By Pavel D’silva
January 09, 2023
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eCommerce as an industry is constantly changing and evolving, even more rapidly than other sectors, due to the proclivity of sellers and customers to jump on board emerging trends in relation to technology, services, website design, marketing, and more. This is because of the hyper-competitive environment that eCommerce sellers find themselves in. For instance, even if a retailer has a business idea in a relatively untapped industry and gains an early adopters advantage, the market will soon be inundated with other sellers trying to duplicate the success of the initial seller. This reduces their competitive advantage because every firm will be trying to be employing their own tactics to highlight their brand to prospective customers and showcase reasons why they should choose them as opposed to other competitors. Thus, in order to maintain an edge over your nearest rivals or gain ground over them, you need to consistently monitor eCommerce trends that are gaining popularity in the market and take advantage of them in your own business.
“2023 is the year that brands need to figure out how to deliver fluid omnichannel shopping experiences.”Arjun Vaidya, Entrepreneur and Investor
“2023 is the year that brands need to figure out how to deliver fluid omnichannel shopping experiences.”
eCommerce trends can have a significant impact on the success or failure of a business, based on how fast you are able to adapt. For instance, ultra-fast delivery is taken more or less for granted today but when it was first introduced by Amazon in the late 90s, it completely changed the way customers were able to purchase and receive their goods. Thus, companies that didn’t adapt and offer a similar solution of their own would often lose ground to other companies that did. The same can be said about features like live order tracking, multiple payment options, branded packaging, and more. Once consumers get a taste of these facilities, they would not want to go back to purchasing from a retailer that doesn’t offer them. Similarly, if every brand in your industry is promoting its items through social commerce platforms like Whatsapp, you also need to jump on the bandwagon to keep your business in the mix.
Let’s take a look at some notable statistics that reiterate the significance of keeping up with eCommerce trends:
“I think moving forward, a media company that’s separate from a marketing company will not exist. I think the lines are blurring and they will continue to blur.”Katia Beauchamp, CEO of BirchBox
“I think moving forward, a media company that’s separate from a marketing company will not exist. I think the lines are blurring and they will continue to blur.”
Due to the amount of advanced technology at our disposal, you can monitor eCommerce trends using a variety of methods. The popularity of social media has played a big part in the way customers express their satisfaction or displeasure with a business. Similarly, businesses can monitor social media to identify the likes and dislikes of customers and identify what made them choose a particular brand over others. Another way to identify eCommerce trends is to look for the introduction of new features in the market, such as the emergence of sub-30-minute deliveries that were pioneered by having dark stores where products could be stored and delivered locally.
Let’s take a look at a few ways you can successfully monitor eCommerce trends in 2023:
Many companies and organizations publish reports on eCommerce trends. These reports can provide valuable insights into current and emerging trends in the industry. Either you or someone from your organization should browse through these reports and identify if there is anything of significance to you and your brand which can help propel your business going forward.
Staying up-to-date with industry news and blogs can help you stay informed about eCommerce trends. Many of these sources provide analysis and commentary on trends in the industry, which come in useful if you need precise data to analyze the effect that such trends could have on various portions of your business.
Social media platforms can be a great source of information on eCommerce trends, considering that platforms like LinkedIn act as a digital meeting point where the world’s brightest minds can seamlessly exchange ideas and have healthy debates for every user to see. Many eCommerce businesses primarily use social media to announce new products, promotions, and other updates, which can provide valuable insights into current trends. 67% of small businesses prefer marketing and promoting their products on social media to conventional marketing.
Analytics tools such as Google Analytics can provide data on customer behavior, including trends in traffic, conversions, and revenue. This can help you understand how trends are affecting your business and identify areas for improvement. Additionally, they can help you pinpoint the pages that customers spent the most time on and the ones that resulted in them leaving, so you can make edits to your listings and websites accordingly.
