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Tag: Ecommerce 🛒

  • 5 Things to Know Before Buying a Pre-made Dropshipping Store

    If you have ever thought of starting an online business, you must have heard about “Dropshipping”. This is one of the most trending businesses across the globe and is growing really fast.

    The main reasons for the dropshipping business model to succeed are: You need not be exclusive about what you want to sell, you don’t need a lot of money for buying products, and you do not need an inventory to stock the products.

    As per a study, the estimated value of the global Dropshipping market which was US $128.6 Billion in 2020 is expected to grow and reach the US $ 476.1 Billion by 2026. Hence, you can imagine the pace at which this market is expanding. However, if this term seems unfamiliar and you are still wondering what are we talking about. Don’t worry! We will explain everything in detail. Keep reading.

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    What is Dropshipping?
    What is a Pre-made Dropshipping Store?
    Advantages and Disadvantages of Buying a Pre-made Dropshipping Store
    Things to Know Before Buying a Pre-made Dropshipping Store

    What is Dropshipping?

    Dropshipping is kind of an online retail fulfilment method. Here, you don’t buy or stock products. If you have a basic understanding of marketing and selling products, an online store, and a laptop, you are ready for this business.

    It has opened the doors to eCommerce for people not having big budgets. But, how is it done? Let us explain in steps:

    • First, you prepare a list of products you want to sell online.
    • Next, you find a supplier who sells these products at minimum cost.
    • After this, you set a higher price of your choice for all these items in your online store.
    • When a customer orders this product from your store, they already pay you the retail price.
    • Using this money you directly order this product for your customer, from the seller.
    • You mention the details of the customer in the delivery instructions. Hence, you don’t have to take care of shipping either.
    • Now, the difference between your price and the seller’s price is your profit.

    But, why would anyone buy a product at a higher price instead of buying it from the seller?

    The answer is simple. The Internet is vast. Not everyone has the time and energy to scroll across the web and look for cheaper options. Mostly people prefer to buy from some renowned website or go through the top 3-4 options that appear in the search engine.

    So, all you need to do is focus on the right marketing techniques.

    There are two ways you can get into dropshipping business. If you are well-versed with all the details you can build your own online store from scratch. However, if you are still new to this field you can also buy a pre-made dropshipping store. In this blog, we will focus on pre-made dropshipping stores.

    What is a Pre-made Dropshipping Store?

    Pre-made dropshipping stores are the ones where everything required for the online store such as sellers, products, payment gateways, etc. has already been set up by the store builder.

    If you do not have the time for building a dropshipping store yourself, you can also buy a pre-made one. There are several market places where people buy and sell such stores.

    There are majorly four types of dropshipping stores available in these markets:

    1. Basic pre-made dropshipping store: Here, the store builder has set up all the basic requirements of the store. However, brand identity, name recognition, or customer base, have not been set. These stores are available at the price as low as $50.

    2. Turnkey dropshipping store: The store builder in this case sets up everything and then just hands over the store to the buyer.

    3. Fully-established dropshipping store: These are the pre-made online stores that have been run by the builder for some time already. These stores have a developed clientele, sales, brand identity, etc.

    4. Custom-made dropshipping store: It is the same as the basic pre-made store. However, the buyer can get it customized as per his needs.

    Out of these, you can choose the option that suits you the most and then buy that for you. If you are already into this business and know the ins and outs, we would recommend you to go for a basic pre-made store. They are inexpensive and serve your purpose. However, if you are looking for something with a certain profit-building capacity, fully-established stores, although costly, can be the best option. They have been in the market for some time and hence, can become a source of regular income, with estimated profits.

    Advantages and Disadvantages of Buying a Pre-made Dropshipping Store

    Like any other investment, there are certain advantages and disadvantages associated with buying a pre-made dropshipping store as well. Let’s have a look:

    Advantages of Buying a Pre-made Dropshipping Store

    The advantages of buying a pre-made online store are:

    Lesser Chores: Your burden is reduced by having to build everything from scratch.

    More time for business: If you have your requirements listed, you can easily buy an established store and start your business right away.

    Reduced miscalculations: If you are not yet experienced in the market, buying a pre-made store would help you avoid or at least reduce your miscalculations.

    Additional learning: When you buy a pre-made store, you also get to learn the intricacies of the store builder. This may prepare you to build your next store yourself.

    Disadvantages of Buying a Pre-made Dropshipping store

    Even though it is a great source of business, several disadvantages also accompany a pre-made Dropshipping store. They are:

    Less control: Especially in the case of an established pre-made store, the buyer has lesser control over its development.

    Pre-existing niche: The products on the list have already been decided by the builder. You do not have much liberty to search and choose more products of your choice.

    Foregoing suppliers: The store builder chose the product supplier at the time of setting it. This gives you less control over features such as prices, quality, etc.

    Build-in brand identity: Owing to the already developed store, it has a brand identity that is recognized by the buyers.

    Greater investment: If you try building a dropshipping store yourself it wouldn’t cost you much. However, buying one can be expensive.

    So, when you have understood the basics. Let us understand how to determine the value of a pre-made dropshipping store, or what you should know before buying a Dropshipping store.

    Things to Know Before Buying a Pre-made Dropshipping Store

    If you are a retailer who is thinking of buying a pre-made Dropshipping store, you certainly need to estimate its value before you agree with the price quoted by the seller.

    There are a number of factors used by the sellers to determine the cost of a Dropshipping store such as supplier list, logo, web address & domain, social media accounts, etc. However, the authenticity, accuracy, and profundity of these factors have to be analyzed by the buyer.

    In this section, we will look at the 5 points that you need to verify before you give a thumbs up to the deal.

    Previous Statement:

    The most basic but reliable step will provide you with the most crucial information. Look at the monthly profit and loss statement of the store. Although there is no standardized pricing model, the usual price for buying a store varies from 10 to 30 times the monthly profit of the store. Therefore, as a buyer, you will have to ask for the documentation of the store.

    Examine the documents for expenses, revenue, and profit earned by the store. Also, look for the rate of returns and refunds. This will give you an idea of the quality being served by the associated manufacturers.

    Analyze User Traffic Information:

    Ask the seller to provide you with access to Google Analytics on the website. Here, you must keep in mind that using certain bots and third-party buyers some sellers can inflate user traffic. However, the Audience review function of Google Analytics helps you to recognize such activities. Some of the features that you can look for to identify fake traffic are:

    Extremely high or very low bounce rate: This can serve as a very strong indicator. Look for bounce rates above 90% or below 10% to identify fake traffic.

    Small average duration of sessions: If the average duration of sessions is too low i.e. around 30-50 seconds, it may be fake traffic. For an authentic online store, this duration should be longer as the shoppers browse frequently.

    Low pages per session: On average, an authentic buyer sees at least 2 pages per session. Anything less than this can be a sign of fraud.

    Find the Source of Traffic:

    Use Google analytics and visit the Acquisition Overview to find out the source of traffic turning to this website. This section divides the source of traffic into various categories such as organic search, referral search, affiliate traffic, paid search, etc.

    For an authentic Dropshipping store, the maximum traffic should be derived from organic searches and minimum from paid sources. This also means that the store is appearing higher in Google searches. Also, there are a number of tools available to evaluate the SEO of the store.

    Check their Social media Handles:

    Social media largely dominates our daily lives. For any online business to succeed it must connect with its customers using this powerful tool. Therefore, the number of followers or engagements a brand gets on social media also defines its potential.

    Look for Email Subscribers:

    Email marketing has been recognized as one of the most potent sources to boost conversion rates. An authentic email subscriber list is proof of a profitable store. This is because a long email subscriber list means more leads and ultimately, more opportunities for conversions. You can also ask the seller if they are using any email marketing tools.

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    Conclusion

    We wish you all the best for your Dropshipping store and insist that you make a 5 point checklist before you finalize your deal.

