<h3 id="what-is-augmented-reality">What is Augmented Reality?</h3>Augmented Reality (AR) refers to the superimposition of any virtual object over the user?s real-time space. For example, if you want to virtually ?try on? a dress to see how it looks on you, using augmented reality technology can help you by putting a picture of the dress on you (or instead, an image/ video of you). It enhances your experience through digital imagery by placing it in your actual environment. The main drawing point of augmented reality is that it?s done in real-time. You don?t have to wait for a software-generated image to reach your mailbox after one day. Instead, you can use it while you?re shopping or otherwise. In this case, we?re referring to the use of augmented reality in e-commerce. In 2020, the Global advertising revenue from AR technology was <a href="https://www.scalefast.com/blog/ar-vr-in-ecommerce/">$1.4 billion</a>, yet so many are unaware of it. Augmented reality is also often confused with virtual reality ? wherein the latter, the <a href="https://www.thebalancesmb.com/how-augmented-reality-can-impact-e-commerce-5188565">user?s experience is limited</a> to their screen. With augmented reality, the user feels their experience in their own environment, making it much more effective in the consumer sphere. Now that we?ve discussed augmented reality, let?s understand exactly how it fits in the e-commerce sphere and how user experience can be dramatically improved.<h3 id="what-are-the-types-of-ar-in-e-commerce">What Are The Types of AR in E-commerce?</h3>In e-commerce specifically, there are <a href="https://www.thebalancesmb.com/how-augmented-reality-can-impact-e-commerce-5188565">three types of augmented reality </a>technologies being used ? Marker-based, markerless experience, and superimposition-based AR. In marker-based AR, the technology is dependent on a marker being present. E.g., in the case of a QR code, you would scan the QR code, and it would directly take you the user experience it?s meant for. It?s commonly used in deliveries where the customer can superimpose the product?s image in their real environment.In markerless AR, you don?t really need to scan anything or depend on anything to have said experience. The technology makes use of your environment to create that experience for you. E.g., most eyewear applications these days give you the option to do a 3-D try on directly on their website. A highly beneficial feature ad drastically reduces the number of returns over time.In superimposition-based AR, the technology doesn?t rely on user input per se. Instead, it depends on object recognition technology and then superimposes the product?s image in that environment. It?s advantageous in cases where people are buying furniture, clothes, etc.<h3 id="what-are-the-benefits-of-augmented-reality-for-the-e-commerce-industry">What Are The Benefits of Augmented Reality For The E-commerce Industry?</h3>There are many benefits of using augmented reality technologies in e-commerce, especially compared to virtual reality technologies. One of the most significant barriers in the e-commerce industry is that buyers are very <a href="https://www.scalefast.com/blog/ar-vr-in-ecommerce/">hesitant to purchase products</a> online. The contributing factor is that they are not sure whether the product that is being will actually be that way in reality. Augmented reality will help get rid of this purchasing barrier. It?ll also reduce the number of product returns in the long run, which eventually saves a lot of product wastage and revenue loss.E.g., companies like Google are already using augmented reality and e-commerce customers, which have gone to show that customers are more confident in their decision to purchase the product. It drastically improves the user experience as well, right from shopping to final purchase. <a href="https://e-tarjome.com/storage/panel/fileuploads/2019-03-11/1552293649_E10780-e-tarjome.pdf">Interactivity and vividness</a> were found to be the key drawing points in this case. As retailers have a unique opportunity to form relationships with their consumers, it?s something that they should adopt as soon as possible.<h3 id="how-are-brands-leveraging-ar-to-grow-their-business">How Are Brands Leveraging AR To Grow Their Business?</h3>Many brands are taking advantage of the use of augmented reality in their stores. A great example of this in the cosmetics industry is <a href="https://www.scalefast.com/blog/ar-vr-in-ecommerce/">Sephora</a>. All their online websites use AR to help customers try on different shades of lipsticks, lashes, and other eye products so that they know that it would be an excellent fit for them before buying it. Even in their tutorial section, they allow the customer to upload a picture of themselves. With the use of artificial intelligence technologies, they provide suggestions on which shade would suit them best. Even in the case of <a href="https://www.scalefast.com/blog/ar-vr-in-ecommerce/">IKEA</a>, a furniture brand, they make use of AR technologies for their e-commerce store. The customers have the option of seeing whether a particular piece of furniture would fit their room and how it?ll look when placed in the room without having to buy it or get it delivered. This is an excellent example of superimposition-based AR and shows how investing in such technologies can only help the company increase revenue over time. <a href="https://www.sciencedirect.com/science/article/abs/pii/S0148296320307220">Many studies</a> have also indicated that these experiences are perceived higher than usual web-based applications because they offer the consumer the kind of information they are looking for. Recently, <a href="https://www.scalefast.com/blog/ar-vr-in-ecommerce/">MOSCOT</a>, a fashion brand, also partnered up with Vertebrae, a VR technology provider. They introduced a combination of 3D and AR-based eyewear try-on options in their online store. The beta testing phase showed incredible results, indicating that the time to use such technologies is right now.