E-Business Set Up and Compliances

Understanding Market through Research

A place where business is carried out is called a market, which is subject to numerous factors affecting it. Our ancestors have already created markets with progressive civilization and growing needs, however the current marketers need to primarily understand the existing markets create more new ones. This is how a marketer attains vision and thinks of going big. 

Before stepping into any area, one need to understand that area first. This is the most delicate stage as it requires the marketer to empathize people, their lifestyle, affinity, beliefs, consumption, etc. A marketer is required to make an extensive study about that region's independent variables like demography, affinity, psychometry, decision making ability, problems, needs and wants, desire, sensitivity and perceived change adaptation of the projected consumers. These elements have to be matched with all that what is going to be offered to the same consumers based on the above independent variables and several relations, associations or even estimations are drawn. This detailed process is called understanding markets.

Process for establishing an e-commerce organization in India

1. Market Research: For starting an online business in India, one has to make sure to undergo thorough market research first. Skipping this step may prove dangerous as many individuals wish to become businessmen in a snap of time. Lack of research may affect the organization's capability of understanding the right market, right audience, right product and most importantly, consumer behavior. Pursuing market study by way of research at the beginning itself saves time, gives a vision about expected problems which can be solved through brainstorming / consultancy, estimate business trends, manage finances, manage agreements and contracts and also complying with relations and policies.

2. Tapping the market: Progressive marketers are good marketers as they believe in taking baby steps to earn experience and knowledge and accordingly, shape themselves. With market research, one can determine the most feasible market where e-business can be done with manageable risk. This involves asking maximum questions to oneself and even consumers which includes:

• Who are you?

• What do you have?

• Who should buy from you?

• Can they buy from you?

• Why should they buy from you?

• How much can they buy from you?

• Will they benefit if they buy from you?

• Will they keep buying from you?

and several other questions. The answers to these questions enables business decisions where the e-commerce attempts to fit itself into the market.

3. Testing and Validation: For any e-comm to be successful, a pilot run in a niche market is a must. Pilot runs are basically carried out to test the product and its acceptance in the target market. A vendors also gets answer to the question whether the product is worth selling considering the most important factors namely cost and profit. Taking necessary and detailed feedback from the initial customers helps an e-comm to validate its products and even the website. This step gives an clarity to the e-comm about their fitness to carry out the desired business at whatever scale possible. This is the moment where the e-comm has to identify the right model to fit in, decide about inventory management and establish pricing strategy.

4. Legal Formalities: Every organization is required to define itself when it aims for a successful establishment. The term legal formalities here refers to registration of the e-commerce with various authorities for recognition, compliance ensuring smooth conduct of business. This includes self registration as a proprietor or a company or a Limited Liability Partnership or even a trust. Besides this, other supplementary registrations like Udyam, Gumasta, PAN, Current Account, Trademark, Trade License, etc.

5. Raise Finance: Finance is the heart of any business and one need to plan and arrange the required amount of financial resources for starting any e-commerce business. This finance is used to buy business assets such as office property, machinery, software and software services, inventory and materials, salary and labour wages, and other operational costs like web presence and add on, payment applications, packaging, storing, lighting, insurance, transportation and delivery, commissions, etc. Generally, small e-commerce businesses operates on roll over capital i.e. one month's revenue finances the next month and so on. But its a thumb rule to keep a finance of total of three month's estimated cost. 

Example....

Inventory Rs. 40,000 (Cost of goods which are to be sold)

Business Registration  Rs. 5,000 (Company registration with stamp duty, GST registration, Shop License)

Website Management  Rs. 25,000 (cost of hosting, managing and securing website)

Selling and Marketing Costs Rs. 35,000 (digital marketing cost, employee salary, commissions, aggregator listing charges, etc.)

Other Costs  Rs. 30,000 (includes packaging cost, delivery cost, rent, utility bills)

Total Cost Rs. 1,35,000

As per the above calculations, the e-comm is expecting a monthly cost of Rs. 1,35,000/-. This means, in order to earn a monthly profit of Rs. 15,000/-, they will need sales of Rs. 1,50,000/-. This Rs. 1,50,000/- will be used for financing next month's operations. It is to be noted that all the costs mentioned above except registration are recurring in nature.

However, there are various ways of funding an e-commerce. One can self finance, take a bank loan, raise money by issuing equity / ownership, etc.

6. Web Appearance: Setting up of website is the most important task in e-commerce business. Website can be set up considering the following points:

• Identify a domain and hosting upon confirming final company / brand name which be further registered.

