Three Key Takeaways From Our eCommerce Event
We live in a world where the internet is easily accessible and people have the ability to buy products not just in local stores but rather online, this is known as E-commerce. E-commerce is known as the process of buying and selling products by electronic means such as by mobile applications and the internet. Over the years E-commerce has increased in popularity. It’s replacing traditional brick and mortar stores.
This is the reason in which last Wednesday, on February 5th an event took place in the Mrkt360 Office in which different businesses were invited in order with the objective to learn about E-commerce from different experts in the field.Here are the three key points from this event:
1. Businesses can use the BCG Matrix to analyze their company
First, Natalia Storozhilov (who is a digital advisor at Mrkt360) covered in her presentation, a method is known as the BCG Matrix. This matrix is really useful since it helps business owners and marketers decide how to distribute resources to their products and understand which products will generate the best return on investment.
➔Red quadrant (dog): Products with low growth or market share
➔Green quadrant (money): Products in low growth markets with a high market share
➔Blue quadrant (question mark): Products in high growth markets with a low market share
➔Yellow quadrant (star): Products in high growth markets with a high market shareTo apply the BCG Matrix:
➔The usual marketing advice here is to aim to remove any red products from your product portfolio as they are a drain on resources. However, this can be an oversimplification since it’s possible to generate ongoing revenue with little cost.
➔The blue products are the one that it’s not known if they will become a yellow product or drop into the red. These products often require significant investment to push them into yellow products. The challenge is that a lot of investment may be required to get a return.
➔Yellow products can be the market leader though they require ongoing investment to sustain. They generate more return on investment than other products.
➔The green quadrant means those products that are often mature, well-established products.For more information regarding BCG Matrix click here.
2. E-commerce posses huge potential for residual income
Alex Rakhmilevitch (digital marketing specialist) describes E-commerce as a commercial transaction conducted electronically. This means that we can define E-commerce as the practice of guiding online shoppers to an E-commerce website and persuading them to buy the products or services online.
Along with the definition, he mentions three types of E-commerce. When products are sent directly from your wholesaler to your customers, it is called dropshipping. It is a retail fulfillment method where a store doesn’t keep the products it sells in stock. It purchases the item from a third party and has it shipped directly to the customer. Another type is classic E-commerce in a store or buying online when everything you do is geared around a transaction: the basic exchange of money for goods or services. And private labeling for those products which are generally manufactured or provided by one company, then labeled with another company’s brand, is known as private-label products.
Rakhmilevich finished the speech with the formula to make E-commerce marketing.
For E-commerce marketing you have to identify your target group for the service or product that you will sell. Then you choose the right distribution channel for your business after considering all the factors like the type of product, market. And finally, you make your campaign and budget planning.
For more information regarding E-commerce Marketing feel free to visit: https://www.marketing-schools.org/types-of-marketing/e-commerce-marketing.html
3. Private labeling can determine how you can manage your assets and increase the diversification on your distribution channels
Arthur Roitman (Realtor, E-Commerce Entrepreneur) starts with the definition of private label products, those manufactured by one company for sale under another company’s brand.
He stated that companies today have diverse options on how they can manage their assets for producing their products. Along with the lines with what Arthur said in the conference was all about Private labeling. Which is indeed a way on which companies produce their own brand labeled products with third party companies. This helps them save costs and increase their logistics channel diversification. Arthur believes that what is important here is that a company is represented by its brand. Companies are not all about a product, they are all about identity.
According to USA today “Brands seem to be part of all aspects of life. Celebrating uniqueness — a core element of any brand — is a greater part of the American experience than ever before, and this has extended to the newest major space for brand development: the internet. Corporations recognize the rising importance of developing a powerful online identity in the era of 24/7 access through computers and smartphones. Successful ones use social media, advertising, and digital marketing effectively to solidify their names and products in the minds of consumers.” (for more information you can check the link https://www.usatoday.com/story/money/business/2018/10/09/most-valuable-brands-apple-google-amazon/38061893/)
So at the end. Arthur asked: What does it mean to be a successful company?
As he later replied that the main difference relies on profit, revenue and reputation. While companies need to be efficient at cost management they also need to be aware of how much their customers are willing to pay for their brand. How much is their brand worth?
He reviewed 7 factors that contribute to the creation of a wealthy brand, which are:
- brand experience
- staying ahead
Companies need to know how many options they have for their fulfillment strategies that can help expand their selling point and get to their target audience with ease.
E-commerce can be a broad subject for some people but the important thing is to have in mind is the way you sell your product, to whom are you selling your product and where are you selling it. For more information, you visit mrkt360.com