<h3 id="the-challenges-and-solutions-of-integrating-ar-in-the-world-of-e-commerce">The Challenges and Solutions of Integrating AR in the World of E-commerce</h3>The best part about augmented reality technology is that it constantly collects data from the users, which can be used to provide a better experience next time they come around. This results in a seamless experience over time. That being said, there are more significant concerns than accuracy in the market at the moment. A study indicated that <a href="https://www.cgsinc.com/blog/top-6-biggest-challenges-implementing-ar-technology-2021">5% of the general public</a> are worried that policymakers and technology providers don?t account for cybersecurity and regulatory concerns while approving the product for use.In addition to that, many are concerned that companies simply don?t have the financial backing to invest and improve such technologies. This could result in them missing out on potential returns over time yet. While some companies might be hesitant for this reason, others simply hesitate because of the lack of resources in terms of skills and expertise available at the moment. This is why most companies question whether they need to outsource these tasks or hire in-house developers.<a href="https://arvrjourney.com/challenges-in-the-vr-ar-spectrum-for-reshaping-the-retail-e-commerce-landscapes-dd1d52aa39d4">Market restructuring</a> is also required in such cases because the primary question remains whether or not the user data is being stored carefully. We can only expect the general public to adopt these e-commerce trends when companies are forthcoming in using their data. But as more e-commerce brands start adopting it, it might lessen the user?s hesitation in due time.<h3 id="conclusion-the-future-of-ar-in-e-commerce">Conclusion: The Future of AR in E-commerce</h3>In conclusion, it?s clear that for augmented reality to be adopted, implemented, or used, the user?s experience is vital. Unless and until the e-commerce consumer is more open to the idea of using such technologies and knowing exactly how it works, along with how their data is used, they will not get involved. Such technologies are a great way to build a relationship with the consumer and stay ahead of the curve in today?s competitive market. It?s best if companies if ride the wave now rather than regret it later.

Tanaaz Khan

Augmented Reality in E-Commerce and How it Can Benefit Your Business

WeChat is the single largest social media platform in China and has been gaining momentum across the rest of the world. What was launched in 2011 as a simple app for exchanging online messages has now grown into an 'everything app,' connecting users for personal and business purposes. Here is everything you need to know to start using WeChat.What is WeChat?While the primary function of a social media app is to connect people, WeChat offers a lot more than simply bringing them together. On WeChat, you can make new friends, chat with them, send and receive payments, play games, make purchases, and whatnot. Besides a personal account, it also allows you to make a public profile if you are a brand or a business. Here, you can push feeds to subscribers, interact with them, and provide them with different services. Since all of this is available on a single platform, WeChat can be the ideal app for creating an online presence for your business, marketing your services, and finally selling to your customers.How Big is WeChat in and Outside China?WeChat is easily one of the largest standalone mobile apps with 'multi-purpose' functionality. As of January 2019, the app had crossed <a href="https://www.businessofapps.com/data/wechat-statistics/">1.1 billion</a> monthly active users, with more than 70 million outside of China. The app accounts for more than <a href="https://www.businessofapps.com/data/wechat-statistics/">34%</a> of total mobile data traffic across China, consuming <a href="https://www.businessofapps.com/data/wechat-statistics/">30%</a> of the users' total mobile internet time. Some credit for these numbers goes to the Chinese Government since it has played an active role in pushing the app to the masses through its five-year developmental plans. The net worth of the company as of May 2020 is <a href="https://www.businessofapps.com/data/wechat-statistics/">$500 Billion</a>.Due to its support in more than 20 languages, WeChat has penetrated the U.S. and U.K. markets, causing its numbers to grow at an exponential rate. People around the world have been using it to explore business opportunities in the Chinese market or simply connect with them. In this regard, if you're looking to expand your business to a different audience, WeChat can be of great help.How is WeChat Different from Other Social Media Platforms?Calling WeChat as a Chinese alternate for Facebook or WhatsApp is simply unfair. WeChat is a one-of-a-kind lifestyle platform that covers a wide range of services. From making video calls to availing governmental services online, this app hasn't left anything out. You can get on the app and do almost anything. Another difference that is extremely important to discuss is that unlike other social media apps, conversations taking place on WeChat are not 100% private. There is some level of censorship when it comes to discussing sensitive topics on the app, and user data is also used for mass surveillance in China.How do I Use WeChat as an Individual?Making a personal account on the app is super easy. Once you've downloaded the app from the Play Store or the iOS App Store, open it up, sign-up with the required details, verify your mobile phone number, and you're all set. Since one of its primary functions is to connect with people automatically, you could sync your phone contacts to communicate with them through the app automatically. Otherwise, you'll have to send them friend requests individually by searching for their accounts.<figure class="kg-card kg-image-card"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/5e4c2a3585cd12d29efa31dbbb3640aa.jpg" class="kg-image" alt loading="lazy"></figure>Once you?ve set up the basics on your account, here are all the features you can enjoy.