• Connect website with an e-commerce platform like - Shopify and Woocomerce, and set up a business account.

• Keep content ready for product images, product videos, product details, descriptions, size-charts (if any), price, discount price, coupon codes, logo, e-mail templates, citations, related products, shipping information, taxing information, privacy policy, terms and conditions, testimonials, and other details to make your website authentic.

• Upload product/s on your e-commerce website following all the processes mentioned above.

• Set up payment gateway (a platform that helps in transactions, so buyers can pay through credit card, debit card, net banking, UPI, and other popular e-wallets). Some of the best payment gateways are- Razorpay, PayU, Paytm Payment Gateway and Instamojo.

• Publish website and now, its all set for usage.

7. Undertake Digital Marketing: Having a website not everything. Organizations have to extensively market themselves through the web on various channels so that people can be pulled towards the website (traffic). An e-comm's business entirely depends on this traffic. Approaches such as Search Engine Optimization, Search Engine Marketing, Google Adwords, Youtube Ads, Social Media Ads, Banner ads, etc. can be done by e-vendors. 

8. Operations: Operations are the activities that an e-commerce is supposed to carry out on a daily basis. This includes sourcing, procurement, inventory management, product information management, pricing, promotion, customer order processing, shipping, logistics, documentation, customer support, customer relationship, third party payments for various services and other tangible as well as intangible services. 

9. Analytics: In e-commerce, analytics are like a roadmap to success, guiding your decisions and revealing hidden insights. It's the process of collecting, analyzing, and interpreting data about an online store to understand performance. This data comes from various sources like

• Website traffic: Visits, page views, bounce rates, referral sources

• Customer behavior: Clicks, purchases, abandoned carts, product searches

• Marketing campaigns: Impressions, clicks, conversions, ROI

• Social media interactions: Likes, shares, comments, messages

• Financial data: Revenue, costs, profits, margins

10. Feedback: An e-commerce firm must never forget to collect valuable feedback from its customers in order to visualize, understand and implement any potential improvements in the course of business. Collecting information on the website itself is the primary key, however organisations can also collect the same post sale which acts as an after sales commitment.

Registration of e-commerce with various authorities

Setting up an e-commerce business in India involves registering with various authorities to comply with legal and regulatory requirements. Here's a comprehensive breakdown of the key registrations before heading with a solid and ethical e-commerce business in India:

1. Registration of the Business Entity

• Company or Limited Liability Partnership (LLP): A business planning to raise large investments, usually registers itself a company under the Indian Companies Act, 2013 or as Limited Liability Partnership under the Companies Act, 2013. This offers limited liability protection and a more formal structure along with a strong recognition. This can be carried out on Ministry of Corporate Affairs portal with the following details, documents and instruments: PAN Card in the name of proposed business, Aadhar, Address proof, passport size photo, NOC, Bank Current Account, Articles of Association, Capital Structure, Stamp Duty, Digital Signature Certificate, etc. 

• Sole Proprietorship: For smaller businesses with a single owner, registering as a sole proprietorship is simpler and less expensive. However, it doesn't offer limited liability protection. This is good for those people who wish to run business on a small scale. Usually, e-commerce companies do not register under sole proprietorship as the risk is high compared to that of brick-and-mortar stores.

2. Shop and Establishments License / Gumasta License: This registration is mandatory in some states, like Maharashtra, for businesses with commercial establishments. Gumasta License is a mandatory registration required for doing any kind of business in the state of Maharashtra. Gumasta license is the license obtained under the Shops and Establishment Act of Maharashtra. Every person who establishes a business needs to obtain the license under the Shops and Establishment Act of that respective state. It is obtained upon payment of a fee of Rs. 2,000/- which is valid for two year which can be renewed.

3. Goods and Services Tax Registration: GST stands for Goods and Services Tax, a comprehensive, multi-stage, destination-based tax levied on most goods and services supplied in India. It replaced several indirect taxes like VAT, excise duty, service taxes, etc., in 2017, aiming to create a unified national market and simplify the tax system. GST registration is mandatory for every e-commerce business irrespective of its turnover. Once registered with GST, the firms have to follow monthly and annual compliance where tax collected and tax paid has to be disclosed to the Government. 

4. Intellectual Property Registration: These are certain rights owned by creators for their claiming their sole right on the goods / service / idea / name / mark created or developed by them. This helps an organization to have monetary benefits in the form of royalty and also safeguard its ownership on the said matter. Such IPR includes trademarks (logos, brand names, or slogans used to identify and distinguish your goods or services), copyrights (original creative works like literary, artistic, musical, and cinematographic works), patents (new inventions and processes that involve inventive step and industrial application), designs ornamental features of two-dimensional and three-dimensional designs applied to articles) and trade secrets (confidential information that gives business a competitive advantage).  

