Own Website or Marketplace Listing for E Commerce Business in India?
“In the end, all business operations can be reduced to three words: people, product, and profits.” – Lee Iacocca
If you’re a business owner, I am sure you can relate to this as any business basically revolves around these three Ps only. This blog however focuses on maximizing the last P-Profit, because that’s what’s most important- the reason you’re into business.
If you’re an established business or even if you’re just starting out, you must be strategizing and doing various marketing and getting online activities to reach far and wide.
In this blog, we’ll narrow things down and try to understand which alternative will be more beneficial for you to promote your business online – creating your website or getting your business listed on some leading e-commerce platform- like eBay, Flipkart, Snapdeal etc. Although I’d like to make things clear in the beginning itself that every initiative to get more business has its pros and cons.
So, let’s dig deeper.
A)Should you get your business listed on an e-commerce platform?
With changing times, the meaning of getting online has changed considerably. Now, there are multiple ways in which you can promote your products online, even if you don’t have your website – through social media, via instant messaging and through your business listing on an ecommerce platform.
Listing your business on an ecommerce platform has many advantages & few disadvantages:
1)Pros of business listing:
- You promote your products online, with zero or minimum investment. It saves you from spending much on designing, creating and maintaining your website.
- You get publicity through a readymade, SEO optimized portal that publicize your products far and wide.
- You don’t need any technical expertise to make your business listing.
- Once listing is done, you’ll start getting leads and there’re no other hassles involved.
2)Cons of business listing:
- There’s no exclusivity for your products or your business identity. You’ll be part of the crowd selling products on that platform.
- An ecommerce site is not a very safe haven for your information or products. If that site fails, loads slowly or has downtime, your business will suffer.
- You may be restricted in terms of space and number of products you can display as there are a number of merchants listing their products.
- Business listing sites create category of products and club all merchants selling them together. If you sell products other than the listed categories, you cannot get yourself listed on that particular site.
B)Why should you create your website?
Your website is the true online identity of you- your business. Just like your personality defines who you are, your website defines your business. There are innumerable advantages of having your own website:
1)Pros of having your business website:
- Since your website only represents your business, you can display your products and services – your way.
- You have unlimited space to display your products and services.
- You can do SEO optimization, add opt in forms, enquiry forms or any other way on your site to collect leads.
- You can collect and utilize the leads generated from your site anytime later for different things- advertising, sending mails, remarketing, upselling/cross selling etc.
- You can add videos, blogs, images, infographics and multiple other things to interact with your website visitors or potential customers the way you want.
2)Cons of having your business website:
Although there are no disadvantages of having your own website, but as compared to business listing, this is a costly way of getting online as to you’ll have to buy domain, get web hosting and manage your site if you’re technically apt or get it managed by your service provider.
But as they say ‘no pain, no gain.’
So, we recommend that your business should be omnipresent for max benefits. Create your website and list your products on ecommerce listing sites as well.
Stay tuned to more exclusives information!Give us your valuable comments below.
Where is ecommerce Industry in India Headed in the Next Five Years(in 2020)?
Recently in Mumbai, a group of professionals tested their pizza delivery 3km afar to their outlet using a GPRS enabled remote controlled Drone.
Presently, Indian government currently do not permit commercial services/ deliveries using aerial objects but the Indian e-commerce future is sure on fire!
Statistics shows that in 2009, India had a rising e-commerce sector with $3.8 billion masses, while 2014 recorded the digits as 17 billion, which is, averaged at the growing percentage of 37% to reach a tenfold hit in the next decade.
Timeline of Indian E-commerce
Technically, India is at the very cusp of e-commerce revolution, currently on the primitive e-commerce model akin to 1.0. This basic model is, based on Convenience, Options and Price, which is, deduced from a globally e-commerce player, Amazon. To understand what awaits the future of e-commerce players in India, we should have a glance upon its growth timeline in the Indian industry to see the present stage that it holds.
- Indian Railway teaches India to book ticket online:
- IRCTC became the Columbus of Indian e-commerce in 2002 when it introduced the online railway ticket booking.