Asking customers directly about their preferences and behaviors can provide valuable insights into current and emerging trends. Surveys can be conducted online or in person and can be a useful way to gather customer feedback and stay attuned to changing trends. For instance, a customer may have experienced a specific service while ordering from a specific company and may voice their dissatisfaction that your company doesn’t provide that same feature. This allows you to gather similar data and implement the facility in the future.
“There are so many opportunities on the horizon, from mobile exclusives to geo-located offers to better filtering and searching. We’ve only scratched the surface of what’s possible with personalization.”Michelle Peluso, CEO of Gilt Group
“There are so many opportunities on the horizon, from mobile exclusives to geo-located offers to better filtering and searching. We’ve only scratched the surface of what’s possible with personalization.”
With the world recovering daily from the after-effects of the global pandemic, many shoppers have decided to go back to their old shopping habits as well. A recent study by Harvard indicates that 73% of consumers prefer purchasing through a variety of means, compared to 20% that shop solely in physical stores and 7% who shop exclusively online. While online shopping is extremely convenient for some things, customers have showcased that there is nothing quite like browsing for exactly what you need while the products are tangibly present in front of them. Thus, retailers need to make the jump to omnichannel retail if they want to take advantage of higher sales in 2023.
During the pandemic, with the burgeoning popularity of eCommerce compared to previous years and people making the jump to try their hand at starting a business, the number of online companies that emerged have been unparalleled since. With all these new sellers diluting the market, the onus is on each brand to highlight and promote the reason customers should choose them. Whether it is providing lower prices, free shipping, or flexible returns, identify the unique selling point of your brand and waste no time in reiterating that message to customers.
With the borders of many significant countries fading away, at least for retail international trade and investments recuperating after a couple of hard years, globalisation has become the power for the course in modern society. It has never been easier for brands to manufacture their products in one country and sell them in multiple countries of their choosing. Additionally, many local Indian brands are expanding their services abroad, to take advantage of markets with higher GDPs and per-capita incomes, resulting in the increased international movement of commodities.
Given the emphasis placed on performance marketing for what seems like an eternity, it may be a surprise to learn that industry experts have suggested that firms do not need to waste resources and effort on performance marketing and rather divert their attention to social commerce and social media marketing. A common consensus among industry experts is that performance marketing has seen a dip in its significance so it makes more sense to invest in your brand itself and have all your sales and operational funnels in place, with promotions and marketing being required only after that is done. So if you want your business to increase its exposure to potential customers, you need to update your tactics.
Most online interactions take place on mobile devices. After all, they are smaller. More portable and less cumbersome to use than dragging around a laptop everywhere. Seldom do people not perform every task on their mobile devices. Given that mobile devices comprise 71% of online traffic and 61% of where orders are placed, there is no dispute that mobile devices are the present and future of eCommerce in the foreseeable future. As phones start to get more capable, more and more people will start using them for their eCommerce needs. Therefore, your business needs to make sure that every interaction customers have with your online store is optimized for a smooth and seamless mobile experience.
It is estimated that upwards of 73% of direct-to-consumer (D2C) brands plan to opt for external funding for 2023 and beyond. This phenomenon will result in increased competition and retailers trying to do whatever they can in their bid to stay competitive and be profitable. These tactics are necessary because the current state of the global economy could indicate that taking on so much debt by giving away equity could create a vacuum that many companies might not be able to recover from. Thus, it is important for retailers to try their best to increase their profit margins and maintain their profitability.
Social commerce takes place when sellers use social media platforms and messaging apps to promote their products and services directly to customers. This strategy has become progressively more important as social media has gained a strong foothold in everyday life for the strong majority of customers. For instance, Gen Z uses TikTok more than Google to browse for and purchase products. Social media platforms generated a mindblowing $992 billion in online sales in 2022, a figure that is estimated to skyrocket even further to $2.9 trillion by 2026. Platforms like Whatsapp and Telegram have become increasingly common for business transactions and even support features like automated chat bots for basic interactions with customers.