5. Other Registrations: Depending on the type of business, the kind of products being sold, various registrations / licenses are required to be taken by e-commerce vendors:

• • FSSAI license: For food items

  • Drug Controller General of India (DCGI) license: For pharmaceuticals

  • Import-Export Code (IEC): For international trade

  • Agmark: Agricultural products

  • BIS 916 Hallmark: Gold ornaments

  • International Standard Organization (ISO): Certain listed goods and services

  • Halal: For red meat

  • T Permit: Travel and tourism

Initiating Web Presence

Launching an e-commerce website and establishing a strong web presence takes planning and execution and is incredibly rewarding. Here's a step-by-step guide to help get started:

1. Define brand and niche:

Brand identity: What makes your e-commerce store unique? Develop a clear brand voice and message that resonates with your target audience.

Niche selection: One must choose a specific market segment with enough demand but not too much competition. Researching about target audience and their needs to understand which products or services they seek is the crux.

2. Building website:

Platform selection: A potential e-commerce firm must choose a reliable e-commerce platform like Shopify, WooCommerce or BigCommerce, etc. considering factors like ease of use, scalability, cost and other offered features.

Website design: The e-commerce firm must create a user-friendly and visually appealing website that showcases products or services effectively. One must ensure that websites are mobile-optimized for seamless browsing on any device.

Product listings: Include high-quality product images, detailed descriptions, and clear pricing information which helps in programming SEO.

3. Optimize for search engines (SEO):

Keyword research: Identify relevant keywords your target audience searches for and optimize your website content and product descriptions accordingly. The firm must meticulously work on 'on page' as well as 'off page' SEO.

Technical SEO: Ensure that website is technically sound with fast loading times, secure connections, and a mobile-friendly layout.

4. Build a social media presence:

Choose the right platforms: Focus on social media platforms to target audience who use it the most, like Instagram, Facebook, or TikTok.

Create engaging content: Share high-quality visuals, product features, customer testimonials, and behind-the-scenes glimpses to build brand awareness and interest.

Run targeted ads: Utilize social media advertising platforms to reach a wider audience and drive traffic to your website.

5. Implement email marketing:

Build an email list: Encourage website visitors to subscribe to the email list by offering valuable incentives like discounts or early access to new products or even information.

Send regular newsletters: Share valuable content, promotions and updates with email subscribers to keep them engaged and coming back for more.

6. Offer excellent customer service:

Respond promptly to customer inquiries: Make it easy for customers to contact you and address their concerns quickly and efficiently.

Provide clear and transparent return policies: Build trust with the customers by offering hassle-free returns and exchanges supporting a clear return policy.

Gather feedback and iterate: Regularly ask for customer feedback and use it to improve your website, products, and overall customer experience.

7. Others:

• Invest in high-quality product photography and videography.

• Offer multiple payment options for a smooth checkout experience.

• Partner with influencers or bloggers relevant to the area / niche.

• Run seasonal promotions and sales to attract new customers.

• Track website analytics to understand what's working and what's not.

Remember, building a strong web presence takes time and effort. One has to be patient, consistent and adapt strategies based on goals and results to achieve long-term success.

Internal Management and Control System of an E-Commerce firm

An e-commerce firm's internal control and management system is crucial for ensuring data security, financial accuracy and operational efficiency. It encompasses a framework of policies, procedures and technologies designed to mitigate risks and safeguard the business. Here are some key aspects of this system:

1. Control Environment:

• Business Ethics: Strong ethical leadership from management emphasizes integrity and transparency.

• Risk assessment: Regularly identifying and evaluating potential risks to the business, including cyber threats, fraud, and inventory mismanagement.

• Communication and training: Clearly communicating control procedures to all employees and providing ongoing training on their implementation.

• Monitoring and reporting: Establishing mechanisms to monitor adherence to controls and report any irregularities or control weaknesses.

2. Specific Controls:

Information technology controls: Implementing robust cybersecurity measures, data encryption, access controls, and regular backups to protect sensitive information.

• Order processing controls: Verifying customer information, validating payment methods, and preventing unauthorized access to order data.

• Inventory controls: Maintaining accurate inventory records, implementing physical security measures, and conducting regular inventory counts.