    FAQs

    How much does it cost to buy an established dropshipping store?

    A dropshipping store can cost you around 500 to 1000 or more than that, the cost of the store depends on the features and seller.

    Which store is best for dropshipping?

    SaleHoo, Wholesale2b, Modalyst, Doba, and Inventory Source are some of the best stores for dropshipping.

    Is it worth it to buy a dropshipping business?

    You can earn a sizable amount of income from your dropshipping store but only if you’re dedicated to investing your time and money.

  • Master the Art of How to Do Amazon’s SEO With Its New A10 Algorithm

    As a customer, whenever you land on the Amazon platform, your motive is to buy a particular product. Ever since Amazon launched its marketplace in the year 2000, it has successfully turned many people into robust e-commerce entrepreneurs.

    The product that is required by the customer must be available to that person. Now the whole question revolves around who he/she will buy the product from. If you want your Amazon store to sell that particular commodity to that customer, then it is vital to anticipate the usefulness of Amazon SEO (Search Engine Optimization). With over 2.5 million sellers, Amazon SEO has proven to be a successful advertising search engine to locate buyers.

    Amazon SEO strategies are needed at this hour as the level of competition is now off the charts. Although Amazon has generated a handsome profit for digital entrepreneurs, the service may be withdrawn if the essential products are not available to potential buyers.

    Search Algorithm- An Overview
    Amazon’s A10 Search Algorithm
    Factors Affecting Amazon’s A10 Algorithm
    Amazon SEO Strategy – Product Listing Optimization

    Leading online sources where consumers search for products worldwide (as of April 2021)
    Leading online sources where consumers search for products worldwide (as of April 2021)

    Search Algorithm- An Overview

    Let us first understand the meaning of the search algorithm to understand better how it works in Amazon. Search algorithm refers to the process of locating a particular data amidst a collection of data. It is a fundamental procedural algorithm that involves the usage of computer science to derive the goal state. Artificial intelligence has tightened its roots and laid an impact on the working of these algorithms.

    Amazon, like Google, assesses search results using an algorithm that takes into account a variety of parameters. Currently, A10 is the name of the underlying search engine. Unlike Google, Amazon is laser-focused on the shopping experience of the shoppers. The sole priority of Amazon is conversion and growing sales metrics. The algorithm searches for relevant data using the keywords, historic data also matters a lot. The A10 algorithm determines the pertinence of millions of products stored in the Amazon database to search queries entered by customers.

    You have to serve a double purpose – maintain your customer loyalty as well as optimize your respective product listing under Amazon’s search algorithm for ranking higher on the search results page.

    Amazon’s A10 Search Algorithm

    The main change that Amazon bought was an update in the Amazon A9 algorithm. The A9 focused on getting a better ranking by using pay-per-click (PPC), keyword consistency, and paid advertisements on Amazon. But A10 algorithm has shifted Amazon’s focus to revenue-per-click from PPC. Now, more focus is laid on consumer behavior in the current phase to fight competition.

    The Amazon SEO process is based on Amazon’s A10 search engine. A10, an Amazon subsidiary situated in Palo Alto, California, developed its search engine technology to help buyers find the most relevant products on the Amazon platform. A10 algorithm lays a strong emphasis on searches of buyers and gives them more accurate results to their findings. Amazon A9 dragged the profitable products to the users, whereas A10 delivers the most relevant data to the shoppers even if it is not profitable.

    A10 does not pay much heed to sponsored links due to which PPC has lost its importance. But it still holds certain great value and is not declared completely irrelevant. You just have to add a more polished and strategic approach while using PPC.

    The Authority of the seller plays a vital role as it involves hustling after positive feedback is received from the customer. It also highlights the fact that A10 supports vendors with a longer tenure on Amazon in comparison with the newer ones along with better returns handling capacity.

    Amazon A10 Algorithm
    Amazon A10 Algorithm

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    Factors Affecting Amazon’s A10 Algorithm

    Search Engine Optimization (SEO) is the prime concern of the sellers as they want their products to rank higher on the Amazon platform. Here are some factors that the A10 Amazon algorithm suggests, will improve the SEO of the products:

    • Seller Authority- Amazon and seller’s activity run simultaneously to each other. Amazon gives great weightage to seller’s activity in the market platform, enclosing performance metrics, inventory levels, feedback on the customer’s rating, and method of fulfillment. All these concerns are related to consumer experience and Amazon’s A10 algorithm works after that thoroughly. The seller has to maintain the quality and quantity of products in its catalog, good enough for the buyers to be attracted to the seller’s products. The refund rate, cancellation of orders, and efficient order tracking must be handled with care. All these endeavors will result in the creation of excellent value for customers. This will enhance your chances of appearing on Amazon organically.
    • Handle Your Keyword Game- Buyer persona is a very crucial aspect of selling on Amazon. The A10 algorithm proposes that the customer intended keywords that engage the customer’s attention are important. The customer should be able to relate to the product they are looking for. Overstuffing the product titles and descriptions with long-tail keywords is not necessary but the customer must find relevance while reading them both.
    • Maintain Your Impression Rate- Your product must be visible on the Amazon website. Sellers must ensure that their products have the highest views on Amazon, affiliate sites, and partner sites. The higher the views on your products, the higher will be the rank.
    • Conversion Rate to be Monitored- There is no point in having views on your products or having a substantial amount of leads if you can’t convert them into potential sales. Conversion rate involves a huge contribution to the ranking of products.
    • Obtain Positive Reviews- The most decisive ranking factor after Amazon’s A10 algorithm is obtaining a good review for your product. Whenever you buy a product, you always land on the reviews section to gather information about the likeliness of the products. You look for other people’s reviews as they have already bought that particular product and are familiar with its exact features and benefits of it. Social proof is a must to convince the buyers about the usability of the product. Positive reviews make the A10 algorithm place your product inventory higher in the search results. For attaining a higher review rate, you have to inculcate a feeling of belongingness among the customers and build a continuous healthy relationship.

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    Amazon SEO Strategy – Product Listing Optimization

    The product listing optimization can be done with the following:

    Conducting A Keyword Research

    You must realize that without keywords your products will be portrayed as meaningless and they won’t be able to reach the desired customers. One most efficient way to conduct keyword research is the amazon search bar. Whenever you type a product name, many related product categories show up. That is where you should initiate your keyword research. The Amazon search bar will automatically complete your search and also provide you with the necessary keywords for your products.

    Many tools will guide you through the process of keyword research, like Semrush, Keyword planner, and Ahrefs. These tools will yield a list of keywords that will help you to understand the search volumes and rating of the particular keywords. With these keywords, you can now optimize your product listings.

    Optimizing The Product Content

    Amazon - Product content optimization
    Amazon – Product content optimization

    In the Amazon marketplace, shoppers understand the language of a well-written sales copy, so, for product optimization, you need to take the following into consideration:

    • Plan an engaging product title- The product title is the first text that customers will see on your product listing. It should be simple and provide the most important information about your item. Amazon SEO is greatly influenced by the product-title ranking factor.
    1. Include a brand name that becomes a household name for people easily.
    2. Specify all the product details and their usability.
    3. Mention the key features of the product.
    4. Give information about the quantity and dimensions of the product.
    5. Mention the product size and color.

    You can rapidly attract your customers’ attention and increase your company’s sales potential by optimizing your product title. But don’t stuff your product title with a lot of keywords, as the Amazon A10 algorithm might not read it naturally which will send it to the spam folder automatically.

    • Write a good product description- A detailed product description is the most useful in pitching to customers for effective sales as Amazon is a pure online marketplace. Make maximum use of this avenue for sales maximization. This section is usually located at the bottom of the page and a shopper who is contemplating buying will search for information in this area. Writing a good product description is very important as it emphasizes conversion rate. It will assist the shopper to understand the benefits and uses of the products. A shopper might get the necessary product feature that he or she is searching for in the product description.
    • Optimize the bullet points- The target audience can be persuaded when your sales copy is written in bullet points. Because bullet points are readable and understandable, so your buyers will pay special attention to this section. Tell your buyers about the benefits of your product (rather than just the characteristics), and provide important details like features and dimensions.

