Challenges and solutions for setting up an online store

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Challenges & solutions forSetting up a profitable online store

INDIAN E-TAILING CONCLAVE 2010TO HELP INDIAN RETAILERS LEVERAGE THE INTERNET TO INCREASE CONSUMER REACH & SALES

INDEXWhat is possible with an online store?

What are the top challenges in building a profitable online store?Understanding of the Internet as an affordable sales channel

Starting the right way – setting expectations

What needs to be done? And the cost of doing it?

MartJack – Increasing online store revenue at low cost

What can you do with an online store?

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What is possible with an online store?


Physical Store

Physical Store

InternetOnline Store

Online Store

Build your brand - Your reach is not limited by your physical presence when you are online•Your products get available to a large number of consumers who could never reach you otherwise•Consumers can find you when they are looking for products online

Increasing your sales at a low cost•Online advertisements can be easily tracked and are cheaper – compared to say print advertisements•Implementing marketing activities like vouchers, promotions, offers etc. online has lower cost

Taking your business to the next level•If used in the right way the online channel can greatly increase your reach & sales•Western markets have gone through similar trends as India today – Some of the biggest retailers in the world use the Internet as a critical sales channel

•Walmart, BestBuy, Blue Nile and in India – FutureBazaar, Videocon, Gitanjali group etc.

What are the top challenges in building a profitable online store?


InternetInternet Sales ChannelSales Channel

HTML/CSSHTML/CSS Java or .NETJava or .NET Web HostingWeb Hosting Online StoreOnline StoreHow?

I am a retailer not an technology expert

ConsumersConsumers InternetInternet Retail businessRetail business

How much does all of this cost?Commonly web development companies charge a one time fee and an annual fee

For that you get a e-commerce website: e-commerce website – good design but not readily scalable, integrated with other systems or focused on a business user

Reaching consumers, selling to them & accepting payments across the Internet is different

How?

Starting the right way


Incorrect Expectation #1: My online store should be like the Samsung website

•Start small, learn and grow•Amazing websites with multiple functionalities also require a large investment

Incorrect Expectation #2: I want to get 1000 orders in 1 month

•The same rule applies – Organic growth is as important as promotional growth•Requires - online identity, promotions & marketing = cost•Organic growth with added promotional growth keeps your overall costs low

Effort & cost to build popularity – have realistic expectations & then plan to scale up

How can I plan for scaling up from the beginning?MartJack helps you start small and scale your online store as your business grows

What is feature rich today is obsolete tomorrow – Plan to scale & upgrade as you grow

e.g. Text based search on your online store was a great feature 2 years ago

What needs to be done? And the cost of doing it.


Every challenge of online customer acquisition incurs a cost

•Technology cost is only a part of the cost•Need to consider cost of - Operations, advertisement costs, customer support cost etc.

Building an online store

= Cost of Technology

Building an online store

= Cost of Technology

Ongoing sales=

Cost of Operations

Ongoing sales=

Cost of Operations

Getting consumers=

Cost of Advertising

Getting consumers=

Cost of Advertising

Customer satisfaction=

Cost of Support

Customer satisfaction=

Cost of Support

ServersHosting

IT Teams

DesignPublishing

Conversions

Marketing ExecutionLeads & Orders

Fulfillment

Web-Store reliabilityProduct availabilityFulfillment support

There are many costs to manage when you want to make your online store profitable

How can you lower these costs?MartJack helps you lower all of these costs effectively

What is MartJack?


MartJack is a single solution platform to build your online store

Create an online store in

3 days

Create an online store in

3 days

Get consumers to your online

store

Get consumers to your online

store

Influence consumersInfluence

consumers

Accept payments online & offline

Accept payments online & offline

Drive consumers to physical store

Drive consumers to physical store

MartJack is not just a technology solution but an eco-system of solutions

Designed for business people

– not IT staff

Provide local experience

Search enginesGoogle AdwordsAffiliate channels

MarketplacesSocial networks

Rich experienceEasy search

Product discoveryDiscountsVouchers

Festival Offers

Pre-Integrated Payment Gateway

Pay Near MeCash on delivery

Generate leadsBuy in-store

Consumer can get coupon &

redeem in-store

Manage operations centrally – orders, leads, customersCan be integrated with your offline systems – ERP, CRM etc.

Manage operations centrally – orders, leads, customersCan be integrated with your offline systems – ERP, CRM etc.

MartJack helps you keep costs low


Cost of TechnologyCost of Technology Cost of OperationsCost of OperationsCost of AdvertisingCost of Advertising Cost of SupportCost of Support

ServersHosting

IT Teams

DesignPublishing

Conversions

Marketing ExecutionLeads & Orders

Fulfillment

Web-Store reliabilityProduct availabilityFulfillment support

Keeping the Total Cost of Ownership of your online store low

Managed by MartJack

Consumer focused stores = higher conversions

Easy to manage operations with a simple Control Panel

High reliability & scalable solution for your online store

MartJack helps in keeping the cost low for all these requirements

No capital investment. Available on affordable monthly subscription fee.