• Revenue recognition controls: Ensuring accurate recording of sales and revenue at the appropriate time.

• Payment processing controls: Securing payment gateways, preventing duplicate charges, and reconciling transactions with bank statements.

• Shipping and fulfillment controls: Ensuring accuracy and efficiency in picking, packing, and shipping orders.

• Return and exchange controls: Establishing clear return and exchange policies, tracking returned items, and preventing unauthorized returns.

• Customer service controls: Implementing procedures for handling customer inquiries and complaints efficiently and professionally.

3. Management Systems:

• Enterprise resource planning (ERP) systems: Integrating various business processes, such as accounting, inventory management, and customer relationship management, into a single platform.

• Data analytics tools: Utilizing data analytics to track key performance indicators, identify trends, and make informed business decisions.

• Internal audit function: Conducting regular internal audits to assess the effectiveness of internal controls and identify areas for improvement.

4. Other Considerations:

• Compliance with regulations: Ensuring compliance with relevant data privacy regulations and industry standards.

• Business continuity planning: Having a plan in place to maintain operations in case of disruptions or emergencies.

• Third-party vendor management: Implementing controls for managing relationships and transactions with third-party vendors.

An effective internal control and management system is not static, it needs to be continuously reviewed and updated to adapt to changing risks and business needs. By implementing a robust system, e-commerce firms can build trust with customers, protect their assets, and ensure sustainable growth.

Digital Advertising

Enterprise Resource Planner

Enterprise resource planning (ERP) is a category of software utilized by organizations to oversee their everyday business operations, encompassing tasks like accounting, procurement, project management, risk management, compliance, and supply chain operations. A comprehensive ERP suite also encompasses enterprise performance management software, which aids in planning, budgeting, forecasting, and reporting an organization's financial outcomes.

ERP systems integrate various business processes, facilitating the seamless flow of data among them. By gathering shared transactional data from diverse sources within an organization, ERP systems eliminate redundant data and establish data integrity through a singular, reliable source.

In the contemporary business landscape, ERP systems play a pivotal role in the management of numerous businesses across various sizes and industries. For these enterprises, ERP is as indispensable as the electricity that powers essential lighting.

Responsibility of ERP

ERP applications enable various departments within a company to communicate and share information more efficiently. They gather details about the activities and status of different divisions, allowing this information to be accessible to other parts of the company for productive use. By linking data from production, finance, distribution, and human resources, ERP applications contribute to making a corporation more self-aware. Additionally, these applications streamline operations by connecting different technologies used across the business, eliminating redundant and incompatible technology. This integration often involves combining accounts payable, stock control systems, order monitoring, and customer databases into a unified system. 

A small Case Study on ERP

Let's explore a simple case of how an Enterprise Resource Planning (ERP) system works across different departments in a company involved in cloth manufacturing company named "Stellar Cloths Ltd"

Departments in Stellar Cloths Ltd:

The company has various departments with specific focus on key responsible areas. These departments are hold the exclusive power to handle the tasks assigned to them by the Chairman of the Company.

1. Sales Department: The task is to manage sales with one section focused on offline sales and another focused-on e-sales.

• • Before ERP: The sales team used to keep track of customer orders manually, creating a paper trail, a muster for sales and returns and numerous box files for storing a copy of invoices.

  • With ERP: Now, when a salesperson enters an order into the ERP system, it automatically updates inventory and notifies other relevant departments about the order. It also generates tax invoice and gets updated on the Management Information System where anybody can get access and know the company's sales for a given period of time.

• Inventory Department: This team takes full charge of inventory right from material acquisition, inspection, sorting, storing and dispatching for further use.

  • Before ERP: Managing stock was a challenge. The inventory team had to manually check and update stock levels, leading to occasional errors. There have been reports on discrepancies with what is on the papers and what is actually in the warehouse.

  • With ERP: The ERP system continuously monitors stock levels. When products are sold, it updates the inventory in real-time, ensuring that the team knows what's available and what needs restocking.

• Production Department: This team skilled with crafting techniques is responsible to engage with the inventory team and flag off for production and also update the marketing and sales team about the availability of produced goods which are ready for sale. They are also guided and coordinated by the sales team for prompt production.

  • Before ERP: The production team relied on separate schedules, and communication about order changes was slow.

  • With ERP: The ERP system provides a centralized platform where the production team can see real-time order updates. They can adjust production schedules accordingly, ensuring timely delivery.

• Finance Department: Handling day to day and long-term money matters is the task of this department.

  • Before ERP: Financial transactions and reports were managed independently, leading to discrepancies.