    Concentrate on Creating High-Quality Photos

    If you want your sales volume to be high, then incur the greatest expenditure by buying a high-resolution camera for the best image quality. The best possible light must fall on each product. This is the most important purpose of product photography.

    High-resolution images improve the click-through and conversion rates. This will automatically persuade the buyers as they will be able to see the exact product they are searching for.  It becomes more convenient for the shoppers to search when the main image is engaging. This will contribute to a great click-through rate. Good images will leave a positive impact on the minds of users and will assist them in their buying decision. Sales are highly affected by this.

    Construct a Convenient Pricing Strategy

    Everything you do on Amazon related to the product lays a direct impact on the Amazon conversion rate. Product pricing on Amazon significantly affects the conversion rates if you put up a competitive pricing strategy. The product you sell must be priced at par with your competitors, and if your product price is optimized effectively, then your conversion rate will be positively impacted. But remember, if your pricing is above others on the search page then your product is likely to be overlooked. Make sure there is a proper price comparison done before you launch your products as you don’t want to be overlooked. Sellers Automatic Pricing Rule is a tool that will assist you in matching the prices quickly and will tell you whether your product is priced at a higher-end or a lower-end.

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    Conclusion

    An ideal Amazon SEO plan cannot be built with a magic formula. Instead, it requires constant toil and research, along with constant monitoring. Learning the fundamentals of the SEO process is already a huge step toward your e-commerce success. To stay at the top of the search results, you must keep up with the latest trends, algorithm updates, and ongoing optimization. You must track your performance metrics on Amazon Seller Central using the given parameters.

    FAQs

    What is Amazon Product SEO?

    Amazon Product SEO (Search Engine Optimization) is the process of ranking your products higher in the search results by optimizing your product listing as per the related keywords.

    How is Amazon’s A10 algorithm different from A9?

    Amazon’s A9 algorithm focused on leading the customers towards more profitable products whereas its A10 algorithm focuses more on providing the customers with more accurate results for their searches.

    What is Amazon Best Seller?

    Amazon Best Seller is a badge that appears on certain products listed on Amazon. It means that the product has the highest number of sales in a particular category. Amazon’s algorithm updates this status hourly, however, it may take 24-48 hours to appear.

    How to do SEO for Amazon products?

    SEO for Amazon products can be done with product listing optimization. This includes:

    • Conducting keyword research
    • Optimizing product content
    • Construct a convenient price strategy
    • Concentrate on high-quality pictures
    • Utilize backend search terms

  • Ecommerce vs Retail | What Is the Best Option for Your Business?

    We often come across the question of whether e-commerce or retail is best for a business. E-commerce is a replica of business that enables individuals and companies to sell their services or products via the internet. On the other hand, retail refers to the brick and mortar businesses, in which individuals sell their goods or services from person to person in shops, malls, and localities.

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    According to Statista 2021, total retail sales, both online and offline, amounted to 24.2 trillion USD, out of which 19.1 trillion USD was generated by the brick and mortar retail channel and around 4.9 trillion USD was generated by the eCommerce sales channel. In the same year, global retail sales accounted for a growth of 9.7% as a whole and eCommerce accounted for around 19.6% of total retail sales.

    The digital form of business has seen a great increment specifically in this pandemic. But at the same time, the heavy revenue generated from retail cannot be ignored. In this article, we will discuss different factors that will help you know what is best for your business between eCommerce and retail.

    Ecommerce vs Retail, What’s Better?

    Ecommerce vs Retail, What’s Better?

    Retail Ecommerce Sales Worldwide from 2017 to 2022
    Retail Ecommerce Sales Worldwide from 2017 to 2022

    In the following points, we will discuss a comparison between eCommerce and retail from different perspectives:

    Which Has Lesser Prior Investment?

    Ecommerce
    Starting an eCommerce business may sound like an expensive process but with proper planning and execution, one can start running it on a budget. The investment required to start your eCommerce business in India is nearly 5-10 lakh rupees. It includes building your business website, hosting, domain, sales and management tools, web development, and advertisements.

    Retail
    Investment in setting up a retail store can be an expensive process. A retail store has to invest in various things before selling its product. These include building, buying, or renting a store, paying license fees, hiring staff for multiple positions, paying location tax, investing in filling up the store with sufficient items to attract a customer, and other necessary resources relating to business and government. All such expenses make setting up a retail store far more expensive than starting an eCommerce store.

    So, comparatively, the cost of investment is lower in the case of eCommerce than in retail. The advantage of owning an eCommerce store is that it reduces the cost of setting up a brick-and-mortar store or hiring delivery staff. This is because eCommerce stores send their manufactured products to branches such as Amazon, FedEx, Ship Bob, Flipkart, etc. for order fulfilment. After this, it is the responsibility of these branches to pack, track and send the order to the buyer.

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    Which is Easier to Maintain?

    Ecommerce
    It is easier to maintain eCommerce compared to a retail store. But there are still some complications that need to be checked from time to time so that the store can run smoothly. For example- you need to maintain a warehouse or any proper space to keep the products safe and accessible for dropshipping. Since you are not directly connected with your customers, you will have to keep a check on analytics to track customer experience and discover their new tastes and likings. You will also need to keep a check on the timing of product delivery to avoid negative feedback from customers.

    Retail
    The retail business is considered to be a bit more complicated in terms of maintenance. This is because for various reasons like there is a need to maintain a proper brick-and-mortar store and inventory, and maintenance of an adequate communication balance on both sides in real-time with suppliers and customers. Also, you have to keep a regular check on your staff if they are handling the customers politely. You will have to train them and make them more knowledgeable about the services and products you are offering so that they can deal with the customers pleasantly and accurately.

    It is easier to modernize the stock in an eCommerce store. But this task becomes pretty difficult with retail stores as for updating products, you need to set up meetings with suppliers now and then. So, in case of ease of maintenance, eCommerce is a better option for your business.

    Share of consumers going to brick and mortar stores by country in 2021
    Share of consumers going to brick and mortar stores by country in 2021

    Which Has Better Profitability in Future?

    Ecommerce
    With eCommerce comes a great benefit which is unlimited access to customers. Once you are over the internet, there is no limit to the number of people you can reach. Ecommerce allows you to showcase your products and services to a large number of people, therefore, no limitation to any particular locality. Moreover, you can always expand your business and attract new customers via smart and modern marketing techniques. These include offering free shipping, discounts, gift cards, reward points, etc. All this ultimately ensures better sales and thus, better profits.

    Retail
    Retail stores do not have very wide access to the customers as they have limitations due to their fixed location. However, this does not mean that there are no benefits of a retail store. Even in today’s time, many customers do not feel satisfied until they can touch and feel the products themselves. So, the customers who are still skeptical about online shopping contributes to the sales and profits of retail stores. Moreover, there are fewer chances of online fraud with retail shops, as the customer doesn’t need to provide their personal information including emails, mobile numbers, bank details, etc.

    In this case, eCommerce will be the clear winner because the products and services of eCommerce stores are visible to a huge audience which makes for a large potential customer base and thus, better sales and profits.

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    Conclusion

    We compared e-commerce and retail stores based on investment, performance easiness, and profits obtained. Although there are factors like trusted quality and physical interaction that make retail stores better than eCommerce ones. But after making an overall comparison and looking at the future of the digital world, we concluded that eCommerce stores are the best way to expand your business and earn more profit in the future since it offers a wider reach with less investment.

    However, you can also take another way which is you can opt for omnichannel retail as it allows you to buy products either online or physically through the real stores to keep your customers satisfied in all the possible ways.

    FAQs

    What is the difference between eCommerce and retail?

