This is the age of E-commerce and every vendor today wishes to sell products and services online. This can be accomplished by starting an independent online store and also by selling on marketplaces. Larger marketplaces give the benefit of more visibility but many charge high commissions and fees which is not a feasible option for new entrepreneurs as it leads to lower margins. A new trend has emerged - small retailers who wish to sell online prefer to sell their products and services on smaller marketplaces rather than large, reputed marketplaces and also wish get their online stores made from e-commerce platforms. Let’s examine the interesting article in which StoreHippo was featured in the online media as under:
For small merchants like Vimal Jain, a seller of Tupperware and henna products, ecommerce giants like Flipkart and Amazon can be quite daunting. This is the reason why small and mid-segment vendors like him are flocking to smaller online marketplaces which are creating a new wave of neighbourhood commerce, where margins aren't squeezed too tight and the payments are quicker.
At large ecommerce stores, in addition to high commissions, "we also see high return (of products by buyers); get our payments late and sometimes we bear the brunt of logistics charges too," said Jain, who sells online through more than 20 retailers. “Smaller marketplaces are far more efficient." This is not to say that these stores present a threat to the giants but these do offer small and independent merchants a more accessible alternative. Neeraj Hutheesing, founder of M1-Order, a mobile marketplace for neighbourhood stores, says large companies typically expect merchants to offer discounts of 35-50% on their products and also charge them hefty commissions. "For instance, a restaurant chain that has tied up with (an online food delivery platform), selling biryani for Rs 150, will be asked to pass on 20% margin to the customer in addition to a 15% commission. The seller ends up with less than Rs 100 in his pocket," he said.
M1-Order charges its more than 3,000 merchants a commission of Rs 5 per transaction. Its mobile marketplace allows customers to also purchase from local stores by scanning quick response or QR codes printed on merchants' brochures and catalogues. Askme.com promises quick payments and fewer product returns by buyers. "Through our asset-light, hyper-local model, merchants are paid back within 48-72 hours," said Manav Sethi, group chief marketing officer.
In addition to selling on marketplaces, online stores are also turning to ecommerce-focused firms like StoreHippo to create their digital fronts.
This brings us to another question. How can small retailers create a happening online store which gives them the desired results and delivers profits in the long run?
They should get an attractive design for their store, make sure the product images look good and appealing, offer sales and discounts, integrate with reputed logistics and payment providers, make their store mobile ready, give direct emails to their target customers, add other sellers to their store, get active on social media and last but not the least give excellent customer support and review. StoreHippo is particularly suitable for start-ups and fledgling entrepreneurs since it a SaaS based platform based on advanced technology stack with affordable pricing plans. StoreHippo creates online stores equipped with all the features that retailers need to go online like Integrations with Payment Gateways & Logistics Providers, Mobile sites and apps, multi-seller feature, customized features and even integrations with marketplaces. For online retailers who are still in their initial stages, it is better to focus on creating their own online store which can be customized as per their needs. In order to gain visibility, they can sell on marketplaces but at the same time keep their focus on developing their own online store from which they can reap profits and carve a niche for themselves in the digital world.
A part of above content was published in online editions of The Economic Times and The Times of India.
Please refer to the below links:
http://economictimes.indiatimes.com/industry/services/retail/small-vendors-flocking-to-smaller-e-marketplaces-like-askme-com-heres-why/articleshow/50542448.cms
http://timesofindia.indiatimes.com/tech/tech-news/Why-small-vendors-are-flocking-to-e-commerce-sites-like-Ask-me-M1-Order/articleshow/50545964.cms
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