- Communicate with FriendsThe basic features for connecting with friends include text messages, audio and video calls, group chats, and broadcast messages.<figure class="kg-card kg-image-card"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/d103d46694e37e3d0c5802d1164597d4.jpg" class="kg-image" alt loading="lazy"></figure>- Share FilesFile sharing includes the sharing of contact cards, media files, documents, and stickers.<figure class="kg-card kg-image-card"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/83c660f49563211f5792f97bd397163e.jpg" class="kg-image" alt loading="lazy"></figure>- Maintain a Digital WalletWeChat also allows you to maintain a digital wallet that you can directly connect with your card. This wallet can be used to send and receive money and make payments for different services. You could also gift your friends small sums of money in the form of 'red packages.'<figure class="kg-card kg-image-card"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/ff8f2ee1c89b6457685f8ebd6a6a7229.jpg" class="kg-image" alt loading="lazy"></figure>- Purchases &amp; BookingsYou can shop online for various items, purchase subscription services, and even make bookings. These bookings could be ticket bookings or hotel room bookings.- Utility BillsYou can also pay your utility bills for light, gas, etc. Simply select the city you live in and the services you want to pay for, then proceed to confirm the payment.How do I Use WeChat as a Business?Enterprise accounts are limited to Chinese businesses, and getting on the app as an enterprise requires you to register with the Chinese Government for any commercial activity. Still, considering the amount of traffic on the app, it can be beneficial in marketing your products and creating awareness about your brand.To make an Enterprise account, sign-up as a business and add all the relevant details for your business. Verifying the account might require you to submit supporting documents such as a business license, copies of national ID, signed and stamped official application letter, mobile phone bills, and more. After the verification is complete, you'll need to pay 99 USD per year for your account.<figure class="kg-card kg-image-card"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/c56170c045c74a618cef4f51469b3bdf.png" class="kg-image" alt loading="lazy"></figure>Here are some ways you can use WeChat for your business.- WeChat StoreWeChat does not allow you to connect to external eCommerce stores, but you can use its built in store to sell your products to the users. In this way, you can obtain sales directly through the app.<figure class="kg-card kg-image-card"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/f9cac4d774700a1b5030fb8627055119.jpg" class="kg-image" alt loading="lazy"></figure>- Brand EngagementBy putting out images and video content, you could better engage your customers and get closer to them. You could also design a branded game that advertises your message.- Customer ServiceSince the primary purpose of the app was to connect with people, you could connect with your customers by directly talking to them. Listen to their concerns and answer their queries through the app.- AdvertisingThe app provides several paid advertising opportunities. The two main types are banner ads and moments ads. Banner ads are displayed at the bottom of articles, whereas moments ads are similar to in-feed ads from Facebook or Instagram.- Influencer MarketingInfluencers on WeChat are known as 'Key Opinion Leaders.' They have a decent number of followers on the app and can influence the users' opinions. You can collaborate with them on the content they create and reach a wider audience effortlessly.Notable Business Success StoriesThe growing popularity of WeChat has forced some of the most successful businesses in the world to sign-up for it since they can't afford to lose out on traffic this large. Here's how some reputable companies are using WeChat for different purposes.- Pepsi has collaborated with a Chinese Actor Yifeng Li for an advertising campaign on the app.- KFC has been advertising its newly launched coffee service on the app through different interactive campaigns.- Levi's launched the digital promotion for its women's denim line with a WeChat advertising campaign featuring spokesperson Alicia Keys.- Samsung partnered with the Chinese store JD.com to launch the Galaxy S6 on WeChat.Has WeChat failed internationally?WeChat has been incredibly successful in China, and a lot of people from the other parts of the world have been joining the network as well. However, there are some reasons the app hasn't been able to well in other parts of the world.- High CompetitionDue to the unavailability of any other social media platforms in China, WeChat is the only option locals are left with. Add to this the support from Government, and the app was bound to succeed. While the app itself is excellent, due to the availability of other more robust platforms in the rest of the world, people have a lot of options to choose from. WeChat has been operating in a country with zero competition and hence wasn't ready to fight this competition.- Poor LocalisationBesides the competitive context, the app is mostly tailored for the Chinese market and fits the Chinese users' needs and wants. The company hadn't taken an active approach in adapting its product for the international market and hence failed when international users started tagging along.- China-First ApproachSome of the features the app offers are only limited to China. An American user, for instance, can not order an Uber through the app only because it does not offer such features outside of China. While there could be many reasons for the company not expanding such features internationally, such constraints have affected its popularity quite a lot.Wrapping UpWeChat has been incredibly successful in China, making it appealing to international sellers. It is a great tool to create engaging content for customers. But there is also high competition, and it is heavily tailored towards a Chinese market. These are some of the elements to keep in mind when considering using WeChat for your business.