    Retail is something that can be conducted in a brick-and-mortar store, online, between persons, or through direct mail. However, eCommerce refers to electronic commerce which means commercial transactions that are conducted only through the internet.

    How owning an online store is better than physical stores?

    Owners of the online stores can sell and ship their products and services to a large number of people with fewer investments as buying a website is easier and more economical than buying a physical store.

    What is the biggest challenge faced by eCommerce?

    One of the most significant challenges faced by eCommerce is the security issue. Ecommerce involves a great deal of personal information and even a small technical issue can create huge damage to a business’s operations and image.

    What is a retail store?

    The most common example of a retail store is the conventional brick-and-mortar stores like Walmart, Best Buy, etc. However, retailing as a whole includes goods or services sold through stores, kiosks, or even on the internet.

  • What Is the Best Time to Send Newsletters as per Your Audience?

    Everyone must have heard that timing is everything. It’s not everything, but it is critical, specifically when it comes to getting subscribers to notice and open newsletters. Businesses and organizations use newsletters to convey important information to their range of clients, prospects, and subscribers. Newsletters provide direct access to an audience’s inbox that allows sharing of compelling material, promotion of sales, driving traffic to a website, etc.

    Furthermore, newsletters are simple to track and alter, which allows for tracking progress and making meaningful changes for better efficiency. The success of a campaign and its click-through rates are heavily influenced by its timing. To create a huge impact, it’s critical to send newsletters when most individuals check their inboxes. However, because each organization is unique, a fixed timing may not be suitable for all. That’s why it’s crucial to figure out the optimal times to send newsletters for a specific company. This article will provide the optimal timing to send newsletters based on recent market research.

    What is a Newsletter?
    Best Time to Send Newsletters
    Modification of Time As Per Your Audience
    Why is The Time of Sending a Newsletter Influential?
    Essential Tips for Sending Newsletters

    What is a Newsletter?

    A newsletter is an email sent as part of a marketing effort. It includes essential news and updates about a brand and its products and other relevant data. It’s a low-cost method of increasing business. For some, newsletter marketing is a thing of the past. Many companies believe this is due to significant improvements in social media marketing, such as Instagram hashtags, stories, live videos, and voice search. But newsletters are still one of the most effective ways to market and showcase a new product or service to the people.

    What is the one metric that matters for evaluating if a newsletter is successful
    What is the one metric that matters for evaluating if a newsletter is successful

    Best Time to Send Newsletters

    Most people open the newsletters between 10 am and 12 pm (depending on the subscriber’s time zone). Many industry analysts have lauded these times as ideal for sending newsletters because the subscribers have settled into their day and aren’t too preoccupied with their regular duties to ignore their inboxes. According to the statistics, higher open rates are also seen around 5–6 pm. Now, let’s glance at each weekday to see when the most people open their newsletters.

    ● Monday- On a Monday, the peak time for people to check their newsletters is 10 am, with a nice little bump between 5–7 pm, according to the data. Open, and click-through rates decline slightly in the mid-afternoon, maybe when individuals shake off the “Monday blues” and get back to work.

    ● Tuesday- Newsletter openings peak around 10 am, remain relatively stable throughout the afternoon, and decline after 6 pm. This could be because subscribers have developed a weekly ritual of reading their emails and then logging off at the end of the day.

    ● Wednesday- Wednesday’s open and click-through rates follow a trend identical to Tuesday’s, with a sharper drop after 6 pm as individuals turn off their devices, begin their drive home, and spend time with family and friends.

    ● Thursday- Although 10 am remains the best hour for open rates, there is also a slight surge between 1–3 pm on Thursdays. This could be because people spend their lunch hour searching for something to do as the week draws to a close.

    ● Friday- Open rates are typically high from 10–11 am, with another increase around 2 pm. This is a fun day to send a newsletter since it catches the folks right before they leave for the weekend when they’re most likely to buy something new or start something different.

    While open and click-through rates are consistent across all weekdays, research shows that Tuesdays and Thursdays top the pack. Also, 10 am appears to be the best time to send newsletters for optimum open and click-through rates. According to these statistics, the worst time to send a newsletter is on weekends, 9 am or 9 pm when subscribers are hustling to be ready for the new day, shutting off for the evening, or sleeping.

    WIDGET: leadform | CAMPAIGN: undefined

    Modification of Time As Per Your Audience

    Knowing and understanding the audience demographics is one of the most critical steps to achieving newsletter marketing success. Almost every company globally wants the same thing regarding newsletter marketing. It is the ability to send the appropriate message to the appropriate person at the appropriate time.

    Subscribers have a variety of interests, habits, and requirements. Sending out mass communication newsletters simultaneously to everyone can never satisfy those needs. Knowing the demographics of the audience helps to send more relevant campaigns. Open rates and click-throughs will skyrocket if a company’s newsletter marketing efforts become more audience relevant.

    Here are some illustrations of how demographics can overrule typical “best time to send” recommendations:

    ● If a business tries to reach a young, tech-savvy audience, it will undoubtedly disregard the standard rule about avoiding sending emails late at night. Evening emails may be appropriate for younger audiences.

    ● The much-maligned Friday can be a terrific pick for a business in the entertainment industry because people are always looking for entertaining things to do over the weekend.

    ● Weekends don’t have to be off-limits. If a business wants to reach out to tech-savvy audiences, entrepreneurs, or students, weekends can be a good time.

    Understanding the behavior, preferences, and time zones of the target demographics can assist in determining the optimal day and time to send a newsletter. It is also important that a business should tailor newsletter sending times based on the location of the subscribers for best results.

    HubSpot acquired, The Hustle (newsletter producing media company)
    HubSpot acquired, The Hustle (newsletter producing media company)

    Why is The Time of Sending a Newsletter Influential?

    When a company works hard on a campaign, it comes up with valuable content, a compelling headline, and clear calls to action. Looking at all this, even the biggest companies like Amazon indulge in newsletters for their marketing. However, sometimes the newsletters do not get opened or clicked through. This is when the importance of good timing comes into play. An inbox is crowded, and newsletters at the top of the box tend to receive more attention than those at the bottom. So, posting time is crucial when creating major newsletter marketing campaigns. The timing of sending a newsletter is influential because of the following reasons:

    ● Increase the number of people who open the newsletters: The ultimate aim of newsletter marketing is to have increased open rates. A prospect or a subscriber is more likely to open a newsletter if it is at the top of their inbox; therefore, sending it at the right time is crucial.

    ● Increase the number of people who click on the links: Even if all the subscribers read a newsletter, there is no possibility of having a good return on investment (ROI) if no one clicks on it. If it is sent at the wrong time, the subscribers may not have the time to read the email or respond to the CTAs. Thus, another reason why the timing is influential.

    Amazon Prime weekly newsletter
    Amazon Prime weekly newsletter

    Essential Tips for Sending Newsletters

    The newsletter marketing community generally accepts broad newsletter sending time recommendations. They’re lovely for getting started, and they work most of the time. The following are some of the tips to keep in mind while sending newsletters:

    • Monday’s mess: On Mondays, it’s generally agreed that a business shouldn’t send out newsletters. Why? People are already dreading the weekend’s getting over. Usually, they march into the office, where they are overwhelmed with a deluge of emails accumulated over the previous few days. Inevitably, business emails will take precedence over promotional newsletters. This is why Monday is one of the worst days to send a newsletter.
    • Day vs Night: While this may seem self-evident, sending newsletters during the day is usually preferable. When people are awake, there is a much better chance of people opening the newsletter.
    • Weekends: Weekends are traditionally the days when people go for shopping and indulge in fun activities. Due to this, weekend open rates and click-through rates are notoriously low, and newsletter marketers should avoid it.
    • Early post: Some newsletters are opened within 60 minutes after being sent. Certain lingerers may not open the newsletter for another day or two. If the newsletter contains event-related information, it should be sent 3-5 days before.
    • The favorites: Marketers have usually avoided Monday’s anguish and Friday’s itchy feet by sending email campaigns on Tuesday, Wednesday, and Thursday. The most popular days for sending email newsletters are Tuesday and Thursday.
    • Traditional Strategy: The tested traditional strategy of sending out newsletters in the middle of the day works effectively. Subscribers are settled into their routines and regularly check their inboxes in the middle of the week. According to the general perspective, emails should be sent between 10 am and 12 pm.

