Tag: ecommerce services

What is ONDC? How will ONDC Impact the Ecommerce Industry of India?
Open Network for Digital Commerce (ONDC) was formed on 31^st December 2021. However, the initial pilot phase of this program was launched on 29th April 2022. The target behind the introduction of this platform in India is to bring scalability and accessibility to the field of e-commerce.

The initial idea of ONDC came from the Piyush Goyal-led Department for Promotion of Industry and Internal Trade (DPIIT).

The project is moving forward under the leadership of T Koshy (CEO), who was a former partner at the consulting firm EY, along with a 9-member advisory council that consists of names like Nandan Nilekani, the co-founder of software powerhouse Infosys Ltd, National Health Authority’s RS Sharma and more.

It is aimed to provide equal opportunity to the small retailers and merchants in the e-commerce market alongside big players like Amazon and Flipkart.

Nilekani has also earlier helped the Indian government in developing Aadhar biometric ID system. As per him, ONDC is meant to democratize digital commerce in India.

As per a survey, India in 2021 had around 289.1 million digital buyers. This number is expected to increase and reach around 377.6 million in 2025.

Number of Digital Buyers in India

To date, the maximum share of eCommerce in India is in the hands of a few big companies. However, the growing number of buyers invokes the need of including small sellers from remote places to become a part of this huge market.

To help resolve this issue with the aim of bringing more retailers and sellers online government brought forward the concept of Open Network for Digital Commerce (ONDC).

What is ONDC?
UPI and ONDC | What’s the Difference?
Why is ONDC needed?
How will ONDC impact the e-commerce industry in India?
ONDC Funding
Tracing the Growth of ONDC
ONDC Challenges

Impact of ONDC on the E-commerce Industry of India

What is ONDC?

ONDC Logo

Before understanding how the government will implement this and what are its benefits, let us first understand clearly what ONDC is.

Until now, digital commerce across India is abiding by the platform-centric model. This means there are different platforms available online through which a seller can sell his product and a buyer can purchase them by registering on the same platform.

This means that the buyer and seller have to be on the same platform for an online deal to occur.

The idea behind ONDC is to bring e-commerce to the open network model instead of the platform-centric model. This will make e-commerce approachable for all types of buyers and sellers.

The idea is to bring the buyers and sellers from different platforms into each other’s approach without any of them having to register on the platform on which the other exists.

It will allow the buyers and sellers from different platforms to connect with each other, provided that both the platforms are linked to ONDC. This is similar to the role UPI plays in terms of transactions. UPI is a fitting example of the concept that ONDC is working on. This is because where UPI united the banking partners and the merchants/users, via a single unified platform connected through the mobile number, ONDC is pivoting on a similar concept that will unite the buyers, sellers, logistics providers aggregators, payment gateways, and more on a single platform, which will make buying and selling easier for everyone in the ecosystem.

Therefore, the ONDC network allows the buyer to connect with the seller and make transactions to settle the deal irrespective of which applications they are using for buying or selling the products.

UPI and ONDC | What’s the Difference?

Often during the ideation and the development of the ONDC product, we have heard people, businesses, and media placing ONDC and UPI systems side by side. While both the systems are based on a similar idea, which is to link people and make things in the Indian market easier, they are poles apart really in terms of the functionality, complexity, magnitude, people, segments and markets involved, and more.

For example, the UPI system was involved in the secure transfer of finances, the main objective of which was to facilitate the transfer of funds, and keep the same secure between banks, merchants and customers. However, when it comes to ONDC, the concept of ONDC does not involve a direct transfer of goods and services but is related to the same.

Besides, ONDC also has a list of subjective variables, which the UPI doesn’t have. For instance, ONDC has to look after the quality of the products being sold, onboarding sellers and shops, making the communication between them easier, overlook the reliability of both the sellers and the buyers, looking after the speed of delivery and more.

Also, when it comes to the UPI system, nothing was dependent on physical interaction, which stands in sharp contrast to the ONDC system, where the latter is significantly dependent on the offline steps after the matchmaking is done online.

Why is ONDC needed?

Presently, if a retailer or merchant wishes to take his business online, there are only two options available for them.

The first option is to create its own website. This might require some technical support. Further, this is a cost-intensive process as it involves a lot of extra charges such as website creation and management costs, logistic charges, etc.

Also, even after the website is built and functional, the seller will have to invest a lot of money in advertising for his website in order to attract buyers.

The second option is to sell the products on aggregator platforms or so-called online marketplaces. Although this system appears quite convenient in comparison to building a website, it has its own issues.

The two top players in this field i.e. Amazon and Flipkart are both US-based companies. They keep a large share of profit in return for displaying and selling your products on their platform. In addition, sometimes, there have been complaints of brand preferences where these platforms are said to exhibit favoritism towards a few brands.

Moreover, sometimes these marketplaces collect data from the sellers and depending on the market inclination, introduce their own products, to stay ahead of the curve.

Another main concern associated with e-commerce is the lagging of small retailers, merchants, MSMEs, etc. Owing to the limited reach of e-commerce in small towns and villages, these small businessmen are deprived of the benefits associated with e-commerce.

Most of them have not been able to begin their online journey on these digital selling platforms due to restricted technical knowledge and the small number of options available.

To counter these problems and take digital commerce to a whole new level, ONDC has been formed. The aim is to make e-commerce reachable even for small retailers and merchants.

The ONDC platform is an idea that is focused on increasing 3 major things that most buyers and sellers dream of:
- Discoverability – The ONDC platform will help both the buyers and the sellers maximise their discoverability.
- Transparency – ONDC will offer clear visibility and the benefits of comparing everyone and everything that is listed on it. This will make things transparent enough for everyone and everything related to eCommerce.
- Interoperability – The ONDC network will have the buyers, sellers, aggregators, delivery partners, logistics providers, and more, and all of them will be operating freely with each other, forming a stable and trustworthy network for maximum benefits.
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How will ONDC impact the e-commerce industry in India?

The introduction of ONDC will encourage small retailers to step foot into e-commerce. ONDC will result in bringing separate buyer-centric and seller-centric apps that will be beneficial for anyone who is invested in e-commerce.

The new apps that may appear in the market can help resolve other issues for buyers as well as sellers. For example, it may help the sellers with logistics solutions while the buyers may be benefitted by shopping from the nearest available or cheapest store in town.