Abdur Raffey Tariq

Using WeChat Like a Boss

Is Your Business on WhatsApp?WhatsApp started back in 2009 as a simple iPhone app that supported free text messages along with status updates over the internet. The features kept on updating, and in no time, the app blew up and became one of the most used mobile apps in the world. Being very similar to other social media apps, WhatsApp also has the potential to enable business communications. Yet, due to the lack of conventional marketing capabilities such as paid ads, firms are still unsure of developing a WhatsApp presence. Read on to find out if WhatsApp is, in fact, the right platform for businesses and if your business needs a WhatsApp presence or not.How Big is WhatsApp?WhatsApp is massive. With more than <a href="https://techcrunch.com/2018/01/31/whatsapp-hits-1-5-billion-monthly-users-19b-not-so-bad/">1.5 billion unique users from 180 countries</a> across the globe, WhatsApp ranks number one on the most used messaging apps in the world. Around 65 billion WhatsApp messages are exchanged per day, with over 29 million of them sent every minute. The use of WhatsApp for businesses is somewhat limited, yet stands at approximately <a href="https://respond.io/blog/whatsapp-business/">3 million business accounts</a> registered on the app.These statistics are remarkably impressive because, despite its more than a decade presence, it has managed to stay on top for most of the years. Considering numbers this large, if your business isn?t already on WhatsApp, you?re losing out on more than you can even imagine.Does WhatsApp Have a Business Interface?WhatsApp has a set of APIs (Application Programme Interface) for businesses of all types to create their business profiles. API is a set of protocols, routines, and tools used for building software applications, and it specifies how software components should interact. They can easily communicate with customers from around the world in a completely secure digital environment. Through the WhatsApp Business API, you can dive into WhatsApp?s code to get deeper insights and add any features you like.For small businesses, however, WhatsApp has a dedicated platform by the name of WhatsApp Business. This platform can be accessed through both smartphones and personal computers and provides most of the features of the regular WhatsApp API.Features provided by WhatsApp Business and How to Use Them<figure class="kg-card kg-image-card kg-card-hascaption"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/217880aee9713196ffbbbd035508d89c.jpg" class="kg-image" alt loading="lazy"><figcaption>WhatsApp Business Features</figcaption></figure>Here is a quick overview of all the features provided by WhatsApp Business.<ul><li>Business Profiles</li></ul>WhatsApp allows you to create detailed business profiles through phone numbers. Your business profile can contain your contact information, address, website, email addresses, and a lot more. Doing so helps your customers stay firmly in touch with you not only on WhatsApp but also through other channels.<ul><li>Smart Messaging Tools</li></ul>Besides standard text and media messages to personal accounts, there are some options WhatsApp offers for businesses to use instead of normal messaging. Here are some of them:<ul><li>Quick Replies</li></ul>This feature allows you to save and reuse responses you commonly use so that you can quickly reply to common customer queries. You could use these to answer general questions on product prices, delivery times, etc.<ul><li>Automated Messages</li></ul>This option allows businesses to set an automated response to customer messages. You can use this to reply to customer queries when you?re away, and then you can get back later. This option dramatically increases customer engagement and improves your response rate.<ul><li>Catalogs</li></ul>Catalogs allow you to put pictures and messages on display so that multiple people can view them. Through the use of the catalogs, you don?t have to send product photos or information individually to customers.<ul><li>Status Updates</li></ul>Status updates let you post images, videos, and text that disappears after 24 hours. This process follows the pattern of Instagram and Snapchat stories and helps improve brand engagement.<figure class="kg-card kg-image-card"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/59115bb70c3264c5a30a07eee25a9113.png" class="kg-image" alt loading="lazy"></figure><ul><li>Performance Metrics</li></ul>WhatsApp provides some basic analytics and performance metrics on your messaging and status updates so you can see how effective your efforts have been. You can see how many of your messages were sent, delivered, read, and replied to by customers.<figure class="kg-card kg-image-card"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/b02a93eef0badf3b5a75ede04f7ffdcd.jpg" class="kg-image" alt loading="lazy"></figure><ul><li>End-to-End Encryption</li></ul>The end-to-end encryption offered by WhatsApp ensures that all the conversation is strictly between you and the intended receiver. This makes the conversations completely safe, secure, and prone to breaches.<figure class="kg-card kg-image-card"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/36e2419f430a01b82c761ee6c49a1206.jpg" class="kg-image" alt loading="lazy"></figure>WhatsApp Business Success StoriesIncorporating WhatsApp into their marketing plans has helped both small and large businesses across the world. Its unique way of sending personalized messages improves customer response rate and hence increases their engagement with the brand. Here are some success stories which will inspire you to start using WhatsApp for your own business as well.Large EnterprisesA lot of market giants and billion-dollar corporations have been using WhatsApp for their benefits. Some of the highlights include:<ul><li>UBER is using WhatsApp Business to connect its drivers with the management team to ensure smooth communications, and clearing out any queries as fast as possible.</li><li>Booking.com uses WhatsApp to confirm bookings from its customers, speeding up the whole process a lot.</li><li>Singapore Airlines is the first airline company to partner with WhatsApp Business API. This will help bring them closer to their customers and speed up communications.