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    Conclusion

    Newsletter marketing can be a complex topic to grasp. So many industries are using it and making a difference in their unique ways. The general takeaway is that a business should segment its audience, possibly by job function or seniority, to accommodate diverse behaviors and working styles. It should also consider alternative times that are more suitable for subscribers. Remember that research varies, customer behavior is constantly changing, and performance differs depending on the benchmark of a business.

    A business should experiment with different approaches to see what works best for a particular audience. It should also make sure that readers are already engaged in what it says. They value what it has to offer as a business, and as long as they send them newsletters about it at the right time, there is a decent chance of getting positive results.

    FAQs

    What is newsletter marketing?

    Newsletter marketing is sending informative and valuable content to a member list of future and established consumers through an email letter.

    Is sending newsletters a successful marketing strategy?

    As a marketing strategy, newsletters have endured the test of time. As per McKinsey analysts, newsletter marketing is 40 times more likely to bring in new clients than social media.

    How many words should a newsletter have?

    A maximum of 20 lines should be included in an email newsletter. For most industries, 20 lines of text or around 200 words results in the highest open and click-through rates.

    Which are the best days to send newsletters?

    In general, the best days to send newsletters are Tuesdays and Thursdays.

    What is the best time to send newsletters?

    The best time to send newsletters differs for different businesses and their audiences. For the early birds who check their email first thing in the morning, 8 AM is perfect. Other best times include 10 AM, 1 PM, and 6 PM.

  • How to Start Ecommerce as a Side Hustle? | Steps and Tips to Get Started Today

    44 million Americans have a side hustle, and why shouldn’t they? A side hustle is a popular approach to make an extra profit while maintaining the safety net, that is your full-time job. Despite popular belief, the extra credits you work for can be both highly fulfilling and financially rewarding. You can be your boss and extract profits out of projects you are genuinely passionate about.

    On that note, starting an eCommerce business is the most sought way as a side hustle. Ecommerce is the buying or selling of goods and services via the internet. In today’s digital world, it has become pretty convenient and easy to set up an eCommerce store and kickstart your business.

    WIDGET: leadform | CAMPAIGN: undefined

    Steps to Start Ecommerce as a Side Hustle
    Decide The Product or Service To Sell and Your Target Audience
    Research About Related Ecommerce Businesses
    Set Up Your Online Store
    Promote Your Ecommerce Business
    Tips To Make Your Ecommerce Side Hustle Successful

    Number of digital buyers worldwide from 2016 to 2021
    Number of digital buyers worldwide from 2016 to 2021

    Steps to Start Ecommerce as a Side Hustle

    Setting up an online business might seem overwhelming at first, but it gets better with time, as said by Nelson Mandela, “It always seems impossible until it is done.”

    The following are four easy steps that will help you to start eCommerce as your side hustle:

    Decide The Product or Service To Sell and Your Target Audience

    You must be wondering what exactly you should sell. There are tons of business structures, be it service-based businesses, physical products, digital products, or software. It is common for people to get stuck on this.

    Here are a few things that you must bear in mind while selecting your product:

    • You must be genuinely passionate about it so that if it pays off well, you can continue to pursue it full-time in the future.
    • Consider the practical necessities of the product or service such as the competition and its demand in the market.

    You can start this step by making a list of possible products that you would want to sell as inspiration is present everywhere. Think of the products or services your close ones or your target audience might want to buy. There are numerous product lists suggestions available on the internet that might help you with this. Lastly, search for your product on Google trends and verify whether a demand exists for the product. As this will help you to find your target audience.

    A few more things that you should take into consideration at this step include:

    • Who is your target audience?
    • What are the pain points of your target audience?
    • How can your product help them?

    All this will help you set a definite goal in advance, which ultimately makes the rest of the steps easy.

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    Once an idea about selling something pops in your head, you would be tempted to start your business right away. But at this point, it is important to control your impulse and rather take a calculative decision.

    So, after you have decided on the product or service that you want to sell, you must conduct proper market research, watch out for your competitors, and, observe what they are doing, what is working, and what is not working for them. Here are a few things that you must consider while researching other businesses:

    • What is their business model?
    • Who is their target audience?
    • What are the social media platforms they are active on?
    • How do they generate leads (SEO, PPC, email)?

    All this will help you create distinguished characteristics for your business and you will also get to know what to do and what not to. Thus, conducting research and analyzing your competitors will give you a better understanding of how you should start eCommerce as your side hustle.

    Set Up Your Online Store

    Set up your online store - Shopify, eBay
    Set up your online store – Shopify, eBay

    The next step is to set up your online store from where your customers would be able to buy the products or services you are offering. You can choose eCommerce platforms like Shopify, Woocommerce, eBay, and more. They provide ready-to-use templates and easy-to-use store-building tools. With so many options available, it might be confusing to choose one platform from where you want to sell. Here are a few points that you should consider before selecting a platform:

    • Loading speed
    • Features and tools
    • Compatibility with payment getaways
    • SEO-friendly features  

    Make sure your store’s theme matches the theme of your business. Give your business a memorable name and be as creative yet clear with the logo. That’s what differentiates other businesses from yours. Also, try to make the buying process as smooth as possible, remove any additional steps and only ask for the information that is necessary to make the checkout process convenient for the customers.

    Also, nowadays, a platform that is gaining huge popularity for eCommerce setups and marketing is Instagram. It is easy to use as all you have to do is open an account, post pictures, think of a payment mode and start selling. Since people are getting more comfortable with Instagram shopping, it is definitely an option worth exploring.

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    Promote Your Ecommerce Business

    Deciding on what to sell and where to sell is not the end of the process for starting an eCommerce side hustle.  No business becomes successful without great sales. Lead generation and sales are the most important part of any business. So, it is important that you spend your heart and soul on promoting it.

    The secret to a successful eCommerce business is to perfect your marketing strategy and channel it to the right platforms. Closely follow your competitors, and look for how they are generating leads, or which platforms they are investing in. Focusing on your marketing and making sure that you have a regular inflow of clients should be your priority.

    Tips To Make Your Ecommerce Side Hustle Successful

    Tips to make your eCommerce successful
    Tips to make your eCommerce successful

    If you are establishing a full-fledged eCommerce business or just starting with your side hustle, certain tips will help you make your business successful:

    Provide an Exceptional Customer Service

    A survey conducted by Greenwich states that “India loses around ₹11,640 Crore every year in revenue due to poor customer service.” Great customer service is essential for your business’s long-term growth.

    You should go the extra mile to meet the expectations of your customers and keep them satisfied. This will ensure that such customers keep coming back to you.

    Work on Store Optimization

    Once you’ve laid the foundation of your business, the next step is to work on your store optimization. Here are some things that you can do to optimize your store:

    1. Make your store mobile-friendly
    2. Increase the loading speed
    3. Improve your navigation bar
    4. Improvise your search button
    5. Create impressive product pages
    6. Add a section of related items

    Keep Updating Your Inventory

    It won’t take a long time before your existing products start losing their thunder in the market. You need to keep on improvising and adding new products or services to your business to keep it relevant. Offering new and improved products and services from time to time will help you to retain your customers and also attract new ones.

    Conclusion

    A side hustle is a new trend that everyone seems to like, be it young children from school, college students, or even working professionals. It might seem tough in the beginning but with time, it pays off well both in terms of money and experience. So, it is indeed possible to handle a side hustle alongside your full-time job, college, and social life. All you need is strategic planning and a bit of patience. Thus, deciding to start an eCommerce side hustle is a great first step in itself and once you have set the foundation of your business, it will be ready to fly to newer heights.