As mentioned in the previous point, businesses are increasingly using automated chat bots for both regular and advanced communication with customers. If you have ever received a promotion or link from a Whatsapp business account, odds are that it has been sent by a chat bot. Additionally, most well-designed websites have implemented chat bots to assist customers in navigating around the website and searching for various product details, such as pricing, colours, availability, and more. They provide a cost-effective and hassle-free way of keeping customers engaged and providing instant answers to queries. 87% of customers wouldn’t shop at a brand that has poor customer service and chat bots are a great way of rectifying that.
The world has generally become more environmentally conscious as more and more people get elevated to a comfortable lifestyle and start to question the impact of consumerism on the planet. More than 51% of customers have stated that they have become more sustainably aware after the pandemic. Companies are encouraged by consumers to adopt technologies and materials that contribute to reducing carbon footprints in every sector. If your company has successfully adopted some form of green technology, either in the products themselves, the packaging, or the delivery process, make sure to highlight it to consumers so they would consider your brand in contention for their purchases.
Customers thrive when they get to purchase a product in exactly the configuration they want, a sentiment backed up by more than 60% of consumers. A personalized experience can range from being able to customize a logo on a t-shirt to having orders delivered at a specified time. In the eyes of customers, the amount of personalization and freedom that a brand offers are a strong indication of the value it places on them. Therefore, you need to enable some form of customization that will be a meaningful addition to the way customers interact with your brand and will definitely pay off in the long run in the form of positive reviews and feedback online.
“If you do build a great experience, customers tell each other about that. Word of mouth is very powerful.”Jeff Bezos, Owner and Former CEO of Amazon
“If you do build a great experience, customers tell each other about that. Word of mouth is very powerful.”
Staying up to date with the latest eCommerce trends is a must if you want your business to be on the bleeding edge and you do not want it to fall behind your competitors. In the past, certain eCommerce trends, such as Amazon’s ultra-fast delivery and Prime badges that indicate delivery speed revolutionized the way eCommerce operations were conducted and the convenience with which customers view eCommerce. All these years later, trends like those have become widely adopted as industry standards, with every firm needing to adapt or risk getting left behind. In recent years, there has been a new wave of eCommerce trends seeking to enhance and streamline even more aspects of the industry. If you are a current or aspiring eCommerce seller, we hope this post gave you the insights you needed to be aware of the latest trends permeating the market in 2023 and how you can adopt them for your own business.
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Pavel is a content marketing analyst at WareIQ. He has more than 3 years of content marketing experience. His key responsibilities include writing SEO-based blogs, guides, guest posts, and other types of content on a plethora of topics related to eCommerce fulfillment, operations, supply chain, warehousing, shipping etc.
Read all of Pavel D’silva's Posts
If you're an e-commerce seller in India, it's crucial to evaluate and understand the significance of two pricing models that can greatly impact your fulfillment costs and operations: occupancy-based rates vs. per unit-based rates.Let's dive into the details and explore why choosing the right pricing model is essential for your business success.📌 Occupancy-based rates:- Charges based on the physical space your inventory occupies in the warehouse.- Ideal for sellers with bulkier or larger items that require more space but have lower unit quantities.- Offers a cost-effective option for products that occupy significant warehouse space.Example: If you have 10 large furniture items occupying 100 square feet of warehouse space, you would be charged based on the occupied space, regardless of the number of items.📌 Per unit-based rates:- Charges based on the actual number of units stored or processed.- Suitable for sellers with high-volume inventory and smaller-sized products.- Provides flexibility and cost efficiency by paying for the specific quantity of units.Example: Suppose you store 500 small electronic gadgets in the warehouse. With per-unit-based rates, you would be charged based on the actual number of units stored, offering flexibility and cost efficiency.Selecting the most suitable pricing model depends on various factors unique to your business.✅ Consider your product characteristics, such as size and weight.✅ Evaluate your sales volume and storage needs.✅ Opt for occupancy-based rates if you have larger or unique items that require more warehouse space.✅ Choose per unit-based rates if your product range consists of smaller-sized items or experiences fluctuating demand.In conclusion, the best pricing model for e-commerce fulfillment in India depends on your product characteristics, sales volume, and storage needs. Occupancy-based rates are ideal for sellers with bulkier or larger items, while per-unit-based rates are suitable for sellers with high-volume inventory and smaller-sized products. By evaluating your specific needs and requirements, you can ensure that you are getting the best possible value for your money.
