Online shopping has that started off as new trend a decade back has become more of a habit for most internet savvy shoppers around the world. Online shopping is changing the way retailers see their business and plan out their global expansion strategies. The developing markets have the most potential for online growth. Retailers constantly are seeing new paths and avenues for growth and with more matured markets in developed countries there is no further scope for growth whereas in developing economies there is a lot of room for expansion as markets seek a lot of momentum due to a high demand for innovative methods and value based services by the audience in such countries.
As we see a lot of online sales booming high in developing markets an online presence is relatively low risk affair to test new markets and complement existing store footprints. If we really want to see such strategies work in our favour then it becomes extremely important to understand a country’s true ecommerce potential and online market challenges.
A.T Kearney’s 2012 E-commerce index proves to be a store house of vital information for retailers to develop successful ecommerce strategies and identify investment opportunities in emerging markets. About 18 infrastructure, regulatory and retail specific variables have been used to evaluate the E commerce potential for ranking the top ten countries.
The following parameters were chosen to provide a conclusive evidence of the same.
- online market attractiveness
- digital laws and regulations
- retail development
According to World Trade Organization (WTO) 2013 report titled ‘ E commerce in developing Countries’ revealed that commercial deployment of next generation technologies will increase the usage of mobile services which shall in turn open up many new ecommerce business opportunities in developing countries. But as we see the potential we need to also analyze the challenges that are posed for ecommerce from making break through developments in trends in the cycle of markets and business. These challenges often get translated into complications for doing business in developing countries for many ecommerce companies. Some of the disturbing issues are transport, storage and distribution networks in the upcoming markets. And it becomes a Herculean task to go about with the fulfillment challenges as it revolves around logistical infrastructure to cultural norms to regulatory constraints. The infrastructural requirements to bolster ecommerce activity are on the developing stage in the emerging markets. For adequate next generation technology to be applied in the ecommerce sphere in the developing nations it is important to overcome the challenges and adopt clear consumer online practices, greater and faster internet accessibility, logistical infrastructure and improved financial systems. It is necessary to develop on these capabilities for the countries to be crucial ecommerce targets for global retailers and ecommerce corporations.
With the advent of globalization and improved FDI intervention in retail international logistics, government policies are all creating a favourable climate conducive for ecommerce growth. For example in China the government and private players are taking efforts to build logistics network by including the construction of a nationwide warehousing network to meet the huge demand. Further China has introduced at least 20 different online payment platforms today in order to offer more convenience for to make online payments securely. Russia is also in the spree of improvising its legal framework to pave way for easier ecommerce transaction. With the adoption of federal law on electronic payments and major amendments to existing laws on personal data the country is showing the welcoming sign to foster an ecommerce trend in its growth sheet. E commerce growth depends a lot on offering the right infrastructure, regulations and logistical support for a profitable sustenance. E commerce corporations also need to partner with the right sources that have considerable expertise in navigating emerging markets and integrate various channels to come up with comprehensive solutions.
Identifying issues that bother online selling activities
However these issues depend on types of products that are sold online, the online selling pattern, online customer base, resources etc. one factor that has been consistent and common in most cases is that some players experience higher overall sales than others. While most pan partners experience erratic sales pattern, the level of sales being high one month and dropping off the next month has been a concern to most of the online sellers.
As compared to their private counterparts who invests heavily in marketing in order to gain an competitive edge over other in the market place, the development organizations see E commerce has a secondary activity and continue their operations alongside their core larger projects and hence are not able to completely focus on ecommerce alone which makes them restrict adequate funding on time to ecommerce growth.
Also one needs to employ strategic marketing techniques to capture markets in the online space to make potential customers realize the existence of the products. The monthly rise and fall in sales figures can be attributed to-
- consumers adhoc online purchasing pattern
- Advertisement release listing the online sales option, announcing discounts, deals and auctions.
To ensure that ecommerce rises to its full potential in developing economies that shall in turn have a favourable impact on the GDP the challenges need to be tackled effectively. The factors to improve sales and traffic to the ecommerce websites are the following-
- Improve product types
- Understand purchasing behaviour of consumers online
- Enhance end user experience by offering user friendly navigation and browsing through products
- Integrate active and as many social media buttons in your website
- Attractive pricing and intuitive product suggestions
- Excellent Customer relationship management
All these factors are going to contribute in increased sales conversion in your site.
It is always better to retain existing customers to procure new ones in the long term. So we vouch to come up with more interesting stuff.