The main benefits expected out of ONDC are as follows:
- Formalization and democratization of e-commerce.
- Large scope for discovering prices and comparing them.
- Growth of local retail businesses especially MSMEs.
- Increased number of choices for buyers.
- Auxiliary support and services for both buyers and sellers.
- Enhanced business opportunities owing to the open platform.
- Option to outsource for both buyers and sellers.
- Reducing the monopoly of big shots in e-commerce.
- Rational process of business.
Some of the areas/industries that ONDC is expected to disrupt are:
- Cab services – Two major players driving the cab services in India are Ola and Uber. However, whether it is their drivers or the Indian customers, all are dissatisfied with the policies and the management of the companies. Here, the ONDC platform can come as a respite for the users, who can get the services they ask for at lower costs, while on the other hand, the cab drivers can freely sign in with ONDC to get a bigger and better reach.
- Food delivery – The food delivery ecosystem of India has been largely controlled by Zomato and Swiggy, where both the customers and the restaurant providers are at the mercy of these two foodtech giants. Many restaurant partners have earlier thought of delivering directly, but they failed. The ONDC can now empower them better to bring in the change!
- Quick commerce – Quick commerce, which is looked up to as the next big thing in India, was earlier in the hands of the Kirana stores, who were the original quick commerce players. However, they seemed to have lost the battle against the able quick commerce players like Zepto, Dunzo, Instamart, Blinkit, and more. This new initiative of ONDC can, therefore, gear up the Kirana stores and their owners to serve their customers faster and better.
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ONDC Funding

For the first couple of years, ONDC has set a budget of Rs 150-200 crore, mentioned by T Koshy, in a report dated July 2, 2022. CEO Koshy said that it has already raised 85% of its funding for the first phase of the operation. The platform had earlier chosen 20 institutions and asked them to put Rs 10 crore each from their funds. It has been earlier reported that the ONDC platform has raised over Rs 155 crore with the help of some of the largest banks of India – SBI, Axis, PNB, HDFC, Bank of Baroda, and Kotak Mahindra Bank, and some of the financial institutions like NSE, NPCI, NABARD, and SIDBI. T Koshy has further specified that ONDC has got 17 such investors to fund them with Rs 10 crore each by March 31, 2022, while the remaining organisations will extend their funds to ONDC by August 2022.

Speaking about the ownership of ONDC, T Koshy mentioned that no investor would be allowed to hold more than 50% of the ONDC stakes.

Tracing the Growth of ONDC

The ONDC platform is on the brink of completion and pilot have already started in a selected list of Indian cities. A trial run of ONDC has been conducted in 6 cities in India including Bengaluru, Shillong, Lucknow, and Coimbatore.

ONDC Onboarding Grows!

With players like Walmart-owned Flipkart, Reliance Retail-backed Dunzo, Alibaba-backed Paytm, and more already joining the revolutionary platform, and Amazon willing to join it ahead, ONDC is already creating waves. Many other seller platforms, buyer platforms, logistics providers, and payment gateways are also signing up with the ONDC concept. As per the latest news, nearly 24 startups, like Meesho, and numerous other subsidiaries of Flipkart have joined ONDC. The ONDC platform is looking to onboard around 200 companies ahead, as per reports dated July 19, 2022. Snapdeal has already signed the agreement with ONDC earlier in July 2022, and will likely be integrating with the platform by the end of August 2022.

After Dunzo, another Reliance Retail-owned startup Grab joined the ONDC platform, as per reports dated August 1, 2022. 80% of Grab shares are currently owned by Reliance Retail. Grab is a 9+ years old startup that offers a wide range of services including on-demand, reverse deliveries services, and first and last-mile logistics to clients including FedEx, Blinkit, Paytm, BigBasket, Myntra, Amazon, and Swiggy.

Dunzo’s B2B logistics arm, Dunzo for Business (D4B) has collaborated with ONDC with an aim to provide last-mile delivery services to local enterprises on the ONDC network, as per reports dated August 5, 2022.

Microsoft has become the first international company to join the ONDC platform. The American software giant will reportedly bring a social commerce platform or one that will allow a group buying feature for its Indian users. This association would enable Microsoft to connect with Indian users without depending on any e-commerce platforms. This partnership with Microsoft reveals the credibility attached to the ONDC platform of India, mentioned T Koshy.

ONDC Inked MoU with the Small Industries Development Bank of India (SIDBI)

ONDC inked a Memorandum of Understanding with SIDBI to onboard small and medium-sized businesses on the ONDC platform, which would help ONDC improve ecommerce participation. Signed between the CMD of SIDBI Sivasubramanian Ramann, and the Managing Director and CEO of ONDC, T Koshy, this agreement would lead both the entities to encourage the MSMEs access the open network ecommerce platform.

The ONDC platform is not here to challenge the big players like Flipkart and Amazon. The ONDC CBO Shireesh Joshi confirmed that the platform will stay essentially as “eCommerce enablers helping the small retailers leverage the digitisation of commerce through our network.”

The penetration of the eCommerce industry has only been 4-5% so far, as per July 2022 reports. To boost the same by increasing the number of retailers is one of the main objectives of the ONDC network. Joshi further revealed that the bigger players like Flipkart and Amazon will reap major benefits if this objective is fulfilled.

The ONDC platform will be launched in 75-100 more cities in India by August-September and will be open to the public during the same time in 2022, mentioned T Koshy, the CEO of ONDC, as per the reports dated July 2, 2022.

Koshy has added that the ONDC will be opened to be public whenever it will find that there are enough sellers in a pin code area. Launching the service in these cities ahead will help the initiative lay a foundation on which the network can grow in the times upcoming, organically. The ONDC platform is expected to see a “hockey stick-like growth”. The CEO of the platform also pointed out that if it gains the support of the CSC SPVs (common service centre – special purpose vehicles), which are designed to spread the government’s e-services to rural areas and remote places, then that can help ONDC reach at least half of the Indian villages.

Marquee investors like Sequoia India and SoftBank have advised their portfolio companies to join the Open Network for Digital Commerce (ONDC), as per reports dated July 20, 2022.

ONDC Challenges

ONDC has come up as a revolutionary product that will transform the Indian market in the times upcoming. However, due to the complex design of the product, it has already started to face numerous implementation challenges. In comparison to the UPI system, ONDC is way tougher to both design and implement.

Conclusion

With the schemes like digital India, no doubt e-commerce is the future of the Indian market. This is also clear from the fact that the Indian e-commerce industry is expected to rise from $46.20 billion in 2020 to $200 billion in 2026. Here, the ONDC can easily be identified as a new-age idea that has a huge market ahead.

At this stage, the e-commerce platforms, being totally captured by a few large companies can certainly impact the small businessmen from the remote areas of the country, who still are unable to utilize this amazing platform.

This is sure to have an adverse effect on the economy with these small retailers losing their business to a few big players.

The introduction of the Open Network for Digital Commerce (ONDC) at this point is certainly a great initiative by the government to help these small businessmen to maintain their position in the race.

This will also give them the opportunity to escalate their businesses to a larger scale by making their products reach a larger audience.