  • With ERP: All financial data, including sales and expenses, is automatically recorded in the ERP system. This makes it easy for the finance team to generate accurate reports and manage budgets.

Payment System

Logistics and Supply Chain in E-Commerce

Logistics is the overall process of planning, implementing, and controlling the efficient and effective movement and storage of goods and materials from the point of origin to the point of consumption. It encompasses all the activities involved in getting the right product, in the right quantity, to the right place, at the right time, and at the right cost.

Imagine you're ordering a new phone online through Amazon. Logistics is what takes that phone from the factory where it's made, to the warehouse where it's stored, to the truck that delivers it to your local distribution center, and finally, to your doorstep.

Components of E-Commerce Logistical Process

1. Order Fulfillment & Management: Order fulfilment refers to receiving, processing and delivering orders placed by online customers. Time is the biggest factor at this moment as most of the online users love to receive their orders ASAP. This is when quality, accuracy and agility come into the picture. Basically, when a customer makes a purchase from a company, the order is usually received by a team member of either customer service or sales department. Subsequently, these details are passed on to the warehouse staff responsible for preparing the items for shipment as per physical and geographical availability of stock. Concurrently, the order details are entered into the company's Order Management System (OMS). This system serves to monitor and handle orders comprehensively by assigning a unique Order Number, tracking the order's status, shipping details and other relevant information from start to end. 

There are three broad steps involved in fulfilling a customer’s order:

• Picking

The initial step in the order fulfillment procedure involves gathering the items that have been ordered from the company's warehouse. Warehouse personnel count and select the correct items from the shelves, then transport them to the designated packaging area to prepare them for shipment. 

• Packing

After the items reach the packaging department, their responsibility is to select appropriate materials for packing the ordered items. This step is crucial because using the correct packaging materials ensures the safe delivery of items to the customer. For instance, TVs are typically packed using polystyrene or thermocol sheets, while glass items are secured with bubble wraps to prevent damage during transi 

• Shipping

Once the packaging process is completed, the ordered items are forwarded to the shipping department. Here, the items are accompanied by their invoices and suitable shipping labels. Following this, the sales department is notified regarding the shipment of the ordered items, while the customer receives confirmation of the shipment along with a tracking link.

2. Inventory Management: Inventory management is incredibly crucial and, truthfully, a disciplined field. Determining the appropriate buffer and stock levels for specific products varies based on a retailer’s circumstances, their product offerings, expected orders, storage space, networking and their financial position. 

Having excessive inventory could be threat as it locks up funds that could be more effectively utilized somewhere in the business. Still at times, certain products might run out of stock and could take time for a refill. 

Some of the questions that every e-commerce firm must ask itself are:

• What is the cost of the inventory?

• What is the typical on-hand inventory volume?

• How predictable is the demand (product and area wise)?

• What methods are used to replenish the inventory (re-stocking of products when one unit or more units of products are sold out)?

3. Warehousing: The process of storing products before shipping them to customers is known as warehousing. Online stores utilize warehouses to expand their fulfillment capacity, enabling them to handle increased orders while maintaining prompt and accurate deliveries. Many warehouses these days are equipped with advanced technologies such as robotics, automated sorting systems and inventory management tools to enhance efficiency in handling orders. These centers are designed to streamline the fulfillment process, allowing for quicker order processing and timely deliveries. Big organizations are dealing with multiple warehouses at one location in order to keep track of products and ship them quickly to customers. This way, firms won’t run out of products, and they will be able to keep up with customer demand. 

4. Forward Logistics for delivery: Forward / outbound logistics is related to making arrangements for getting the right product reach the right customer at the right time. This logistics type is more at consumption level as products move from the vendor to the final consumer through a distribution chain. Outbound logistics involves appropriate storing of goods in various warehouses, loading them in most appropriate and feasible mode of transport for supplying to the final consumer. Eg. An order placed on Amazon gets dispatched from a warehouse to a local hub (distribution warehouse) where it is picked by regional delivery partners for final delivery within a given period.

5. Reverse Logistics: Reverse logistics is applied when goods go back to the manufacturer from the consumer. There may be circumstances where a consumer may want to return the product to the manufacturer out of dissatisfaction or any other reason. Such arrangement of services of picking up the product from the consumer and delivering it back to the manufacturer is reverse logistics. A good example can be returning of empty LPG gas cylinders to the gas service provider which passes through an organized chain. Another example can be returning of glass bottles of aerated drinks like Pepsi, Coke, Thumbs Up, etc. to the retailer which heads back to the manufacturer for re - utilization. Reverse logistics arise when customers reject their product due to damage / mismatch, where such damaged / mismatched product have to be shipped back to the vendor's warehouse from the customer's place. This spikes the cost for the e-commerce vendor as he is the one who is required to arrange for such reverse shipment.