</li><li>Bank Rakyat Indonesia runs its virtual personal assistant through WhatsApp Business. WhatsApp has also allowed them to implement conversational banking.</li></ul>Small and Medium-Sized BusinessesSmall businesses across the world have been using WhatsApp to inform, communicate, and market to their customers adequately. Some highlights include,<ul><li>Khatabook, a financial management app in India, employs WhatsApp in its business model to speed up transactions, send payment reminders, and verify ledger entries. A significant part of their success is due to the convenience they have provided to their customers via WhatsApp.</li><li>Marta Cer?mica, a local ceramics manufacturing company in Spain, uses WhatsApp Business to book customer orders and connect with them on a personal level.</li><li>OgoLord International Limited, a food company in Nigeria, uses WhatsApp Business to coordinate operations across its vast supply chain across the country.</li></ul>Pros and Cons of Using WhatsApp for BusinessAdvantages<ul><li>Since every contact is treated individually on WhatsApp, the level of personalization, it can help businesses achieve is unmatchable.</li><li>With a broad reach to over 180 countries worldwide, WhatsApp is the ideal platform to connect with international customers free of cost.</li><li>The conversations are always two-sided so that the customers can convey their requirements, queries, complaints clearly, and efficiently.</li><li>It works on both phone and desktop platforms and hence allows devices to integrate much easily.</li></ul><figure class="kg-card kg-image-card"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/252666a0b6fda567982104283fc083f8.png" class="kg-image" alt loading="lazy"></figure>Disadvantages<ul><li>While WhatsApp offers end-to-end encryption for conversations, it does not provide enterprise-grade encryption, which covers metadata, device storage, and server storage. Thus, there is always a possibility of a data breach.</li><li>It does not support paid ads like other social media platforms, which makes it challenging to reach wider audiences. The marketing is mostly personalized.</li><li>Due to a relatively lesser number of companies using WhatsApp Business, the customers sometimes consider it as a private platform and do not appreciate businesses marketing to them through WhatsApp.</li></ul>Businesses, in any sense, are followers. They get followed consumers from websites (with banner ads) to online videos (YouTube ads), to social media (Ads on Facebook, Instagram, and Snapchat). WhatsApp is no different. The business platform, with its unique features, is a boon to small and medium businesses. On-time updates, better interaction, limited resources, worldwide connection, all make it one of the best platforms for your business. As long as customers keep adopting new platforms, companies that wish to be front and center will have to port their infrastructure and capabilities to these new mediums.

Is Your Business on WhatsApp?

Welcome to E-tailingE-tailing has changed the way businesses run today. All consumer based-business love to sell their products online as it is convenient with the least human interaction. Customers also love browsing and selecting their favorite products online from the comfort of their homes. It provides consumers the capability of selecting and buying items online at a better price from a wide variety of sellers.According to the<a href="https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf"> Census Bureau of the Department of Commerce</a>, the estimate of U.S. retail e-commerce sales for the Q4 of 2019 was $187.3 billion. The Q4 2019 e-commerce estimate increased 16.7 % from Q4 2018, while total retail sales increased only by 3.8 percent in the same period. Total e-commerce sales for 2019 increased by 14.9% from 2018 and reached $601.7 billion. <figure class="kg-card kg-image-card"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/3fb05d1ca919eec9ca911b60d6a10c2b.png" class="kg-image" alt loading="lazy"></figure>What does online selling involve?Businesses can enter the online market through two options:<ol><li>Own e-commerce websites</li><li>Choosing to sell their products in an established online marketplace like Amazon, eBay, or Etsy</li></ol>Setting up an e-commerce website might be easy, especially for well-established and big brands. But, it comes with more complex components such as payment gateways, search engines, inventory management, customer service, and order fulfillment. A good website must have the following traits:User friendly: A website must be user-friendly and fast to load. Customers love sites where they quickly get the results for their search. The contents of the site should be simple, engaging, and informative. It should be able to generate website traffic and convert them into sales.Mobile-optimized website: Mobile devices generate around half of the<a href="https://www.statista.com/statistics/277125/share-of-website-traffic-coming-from-mobile-devices/"> global website traffic</a> (52.6%). Customers love easy browsing, and many find the use of smartphones more convenient. A business must have a mobile-optimized website to reach maximum customers.SEO friendly: A successful e-commerce business needs a Search Engine Optimization (SEO) friendly website as it helps the website appear first on web search engine pages. SEO is the process of increasing the quantity and quality of website traffic by making the website visible on the first Search Engine Result Pages (SERP).A logistic team is required to take care of on-time shipment, updated delivery, and to solve customer queries. Payment gateways, data breaches, and pay per click advertisement are other concerns to be considered. Undoubtedly, a business can purchase such services from different resources available in the market, but combining all will mean high overhead.By choosing to sell on Amazon, a seller can comfortably enter the market. Amazon is the world?s largest online marketplace. It has 112 million <a href="https://www.statista.com/statistics/546894/number-of-amazon-prime-paying-members/">Prime subscribers</a> in America. Prime subscribers are the customers who pay Amazon a certain amount to enjoy particular services provided by Amazon prime like one-day, two-day delivery, Prime music, prime video, etc. Around <a href="https://www.feedbackexpress.com/amazon-1029528-new-sellers-year-plus-stats/">3.3 