FAQs

What is ONDC?

Open Network for Digital Commerce (ONDC) is a non-profit organisation in collaboration with the Government of India that brings e-commerce to the open network model instead of the platform-centric model. This will make e-commerce approachable for all types of buyers and sellers.

Who owns ONDC?

ONDC is owned by the Department for Promotion of Industry and Internal Trade.

Who is developing ONDC Project?

T Koshy of EY is leading the Open Network for Digital Commerce (ONDC) project, supported by a 9-member advisory council consisting of names like Nandan Nilekani, the co-founder of Infosys Ltd., and others.
August 10, 2022
How Can Ecommerce Personalization Help You Increase Conversion?

The COVID-19 pandemic has had impactful destruction worldwide. However, it has helped e-commerce market sales soar to great heights. As per recent reports, the Global E-commerce market is expected to cross the $5.5 trillion mark by the end of 2022. The growth rate of the market is expected to rise to 24.5 per cent by 2024.

Standing in the e-commerce industry isn’t everybody’s cup of tea. Big companies, such as Amazon, Flipkart, and Sephora have captured 60-70 per cent of the market. When it comes to customer acquisition, this sector has cut-throat competition. Hence, it’s essential for every e-commerce website/app to have a personalized marketing strategy – for a better user experience. In this post, we have talked about eCommerce personalisation and how to employ it to increase conversion rates.

What Is Ecommerce Personalization?
How Ecommerce Personalization Can Help You Increase Conversion?
Ecommerce Personalization Ideas
Examples of Ecommerce Personalization

What Is Ecommerce Personalization?

Ecommerce Personalisation is a technique that furnishes brands/businesses with a unique personalized marketing ideology. The marketing strategies are entirely based on how users interact with the brand – to allow an ultimate shopping experience.

eCommerce personalisation is in real demand at the moment. And that’s because of the perfect utilisation of data sources. Depending on the order history, user search, customer location, browsing data and user-generated data, the brand uses unique personalisation to build a top-notch customer experience.

The primary motive behind these personalisations is to show customers what they want to see and when they want it. So, customers get the relevant recommendation based on their preferences. All these undertakings are monitored using AI-based personalised software.

How Ecommerce Personalization Can Help You Increase Conversion?

Unlike a physical store, increasing the conversion rate in an online store is a difficult task unless you know what customers need. In a physical store, you have a chance to influence the mind of your customer by communicating. However, in online mode, it’s not happening. Thus, eCommerce Personalisation offers the audience every possible thing they would wish for.

With the user-generated tool, the brand understands the interest of the audience and estimates their responses. After all, every shopping brand seeks more information to provide a better shopping experience the next time.

Customers like to visit places where they get a user-friendly environment and where they are taken care of. So, the only way to make all of these things possible is personalisation.

A survey report provides the data, facts and stats that confirm – personalisation helps increase conversion rate. Almost 73% of the people prefer a personalized shopping experience. And, almost 90% of them accept that personalisation influences their right purchasing judgment.

Ecommerce Personalization Ideas

Here are some of the ideas on which Personalisation works:

Recommend the latest viewed products

It happens quite frequently that users might be interested in a specific product, but they forget to add it to the cart. Thus, this recommendation strategy will help customers start their shopping at the place where it ended.

Example of recently viewed products

Personalized product recommendation

Along with the previously searched product, you may recommend related products to the consumers. Personalizing product recommendation is one of the widely used eCommerce personalized ideologies. As per the report by Barilliance, personalized product recommendation generates up to 31% of the total revenue of an e-commerce site.

Example of related products

Create a personalized best-selling product list

You may create some sort of best-selling products list based on the user’s interest. It will act as a quick recall of the product they wished to buy earlier. This increases the chance of a conversion.

Allow UGC to work accordingly to help visitors

UGC works on the FOMO (fear of missing out) principle. It displays unique products that are used in daily life. Hence, creating a fear of missing out on the environment. It influences the customer’s mind that they might buy this product so that they don’t miss something.

Personalize the home page with recent searches

As mentioned earlier, Amazon uses this homepage personalisation technique to boost customer acquisition. It bestows an easy-to-use interface where consumers can find products of their kind on the home page.

Carry out an automated personalized email campaigns

Email campaigns are one of the primary steps to building a powerful user channel. It keeps you ahead of your competitors. Automated personalized email campaigns keep on reminding the customer about your assistance. Thus, increasing the chance of a conversion.

Example of cart abandonment email

Offer category-specific promo codes

Promo codes have always been a customer favourite part. It attracts them to certain product categories. Once you issue these category-specific promo codes, you may either send in an email or a pop-up message to keep your user up-to-date.

Example of promo code

Seek a customer’s feedback request

One of the most effective ways to know your customer requirements is to request customer feedback. It helps the brand improve personalisation techniques for that particular user.

Example of customer feedback

Show pop-ups considering the previously viewed products

Pop-up ads should always be the first preference while personalising a website. For instance, if the user is a first-time visitor, the pop-up will encourage them to subscribe and avail discount on the first purchase.

Example of Ecommerce Personalization

Still, confused with the principles and working of E-commerce Personalisation? Below listed are a few examples to assist you further for a better understanding.

Amazon

Amazon is the father of all eCommerce personalisation companies. Once you click on the app or website of Amazon, you’ll be redirected to the home page. There, you’ll find numerous personalized product recommendations.

Amazon automates all the data of your phone and recommends the products you recently enquired about. It uses search data, recent purchases, locations, and other data to provide particular recommendations.

Amazon recommendations

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Conclusion

If you wish to conquer the eCommerce sector, you should consider Personalization. Ecommerce personalization keeps your user engaged, provides a user-friendly experience, and increases conversion.

Personalization in eCommerce is vital as it ensures customer acquisition. Besides, it not only helps you stand out from your competition but helps build grounded/human-like connections with the buyers. It also furnishes customers full control, improving the user experience. This, in turn, boosts conversion rates!

FAQs

What is eCommerce personalization?

Ecommerce personalization is when a company displays the product to the consumers based on demographics, intent, preferences, browsing history, previous purchases, and device usage.

What is an example of personalized marketing in eCommerce?

When an eCommerce store recommends your products based on your interest, location, and browsing data.

July 10, 2022

How Much Does It Cost to Build an E-commerce Marketplace Website?

Online shopping is moving towards a new direction in the world, undergoing constant modifications and growing rapidly. The marketing trends are changing in the blink of an eye.

The e-commerce marketplace is evolving so quickly that it is hard to imagine how the industry will look in the next decade.

A study says 80% of shopping is done online globally. In 2021, eBay alone had a market cap of 47.8 billion dollars. Online sale is increasing every year and now it’s the right time to build your e-commerce marketplace.