Return / Cancellation / Refund Policy

E-commerce transactions are not always happy and successful. At times, a customer may not seem happy with the product received perhaps due to defect, fault, mismatch, etc. This is where the customer gets an opportunity to exercise the return policy. Returns are basically a part of after sale services endorsing upkeep and maintaining trust and faith of the customers. 

A few stats to note before heading with return policy powered by soocial.com:

1. The average online purchase return rate is 18.1%. However, 20% to 30% of e-commerce transactions are returned.

2. Only 49% of retailers offer free return shipping.

3. 80.2% of returns happen because the product is damaged or broken.

4. The average return rate on Amazon is between 5% and 15%

5. In 2021, 26% of returned products in the US were clothing items.

6. Over 60% of people are reading through a return policy before purchasing.

7. 30% of online shoppers intentionally overbuy and then return the items they don’t want.

8. 62.58% of online customers expect retailers to allow for returns within 30 days of purchase.

9. E-commerce returns increased by 70% in 2020 in comparison to 2019.

10. 7% products are usually returned because of delayed delivery.

11. In 2021, e-tailers lost $ 218 Billion due to e-commerce returns.

12. In Amazon, 34% customers have returned their items because of wrong color, size and fit.

13. 10% amazon customers returned items because they didn't like it.

14. 61% customers find easy to initiate returns especially on amazon.

15. With 3D visualization, there is a reduction in the returns by 40% as per Shopify.

16. There is an organization named Returnado which facilitates return by examining its condition and they decide whether the item should be repaired, returned, refunded or disposed locally. Because of this company, 30% of the returns are turning into exchanges.

17. The highest returned items on e-commerce are clothing.

General Policy set by e-commerce companies at a glance.

1. Returns Eligibility

1.1 Items that can be returned

We accept returns on most items within 7 days of delivery. Items must be in new and unused condition, with all original tags and packaging.

1.2 Items not eligible for return

Certain items are not eligible for return, which includes:

• Personalized/customized items.

• Perishable goods.

• Downloadable software products.

• Items that are damaged, used, or missing parts.

2. Return Process

2.1 Initiate a Return

To initiate a return, one has to contact our customer service team through mail or phone OR access the return section on the e-commerce application. One has to provide order number, the items to be returned along with a valid reason for the same. The customer is also required to keep evidence of return as it may asked at the time of product examination.

2.2 Return Authorization

Once the return request is approved, the e-commerce company provides a return authorization and instructions on how to return the items. Details like pick up date, arrangement style, pick up venue, etc. is mentioned.

2.3 Packaging

Users have to ensure that the item is well-packaged to prevent damage during the return process. One has to include all original packaging, tags, and accessories that came along with the original product.

2.4 Shipping

At times, the customer is responsible for the return shipping costs, except in cases where the company has shipped the wrong or defective item.

3. Refund Process

3.1 Inspection

Upon receiving the returned item, the e-commerce company inspects it to ensure whether meets their return eligibility criteria.

3.2 Refund

If the return is approved, the company accepts the defective goods and immediately authorize a replacement by sending another product (same product). In case if the e-commerce vendor is falling short of replicable product, a refund is processed to the original payment method. They allow 7 to 14 days for the refund to be reflected in your account.

Click here to understand Amazon's return policy.

Cyber and Data Security

Techniques for Traffic Generation

• Search Engine Optimization (SEO): E-commerce organisations optimize their website for search engines to improve its visibility in organic search results. This includes keyword research, on-page optimization, technical SEO and link building.

• Content Marketing: Create high-quality, valuable content that resonates with the target audience. This can include blog posts, articles, videos, infographics, podcasts, and more. Content can be promoted through social media, email newsletters, and other channels to attract traffic.

• Social Media Marketing: Establishing a presence on relevant social media platforms where most appropriate target audience spends time is a gameplay. Share engaging content, interact with the followers, running targeted ads and involve social media influencers to drive traffic to the website is a good mechanism being adopted by digital marketers.

• Email Marketing: An e-commerce must build an email list of subscribers who are interested in the products or services. Then it must send regular newsletters, promotions and updates to keep the subscribers engaged and drive traffic back to the website. This requires a lot of focus on the preparation of convincing emailers which includes favourable text and web banner / flyer / image.