million third-party sellers</a> have chosen Amazon for their business since 2017, and they account for 50% of all sales on Amazon. In its<a href="https://s2.q4cdn.com/299287126/files/doc_financials/2020/Q1/Amazon-Q1-2020-Earnings-Release.pdf"> Q1 report</a> for FY2020, Amazon announced that the third-party sellers sold more than 700 million items that were shipped with Prime Free One-Day Delivery or faster in the U.S. in 2019. With its enormous market and more than 20 years old data and logistic team, Amazon stands as a one-stop-shop for all its sellers. <figure class="kg-card kg-image-card"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/c76b6de99caaa7ce5f1759c7363e3c16.png" class="kg-image" alt loading="lazy"></figure>Amazon- the Google of online shoppingAccording to a survey conducted by<a href="http://go.bloomreach.com/rs/243-XLW-551/images/state-of-amazon-2016-report.pdf"> Bloomreach</a>, Amazon has become the first place for product searches. About 55% of customers use it rather than search engines like Google. It had also reported that around 58% of customers had left a retailer?s website for Amazon after having a poor site experience, while only 30% left Amazon for other retailer?s sites. Salsify in February 2018 surveyed that around 41% of people searched and bought on Amazon, as compared to 28% who searched on Google and bought on Amazon.Now shoppers are using Amazon as a product research resource where they can look at photos, compare prices, read reviews, questions, and answers, even when they are not there to buy anything.Using Amazon as a distribution channelPricewaterhouseCoopers (<a href="https://www.strategy-business.com/feature/What-the-Top-Innovators-Get-Right?gko=e7cf9">PWC</a>), globally collected data records Amazon with a spending of $22.6 billion in 2018 in Resource and Development (R&amp;d) as the largest investor globally. It?s one of the principal reasons behind the successful distribution channel of Amazon. A distribution channel is a set of steps through which a product reaches its buyer. Amazon?s delivery process is streamlined and straightforward, and that is why it is the first choice as a distribution channel for both B2B and B2C.According to<a href="https://this.just.in/amazon-brand-database/"> TJI Research</a>, the number of exclusive brands on Amazon increased tremendously in 2018, with 434 exclusive brands active on the site, and now it is around 640. Amazon places such exclusive brands along with its private-label brands under ?Our Brands? and handles their marketing and fulfillment. The profit here for such brands is that Amazon markets such products for free, and they get preferential treatment in search results. These brands also enjoy special ad privileges as Amazon promotes ?Our Brands? ads at the top of search results for commonly searched terms in categories like CPG, personal care, and apparel. Data related to customers? priorities regarding the product, price expectations, etc. are some of the additional perks that these brands get from Amazon.Amazon?s exclusive over-the-counter (OTC) medication?s brand- Basic Care, for example, is manufactured and owned by Perrigo. Perrigo uses Amazon as a distribution channel for this product and sells it only on Amazon. If we go by success data, then the<a href="https://www.ascentialedge.com/blog/amazon-brands-year-review-health-personal-care"> Basic Care?s sales</a> came way higher than the share of Perrigo?s existing brand Good Sense for the FY2018.Optimizing your listings on AmazonThe most important thing a seller should do on Amazon is to optimize their listing on the site. Optimization listing on Amazon is the process of customizing product pages to improve the product?s search visibility, click-through rate (CTR), and conversion rate (CR) to generate more sales. Conversion rate is the percentage of visitors who liked your offers and were able to get it; out of the total visitors. The process requires keyword discovery, optimized listing text and image content, and an increased number of reviews.A product to appear on Amazon Search Engine Result Pages (SERP) must include all the relevant keywords on the product page. The most important fact to note here is that most of the shopping on Amazon happens on the<a href="https://www.searchenginejournal.com/amazon-search-engine-ranking-algorithm-explained/265173/"> first SERP</a> and most probably within the first three results.Wellapath?s Zen stress support formula, for example, in its product listing page on Amazon, has a description with almost all possible Search Engine Optimized (SEO) words. It goes as ?Zen Anxiety and Stress Relief Supplement, natural herbal formula supporting calm, positive mood, with Ashwagandha, L-theanine, Rhodiola Rosea ? 60 vegetarian capsules?. So, if someone searches a product with any of the above keywords, like anxiety, calm, or stress, the product to appear first on the search page, after the paid-ads, will be Zen Anxiety and Stress Relief Supplement.Buying ads on AmazonAmazon has a platform for advertising on similar lines of Google search, or as the ads go on Facebook. The user enters a search query for a product, and Amazon displays the relevant product?s ads. <a href="https://s2.q4cdn.com/299287126/files/doc_financials/2020/Q1/Amazon-Q1-2020-Earnings-Release.pdf">Q1 for FY2020</a> reports Amazon?s ?other? category that includes its business through advertisement was up 44% to $3.91 billion in revenue.A seller who wants more clarity for their products on Amazon can pay for the ads by bidding on specific keywords that make their products eligible to be listed to higher visibility in the Amazon SERPs. The seller has to pay when a prospective buyer clicks on the ad. Adopting this platform requires spending more money. But, considering its customer base and the data it has on buyer?s behavior, Amazon is an effective way to get the first few sales and reviews and move the products. Amazon provides three main types of ads that one can configure- Sponsored product ads, headline search ads, and product display ads. Sponsored product ads appear on the SERPs and product relevant pages. Display ads appear not only on Amazon.com, but also on Amazon-owned and operated sites, Amazon network, and Amazon devices.There are remarkable retailers like Burberry, who use Amazon only for advertisements plainly to get the