    FAQs

    Is starting eCommerce as a side hustle profitable?

    The eCommerce industry is full of competition, but if you know what the market wants and have a plan in hand, it can be very profitable. However, the profit will depend upon the type of products or services you are selling and also your business model.

    • Amazon
    • Flipkart
    • Myntra
    • Shopify
    • eBay

    What can I do as a side hustle?

    • Sell products or services online
    • Teach a subject online
    • Rent out your vehicle
    • Start creating videos on Youtube and Instagram
    • Start a blog

  • Linktree – Solving Social Media’s Most Annoying Problem

    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 Linktree.

    For the advertising strategies, some organisations use many social identities and platforms, which may make social media management significantly more difficult. There are several reasons why a firm might have various social media profiles (multiple product lines, locations, teams and so on), but it would be extremely difficult to manage them if you had to log in and out of each separate profile and site to check all of your messages.

    Saving users ample time and effort of juggling multiple accounts regularly, social media tools may consolidate pieces of information sent to all of their profiles and networks into a single location.

    The adoption of tools to manage social media accounts has increased in the time being with the relevance of customer service operations and social media for marketing.  People are turning to Google presently more than ever to select the optimal “social media management solutions” to keep them going up.

    Linktree is a social media firm that provides a solution for influencers and e-commerce companies to improve their online visibility across social media platforms such as Facebook, YouTube, Instagram, and Twitch.

    Linktree – Company Highlights

    Startup Name Linktree
    Headquarters Melbourne, Victoria, Australia
    Industry E-commerce, Social Media
    Founders Alex Zaccaria, Anthony Zaccaria, Nick Humphreys
    Founded 2016
    Areas Served Worldwide
    Current CEO Alex Zaccaria
    Website www.linktr.ee

    About Linktree and How it Works?
    Linktree – Latest News
    Linktree – Industry
    Linktree – Name, Logo, and Tagline
    Linktree – Founders
    Linktree – Startup Story
    Linktree – Vision and Mission Statement
    Linktree – Business Model, and Revenue Model
    Linktree – Employees
    Linktree – Funding, and Investors
    Linktree – Acquisitions
    Linktree – Competitors
    Linktree – Future Plans

    About Linktree and How it Works?

    “Link-in-bio” is a popular online idiom that may be used as both a phrase and a whole statement. It’s a short but powerful set of instructions that may bring you to a plethora of information. Linktree is, without a doubt, one of the most well-known link-in-bio services.

    Linktree is a social media marketing tool that allows influencers, producers, publications, and companies to distribute their offerings to their audience across social media networks. It enables users to create a website that houses reference links to their online environment and provides audiences with a single link to all of the information.

    Big businesses, daily content producers, celebrities and any other person, may all utilise the platform to create a webpage that holds their digital environment, making it simpler to engage with their followers. It streamlines the online economy for eCommerce, allowing social media influencers, entrepreneurs, and enterprises to share, sell, curate, and build their businesses.

    Garnier, Shopify, HBO, Wix, Zapier, and YSL are among Linktree’s noteworthy users, as are sports clubs like the Chicago Cubs, Los Angeles Clippers,  and Cleveland Cavaliers, as well as celebrities like Selena Gomez and Arnold Schwarzenegger.

    A Linktree not only directs followers to the places you want them to go — your other social profiles, your eCommerce store, or the material you want to share — but it also retains them in your online social ecosystem for more time.

    Linktree – Latest News

    Linktree was valued at $1.3 billion after a $110 million investment round headed by Index Ventures and Coatue. Linktree has raised $55.7 million in two investment rounds over the previous year and a half.

    Linktree has many vacancies in its engineering and marketing divisions as it prepares to grow its LA workforce and expand further. For what is effectively a lightweight mini-website builder, that’s a lot.

    “Linktree is definitely in a hyper-growth phase, and these fundraise really focus on growing the team. We were seven people in March 2020, we’re now over 230 people globally, and we expect to be hiring another 200 to 300 roles this year between the States and Australia,” said Alex Zaccaria, the CEO of Linktree.

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    Linktree – Industry

    The increase in the number of COVID-19 cases has produced a significant boom in the social media management sector. The massive amounts of data generated by social media sites, the widespread acceptance of social media management solutions, and the development in cloud usage habits among small and medium-sized organisations, bring considerable opportunities for social media, management services providers.

    Legal and regulatory limits, issues in administrative workflow, legislation, and a lack of universal standards, on the other hand, impede market expansion. The absence of appropriate statistics for social media management tools, as well as a single solution to deal with the expanding unstructured data concerns, could inhibit the market growth.

    This market is anticipated to grow at a Compound Annual Growth Rate of 23.6 per cent, from USD 14.4 billion in 2021 to USD 41.6 billion in 2026. Some of the factors driving the growth of the Social Media Management Market include increased focus on the market and competitive intelligence, enhanced customer experience, increasing customer involvement in social media using smartphones and increased need for search ROI for social media strategy.

    Linktree – Name, Logo, and Tagline

    Linktree is a tool that lets you broadcast multiple links on social media in a tree-like structure that organises all of your links as branches. So, there’s one link for all your links. This is where its name comes from.

    Linktree’s tagline says. “You only get one chance to link on Instagram. Make it do more.”

    Linktree – Founders

    Alex Zaccaria, Nick Humphreys and Anthony Zaccaria founded Linktree, a freemium social media reference landing page based in Melbourne and Sydney, Australia.

    Co-founders of Linktree and brothers - Alex Zaccaria and Anthony Zaccaria
    Co-founders of Linktree and brothers – Alex Zaccaria and Anthony Zaccaria

    Alex Zaccaria

    Alex Zaccaria is the Co-Founder and CEO of Linktree, as well as a co-founder of Bolster. He went to RMIT University to complete his education.

    Nick Humphreys

    Linktree’s Co-Founder and Creative Director is Nick Humphreys.

    Anthony Zaccaria

    Anthony Zaccaria is a Co-Founder of Linktree and a Director at Bolster.

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    Linktree – Startup Story

    Linktree was founded in 2016 as a result of frustration with social media platforms that do not allow numerous URLs in the bio of profiles. The website was built in only six hours. Overnight, the server was claimed to have 3,000 users, causing it to fail due to overcrowding.

    Linktree, a Melbourne firm that began as a side venture to answer a basic problem, has surpassed its humble beginnings.

    Currently, it receives 10,000 new signups every day, with 90% of those coming from outside of Australia. The Linktree narrative begins in 2016 when co-founder Nick Humphreys and brothers Alex and Anthony Zaccaria were running a music and entertainment digital business.

    They were managing artists and making announcements on Instagram. They were fed up with having to update their Instagram bio link regularly. The company’s co-founders had newly recruited a developer, but they didn’t have any task for him yet, so they assigned him a task, to come up with a solution that would enable them to add several links. The design was completed in six hours.

    According to Zaccaria, Linktree was created to tackle an issue for the agency. However, it turned out that a lot more folks experienced the same issue. This happened to be at the same time that Instagram transitioned from a chronological to an algorithm-based feed, which meant that individuals may be viewing posts from three or four days ago. That bio might have been updated by the time people saw the phrase ‘link in bio.’

    Initially, the firm only promoted the solution to its clients, but news spread quickly, and they soon had roughly ten sign-ups each day. The team intended to launch the redesigned Linktree a little more officially.  But, before they could, a grateful user took care of it for them.

    On a particular day, Linktree received between 3,000 and 4,000 additional signups. Since then, the number hasn’t dropped below 800 each day. Naturally, it is now substantially higher. And thus, Linktree has gradually grown from being a side-hustle to a full-fledged company.

    Linktree – Vision and Mission Statement

    Linktree’s mission is to, “democratize the internet and to democratize people’s digital presence.”