• Pay-Per-Click (PPC) Advertising: A firm can run targeted advertising campaigns on platforms like Google Ads, Bing Ads and social media networks. Payment is made only when users click on the ads, directing them to specific landing pages on the website.

• Guest Blogging: Writing guest posts for other websites and blogs in the industry or niche is another way of generating traffic. Here, marketers include a links back to the website in the author bio or within the content to attract traffic from the host site's audience. 

• Influencer Marketing: A firm can collaborate with influencers in the industry who have a large and engaged following. The firm has to get their products promoted by them through their regular content  driving traffic to the e-commerce website through the influencer's recommendations.

• Community Engagement: E-commerce vendors participate in online communities, forums, and groups where they target audience congregates. They provide valuable insights, answer questions and share their expertise while subtly promoting their website when appropriate.

• Referral Traffic: This is where a website / company encourages other websites and blogs to link to their content by creating shareable, link-worthy content and fostering relationships with influencers and industry leaders. It also opens gate for C2B ecosystem where a company may seek reference from its existing customers channelized through a proper code.

• Webinars and Events: An e-commerce company can host webinars, workshops or even virtual events related to their industry or niche. They can promote these events through email marketing, social media and other channels to drive traffic to their website.

By implementing these traffic generation techniques strategically, one can attract a steady stream of visitors to their website and increase their online visibility and engagement.

E-commerce Metrics and Key Performing Indicators

KPIs (Key Performance Indicators) in analytics are metrics used to measure the success and performance of various business activities. These indicators help organizations assess how well they are achieving their goals. Below is a list of common KPIs used in analytics, along with explanations and examples for each:

1. Conversion Rate: Conversion rate measures the percentage of users who complete a desired action, such as making a purchase or filling out a form, relative to the total number of users. Example: If 1,000 visitors come to your e-commerce website and 50 make a purchase, the conversion rate is 5% (50 / 1,000 * 100).

2. Customer Acquisition Cost (CAC): This KPI measures the cost associated with acquiring a new customer. It helps you to assess the efficiency of your marketing and sales efforts. Example: If you spent Rs. 5000 on marketing and gained 100 new customers, your CAC would be Rs. 50 (Rs. 5000 / 100).

3. Customer Lifetime Value (CLV): CLV measures the total revenue a business can expect from a customer over their entire relationship with the company. It helps determine the long-term value of customers. Example: If a customer spends Rs. 200 annually with your business and stays for 5 years, the CLV would be Rs. 1,000 (Rs. 200 * 5).

4. Churn Rate: The churn rate represents the percentage of customers who stop using a product or service during a given period. A high churn rate is often a sign of dissatisfaction. Example: If you had 500 customers at the start of the month and 50 left by the end, the churn rate would be 10% (50 / 500 * 100).

5. Net Promoter Score (NPS): NPS is a customer satisfaction metric that gauges how likely customers are to recommend your product or service to others. It's often used to measure overall customer satisfaction. Example: Customers are asked, “On a scale of 0-10, how likely are you to recommend our product?” Scores of 9 – 10 are promoters, 7 – 8 are passive and 0 – 6 are detractors. NPS is calculated as the percentage of promoters minus the percentage of detractors.

6. Bounce Rate: Bounce rate measures the percentage of visitors who navigate away from the site after viewing only one page. A high bounce rate could indicate poor user experience or irrelevant content. Example: If 500 people visit your website and 300 leave after viewing only one page, the bounce rate is 60% (300 / 500 * 100).

7. Traffic Sources: This KPI tracks where website visitors are coming from, such as organic search, paid ads, social media, or direct visits. It helps understand which channels drive the most engagement. Example: 50% of traffic comes from organic search, 30% from paid ads, and 20% from social media.

8. Average Order Value (AOV): AOV measures the average amount spent by customers per transaction. It helps assess the value of each purchase and how effectively upselling or cross-selling is working. Example: If you had Rs. 5,000 in sales over 100 orders, the AOV would be Rs. 50 (Rs. 5,000/100).

9. Revenue Growth Rate: This metric shows the percentage increase in revenue over a specific period, helping to track the company's financial health and growth. Example: If last year’s revenue was Rs. 100,000 and this year’s revenue is Rs. 120,000, the revenue growth rate would be 20% ((Rs. 120,000 - Rs. 100,000) / Rs. 100,000 * 100).