May 24, 2023
In recent years, there has been a noticeable shift among eCommerce brands towards charging a fee for returns. While many companies still offer free returns, an increasing number of brands are implementing policies that require customers to pay a fee when returning items. This change has been driven by a variety of factors, including rising costs associated with processing returns, the need to deter fraudulent or excessive returns, and the desire to offset the cost of offering free shipping to customers. This shift has been observed across a range of eCommerce sectors, including fashion, electronics, and home goods, and is likely to continue as brands seek to optimize their profitability and balance the needs of their customers.“In India, about 25%–40% of clothes sold online are returned where a seller pays for forward & reverse logistics with no revenue capture.”-Harsh Vaidya, CEO, WareIQlinkWhy do Brands Want to Charge for Returns?E-commerce brands may charge for returns for a variety of reasons, including:To cover the cost of processing and handling returns: Returns require additional labor and resources to process, such as restocking, repackaging, and shipping the item back to the warehouse. E-commerce brands may charge a fee to cover these costs.To deter excessive returns: Some customers may abuse the returns process by ordering items with no intention of keeping them, and then returning them after use or damage. Charging for returns can deter this behavior by making customers think twice before making a return.To offset the cost of free shipping: Many e-commerce brands offer free shipping to customers, but this can be costly for the company. By charging for returns, the brand can offset some of the cost of providing free shipping.To incentivize customers to keep their purchases: By charging for returns, e-commerce brands can incentivize customers to carefully consider their purchases before buying. This can lead to fewer returns and a more profitable business.Paradigm Shift Ripples From West to EastMany eCommerce fashion and lifestyle brands have varying policies when it comes to returns and fees. Some of these brands may charge for returns, while others offer free returns. Here are some examples of eCommerce brands that may charge for returns.In the United States and Canada, brands such as ASOS, Zara, H&M, Boohoo, TopShop etc. are charging a small fee for returns. The fee varies depending on the location and the type of item being returned.Some Indian eCommerce marketplaces, particularly those that sell high-value items like electronics and appliances, such as Flipkart, Croma etc. have been charging a fee for returns for quite a while now. These fees typically cover the cost of processing and restocking returned items, as well as any associated shipping costs.However, in recent years, many Indian fashion and lifestyle eCommerce brands have moved towards offering free returns as a way to attract and retain customers. This trend has been driven by intense competition in the eCommerce market, as well as rising customer expectations for convenience and flexibility.Recently a news article from The Rest of the World publication revealed how Myntra, the leading fashion and lifestyle marketplace in India, has devised a system to identify and assign scores to customers basis the frequency of their returns. If the score of a customer crosses a specific threshold, a fee will be applied to items they then wish to return.That said, some Indian eCommerce brands may still charge a fee for returns in certain circumstances, such as for items that are heavily discounted or for international orders. Ultimately, the decision to charge for returns will depend on a range of factors, including the company's business model, industry dynamics, and customer preferences. As eCommerce continues to grow and evolve in India, it is likely that the policies around returns and fees will continue to evolve as well.Bracketing: The Main Cause Behind the Rise of Return FeeFor years now, customers have been known to employ the tactic of bracketing their online purchases. Bracketing in online purchase refers to a practice where a customer purchases multiple variations or options of a product with the intention of returning some or all of them. For example, a customer might buy a shirt in three different sizes, with the intention of returning the two that do not fit properly.The practice of bracketing is often used by customers as a way to mitigate the uncertainty associated with online shopping, particularly when it comes to sizing and fit. By ordering multiple options, customers can try on the items in the comfort of their own homes and return those that do not fit or meet their expectations.While bracketing can be a useful strategy for customers, it can also pose challenges for eCommerce brands. When customers order multiple variations of a product with the intention of returning some or all of them, it can create additional costs and complexity for the brand in terms of processing returns and managing inventory. As a result, some eCommerce brands have implemented policies to discourage bracketing, such as charging a fee for returns or limiting the number of items that can be purchased in a single order.