5 avoidable mistakes that the e-tailer makes, which hinders their online growth

If you want to know what are the 5 avoidable mistakes that e-tailers make while branding and positioning their online brand to its customers, then read on.

We are presenting the 5 filtered points that reflects the avoidable mistakes that e-tailer usually makes, which hinders their Online growth.

  1. Not investing in Logistics and warehouses:

One of the biggest mistakes that online retailers can make is not investing in logistics and warehouses.  It is estimated that investment from the big online retailers can tune in the range of $2 billion in logistics and warehouses by 2020, as most of the big online retailers are working on the plan to increase the delivery of their products in remote locations.

There are also reports of online retailers trying to tie up with government undertakings such as India Post & petrol pump stations to reach out to more customers. Expected boom in small cities might also widen the reach of online retailers in future.

  1. Not giving much preference to accept online payment methods

Online payment mediums such as credit cards, debit cards i.e. maestro, Mastercard, VISA, American Express is the lifeline of the online transactions across the globe. If reports are to be observed, there has been a net addition of nearly 140 million debit cards in the country in the past few years.

The intriguing fact is that the usage of debit cards at POS terminals has seen a growth of 86% during the same tenure. It indicates the users’ willingness to use debit cards for purpose of shopping. With many online retailers still not using the credit and debit card aggressively, it’s affecting their sales rate to some extent. Thus, with these online payment methods, e-tailers can reach out to many areas and many more customers in the coming years. Currently, cash on delivery constitutes nearly 70 per cent of all transactions for online retailers.

  1. Not focusing much on Mobile commerce:

Mobile has become an important mode of communication and entertainment for the users. As per the Internet and Mobile Association of India, the number of mobile internet users in the country stood at 173 million in December 2014. It is set to grow manifold by 2020.  Given the increased mobile penetration and smartphone adoption in these areas, e-tailers must shift towards the mobile world to drive the trend.

 

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    4. Not expanding to tier-2 and tier 3 cities beyond metros:

Most of the e-tailers have a common thought that Tier -1 cities are the source of potential high income groups.  But as matter of fact, about 20 per cent of India’s population lives in cities outside of metros. For instance if we take example of Snapdeal.com, it is observed that about 60% of the sales comes from tier 2 and tier-3 cities and from towns. The contribution from these cities in coming years is set to rise even bigger.

     5. Not localizing the internet content

Launching of Snapdeal’s multilingual interface in Jan 2014 in Hindi and Tamil has led to tremendous positive response from the local customers. The above circumstance clearly shows the importance of localizing the internet content according to the area of coverage. If the website is in local language it is surely bound to increase the customer base and indirectly or directly increase the customer base consequently.

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