    Linktree – Business Model, and Revenue Model

    Linktree’s business plan is based on a freemium concept. In today’s world, many firms employ this concept. A freemium approach entails providing all users with a free, but restricted, profile. This will suffice for the great majority of people.  Some people, on the other hand, will crave more. Anyone who wants the premium features will have to pay for them.

    Linktree can afford to deliver a basic experience for free as long as a tiny percentage of customers pay for the premium option. To put things into perspective, Linktree has a free plan. This free plan allows users to connect to as many venues as they want, receive payments, and view basic user statistics and analytics. However, Linktree’s “PRO” service provides the user with comprehensive details. They’ll be able to monitor where their views come from, as well as how people act while they’re on the website, and they’ll have access to more comprehensive statistics.

    The PRO service also comes with a slew of extra features, such as sophisticated customising. The PRO subscription is $6 per month. An “Enterprise” plan is also available. This is for larger firms, who will receive a custom price based on their requirements. This is also a paid service, with the cost varying depending on the services needed. As you can see, Linktree is a low-cost platform to maintain, but it generates a lot of income because of its large user base.

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    Linktree – Employees

    • Co-Founder and CEO – Alex Zaccaria
    • Co-Founder – Anthony Zaccaria
    • Co-Founder and Creative Director – Nick Humphreys
    • Head of Strategy and Operations – Michael Stocks
    • Head of Growth – Jessica Box
    • Talent Acquisition Manager – Mitch King
    • Partnerships Lead – Albert Smith
    • Engineering Manager – Kurt Weiberth

    Linktree – Funding, and Investors

    Date Round Amount Lead Investors
    Mar 16, 2022 Series B $110M Coatue, Index Ventures
    Mar 24, 2021 Series B $45M Coatue, Index Ventures
    Oct 26, 2020 Series A $10.7M AirTree Ventures, Insight Partners

    Linktree – Acquisitions

    Acquiree Name About Acquiree Date Amount
    Songlink Songlink is a fully customizable, on demand smart link solution for music, podcasts and more. Aug 19, 2021 –

    Linktree – Competitors

    Top competitors of Linktree are :

    • Jotform Apps
    • ContactInBio
    • Shorby
    • bio.fm
    • Lnk.Bio
    • Tap Bio
    • EverLinks
    • Campsite

    Linktree – Future Plans

    Shoppers are spending more time and making more purchases online than it has ever been, highlighting the need for companies and artists to develop consistent profiles throughout all the social media platforms and make them conveniently searchable.

    Linktree keeps up with the times by delivering a trustworthy network that streamlines the information that matters most to consumers while also making commerce and interaction easier for the companies and creators who reach them.

    Linktree will make significant investments in making social commerce simpler with the new round of investment, enabling more transactions to be accomplished with minimal taps.

    Ever since the Series-A round of financing, Linktree has launched additional customization tools, streaming embeds and video link possibilities, and, allowing customers to broaden their business to offer more, promote more, develop more, and engage more profoundly, all for free.

    Aside from product development, Linktree intends to create multi-location creator hubs that will also serve as offices for its expanding rapidly remote teams, beginning in Los Angeles and moving to other cities.

    Linktree – FAQs

    What does Linktree do?

    Linktree is a social media firm that provides a solution for influencers and e-commerce companies to improve their online visibility across social media platforms such as Facebook, YouTube, Instagram, and Twitch.

    Who founded Linktree?

    Alex Zaccaria, Nick Humphreys and Anthony Zaccaria founded Linktree, a freemium social media reference landing page based in Melbourne and Sydney, Australia.

    How does Linktree make money?

    Linktree’s business plan is based on a freemium concept. However, Linktree’s “PRO” service provides the user with comprehensive details. The PRO subscription is $6 per month.

    Which companies do Linktree compete with?

    Top competitors of Linktree are Jotform Apps, ContactInBio, Shorby, bio.fm, Lnk.Bio, Tap Bio, EverLinks, and Campsite.

  • Top 7 Transactional Emails That Every E-commerce Business Can Make Use Of

    At a time when there are a plethora of eCommerce platforms for the customers, it is all the way more important to keep your existing customers abreast and gain more of them. At a time of oversupply of options like this, every firm has to find ways to keep their memory fresh in the minds of their customers. Not only that, but it is also necessary to inform them why they have to purchase from a particular platform and not from their competitors.

    Marketing emails is one of the best ways in which all of these requirements can be achieved. Each mail becomes a golden opportunity for the firms to connect with their customers or even know about their needs through their email responses.

    This article will look at certain kinds of emails that can be used to enhance customer engagement and retention.

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    Welcome Email
    Promotional Email
    Customised Email
    Re-engagement Email
    Reference Email
    Review Email
    Stock Update Email

    Welcome Email

    It is a fact that everybody likes to be acknowledged for their efforts and actions. Being an e-commerce platform, a newsletter that is circulated through a common mailing list is usual.

    Whenever there is a new subscription, be sure to send them a welcome email. The content and creativity that will brim in this email will help the consumer gain a first impression of the firm and its quality.

    In this email, you can start by thanking them and then highlighting one aspect of the firm. It can be about an upcoming sale, a special discount or a cue towards when all to checkout for the newsletter.

    Since this email will go immediately after they subscribe, it is more likely to be seen and read by the customers than any other email later. Hence, make sure that the welcome email is the best that it could be.

    Promotional Email

    The prime intention of these emails is to keep customers up-to-date with the events of the firm. These emails can be used to drive sales for your business. To increase the impact of these promotional emails, they can be curated based on the recent purchases of the customer.

    Upselling can be done by offering the customer something of higher value depending on their engagement with the platform. Alternatively, through the promotional emails, customers can be introduced to complementary products to cross-sell. It will help in increasing the overall sales of the organisation.  

    While making these promotional emails, note that they should be engaging with the audience without pressurising them. While it is a good idea to give them a deadline for the discount or a sale, it should not come out as a compulsion. Rather, the email should elicit a curiosity that will make the customers search and make the purchase.

    Customised Email

    The best way to retain customer loyalty is to make them feel special. A mail wishing them a birthday or letting them know that the organisation appreciates them can go a long way.  

    Emails that pose as a first-hand reminder of an upcoming sale are a good example of a mail that would make the customer feel valued. Along with these mails, the firms can offer small discounts that will ensure better engagement.

    A lot of companies make use of these emails to ensure that their customers come back to them without fail. Cultfit through their efficient notification management can be an excellent example in this regard although they are only notifications and not emails.

    Re-engagement Email

    Considering the options that customers have in this digital age, it is very likely that they might remain dormant after one or two purchases. In these situations, eCommerce platforms can make use of re-engagement emails that invite customers back to their fold.

    It will not only generate a connection with the customer but also ensure better chances for their come back. During these emails, it will be ideal to offer the customers certain benefits or discounts that can boost their interest.

    Reference Email

    The key idea that drives any eCommerce venture forward is the expanding consumer base. There is no better way than word of mouth to increase the reach of any product.

    emails encouraging the customers to refer more people into their fold is an excellent idea. These emails have to be curated in such a way that a reason why the customer should refer someone else has to be clearly stated. The idea of offering a freebie or extra points in return for a reference never gets old.

    Review Email

    Customer engagement is a two-way process. While commerce platforms constantly try to earn the trust and loyalty of the customer, it is equally important to learn and evolve according to the customer’s suggestion as well. Apart from the growth prospect that this process offers, it will also help to create an impression that the customers are heard and valued.

    emails that contain feedback and review links can be circulated periodically. Depending on the availability of data and the nature of business, eCommerce platforms can circulate these emails with every order or from time to time inquiring about the overall experience of the user.

    Stock Update Email

    Every customer has unique needs that they want to be met by the eCommerce businesses every time they use these platforms. It can happen that they cannot deliver what the customer needs at a particular point in time due to the unavailability of stocks. It is a very important and impactful gesture when the company reverts back to the customer when the restocking happens.