attention of the millions of buyers who visit Amazon daily. Such is the market of Amazon.Pricing yourself for success on AmazonWrong pricing is considered a deadly blow on sites like Amazon. Higher price prohibits Conversion rate (CR), whereas pricing the product less will create suspicion and will also be a complete loss for the seller. Ideally, the pricing of the product should be simple that strikes the right chords of the buyers.The priority while pricing should be the product to appear on the first Search Engine Result Page. When a customer types specific keywords on search engines, the first page that appears with the search-related results is called SERP. Before pricing, a seller must take into account all the costs to be borne by the seller like shipping, customs, product wiring, Amazon commission, customer return fees, etc., to determine price floor. The next thing to consider is the price of similar items by rivalries. Many buyers use online price comparison websites before buying a product, and sellers should consider this fact before pricing their product. Exclusive discounts on new product launches, Black Friday, Cyber Monday, or other holidays will positively help the seller to build a market on Amazon. The seller must keep the price stable for a lengthier period to build a sustainable long-term brand on Amazon and gain customer trust.Amazon had lately re-worked on its<a href="https://www.wsj.com/articles/amazon-changed-search-algorithm-in-ways-that-boost-its-own-products-11568645345"> search algorithm</a> to arrange and display profitable products that sell before the relevant or trendy products that make less money.Using Amazon for your shippingDelivering through Amazon is quite simple and easy. Amazon provides two options to its sellers for shipping:1. Fulfillment by Amazon (FBA)2. Fulfillment by SellerWith<a href="https://sell.amazon.com/fulfillment-by-amazon.html"> FBA</a>, the seller needs to send the product to an Amazon fulfillment center. They can also use Amazon Partnered Carrier Options to do so. The packaging, shipping, customer service, and return are all handled by Amazon. The FBA products also become eligible for unlimited free one-day or two-day delivery options with Amazon Prime. FBA also provides flexible rate structures, and sellers need to pay only for the services they use. It?s very cost-effective and helps sellers reach more customers.But, if a seller has a logistic team or the products aren?t eligible for FBA like hazardous goods or seasonal products, then the seller can opt for<a href="https://sell.amazon.com/fulfill.html?ref_=sdus_soa_fulfill_n"> fulfillment by the seller</a>.Sellers can choose Amazon?s drop shipping method as well, where they can use third-party to fulfill the orders. However, Amazon has specific policies for this option that a seller must serve.Amazon selling checklistAmazon starts analyzing the sellers and their monthly performance metrics as soon as they get themselves registered. Mismanagement, false data, missing papers, etc., are only going to earn negative points. So, a business must be prepared with the checklist beforehand.<ul><li>Ready and updated Paperwork: The seller must be equipped with all their paperwork like business name, credit card, Tax Id and state tax, etc.</li><li>Well Planned Budget: Apart from paying to have a professional selling account, other expenses like commissions, advertisements, shipments, etc., are also to be borne. A seller must have a budget of projected sales in advance.</li><li>Logistics: The seller should be well equipped with the logistics like the return process, and distribution channels (if not choosing FBA).</li><li>Business plan: The next step is to have a clear business plan like whether they are going to sell the same product or change it, how are they going to source the product, who are the competitors, etc.</li></ul>Marketing: A seller must have a strategy about how to market the product, how to promote it, and through what channels, keywords to be used in the product listing, data of competitive market selling the same product.Amazon is being used by many brands to sell their products online. Third-party sellers love to be a part of the platform because of its services and its reach to more than hundreds of millions of customers worldwide. Many brands choose to sell their product on Amazon despite having their distribution channels.Apple, for example, has started selling its newly launched products on Amazon. Earlier, Amazon had sold Apple products that were mostly refurbished products from third-party sellers. The prices used to vary from the official Apple prices. In the new agreement, Amazon decided not to interfere with Apple?s pricing of its product. Apple, in return, agreed to sell its newly launched products on Amazon.However, some brands had disappointing experiences on Amazon. Nike, for example, stopped selling its product on Amazon (not the re-sellers). Nike decided to sell directly to Amazon. In return, Nike asked Amazon to check unauthorized third-party sellers of Nike products and remove fake Nike items. Nike wanted to have more control over what and how to sell and list Nike products on Amazon. But that partnership failed because of Amazon?s favor towards well-reviewed Nike products that were sold by third-party vendors. Another Big brand that left the Amazon platform for similar reasons is Ikea.Before deciding to sell on Amazon, the seller must go through Amazon?s policies and understand the market. The more control you have on your market, the better it is.Choosing to sell on Amazon can bring profit to small businesses and entrepreneurs. According to David Heacock, CEO of FilterBuy, starting your business on Amazon is much simpler than establishing up your website and warehouse base. He loves selling on Amazon as it makes it easy to reach consumers on a larger scale by providing the required tools and infrastructure. With logistics, marketing, and inventory being taken care of by Amazon, sellers can concentrate more on their product and customer service. Amazon, as a brand, has tremendous reach and influence on the essential part of any market- the customers. And you get exposure to the international market as well. The only thing you have to do is to create your product listing, send inventory to an FBA warehouse, and your business is live.Happy Selling!