Starting an online marketplace is not easy, it requires an investment and a clear-cut scheme.

Now the question is, how much does an eCommerce marketplace development cost?

Well, in this article, we will cover the investment needed for developing an e-commerce marketplace website.

What is an eCommerce Marketplace?
Types of Marketplaces
How Much Does an eCommerce Marketplace Development Cost?

What is an eCommerce Marketplace?

An eCommerce marketplace is an online platform where buyers can find different brands’ products from different sellers showcased on the same platform. It allows all the vendors to sell their goods on the same eCommerce marketplace, which entirely runs on one software infrastructure.

These eCommerce marketplace companies take a small percentage of product sales from vendors selling across the platforms. For example Amazon, eBay, Flipkart, etc.

Types of Marketplaces

Are you sure about the category of the marketplace? Let’s understand the classification of the marketplaces. Depending upon the type of marketplace, the cost of development is affected. The marketplace is divided into two parts that affect the eCommerce marketplace development cost.

Based on Participants

The target audience and the intention of the buyer-seller relationship decide your marketplace, which can be one of the following:

B2C Marketplaces: It offers an opportunity to vendors to sell products directly to the consumers. B2C marketplaces are generally monetized by listing fees, commissions, subscription fees, etc. For instance, booking.com.

B2B Marketplaces: It provides an opportunity for manufacturers to sell products or services. A third party usually operates them. Their motive is to promote transparency in deals and buying/selling processes. These are monetized through listing fees, commission, subscription fees, etc. For instance, eWorldTrade, and Alibaba.

C2C or P2P Marketplaces: These marketplaces connect people to share their products and services in exchange for money, such as a car. The motive behind C2C marketplaces is for maximum utilisation of resources, which are monetized through paid ads and promotions. For instance, Etsy, OLX.

Ecommerce Marketplace: It allows individuals and multiple businesses to sell their products and services online to consumers. These marketplaces are the most popular imaging eCommerce marketplace development cost. Example: Amazon, eBay.

mCommerce or Mobile Marketplaces: These are designed to facilitate mobile shopping. These are digital stores monetized through subscription fees, commission fees, freemium plans, lead fees, and listing fees. Example: Upwork, Fiverr, Sephora.

Crowdfunding Marketplaces: It allows its members to raise funds from the groups for a specific project. Monetization strategies include transaction fees and commission fees. Example: Kickstarter, Indiegogo.

Auction Platforms: They encourage vendors to fulfil the services by bidding. It exclusively helps to gain the most competitive rates for a specific item or service. Auction platforms monetize through transaction fees. Example: Artsy.

Based on Business Model

The structure of your marketplace depends upon the business model. The business model defines the strategies to attract buyers and sellers and generate revenue. It helps determine the essential functionality and even affects the marketplace development cost. Business models are classified into three groups:

Horizontal marketplaces: They deal in different categories to different consumers. consumers can find all the necessary products. Here the competition is fierce, and a wider audience is covered. Example: OLX, Etsy

Vertical Marketplace: Instead of selling every product to everyone, these are mainly focused on niche services or products. Here you experience less competition. Additionally, you can focus on delivering better personalization. Example: StockX

Global Marketplace: It allows the exchange of goods and services worldwide. It has the widest audience and hence more power to generate revenue. You will face some language barriers and legal constraints in the global marketplace. Example: amazon.com, ebay.com

How Much Does an eCommerce Marketplace Development Cost?

The eCommerce marketplace development cost depends upon what features you want to add account. However, here’s an estimated cost if you’re building an e-commerce marketplace such as Amazon.

The eCommerce marketplace is built on two platforms: Website and App.

Marketplace Website Development Cost

The table contains the eCommerce marketplace development cost of a website like Amazon. Amazon is a B2C marketplace where one can find any product. Here is the average possible development cost.

Stage: Development	Estimated cost
Business Analysis	$10,000 – $22,000
Design	$5000 – $14,000
Front-end	$25,000 – $75,000
Back-end	$39,000 – $116,000
Quality Assurance	$14,000 – $62,000

Basic Features

Feature	Estimated Cost
Authorization	$5,000 – $21,000
Profiles (Host, Admin, Guest)	$18,000 – $25,000
Search with Filters	$15,000 – $20,000
Product Pages	$10,000 – $14,000
Shopping Cart	$12,000 – $17,000
Payment System	$15,000 – $20,000
Customer Review	$12,000 – $18,000
Notifications	$10,000 – $20,000

Advanced features

Feature	Estimated Cost
Product Comparison	$10,000 – $16,000
WishList	$5,000 – $10,000
Geographical Location	$10,000 – $16,000
Message and Texts	$10,000 – $20,000
CRM Integration	$12,000 – $16,000
Vendor Admin Panel	$10,000 – $16,000
Product Recommendation	$10,000 – $40,000

Marketplace App Development Cost

A simple marketplace app includes an admin panel, buyers profile, sellers profile, reviews, search system, product page, messaging feature, notifications, payment gateway, shopping cart, and search filters.

If you’re looking for the exact numbers, the table below shows the estimated range as the cost may differ depending upon the complexity.

Feature	Estimated Cost
Authorization and Authentication	$5,000 – $21,000
Admin Panel	$18,000 – $25,000
Search with Filters	$15,000 – $20,000
Product Pages	$10,000 – $14,000
Shopping Cart	$12,000 – $17,000
Product Recommendations	$10,000 – $40,000
Payment System	$15,000 – $20,000
Shipping	$10,000 – $20,000
Geolocation	$10,000 – $16,000
Photoshopping	$10,000 – $20,000
Virtual Placement	$16,000 – $30,000
Customer Review	$12,000 – $18,000
Notifications	$10,000 – $20,000

The cost of developing a marketplace website and an app depends upon the industry, marketplace type and target audience.

Conclusion

The eCommerce marketplace development cost depends upon the target audience, marketplace type and industry. It can cost you $80,000 to $289,000 depending upon the features you want to add. Preliminary research is needed to build an e-commerce marketplace platform. However, reaching out to an expert might solve this.

FAQs

How long does it take to develop an online marketplace?

If you want to build a basic marketplace website from scratch, it would require more than 1000 hours.

How much does it cost to build a platform like Amazon?

It would cost you around 60, 000 to more than 90,000 to build an e-commerce marketplace like Amazon.

May 16, 2022

15 Proven Ways to Increase Your Average Order Value
Every extra penny earned need not come from a new customer!

Sometimes it only takes a few tweaks to encourage your existing customers to spend more on your eCommerce store. After all, they already trust you and are 60-70% more likely to place an order.

