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Competitive pricing is fixing the price of a product based on the prices competitors are charging; this pricing strategy is used when a particular product has reached a level of equilibrium on a respective marketplace after being present for a long time and having many alternate products on the marketplace.
Regardless of the key importance of conversions in international Ecommerce, it remains the most neglected part of digitalized marketing for online businesses. Despite the overwhelming advancements in technology, the average rate of conversion in cross-border trade stands stuck at around 1.5% mark (according to Forbes); this can be attributed to a lack of understanding of the psychology of the potential customers.
Predicting the sales performance of a product before making it live on an international online marketplace is not easily attainable. To be specific, it is almost impossible to predict the future of a product that is up and running. However, the overall market demand for a particular product can definitely be estimated for having a clear picture of the total market potential and profitability.
Cross-border Ecommerce, as such is rapidly growing and is expected to increase manifold by 2020. As per a report presented by the Federation of Indian Export Organisations (FIEO), the total export value for cross-border Ecommerce has risen to $1.4 Billion (equivalent to 400%) over the last three years.
A huge number of aspirant international online sellers are willing to be an active part of this flourishing industry while it is being cordially embraced by millions of enthusiastic buyers across the world. In order to identify worldwide online shopping behaviour, IPC released a survey report in 2016. The research was basically a quantitative analysis carried out on 24,000 online consumers spread over 26 countries.
After low sales volume for a global Ecommerce business is analysed, it is prudent to consider and re-evaluate the exact reasons why consumers are declining the products. There are simple and straight-forward ways to fix these issues for improving conversions and seeing products succeed on the most promising international online marketplaces.
With technological advancements, sellers and brands can reach out across several continents, countries and time zones. Customers from all across the globe, thereby, demand a seamless experience on the online marketplace platforms; customers accept culturally befitting and relevant content that will be delivered in the ‘right language’ to them.
The onset of several online marketplaces, large investments and consolidation became a key player for sellers and brands leveraging new revenue streams from global online selling. Accordingly, 20% of most Cross-Border sales have been reported to have an average basket value of US$ 200+ boosting overall sales by a minimum of 10%.
With nearly 13 million products listed online (as per Slideshare) on CDiscount France, it is undoubtedly the second largest marketplace in France after Amazon France. It is not surprising that there are no less than 130,000 orders per day (as per Magnalister) with 23 million active marketplace offers (as per Slideshare) always up and running on the platform.
The objective of the company laid down by the duo- Jeremy Hodara and Sacha Poignonnec is to create a digitally connected Africa that enables first-grade online commerce across the globe. With a present headcount of 3000 employees, Jumia is making its presence felt across 23 African countries by trying to become the best and the biggest retailer- online and offline.