As every other guy is opening a e-commerce store now a days and all of them look alike.It is hard to differentiate these websites.What do you think could be the differentiating factor for these e-commerce store ?
Differentiating factor for an e-commerce store
Comments
Hemant Pulijala
1-quality
2-service
3-price
4-trust
Alok Rodinhood Kejriwal
my question is WHY open an e-commerce store?
if you can answer that, then lets come to the question of differentiation
Abhinav Kumar
reasons could be-
1.It would reach large consumer base,if I sell same things in a offline store I had to be TATA or ambani to reach that kind of consumer base(and probably even then it is not possible).
2.Entry barrier is low as compared to offline shops.
3.You can create value for the consumers if you are good(like flipkart,I get the best value for my purchase at flipkart) and if you are able to create value for your consumers then they will create money for your company.
But having said that,you have to be really honest with your consumers and service has to be exceptional.I don’t know if these reasons are good enough 😉
Abhinav Kumar
Very good point made ‘Core value proposition first differentiation later’. This is true not only for e-commerce but for any business.
I agree that number #2 points is not at all relevant to consumer,but #1 point can be relevant.There are things which are difficult and even sometimes impossible find in smaller cities,all brands don’t have that kind of presence,so it will be beneficial for consumer also as he now has reach to large number of products.
Hemant Pulijala
what problems e-commerce store going to solve? this question going to work for redbus.in,irctc kind of sites,not for normal e-commerce stores cuz they r not solving any problem.
Abhinav Kumar
I would say they are solving a problem.Think of a man in a small city who wants too buy a ipad,he would never be able to buy it from an offline store as chances are very less that he would find one in a small city.That is where these e-commerce stores come into picture,they will give that man option to buy an ipad,so they are solving a problem of reach of a brand.
Hemant Pulijala
Abhinav,Theoratically your argument is excellent but reality is different.According to Assocham e-commerce data only 8% people from rural areas are buying stuff from e-commerce sites and that too tiny things like watches,stamps etc.People from rural areas will travell to their nearest cities to buy things even it cost them an arm and leg.Well,thats typical indian mentality :D.Whatever site traffic and buying things e-commerce sites are getting is from Tier-1 cities and some extent Tier-2 cities .
Abhinav Kumar
This is the problem which need to be solved.As people will buy more, and companies will ramp up their customer service,the trust will grow and then may be then these numbers will go northward.
Hemant Pulijala
Thats what flipkart trying to do .They are successful in some extent.Thier prices are reasonable,service is good and selling genuine products.How many other portals matching them? I’m afraid less than 10% doing such awesome work.
Brijesh Kumar
Abhinav,
You have raised a very good questions and this becomes a common question for all of us, that why e-commerce portals are so common that every second person is opening their store online.
So here are the reason’s
1) We human have a nature to follow other successful venture’s. If one is doing it successful. the other’s will follow blindly. Some other idea’s like, “We even can do this also” / “Its so simple / easy to do”. But the fact the only major benefits goes to the person’s who actually invented the concept/idea or venture. like eBay is still leaders in its niche. flipkart is still its own presence and trust.
2) Because of the increased awareness of the development source of websites and mushrooming of the e-commerce companies at every next door steps. because of the huge competition, many of the companies are developing the e-commerce websites so cheaply.
Differentiating Factors
Any business, either its a shop/ or e-commerce should start with a great vision, not just to earn money only. This is important but should keep it secondary factor to other many important. When you actually start working some thing for other’s keeping the convince of users in mind. They will re-visit your store/shop again and again.
In-complete attention becomes the failure of many e-commerce portals, There are many portals on Internet. we hardly know any name other then the famous one.
They are famous because of their Service/ Trust/ Quality / Price.
Your attention towards close review on every small aspects of the e-commerce is important.
Regards,
Brijesh K
Hemant Pulijala
Right On Brijesh ,You analysed my service/trust/quality/price concept well 🙂
Karan Ahuja
can mom and pop offline stores successfully operate an online business as well ? They must be as Indian payment gateways like ccavenue , direcpay are doing quite well . any data sources to verify this ?
Hemant Pulijala
Mom N Pop shops can do well in internet business.If you check e-bay you can find many such shops .
Abhinav Kumar
This is one area where e-commerce can really help people…it can be work as alternate sales channel for offline stores and this way they can really expand their consumer base…