Many merchants still make simple, yet critical mistakes that hinder the growth of their business when launching internationally. The Most 9 Mistakes are Neglecting Total Landed Costs, Copy & Pasting Content, Not Getting Lost in Translation, Dimensional and Physical Shipping Assumptions, Disregarding Localized Merchandising, Disregarding Promotional Calendars, Ignoring Fraud, Don’t be too greedy and Government and Political Constraints.
Why Sellers are Looking Beyond Indian Online Marketplaces?
Ecommerce in India has certainly traveled a long way since the days of its inception. With a splurge of online marketplaces like Amazon India, Flipkart, Snapdeal, Shopclues etc. in India, the floodgates for Ecommerce industry has been let open like never before. Ecommerce in India, as such, has undergone a stupendous growth in recent years due to factors like increased proportion of middle class with a rise in disposable income, the higher rate of digital penetration, flexible payment measures like COD, better customer services and so on. However, the real-time challenge that is being faced by Indian sellers is sustaining themselves amidst the momentum of high-growth in the Indian online marketplaces. This is the reason why Indian sellers are readily opting to step out of the national market and go global.
Major Pain-Points being faced by Indian Sellers on Indian Ecommerce Platforms1. Low Product Visibility2. Price Sensitivity3. Thin Profit Margins4. Inconsistent Sales Volume5. Payments6. Logistics7. Order cancellations and Order returns8. Reverse Logistics
Dealers, craftsmen, traders, small household manufacturers from India make good products at a really lower cost than high cost markets like Europe and US. In those countries, minimum wage and facilities to workers, basic amenities for workers and standard of living increase the cost of labor. In India, raw material cost and abundant supply in India make the overall cost of the made product cheaper than those countries. Hence, a product made in India is priced at a competitive rate lower than similar products in high cost countries. There is no price war for such products . When the designs and product quality is good it will be sold there.
A large number of Indians have settled or work for a longer period in Europe and US. They always want to buy customized native products.
Human beings always want to go for new trends and fashions. Today US and European people are fascinated by the Indian designs and products. They want to use that fashion style and that’s where the demand increases.
It’s not the country where your product needs to be sold but it’s the demand with price that comes when sold in other markets.
The word Blockchain has come into being after the world heard the term ‘Bitcoin’. Blockchain is the technology behind Bitcoin. Blockchain is a distributed ledger of transactions where nodes (computers on a network) store all transactions and it is practically impossible to falsify transactions that are already distributed across all the nodes. We will not go into the underlying technology of Blockchain but the underlying principle of Blockchain is secure pseudo-anonymous transactions without an intermediary.
The ecommerce marketplace is where individuals can register and buy products directly from the product sellers. The buyer, seller and marketplace are on Blockchain network. The Ecommerce marketplace vendor gets paid for the ‘Proof of Work’ it does in generating a block.
Below is an illustration of a scenario where a buyer buys product from seller and makes payment.
Since the Blockchain by definition is not owned by anybody the seller does not have to pay any fees to the Ecommerce marketplace vendor. The Ecommerce marketplace vendor need not charge any periodic subscription fees from the seller but can charge fees from seller for generating a block. Of course it is entirely possible that another node on the Blockchain can also generate a block and get compensated for its ‘Proof of Work’. So the Ecommerce marketplace vendor has to ensure a powerful node that can mine currency.
Block N will have transactions- Buyer placed order with seller for product and Seller received order from buyer for product. So the seller cannot dispute at a later date that the buyer ordered another product and similarly the buyer cannot dispute later regarding his choice of product.
Block N+Tx will have transactions — Buyer transferred amount to seller for product and Seller received amount for product from buyer. So the seller cannot dispute at a later date that amount was not paid.
Block N+Tx+Ty will have transactions — Seller has shipped product to buyer and buyer has received product from Seller. The buyer cannot dispute that product was not received and seller cannot dispute that product has been shipped without actually shipping it as a prior block N+Tx has transaction of payment received.
The Blockchain above is tracking 3 transactions in a chronological sequence. However the transactions can be captured at a more granular level such as buyer logging into Ecommerce marketplace, buyer choosing products, buyer checking out; etc. Since only the transactions are stored in a Blockchain creating blocks using transactions at such a granular level ensures that security of transaction is preserved. For instance a bad node on the network will not be able to change the address of a buyer as the bad node will not have the private key of the buyer and will not have sufficient computing power to change the order of transactions within blocks in a Blockchain.
How does the above model of operation of an Ecommerce marketplace enhance the experience of the 3 entities?
The Buyer is ensured a genuine product received for the amount paid. The monetary leg of the transaction is secure. The buyer pays the seller in cryptocurrency. The buyer can be issued discount vouchers that solely belong to it and no other node in the network can lay claim to the voucher. The buyer can directly exchange vouchers with another buyer. Buyers can transfer loyalty points to other buyers. All this can be done instantly without the need for the Ecommerce vendor to verify. This enhances the experience of the buyer as the transaction on the Ecommerce marketplace are fast, safe and convenient.
The Seller is ensured about receipt of money for the product delivered. It does not have to pay the marketplace vendor a fixed commission for every sale of product. Based on the node that generates a block the cryptocurrency/loyalty points can be paid by the seller to the node. This way the seller can ensure more clientele by paying in loyalty points to the nodes.
The Ecommerce marketplace charges the seller for product listing on the website and mines cryptocurrency by creating a block and ‘Proof of Work’. The Ecommerce vendor does not have to build a secure IT infrastructure to safeguard buyer and seller data. Nor does the Ecommerce marketplace have to tie up with a payment services provider and share commission for every transaction. The Ecommerce marketplace vendor can give genuine discounts by sharing the reduction in cost of operations with the buyer.