10. Engagement Rate: Engagement rate measures the level of interaction users have with your content, such as likes, comments, shares, or time spent on site. It’s a good indicator of how well content resonates with the audience. Example: If you have 1,000 followers and 200 interactions (likes, comments, etc.), the engagement rate would be 20% (200 / 1,000 * 100).

11. Click-Through Rate (CTR): CTR is the percentage of users who click on a link, ad, or call-to-action after seeing it. It’s used to measure the effectiveness of digital marketing campaigns. Example: If your ad was displayed 10,000 times and received 500 clicks, the CTR would be 5% (500 / 10,000 * 100).

12. Cost per Click (CPC): CPC is the cost incurred for each click on a paid advertisement. It helps evaluate the cost-effectiveness of paid advertising campaigns. Example: If you spent Rs. 100 on a campaign and received 200 clicks, the CPC would be Rs. 0.50 (Rs. 100 / 200).

13. Return on Investment (ROI): ROI calculates the profitability of an investment relative to its cost. It’s a key metric to assess the success of marketing and other business initiatives. Example: If you spent Rs. 2000 on a marketing campaign and generated Rs. 5000 in revenue, the ROI would be 150% ((Rs. 5000 - Rs. 2000) / Rs. 2000 * 100).

14. Time on Page: This KPI measures the average amount of time visitors spend on a specific page. It helps assess content engagement and the effectiveness of landing pages. Example: If visitors spend an average of 3 minutes on a product page, this indicates a decent level of interest.

15. Impressions: Impressions measure how many times a piece of content, like an ad or post, is displayed to users. It’s a basic metric to track visibility. Example: An ad could have 50,000 impressions but only 500 clicks.

16. Sales Growth: This measures the percentage increase in sales over a defined period. It’s a key indicator of business performance and market demand. Example: If sales grew from Rs. 10,000 to Rs. 15,000 over a quarter, sales growth would be 50% ((Rs. 15,000 - Rs. 10,000) / Rs. 10,000 * 100).

17. Page Load Speed: This KPI measures how quickly a webpage loads. A slow load speed can lead to high bounce rates and lower user satisfaction. Example: If a page takes 5 seconds to load, it might need optimization to improve user experience.

18. Customer Retention Rate: This metric tracks the percentage of customers who continue to make purchases or use a service over a specific period. Example: If you had 100 customers at the beginning of the year and 80 remain at the end, the retention rate would be 80% (80 / 100 * 100).

Role of Aggregators

An aggregator in the context of e-commerce refers to a platform or service that collects and displays information, products, or services from multiple sources in one place. These aggregators play a pivotal role in the e-commerce landscape by simplifying the process for consumers to compare options, find the best deals, and make informed purchasing decisions. Here's a breakdown of their role: 

1. Centralization of Information: Aggregators compile products or services from various suppliers or sellers into a single interface. This aggregation enables users to browse, compare, and access a wide range of offerings conveniently without visiting multiple individual websites.

• Comparison and Selection: They facilitate comparison shopping by presenting various options side by side. Users can assess features, prices, reviews, and other relevant details, aiding them in making informed choices.

• Increased Visibility for Sellers: Aggregators provide a platform for smaller or less-known sellers to showcase their products alongside larger brands. This increased visibility can boost sales for these sellers who might otherwise struggle to reach a broad audience.

• Streamlined Transactions: Aggregators often streamline the purchasing process by offering integrated payment systems, which can simplify transactions for buyers. Some aggregators even manage transactions entirely, acting as intermediaries between buyers and sellers.

• Market Insights: They gather data on user preferences, buying patterns, and market trends. This information can be valuable for sellers to adjust their strategies, improve products, or tailor marketing efforts.

• Enhanced User Experience: By consolidating information and offering user-friendly interfaces, aggregators improve the overall shopping experience for consumers.

• Market Reach and Visibility: Aggregators provide smaller businesses with access to a larger customer base they might not be able to reach on their own. This expands their market reach and boosts brand visibility.

• Operational Efficiency: Aggregators handle logistics, marketing, and customer service, freeing up businesses to focus on core operations like product development and inventory management.

• Data and Insights: Aggregators provide valuable data and insights on consumer behavior, market trends, and competitor activity. This empowers businesses to make data-driven decisions and optimize their online strategies.

• Reduced Costs: By sharing resources and infrastructure, aggregators can help businesses reduce operational costs associated with marketing, technology, and logistics.

Overall, aggregators serve as facilitators in the e-commerce ecosystem, benefiting both buyers and sellers by simplifying access to a wide array of products or services and enhancing the efficiency of transactions. 

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