MartJack helps you build your revenue


MartJack builds online stores focused on influencing consumers & increasing sales

•You can reach your consumers across multiple channels - Internet, mobile & in-store kiosks•Rich set of features enables consumer influencing & flexibility •Understanding the consumers

Acquire new customers

Acquire new customers

Provide flexibility to consumers

Provide flexibility to consumers

Provide a rich experience

Provide a rich experience

Focus on customer service


Search enginesCorporate customersPromotions & Offers

From affiliate channels

Social Networks

Full informationRich content

Product discoveryInteractivity

Online purchaseBuy in-store

Buy later

What does the customer want? –

Integrated with Google Analytics

MartJack enables all of these capabilities

Acquiring new customers


Online store

(website)

Online store

(website)

Searching “buy shirt” on Google

Special store for all

Microsoft employees

Getting 5% OFF on all

online purchases

Ad on Google

search page

Link on my friend’s page – “I like this necklace”

Why and how will I, a consumer, come to your online store?

Providing rich experience


Description about the camera with complete information for the consumer

Features

Resolution: 10 MPKit Lens: 18-55mmExposure correction: -3EV to +3 EVBattery type: Rechargeable NiCdBody Weight: 270 gm

[>] Videos [+] Zoom

User Rating

Buy NowBuy Now

[] Get a call from shop[] Ask for a demo

[] Add to wish list [] Share on Facebook

Flexibility of buying


Description about the camera with complete information for the consumer

Features

Resolution: 10 MPKit Lens: 18-55mmExposure correction: -3EV to +3 EVBattery type: Rechargeable NiCdBody Weight: 270 gm

[>] Videos [+] Zoom

Buy NowBuy Now

[] Get a call from shop[] Ask for a demo

User Rating

[] Add to wish list [] Share on Facebook

Fill a form You get a lead Call consumer Influence him to visit your store



Google Analytics let you understand customer behaviorWhat products are customers watching?What products are customers buying?How much time are they spending on a product?Experiment, track and build effective strategies to increase customer satisfaction & sales

MartJack control panel lets you keep track of orders & leadsGet notifications of leads and orders – respond on timeTrack leads, abandoned carts and orders – respond as required

Nokia 6210 10% up in last week

Increasing your revenue online


Some ideas for building up your online revenue

•Festivals – are a great time to reach customers

•Visiting cards, receipts and carry bags are cheap advertising channels for your online store

•Consumers love offers – understand your costs and then pass on a share of savings to consumers

•Leverage high consumer base online channels – Affiliate networks & online marketplaces

•Advertise effectively - Build long term and short term strategies – use Pay per click

•Be responsive to customer needs – Use analytics to understand customer needs & respond

•Allow your existing customers to buy online – they buy from you with your cost being lower

Diwali Offer

Get chocolates free with every purchase

Diwali Offer

Get chocolates free with every purchase

Get 10% OFF

Get 10% off on purchases more than Rs. 1000/-

Get 10% OFF

Get 10% off on purchases more than Rs. 1000/-

HDFC Bank SmartBuy

List your products and reach 14 million consumers

HDFC Bank SmartBuy

List your products and reach 14 million consumers

Google AnalyticsChange the image & price if 20% people don’t click buy

on a mobile phone page

Google AnalyticsChange the image & price if 20% people don’t click buy

on a mobile phone page

What can you do with an online store?


You can use the Internet as an effective sales channel to increase your sales/revenue

Advertising

Easily build the right strategyPPC, Tracking, Conversions

Advertising

Easily build the right strategyPPC, Tracking, Conversions

Showcase what sells

Ease of showcasePPC, Conversions, Targets

Showcase what sells

Ease of showcasePPC, Conversions, Targets

Increase in-store sales

Consumers influenced onlineIncrease footfalls in-store

Increase in-store sales

Consumers influenced onlineIncrease footfalls in-store

Consumer Loyalty

Track & Follow-upReward regular customers

Consumer Loyalty

Track & Follow-upReward regular customers

Leverage festivals & events

Promote your productsUse offers to sell in festivals

Leverage festivals & events

Promote your productsUse offers to sell in festivals

Build your brand Increase your reach

Search, Marketplaces, Social Networks

Build your brand Increase your reach

Search, Marketplaces, Social Networks

Use MartJack to help you do all of this at a low cost

Questions?


Anubhav KushwahaVP – Business Strategy & Alliances, Reasoning

I am reachable at [email protected]

Before we end once again – set your expectations right

•Online store is a serious business and requires your attention•It is just like managing one more store – just at a lower cost & with lower manpower•MartJack is an enabler solution to let you do whatever is needed to build a profitable store•But it will not happen automatically – you will have to use the tools provided to build a business! •We will help you understand how to use those tools•Online sales is typically cheaper than offline sales – use that to your advantage

Some of the retailers who use MartJack