For instance, we all have visited some fast-food chains such as McDonald’s. Food chains like these boost their sales by offering combo offers (Buy burgers, fries & coke to save ₹89) or small ad-on like french fries.

Essentially 4 major metrics impact your eComm store: Number of new customers (over a period of time), Average order value (AOV), Repeated orders, and Marketing/ retention costs.

Today we will focus on ways to enhance the average order value of your store. Before we jump onto strategies, let us understand what the average order value is and why it is important.

1. Increase Free-Shipping Threshold
2. Cross-Sell
3. Upsell
4. Create Combo/ Bundle offer
5. Offer Discounts on Bulk Orders
6. Loyalty Programme
7. Personalized Experience
8. Time-Sensitive Offers
9. Add Social Proof
10. Free Gift
11. Incentivize First Purchase
12. Build Trust and Authority
13. Flexible Return Policy
14. Coupons (Product Discounts)
15. Downsell Add-ons

What is the Average Order Value?

The average order value is the average amount spent on your store by a customer that purchases from you. For instance, in a month, your store gets 500 orders and generates ₹50,000. Then, the average order value is ₹100 for your store.

Average Order Value= Total revenue/ Total number of order

How would you feel if a customer enters your store looking for a ₹200 purse But, then purchase a purse and other accessories worth ₹1500.

So, an increase in the average order value helps in:
1. More revenue without extra marketing spent
2. Increasing customer lifetime value (LTV)
3. Recovering customer acquisition cost
4. Increasing profit
5. Clearing out inventory
Generally, eComm store applications, such as Shopify, provide AOV on the dashboard. Nonetheless, you can easily calculate it with the formula. More the AOV, the better it is.

The average order value increases when a customer places an order of a higher amount. No one wants to buy more. Your offering should have a higher perceived value to encourage buyers to spend more on your store. Note that just increasing customers will not boost your AOV. Here are 15 strategies to incentivize the customer to splurge a little extra. After all, a store earns 40% of its revenue via repeated customers.

Now, let us look into 15 ways to increase your average order value.

1. Increase Free-Shipping Threshold

One of the easiest ways to increase your average order value, almost instantly, is by increasing the free shipping threshold.

For instance, if you offer free shipping at ₹500, increase that to ₹600. Make a leap of about 20-30% of the current average order value. So, if your current average order value is ₹780. Then, increase the free shipping threshold to ₹700.

In case you do not offer free shipping, we highly recommend opting for it. It helps a lot to move the AOV high. In alternate cases, people place small orders as they have to pay for shipping either way.

Also, highlight this limit on the cart or at the top of the website. Let customers know that they are ₹x away from availing of free shipping.

A great example of the same is the classic ₹500 free shipping base on Amazon.

Free shipping threshold

2. Cross-Sell

Cross-sell means recommending and selling complementary products. They are not similar products but products related, such as toothpaste and brush. The aim is to prevent the buyer from purchasing items from different stores and provide it with all in one place.

You could display these related products on:
- Home page
- Product page
- Cart
- Check out
In this case, Amazon offers the option to add a tempered glass, warranty with the mobile phone.

Cross-selling

You can take this a step further by providing what other buyers pair the product with and personalized recommendations based on user history. Another effective way of cross-selling is by recommending a product after the order confirmation at a limited time period discount.

3. Upsell

Upsell means selling an upgraded version of the product. It can mean recommending a higher version of a product or a larger size.

For instance, you can recommend a more expensive camera model for added features and better utility.

Upselling occurs in two ways: upgrading to an expensive model or high-profit margin services such as an extended warranty.

You can offer a comparison chart like this on the product page itself. It should clearly communicate why the upgrade is worth those pennies.

Comparison chart for upselling

4. Create a Combo/ Bundle offers

Let us say you enter a store to buy a printer. What if the seller offers you 4 cartridge ink and printing paper all together at a discounted rate? Would you not be tempted to buy it all?

Similarly, you could create bundles or combo offers with related products to make a higher value sale. You could also provide custom combos/bundles to make it more engaging and relevant.

Combos/ Bundles

These bundles really work well in case you see multiple small purchases in the store. This one again ensures the purchase of related items all from your store instead of different stores.

WIDGET: leadform | CAMPAIGN: undefined

5. Offer Discounts on Bulk Orders

One of the best ways to increase basket size is to offer great discounts on bulk orders.

Display clearly the savings on placing a bulk order. It is similar to wholesale orders where customers get an added discount due to bulk purchases. These bulk orders could be customizable, which would further enhance the ROI of the strategy.

Here is a WooCommerce plugin to add discounts to your bulk orders.

WooCommerce Plugin

6. Loyalty Programme

Many brands have loyalty programs for their customers. It aims to encourage regular customers to purchase from the brand in exchange for various perks.

They work great to increase repeated orders. Also, repeated customers tend to spend more on the store compared to new customers.

You could offer benefits such as a lower free shipping threshold, early access to sales, 24/7 customer support, cashback, bonus points, free samples on each purchase, and much more.

Loyalty program

7. Personalized Experience

A personalized shopping experience can enhance the customer’s experience via curated recommendations. It generally eases the process of navigating through the website.

You can personalize product recommendations based on their search history. You can offer custom bundle offers depending upon their activity on the website. You could also recommend product refills and repeat purchases based on the order history.

Personalized product recommendations

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8. Time-Sensitive Offers

Provide limited-time offers to create a sense of urgency among the buyers. Time-sensitive offers combined with dedicated product discounts could boost the average order value.

Offer product discounts, remove the free shipping threshold, provide discounted bundles, or any other incentive to encourage people to purchase.

Highlight special offers on the product page, homepage, and cart to make sure that people know about the limited-time deal.

Limited Time Offers

9. Add Social Proof

Social proof is crucial to stimulate sales for any store. But, how would it impact the average order value?

Add customer reviews and ratings to the complementary products while cross-selling and upselling. Also, add pictures and other social proof on your website to ensure trust and build credibility.

There are many products on Amazon that do not sell only due to the absence of reviews and any other social proof. Hence, testimonials and social proof are really important to encourage sales and average order value.

Provide Social Proof

10. Free Gift

Offer Free Gifts

Offering gifts to your customers can be a great incentive. You could offer free samples or gift cards at a certain threshold. This would increase the average order value. Free samples, as well as gift cards, could also stimulate future purchases.

Keep in mind your margins decide the value of the gift. You do not want to bear the cost of free items.

For free samples, pick items or variants that don’t generally perform well to keep the inventory running. You could also give special offers on special occasions and boost sales.

11. Incentivize First Purchase

For a new eCommerce store, it is crucial to get the first hundred/ thousand purchases. You can motivate people to make their first purchase by offering them discounts, offers, and other perks on their first purchase.

Most of the stores offer a 10 to 20% discount on the first purchase from the website or their application.