“Major international corporations such as Zara, H&M, and Uniqlo have begun to implement fees for returns in specific nations to combat the practice of "bracketing," where customers order multiple variations of size, color, or design without intending to keep all the items.”-Harsh Vaidya, CEO, WareIQlinkIs Charging a Return Fee Fair?The question of whether charging a return fee for online orders is fair is a complex one and depends on various factors, including the reason for the return, the cost of processing the return, and the overall value proposition offered by the eCommerce brand.On one hand, it can be argued that charging a return fee is fair because it allows eCommerce brands to recover some of the costs associated with processing returns, such as shipping, restocking, and quality control. If a customer is returning an item simply because they changed their mind or made an incorrect purchase, it could be argued that it is reasonable for them to cover some of these costs.On the other hand, it can also be argued that charging a return fee can discourage customers from making purchases in the first place or returning items that they are genuinely dissatisfied with. This can ultimately hurt the customer experience and damage the reputation of the eCommerce brand.“Any time you take away something from consumers or make them pay for something that used to be free, you’re gonna get some outcry over it.”Sky Canaves, senior analyst of retail and e-commerce at Insider IntelligencelinkThe Future of Paid ReturnsOn one hand, there are indications that eCommerce brands may continue to move away from charging fees for returns in order to remain competitive and meet customer expectations. As online shopping continues to grow in popularity, customers are becoming more accustomed to the convenience and flexibility of free returns and may be less willing to shop with brands that charge fees.At the same time, there are also factors that could lead eCommerce brands to continue or even increase their use of return fees. For example, rising costs associated with processing returns, particularly for large or heavy items, could make it more difficult for eCommerce brands to offer free returns on all products. In addition, the increasing prevalence of bracketing, where customers order multiple variations of a product with the intention of returning some or all of them, could create additional costs for eCommerce brands and incentivize them to implement fees to discourage the practice.Ultimately, the future of charging fees for returns in eCommerce is likely to be shaped by a complex interplay of factors and will depend on the strategies and priorities of individual brands and retailers.“From my perspective, the flat fee for returns is unjust to those customers who experience actual problems, such as incorrect size, subpar fabric quality, etc. Charging a returns fee to this base could have a negative impact on their eCommerce behavior.”-Harsh Vaidya, CEO, WareIQlink
March 05, 2023
Packaging customization personalization in eCommerce logistics can help delight customers and create a positive brand experience. An example of a popular real Indian D2C apparel eCommerce brand that has used packaging personalization and customization to their advantage is Chumbak. Chumbak is an Indian D2C brand that specializes in creating trendy and colorful apparel and accessories.Chumbak uses packaging personalization and customization to their advantage by:Using visually appealing and high-quality packaging that enhances the unboxing experienceIncorporating their brand's unique and colorful design elements into the packaging, making it instantly recognizable and memorable for customers.Offering a customization service where customers can have their own name or message printed on the packagingIncorporating eco-friendly materials for packaging and ensuring their packaging is sustainable and responsibleThis approach has helped Chumbak to create a unique and memorable customer experience, which has helped to increase customer satisfaction and loyalty.What Kind of Personalization and Customization Options are Available Usually?Here are a few ways to personalize and customize packaging for ecommerce logistics:Custom branding: Add your company's logo or branding elements to the packaging to make it easily recognizable. This can include custom printed boxes, bags or mailing envelopes.Personalized messaging: Include a personalized message or thank you note inside the package to make the customer feel valued. This can be done via a printed card or a handwritten note.Custom packaging inserts: Use custom packaging inserts to create a unique unboxing experience. This can include tissue paper, confetti, or other items that add a touch of elegance to the packaging.Product-specific packaging: Create packaging that is specific to the product being shipped. For example, if the product is a fragile item, use packaging that is specifically designed to protect it during transit.Eco-friendly packaging: Use eco-friendly packaging materials such as biodegradable or recycled materials to appeal to customers who are environmentally conscious.Gift wrapping: Offer gift wrapping as an option for customers who are buying the products as a gift. This can include custom gift wrapping paper