ecommerce business globally:

Brand Building

Marketers follow varied procedures and take steps to improve the reputation of their companies. Brand building is one of the most crucial parts to build customer loyalty. Whatever call to action plans they are contemplating to take, customer communications is the key and every marketer should include it in their strategy model. Building brand awareness and hence getting recognition are important pre-requisites for any brand growth; it also helps in gaining new customers and gets conversions for existing customers.

Automation

Automation is a must in today’s hi-technology world since with Ecommerce order fulfillment is an important priority hence to keep up pace, one has to have processes automated for example having automated shipping software, order management and shipping. This will reduce many work hours and reduce labor costs too. Repetitive tasks are completed before time since automation makes it faster and quicker. Many organizations are already using marketing automation strategies that will help them deliver and process faster. Savvy retailers are already using automated software systems in their business and are truly getting much benefit from the same.

Customer Service

Ecommerce means online business; brands will readily loose the charm if they do not stay up to the expectations of their consumers. A Great customer experience helps the users to stay loyal to the brand and also helps in building trust and healthy business relationships. Online retailers need to state clearly their returns policy and any other bigger policy that is related to the product. This makes it easier for consumer to reach out to brands and have smoother interactions post the sales cycle.

Online retail shopping is going to grow in the coming decade; hence it is of prime importance for brands to make themselves reachable to the people without any disturbances. Consumers get comfortable if the policies are transparent; they go for repeat purchases if there are customer-friendly returns policies and processes.

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