In this image as you can see, Amazon goes a step further and offers free shipping on the first order but in a particular category. This would motivate customers to purchase from different categories. It’s a great strategy in case you do not see sales in a particular section of your store.

However, ensure to promote the offer to your customers effectively to ensure order placement.

Offer on first-time purchase

12. Build Trust and Authority

Building trust and authority is crucial for eCommerce stores. People might avoid placing orders or not come back if they do not find your store reliable.

Mention the policies very clearly and have FAQs in different sections of your stores. Use live chatbot and other customer care services to ensure credibility and security. These things do not affect average order value directly but play a major role in impacting customer psychology.

Simple things like a dedicated domain name, customer reviews, and contact details make a huge difference.

13. Flexible Return Policy

For the longest time, people did not purchase from online stores due to a lack of trust and quality assurance. People prefer offline stores as they can return the items in case of defects or any other discrepancy.

Offering a flexible return policy helps your store build that trust and encourages people to make their first purchase.

Today, most eCommerce stores offer a return policy of 15-30 days. As a result people also purchase more products as they are assured that they can return the products if something has to happen.

Flexible return policy

14. Coupons (Product Discounts)

Buy 2, Get 2 Free!

We all get tempted to buy 2 products and pick 4 products in total to avail of such an offer. It helps companies clear the inventory, increase order value and enhance brand image.

Coupons that offer product discounts are well received. Offers such as:
- ₹500 off on the purchase of ₹2499
- Buy 3, Get 1
- Flat 20%
- 25% off on purchase of ₹3599
- Cashback of ₹350 on purchase of over ₹2499
These offers encourage customers to increase their order value automatically. All these discounts need to be tactfully placed to ensure margins and sell off more products.

Offer Coupons

15. Downsell Add-ons

We do not think twice before picking up chocolate or candy at the checkout counter of a supermarket. Why? Because it is cheap.

Similarly, you can increase the average order value by offering a complementary product that is inexpensive. It becomes a no-brainer to add a product that doesn’t cost much and pairs well with the item purchased. For instance, offering batteries with the clock.

It is easier to incentivize the customer and at the same time increase order value.

Offer a complimentary product

All of these strategies would enhance the ROI and get more profit. However, ensure to implement one strategy at a time and not all together. This way you can track which ones are the most beneficial and double down on those tactics.

Also, you should clearly communicate these offers and discounts to your customers. What’s the benefit if your customers are not aware of these incentives?

These strategies would have different effects on different stores. Hence, you need to do an A/B test and find the right way to promote the average order value.

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3 Bonus Tips to Increase Average Order Value

The average order value impacts your profit and your revenue. More AOV implies more profit without having to spend more. Apart from trying to sell more and encouraging customers, here are some simple ways to enhance your average order value.

Firstly, take an analytical approach to the average order value. This involves segmenting your audience based on the amount spent by them. Start by cross-selling to the customers that spend less.

Alternatively, customers that spend more would find loyalty programs appealing. Further, you could move on to free shipping, providing coupons, and other incentives.

Secondly, ensure to provide a smooth website experience. A website with a lot of pop-ups, slow loading speed, lots of lag, or frequent crashes would negatively impact customer experience. In this case, you might not be able to sell at all and drive customers away!

Lastly, understand your audience to provide a relevant and personalized experience. Consider what your audience needs and map out the customer journey. Find the motivation points for your customers by talking to them, looking at competitors, and analyzing past campaigns.

Conclusion

So, It all narrows down to understanding your customers, segmenting them, and providing suitable incentives to increase average order value. It acts as a window into the purchasing behavior of the customers. Hence, a higher average order value can attract added profit and revenue without extra cost.

FAQs

How do you increase the average value of a basket?

Upsell your products, provide free shipping, keep time-sensitive offers, personalise customers’ experience, and provide bundle offers.

How is the average order value calculated?

You can calculate your average order value by simply dividing total revenue by the number of orders. For instance, in a month, your store gets 500 orders and generates ₹50,000. Then, the average order value is ₹100 for your store.

How can I increase my eCommerce AOV?

Provide bundle, provide limited time offers, offer free shipping on minimum orders, and keep a flexible return policy.
May 10, 2022
Paxcom: Digital Solution provider for analytics & eCommerce business strategy
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Paxcom.

Paxcom’s technology solution consists of ML/AI-powered actionable insights on Product Content, On-Shelf Availability, Reviews & Rating analysis, Share of search, Sales, and Promotions. Daily, Paxcom analyzes multi-crore ad spends, and over 1.4 lakh products across 148 platforms, 450+ pin codes, and 11 languages to provide seller and location-specific insights to aid their clients’ eCommerce growth.

StartupTalky interviewed Mr. Punit Sindhwani (Founder & CEO, Paxcom) to get insights into the startup story and the organization’s roadmap. In this article you will discover how Pacom started, its business model, marketing strategies, and more.

Paxcom – Company Highlights

Startup Name Paxcom

CEO Punit Sindhwani

Headquarters Gurgaon

Industry Ecommerce

Website paxcom.ai

Paxcom – About
Paxcom – Industry Details
Paxcom – Idea & Inspiration
Paxcom – Product/Services and USP
Paxcom – Founders and Team
Paxcom – Name Meaning & Logo
Paxcom – Business Model and Revenue Model
Paxcom – Launch & Marketing Strategies
Paxcom – Challenges Faced
Paxcom – Operating Locations
Paxcom – Funding
Paxcom – Tools used to run startup
Paxcom – Future Plans
Paxcom – FAQs

Paxcom – About

Paxcom’s eCommerce solutions consist of a robust set of proprietary (or cutting edge or ML/AI) technology solutions backed up by a strong suite of eCommerce services that provide end-to-end assistance for businesses looking to expand their online presence. This startup is well-known for its digital solutions that cover all aspects of day-to-day eCommerce operations and assist brands and sellers in improving their overall online performance.

Paxcom’s cutting-edge AI solutions can collect and analyze data from all eCommerce channels, across multiple geographies to deliver actionable insights for improving digital shelf share, stock availability, competitive pricing, product discoverability, ROIs on marketing spends, placements, and more.

Its team of eCommerce experts, Data Scientists, Analysts, Content Writers, and Creative Designers can help you launch and optimize Products Price, Promotion, Placement, and growth strategies on the popular eCommerce Sites. Paxcom’s team of experts comes with vast experience across brands, markets, and platforms to ensure that your brand has all the tools to remain ahead of the curve. Paxcom takes pride in working as a partner and an extension of its clients’ own teams to ensure synchronized plans to success.