or a gift box.By personalizing and customizing packaging, you can create a memorable brand experience for customers and increase the chances of repeat business. It's also important to consider the cost and feasibility of the customization before implementation.Impact of Customization and PackagingPersonalizing and customizing packaging in eCommerce logistics can have several positive impacts on your business, including:Brand awareness: Personalizing and customizing packaging with your company's branding can increase brand awareness and make your company more easily recognizable.Customer loyalty: Personalized messaging and unique packaging can make customers feel valued and appreciated, which can increase customer loyalty and repeat business.Unboxing experience: Customizing packaging can create a unique and memorable unboxing experience for customers, which can increase customer satisfaction and positive word-of-mouth marketing.Increased perceived value: Personalized and custom packaging can make the customer feel like they are receiving a premium product, which can increase the perceived value of the product.Environmental consciousness: Eco-friendly packaging options can appeal to customers who are environmentally conscious, which can have a positive impact on the company's reputation and social responsibility.Gift giving: Personalized and custom packaging can make it easy for customers to send the package as a gift which is a great way to reach new customers and increase sales.Overall, personalizing and customizing packaging in eCommerce logistics can help create a positive brand experience for customers, increase customer satisfaction, and ultimately drive sales and revenue for the business.Customization and personalization also impact key business metrics positively. An example of how delighting customers with custom and personalized packaging can help improve eCommerce business growth is as follows:Increased customer loyalty: By providing personalized and custom packaging, eCommerce companies can create a positive and memorable experience for customers, which can lead to increased customer loyalty and repeat business.Positive word-of-mouth: Customers who have a positive experience with a company's packaging are more likely to share their experience with friends and family, which can lead to increased brand awareness and new customers.Enhanced brand reputation: By providing high-quality and personalized packaging, eCommerce companies can enhance their brand reputation, which can lead to increased customer trust and loyalty.Increased revenue: By creating a positive and memorable customer experience through personalized and custom packaging, eCommerce companies can increase customer satisfaction, which can lead to increased revenue through repeat business and new customers.Cost savings: By reducing packaging costs and providing eco-friendly packaging solutions, eCommerce companies can save money and appeal to environmentally conscious customers.Overall, delighting customers with custom and personalized packaging can help eCommerce businesses to improve customer loyalty, increase brand awareness and reputation, and grow revenue.Importance of Order Personalization and Customization in 2023Order personalization and customization is important in 2023 for eCommerce brands because it helps to create a unique and memorable customer experience. With the rise of eCommerce competition, customers are increasingly looking for more personalized and tailored shopping experiences. By offering personalization and customization options, eCommerce brands can differentiate themselves from their competitors and build stronger relationships with their customers.Additionally, order personalization and customization can help to increase customer satisfaction and loyalty. When customers receive a product that is customized to their preferences, they are more likely to feel satisfied with their purchase and may be more likely to return to the brand in the future.Order personalization and customization can also help to drive sales and revenue growth. By offering personalized and customized products, eCommerce brands can increase the perceived value of their products, which can lead to higher prices and increased sales.How can WareIQ Help?WareIQ's full-stack fulfillment solution has enabled multiple leading brands across categories such as Blissclub, Setu Nutrition etc. create a delightful experience for their customers by utilizing custom packaging material, thank you notes, combo creation etc. This helps brands deliver a premium customer experience and makes the moment of truth - the unboxing experience- unforgettable for clients.In case a brand has a particular requirement for packaging material, we can be flexible about it and help brands fulfill the orders in the way they feel is the best for their customers.With our capable fulfillment operations team, brands can rest assured that their orders are being picked, packed, and shipped in an accurate fashion, without any delays or damages, leading to on-time deliveries which facilitate positive customer sentiment about the brand experience.To know more about our personalization and customization services, visit: WareIQ Order Customization and Personalization
February 25, 2023