The Anchor: 5 musts in e-commerce to get to the next level

17 Aug,2012

By Ankur Warikoo

 

Cross-sharing of a Logistic Network

From a back end operations or a logistic perspective every e-commerce company is trying to build its own logistic setup which is their own last mile delivery network. While that is a very good initiative, it is not scalable because what you are ultimately doing is creating a large setup without the economies of scale.  So what e-commerce needs is logistic efficiency at industry level, not at the player level.

 

Payment Gateway Efficiency

Industry still suffers from miserable payment gateways options. The failure rates on credit cards, debit cards even net banking are fairly high, much higher than what the west experiences and for no logical reasons. So, we do need someone coming in with innovative payment gateway solution which makes sure that the customers entering legitimate data is never failed. The industry suffers from almost 25 per cent failure rate, which is extremely high. So a payment gateway innovation is required to make sure that the failure rates are lower.

 

Cash on Delivery Innovations

This was introduced to bring in people who do not have credit cards or debit cards and are more comfortable with cash transactions. However what has happened is that now cash on delivery is beginning to be misused as people are now using it as an excuse to test what kind of product is coming to their door step and if they don’t like it, they just reject it and that’s not a healthy practice. There needs to be an innovation around this, which means that Cash on Delivery should be restricted to only people who cannot transact through prepaid mechanisms like credit card, debit cards etc. and steps should be taken to not allow cash on delivery to be misused.

 

Focus on Profitability and Sustainability

All the companies now need to shift their focus towards profitability and sustainability. So far in the last 2.5 odd years the focus has been on top line growth, to get the customer in but, none of the players are closer to being profitable and definitely not sustainable. So, that needs to be a focus for e-commerce because if it is not profitable and sustainable then all customer pro initiatives could be taken away.

 

Customer Relation Management

CRM is missing from most e-commerce companies today. They are neither customer profiling to understand that there are different consumer behaviors and buying patterns. Understanding and treating your value propositions for each and every customer based on how they behave on your platform.

 

Ankur Warikoo is the CEO of Crazeal

 

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