Paxcom – Industry Details

The recent years have seen substantial growth in D2C and digital brands in India, with over 4000 brands having crossed INR 1cr sales on Amazon alone in 2020. While physical formats of retail have been seeing a marked slow-down due to Covid restrictions, eCommerce is growing at the fastest pace. This has led to an increased focus of brands on eCommerce.

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Paxcom – Idea & Inspiration

Paxcom’s founding team took its plunge into eCommerce in 2011 through an ambitious foray into omnichannel retail, before amazon.in the marketplace was launched in India. The in-house omnichannel technology that was built, empowered them for seamless growth across their D2C website, 11 physical locations and to be the pioneer in D2C and marketplaces in India. Mirchimart was one of the first few sellers that Amazon onboarded when they started their business in India. They also won the award for being the largest seller in the electronics category on the Flipkart marketplace in 2014.

This early exposure to e-commerce enabled the founders to recognize the sector’s potential in India. Consumer brands were taking their first steps in this direction, but there was a significant gap in understanding of how it worked and how to best use it. There was a need for expert advice and technical solutions to assist brands in accelerating digital sales and making intelligent, data-driven decisions. Paxcom was created to meet this need.

Kinator, a SaaS-based channel intelligence and data analytics platform, was the first solution developed, allowing their clients to track, measure, and audit their eCommerce presence, and provide insights for day-to-day and strategic decisions.

Over the last seven years, they have continued to evolve and grow alongside their clients’ ever-changing needs, becoming a full-service strategic solution provider for e-commerce, adding numerous services and software along the way.

In 2019, Paxcom became a part of the Paymentus group – a leading global paperless electronic billing and payment solution, ranked by Deloitte to be amongst the fastest-growing North American companies.

The idea came from the opportunity and the gaps the team saw in omnichannel retail as they managed their omnichannel retail business. The initial product idea was well received in their outbound campaign reach and few initial brands became Paxcom’s partners in this journey giving the team an opportunity to learn and mature their offerings.

Paxcom – Product/Services and USP

Paxcom offerings simplify Brand’s online strategy and growth by providing actionable insights derived from mining vast amounts of data points daily, across multiple e-marketplaces and multiple geographies. Brands can quickly see areas of growth opportunities, threats from competitive/upcoming brands and get insights on the effectiveness of different campaigns /products on marketplaces.

In the fiercely competitive eCommerce space, brands need to be agile and well-informed to achieve success. Paxcom’s eCommerce solutions consist of a robust set of proprietary technology solutions backed up by an experienced services staff to provide end-to-end assistance for businesses looking to expand their online presence. It is well-known for its digital solutions that cover all aspects of day-to-day eCommerce operations. Paxcom’s analytical software tools and expert customer service teams assist brands and sellers in improving the overall online performance. Paxcom’s mission is to simplify and streamline online selling for brands and sellers.

Paxcom’s USP is a robust suite of technology solutions backed by an experienced team obsessed with a data-driven approach to eCommerce growth for its customers. Its technology solution consists of ML/AI-powered actionable insights on Product Content, On-Shelf Availability, Reviews & Rating analysis, Share of search, Sales, and Promotions. The startup’s Omni-channel technology solution optimizes the supply chain for order-fulfillment and warehouse management while its eCart Solution helps establish eBrand Store and apps. Paxcom team comes with a wealth of experience in establishing omnichannel strategy and solutions have gained valuable insights in managing their own, and some of the large brands, eCommerce growth since 2011.

1. Channel Intelligence & Analytics – Kinator

Kinator – Paxcom’s proprietary technology solution can collect and analyze publicly available data from all major platforms, across multiple geographies to deliver Data-Driven Analytics & Insights for Brands selling on multiple e-retailers and marketplaces. Paxcom’s interactive KPI Dashboards & Reports enable data-led decision making on Product Pricing, Promotions, Placement, and more. Kinator helps brands track, measure, audit, and analyze their
- On-shelf Availability
- Price, promotions, and Buy Box
- Ecommerce content
- Reviews & Ratings
- Visibility on search results and category
- Sales across platforms
- Advertising performance
2. Services, Strategy & Execution

Paxcom’s team of eCommerce experts, Data Scientists, Analysts, Content Writers, and Creative Designers can help you launch/optimize Products Price, Promotions, Placement on the popular eCommerce Sites.

Paxcom’s team of experts comes with vast experience across brands, markets, and platforms to ensure that your brand has all the tools to remain ahead of the curve. The startup takes pride in working as a partner and an extension of its clients’ own teams to ensure synchronized plans to success.
- Ecommerce content and design
- Business Analytics And Consultation
- Promotions & Marketing Strategy across platforms
- Global Support (India, North America, UAE, Africa & Southeast Asia)
3. AMS & Campaign Management

Paxcom’s eCommerce experts provide end-to-end campaign management in sync with your Brands goals and objectives across eCommerce platforms. When there are millions of products to choose from, a brand cannot afford to sit back and expect a customer to reach its product. Instead, the product needs to reach its customer. The startup manages multi-million spending across different platforms and categories, for leading or upcoming brands, using objective-based tailored strategies.
- Ecommerce Campaign & Ams Management
- Technology Aided Campaign Management using Paxcom’s cutting-edge tools
- Promotions Management
- Search & Display Ads
4. Omnichannel Solutions

Get complete control over your e-commerce logistics and fulfillment. Businesses of all sizes & categories can harness the power of Paxcom’s innovative pre- and post-fulfillment solutions to make their listing, order processing, warehousing, and shipping process seamless, quick, and manageable. Easy connections across several channels, a consistent experience for customers and employees, and automated technologies will help you accelerate with control. Its Omnichannel offerings comprise multiple robust web applications that provide solutions that can help brands grow, and manage their backend operations flawlessly with ease.
- Product Information & cataloging system (PIM)
- Order & Inventory Management Software (OMS)
- Warehouse Management Software (WMS)
- Marketplace seller solutions
Paxcom’s USP and innovation
- Strong experience across platforms and categories
- Cross geography/industry best practice
- Strong Technical Solutions + Services work together to give a complete solution
- Flexibility to tailor software as well as services to your specific requirements
- Global Support – Multiple language tracking & content Learnings across brands & categories
Pivot from Initial Idea

Paxcom was initially building 2 products – a Product Information Management software and software for sellers to manage their orders and inventory on multiple marketplaces. These two were built initially for Mirchimart for their own use and the team thought of taking these to market. These products, gradually they realized, had significant competition and challenges of stability since marketplaces, to date, don’t offer seamless APIs. Paxcom’s core product, Kinator, came after a couple of exploratory meetings with some big FMCG brands. This was a unique problem, no players in India at that time gave information to Brands on what is happening to their products and their category on eCommerce platforms. Since eCommerce was so new and growing massively, brands wanted to have some key KPIs to measure ecom growth. The team decided to plugin that gap, and Kinator came to life.