    While chances are high that the customer would have gone for some other options, such a mail can prove extremely useful to the firm’s commitment to the customers. If the company has its standards maintained when it comes to the quality of the products, then there is absolutely no doubt that such a mailing practice will make the customer wait until the product is restocked.

    Conclusion

    Keeping up with customers through emails is a great way of ensuring and expanding a good customer base. While the contents of these emails have to be reworked depending on the needs and visions of the respective commerce businesses, the purpose of these emails remains as the ones mentioned above.

    There are still more different kinds of email templates that can be used to send to the customers. However, too much of it can be tiring for both parties. A respectable number of emails say two or three every week are largely appreciated. Making use of this great opportunity through emails can be a great way of building commerce businesses.

    FAQs

    What is a transactional email?

    A transactional email is an email sent to an individual when the user performs an action, for example subscribing to a newsletter.

    What is transactional email? Give detailed examples.

    Some examples of transactional emails are sending an email when a new user signs up, confirmation of purchase or forgotten password email.

  • 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.

    WIDGET: leadform | CAMPAIGN: undefined

    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

    Marketplace App Development Time
    Marketplace App Development Time

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    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.

  • 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
    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
    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
    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
    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.

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    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
    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
    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
    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
    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
    Provide Social Proof

    10. Free Gift

    Offer Free Gifts
    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
    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
    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
    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
    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.

  • Traditional Business V/S Digital Business and Types of Business Models Used

    This post discusses the differences between traditional businesses and digital businesses. It also talks about the types of business models that come under these two forms of businesses.

    Managing a business is both challenging and interesting. It’s not like your 9-5 government job where one reaches the office at or before a particular time, does some mundane tasks, and then wraps up for the day at a fixed time. With business, everything takes a different turn. Inherent risks and the constant need to pacify customer requirements float in the business owners’ minds.

    A traditional business setup has a physical presence, and it serves people locally by providing services or products through brick-and-mortar stores. In case of a digital business setup, people sitting in any corner of the world can scroll through the web and avail the company’s services and products.

    What is Traditional Business?
    Types Of Traditional Business Models
    What is Digital Business?
    Types Of Digital Business Models
    Traditional Business V/S Digital Business

    Difference between Traditional Vs Digital Business

    What is Traditional Business?

    Organizations such as restaurants, agencies, and anything resembling an office-setup fall in this category. Traditional business-oriented organizations usually sell products or services through stores.

    A traditional business serves customers in exchange for monetary compensation. It works on CAPEX and OPEX. While such organizations focus on profit generation, a few of them—non-profit organizations—work for customers without expecting profits.

    Types Of Traditional Business Models

    Various types of business models used in traditional business are:

    Manufacturer

    The manufacturer business model utilizes raw materials to create products that are then sold in the market. This type of business model involves the assembly of pre-manufactured items. The products are either directly sold to the customers in what’s known as B2C model (business to customer), or to another business unit in the form of B2B model (business to business). Automobile manufacturers are an example of B2C model, and wholesalers follow the B2B model.

    Distributor

    A company in the distributor business model buys products directly from the manufacturer. The company then sells the procured products to consumers or retailers.

    Retailer

    A company following the retailer business model purchases products from the wholesaler/distributor. It then sells the inventory to the public. Brick-and-mortar stores fall in this category.

    Franchise

    In this setup, the company buys the franchise of a very successful brand and promotes the brand’s services/products to the general public. The franchise segment is a popular way to build awareness across geographies.

    Traditional And Digital Business Model 

    What is Digital Business?

    Digital business is the modern form of business, a significant deviation from the established norm. This model leverages technology for value creation & addition, thereby giving an entirely different customer experience.

    The umbrella term includes both digital-only brands as well as traditional businesses that use modern-day innovations. Prominent examples of digital businesses are Uber, the cab-owning service which allows the user to book cabs online, Disney+Hotstar, and Netflix (video streaming service).

    Types Of Digital Business Models

    Types of the business model used in digital business are:

    Basic

    Small businesses fall in this category. With a small presence on digital platforms, such ventures rely on traditional marketing methods like direct mail and print advertising.

    Intermediate

    A level where small businesses employ tools like websites with basic functionality; these sites don’t have e-commerce or mobile rendering capabilities. Other factors like listing in online directories and third-party marketplaces play a major part here.

    Advanced

    Advanced websites with mobile app versions or e-commerce abilities are used by digital businesses in this category. The reliance on Social media engagement is quite significant. Video conferencing, SAAS apps, etc. are part of the toolkit.

    This model is the epitome of digital business. Such ventures have high social media visibility, have little or no physical presence (as in brick-and-mortar stores), and engage with customers extensively through the internet.

    Traditional Business V/S Digital Business

    Traditional Vs Digital Business
    Traditional v/s Digital Business

    There are various differences between traditional business and digital business which are listed below:

    • The traditional business model requires more capital than its digital counterpart. The former needs place, furniture, transport, staff, and other utilities. Digital businesses are cost-effective in this aspect.
    • A business unit following the digital approach is convenient for customers in terms of the flexibility offered in the variety and cost of products (consider Amazon’s extensive product catalog). In the traditional setup, rigidity is a major issue. As a result, consumers are now inclined towards shopping online.
    • The digital business model is yet to achieve perfection when it comes to real-time customer experience. For example, you can’t try a mobile phone before purchasing it from Amazon. You rely on customer reviews and the specifications listed on the website. This obstacle is overcome in the traditional business model.
    • Online businesses tend to have a larger digital market spend than their old-school counterparts. Traditional businesses diversify marketing strategies to attract customers from both local areas and online demographics. But their reach is relatively restricted to digital businesses.
    • Digital businesses work 24/7 and overcome both geographical and timing barriers. You can carry out online purchases in the middle of the night from anywhere in the world.
    • Organizations based on the traditional business model have restrictions on when and where they function. Timings are rigid and customer service isn’t flexible either. There are exceptions where few traditional business operates 24/7, but those are limited in numbers and function in select locations only.

    FAQs

    What is the difference between traditional business and digital business?

    A traditional business setup has a physical presence, and it serves people locally by providing services or products through brick-and-mortar stores. In the case of a digital business setup, people sitting in any corner of the world can scroll through the web and avail the company’s services and products.

    Why is online business better than traditional business?

    Digital businesses work 24/7 and overcome both geographical and timing barriers. You can carry out online purchases in the middle of the night from anywhere in the world. Traditional business has restrictions on when and where they function.

    What is traditional business?

    Organizations such as restaurants, agencies, and anything resembling an office-setup fall in this category. Traditional business-oriented organizations usually sell products or services through stores.

    What are traditional business models?

    Types of Traditional Business Models:

    • Manufacturer: The manufacturer business model utilizes raw materials to create products that are then sold in the market. This type of business model involves the assembly of pre-manufactured items.
    • Distributor: A company in the distributor business model buys products directly from the manufacturer.
    • Retailer: A company following the retailer business model purchases products from the wholesaler/distributor. It then sells the inventory to the public. Brick-and-mortar stores fall in this category.
    • Franchise: In this setup, the company buys the franchise of a very successful brand and promotes the brand’s services/products to the general public. The franchise segment is a popular way to build awareness across geographies.

    What is the difference between traditional and non-traditional business?

    The major difference between traditional and non-traditional business are:

    Traditional

    Standalone stores, retail spaces in malls, and any other type of place that houses a usual location for a given franchise fall under the category of traditional businesses.

    Non-Traditional

    Non-traditional businesses conduct most of their operations over the internet. They might have a few physical stores but these are generally for resolving customer issues and function as a point-of-contact.

    What are the types of ECommerce Business models?

    Four Traditional Types of Ecommerce Business Models are:

    • B2C – Business to consumer
    • B2B – Business to business
    • C2B – Consumer to business
    • C2C – Consumer to consumer