- A total boon to the Tatkal lines that stretched kilometres of queued people waiting longer than a day was, expected to vanish just as the common man got internet;
- Currently one can only book any ticket for any coach and train and book buses, meals, hotels, tour packages and shop/ sell on Amazon.
- Indian Aviation introduces low cost airline
- The hefty commission cost to book through agents was completely, erased through web portals helping people book directly from the airlines.
- It also helped customers to book hotels, find discounts, shop in duty-paid shops, bonuses and Taxi through the same portal
- Flipkart descends
- Flipkart, the face of stunning online shopping or e-commerce was first brought to the layman by Flipkart in 2007
- The founders initially worked for Amazon and decided to make their own company
- Flipkart currently reaps a revenue of INR 2,286 per year with a strength of 33,000 employees
- Internet Revolution in the last decade
- Social media introduction like Orkut, Hi5 and Yaari to the layman, which became an e-commerce partner gradually
- Mobile E-commerce forms major traffic for Flipkart and Snapdeal with 40% and 50%, respectively
- Online Grocery Stores like Bigbasket.com emerge
Future Strategies for E-commerce in India
Since the advent of internet in 1991, Gross Domestic Product of India has been, surveyed as quadrupled, thanks to the subsequent e-commerce boom.
Professionals predict that as e-commerce in India is still undergoing Big Bangs of revolution, in the next five years, there will be an increase in the populous to $100 billion.
It will not be long from now that housewives from Kamathipura will be running their websites of selling homemade pickles, laddus and perfumes!
With the creation of a large-scale marketplaces, future will create a One-stop for anything and everything from asteroid piece to Poppy seeds that the customer wishes. When there is one-stop, the rates will be comfortable or erratic, if the competition rises.
According to us, the future strategies that await India’s e-commerce future are:
- Upgrade of the following business models to One-stop Model
- E-marketplace: Flipkart, Snapdeal
- Inventory Type: Croma, Shoppers Stop
- Click and Collect Type: Amazon
- Aggregator Type: Uber, Ola
- Advertising Revenue Type: Yahoo, Bing
- Transaction fee type: eBay
- Affiliate Revenue: CouponDuniya, Paytm
- Wide Variety of Payments
Customers will have the option of using any currency such as Credit cards, prepaid cards, gift vouchers or even bitcoins from their e-wallet to shop
- Logistic and Supply Chain Growth
Now, anything and everything that anyone wants will be online when the seller logistics controllability is, implemented.
With eliminating competition, mergers will not only create better services, but superior standards. An example is of the recent merger of Flipkart and Myntra merger that was a $20 billion deal, which is currently a Master Player in the e-commerce industry.
- Retail to E-tail through Omni Channel
When the offline and online retailers merge, the Omni channel is born and the consumer benefits the liberty to buy online and collect offline, or vice-versa.
- Subscription e-commerce
Subscription models based on discover or utility that helps a regular sale, inventory with an upsell options is the next age of subscription e-commerce
- Flash Sale Tactics
Be it Diwali discount sale on Croma or Festive Deals on Snapdeal, ‘Flash sales every day of the week’ from your favourite online shops, is just the future that awaits the Indian e-commerce!
With the society taking comfortably to mobile commerce now, it is definite that e-commerce will undergo an upgrade of compact m-commerce, for the greater good.
Applying Darwin’s model of thought, the future for E-commerce industry in India is a model that is descended from common marketplace tactics. Adaptive and competitive entrepreneurs will survive while merging of innovative new tools will continue to happen. Moreover, the struggle of this existence will provide us with the fittest model to grow ahead.
If the goal of the e-commerce players is to reach to every nook and cranny of the Indian population, it still has a long way to go. There is a better half of the population still illiterate and in dark, without internet in many places across the country. In addition, it will surely help the country grow its Gross Domestic Product to a startling, developed nation perhaps.
Now that even Google has started semantic sense to rank e-commerce players, rather than keyword stuffing (or choking), e-commerce players with substance and innovative strategies are sure to grow in the next decade.
None can deny that e-commerce was a virgin face to the Indian audience but has now, proved its worth and is here to stay for a long, long time.
We believe that in the next five years, Indian e-commerce is going to be the harbinger of nation’s economic rise and enhancements.
Stay tuned to more exclusives to our future!