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Paxcom – Founders and Team

Paxcom’s founding team was together over years at their previous company, Mirchimart, and Paxcel and had a strong working relationship. So this came in very easily.

The team works closely together and quite often the tasks span across different areas. In the current setup, Neha Khosla is responsible for client success, Tanya Kakaria for Global Sales Marketing, Punit Sindhwani for overall strategy, and Gurjant Singh for technology solutions.

A dynamic powerhouse, Punit Sindhwani has over 25+years of experience in the Technology and IT industry. Punit is currently the CEO of Paxcom, a SaaS-based software that provides complete eCommerce automation solutions from creating and managing e-stores (or marketplaces) to advanced data analysis, exponential revenue growth, managed warehouses, and supply chains along with ensuring happy customers.

Punit Sindhwani – Founder & CEO of Paxcom

He is a strategic leader with a proven track record in managing fast-growing software development companies in Capital Markets, Payments, Health care, Data Analysis, and Data and Image Compression.

Prior to founding Paxcom, he was Co-founder and CTO of Mirchimart.com, an online megastore where he was responsible for building a high-performance tech platform for B2C and B2B sales, with optimized PIM, WMS, OMS, and Omni-channel touchpoints.

A bachelor in Electronics from Mumbai University, Punit’s area of expertise includes Enterprise Application Development, Mobile Application Development, Financial Software Development, Gift /Loyalty Solutions, Web application development, Data Analysis Software, Data and Image Compression.

Paxcom – Name Meaning & Logo

Prior to Paxcom, the founding team’s technology services company, Paxcel was born in 2001. Paxcel was named after a core value that they look for while hiring any new team member “Passion for Excellence”. Paxcom came as an extension to Paxcel, everything about eCommerce with Passion for Excellence, so this was a unanimous decision of the founding team, Paxcom. The name, Pax part symbolizes the founders’ Passion for Excellence, while the com part symbolizes Commerce. The logo was designed internally by the startup’s creative team.

Paxcom Logo

Paxcom – Business Model and Revenue Model

There are two parts to Paxcom’s business model. All technological solutions are produced and marketed as SaaS solutions, while the services arm operates on an agency model. It typically has annual retainers and subscriptions with its clients, and the startup tailors the engagement to their specific needs and gaps. Shorter project-based engagements, on the other hand, are also possible.

Paxcom – Launch & Marketing Strategies

The founding team launched the company because they first saw the complexities of managing an eCommerce business across multiple channels and the scale and efficiency needed. The push was motivated enough to take the plunge.

They were fortunate to be amongst the first ones to offer such insights for eCommerce growth, and as such, they found a great response to their email campaign reach on Paxcom’s innovative solutions.

“At Paxcom, we believe that a satisfied customer is the best marketer a company can have. The focus on client satisfaction has contributed significantly to our success, and we’ve seen a lot of initial growth organically through referrals and expanding partnerships with existing clients across industries and regions” – says Punit Sindhwani, CEO, Paxcom

Paxcom’s marketing and business leaders have invested a significant amount of time and effort in developing strong industry relationships and gaining a thorough understanding of the segments in which they operate. This has allowed them to take a consultative approach to business development, based on extensive knowledge of the ever-changing e-commerce landscape, best practices, industry trends, clients’ businesses, their current eCommerce maturity, possible growth areas, and potential solutions. Every client is different and having targeted outreach campaigns based on this understanding have worked well for Paxcom. It has also recently begun to broaden the use of content marketing by widely disseminating Paxcom’s large repository of useful resources for brands, sellers, and industry enthusiasts at all stages of e-commerce maturity. These are accessible via its website and social media pages.

Paxcom has established a strong presence and goodwill within the Indian eCommerce industry over the years, helping it solidify its position as an authority on eCommerce. Numerous leading brands it serves and its commitment to providing strong solutions for the clients globally have also helped the startup establish credibility as an eCommerce partner. The majority of its new business, therefore, comes from word of mouth, client referrals, eCommerce platform recommendations, and SEO.

Additionally, the team at Paxcom is also been working on producing content that serves the industry by offering in-depth information and advice for clients and the broader brands in the market.

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Paxcom – Challenges Faced

Paxcom was started when eCommerce in India was in its nascent stage, and grown with the industry. The initial inertia of brands to recognize their potential, and the ever-changing ecom environment have been some challenges. However, the team has had the opportunity of working with some great brands and built strong goodwill for themselves by constantly adapting to ensure they go above and beyond their client’s expectations. This has helped Paxcom grow to its current strength and recognition in the industry.

Paxcom – Operating Locations

Out of the 6 office locations 3 are located in India, 2 in the US, and 1 in Canada.
1. Gurgaon
2. Delhi
3. Mohali
4. Washington
5. North Carolina
6. Toronto, Canada
Paxcom’s services are already available in 20 countries across SEA, Japan, Korea, the Middle East, Africa, the UK, North America, Australia, and India.

Paxcom – Funding

Paxcom is a bootstrapped startup and currently, it is not looking to raise funds in the near future.

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Paxcom – Tools used to run startup

Being a tech-focused company at heart, the team understands the value of tools in improving efficiency. There are numerous tools Paxcom utilizes to ensure that the team can function at scale effortlessly. Some of these are Slack, Keka, Google Business tools, Zoho, Hubspot, and Drutas.

Paxcom – Future Plans

In addition to expanding within the country, Paxcom is aggressively growing its global presence. Its current clients include over 150 brands, across 20 countries, and it is in the process of growing not just the client base, but also the engagement with existing clients.

At the moment, Paxcom’s SaaS-based data analytics tools are the top focus, with eCommerce advertising & strategy services following closely behind. Looking ahead, the startup also expects its revenue to triple within the next two years, with the primary chunk of that growth coming from North American and Asian markets.

Paxcom – FAQs

What is Paxcom?

Paxcom’s eCommerce solutions consist of a robust set of proprietary (or cutting edge or ML/AI) technology solutions backed up by a strong suite of eCommerce services that provide end-to-end assistance for businesses looking to expand their online presence.

Who is the CEO of Paxcom?

Punit Sindhwani is the CEO of Paxcom. He has over 25+years of experience in the Technology and IT industry.

How does Paxcom make money?

Paxcom’s technological solutions are produced and marketed as SaaS solutions, while the services arm operates on an agency model. It typically has annual retainers and subscriptions with its clients.

Is Paxcom funded?

No. Paxcom is currently bootstrapped.

What is the Paymentus group?

In 2019, Paxcom became a part of the Paymentus group – a leading global paperless electronic billing and payment solution, ranked by Deloitte to be amongst the fastest-growing North American companies.
October 1, 2021