Technological Strategies to drive new revenue streams in eCommerce

by Admin

Importance of Technology and Strategy in eCommerce business

The major reason, why eCommerce businesses fail is due to the lack of adaptation to change and switching over to new technologies. Technologies and technologically enabled strategies play a vital role in eCommerce business scalability. When eCommerce businesses don't scale as per the industry trends, then it means they are moving out of business. This is where use of proper tech stack and strategies give eCommerce businesses a door to scale and compatibility to accommodate new consumer demands, integrate new revenue streams, optimise costs and achieve profitability. Let us now discuss how it can happen.

Technological strategies to drive new revenue streams with optimised costs

e commerce merchandising

e commerce merchandising involves innovative ways to display products, images, product placement making website that looks neat, with ease of access and to capture customers attention. It can influence customers buying habits with CTA(call to action) strategies placed like "order again" buttons, reminders for abandoned shopping carts, ability to display variety of products, increase  in web traffic with SEO triggered listings, promotion of certain products and special offers.Repeat orders feature enables high repurchase rate and are what the most successful stores are built on. Research by Metrics revealed that the best ecommerce companies generate more than half of their total revenue from repeated customers.

AI-enabled Product Recommendations

Many successful e-commerce sites include AI-enabled product recommendations that renders a segment of profit to overall revenue. Incorporating deep learning capabilities and integrating artificial intelligence (AI) models into a single activation can further enhance results.

User-friendly navigations

As we browse through different devices like desktop, mobile, tablet, so it is important to any e commerce store should adapt to user's browser. Otherwise, usability will be poor if customer finds difficult to navigate through site if it is designed solely for desktops.

Personalized Customer experience

Personalised customer experience is another e commerce merchandising strategy evolved into personalised experience platforms where they gather data on each user's behaviour; which products and categories they view, what content they consume, what they search for, what they buy and many other aspects of the user’s behaviour and further predictive analysis ensures that customers are only seeing content and products and deals that is highly relevant to them so customers would not leave the site frustrated with irrelevant content and products thus helps to retain potential customers. This allows customer's experience personal on the site with better service leads to improved buying experience. for instance, customer may want to save items in the cart to buy later, leave the items in the cart as "abandoned cart" and will be available in the cart ready to purchase whenever he returns to site and it can also suggest products to customers by analysing what they have already been browsing.

Data monetisation and digital advertising

Data monetisation helps identify the buying patterns of customers with data syndicator tools, boosts customer engagement providing high quality data and accurate product information. Your customers will abandon your website if the essential product information, such as price, delivery & inventory is out of date. So, relevant and accurate product information is essential to turn customer visits into value. These data analytics help cost effective investments in advertising, considering customer preferences and forecast sales.

Digital advertising conveying intended information in the form of text, graphics or video format has become one of the classical revenue streams for the organisations as companies pay them for promoting their advertisements through pay-per-click (PPC), pay per view or other upon agreed schemes. For example, in 2019, Amazon netted $14 billion of advertising revenue representing 11% of additional income.

Partnerships with other Retailers

Partnerships with other retailers or brands also allow expanded product selection to a larger network of consumers and the creation of alternative revenue streams. Shopify helped Walmart connect select Shopify sellers to the Walmart Marketplace. This partnership gives Walmart customers greater product selection, as well as new commission opportunities and income alternatives for the business from an expanded network of third-party sellers.

Dynamic pricing

Retailers should integrate efficient dynamic price matching algorithms that can not only scrape data and analyse the best price from competitors, but also identify the right source for comparison and need not necessary to always offer discount incentives despite of low profit margin. Determining the optimal price and product catalogue, not simply based on the existing numbers used in stores but also on the operating costs of different digital channels aids efficient dynamic pricing.

Optimising and reducing operation cost

e commerce stores should implement efficient and cost-effective fulfilment process as many retailers find rising fulfilment costs that lessen profit margin. Shipping costs and delivery lead times are important differentiators for shoppers. 60% of consumers are more likely to purchase from a brand that offers fast shipping and nearly 75% of consumers also expect shipping to be free.Further,unexpected shipping costs often lead to cart abandonment, with consumers looking for better offers’ commerce stores can find profits by accelerating optimising techniques such as digital interventions and optimiser in supply chain and return process making cost effective.

Conclusion

E-comerce profitability is strongly linked to technology and with good reason. The strategies discussed above relies on technology, in one form or another, to identify opportunities and activate solution and organizational transformation around a detailed service design that captures all aspects of the consumer journey and how the company needs to react and engage.