Abhilasha sandilya

Should a B2C Company Start Selling on Amazon?

If you?ve had an eye on the latest finance and investing trends, you must have come across the term ?blockchain.? Blockchain technology has been around for over a decade now, and has been catching a lot of steam in the business world lately. The way it has enabled fast and secure transactions, without the involvement of any middlemen, makes it of great use for business people worldwide. Let?s dig deeper into the topic to see what it is, how it works, and how it can be beneficial for your business.Blockchain 101: What is Blockchain?Simply put, Blockchain is an automated way of passing information from point A to B in a completely safe manner. All in all, it consists of small blocks of digital data stored in a public database, spread across a decentralized network of computers. Each block contains information about the transaction and has a unique identification code. The transaction is initiated by creating one such block, which is then verified by thousands, perhaps millions of computers distributed across the net. Once verified, it is added to an already existing chain (database) and hence gets associated with a unique history.Since the chain (database) is spread out across many computers, it is virtually impossible to tamper with a block, hence making the Blockchain an extremely secure method of sharing information.A simple example to understand this whole process could be that of a train ticket station. Each ticket could be considered a block containing all the information about the departure time, price of the ticket, etc. In contrast, the chain could be the entire train network comprising of every ticket ever sold to each person in the system. Each ticket is uniquely associated with the chain and is only accepted when verified by the entire system.The Promise of BlockchainThe blockchain technology has the revolutionary potential to transform how businesses operate and collaborate. It has found its applications not only in the banking and finance sectors but also across the corporate world, enabling information sharing, digital contracts, processing payments, and tracking client information. Some of the leading businesses around the globe have been using Blockchain to speed up their everyday tasks, with minimum middlemen costs. VISA and HSBC could be simple examples of their use in the finance sector, whereas Walmart and Unilever have been using it in their supply chain to track the physical movement of goods. It does not stop here. The healthcare industry has extensive use of Blockchain, where companies such as Pfizer and GlaxoSmithKline have been using it to manage digital inventories for various pharmaceutical products.Since the transfer of information is fast and completely secure, it has also found its way in international trade and travel. Market giants such as British Airways, Singapore Airlines, and Lufthansa have been using it extensively. The concept of ?Blockchain for Aviation (BC4A)? was born through this industry. Every stakeholder in the value chain, including aircraft manufacturers, logistics providers, software developers, on-field staff, has been involved in the process. In this sense, Blockchain has been a disruptive force in the industry that no one can tame. It has disrupted marketplaces across the world and has proven its utility in almost all industries.How the Blockchain Fell ShortWith such a promising potential for the corporate world, there are also some areas the blockchain technology falls short in and hence takes it far from perfect for use in every industry. Here are some disadvantages of using blockchain technology.<ul><li>Not as Efficient</li></ul>The blockchain technology might come off as a highly efficient way to share information; however, this is not always true. As the number of participants in the network increases, the process gets slower as it requires 100s of GBs of space and too much energy to process the transactions.<ul><li>Data is Immutable</li></ul>Most of the data store in a blockchain is immutable. This means that once it is written, it cannot be removed. While this may help in fraud prevention, this can also raise many privacy concerns for the users.<ul><li>High Implementation Costs</li></ul>The implementation of a blockchain can sometimes be costly. The costs are mainly associated with hiring developers and experts to operate the whole system, while there are some fixed licensing costs as well.<ul><li>Security Concerns</li></ul>Blockchain may be relatively safer than the conventional transactional procedures, yet there is some vulnerability attached to the data stored. If an attacker gets access to 51% or more of the network, all of it is lost.The Birth of Private BlockchainsBlockchain technology does spread the data across a broad set of computers across the network, but this does not have to be this way. This is where private blockchains come in. Private blockchains develop a closed network of transactions that operate within restricted parameters. Some basic access controls limit the people who can participate in the network, which leads to reliance on third parties for enabling transactions. Some providers offering private blockchain networks include Ripple, Hyperledger Fabric, and R3?s Corda.Companies such as Comcast and the streaming giant Spotify have been using private blockchains to cater to different privacy concerns while still keeping the transactions transparent.Unique Blockchain Use CasesThere are several ways Blockchain can be useful for your business. Here are some use cases you should try out.<ul><li>Financial Transactions</li></ul>If you still haven?t tried out cryptocurrencies, you?re lagging way behind your competitors. Blockchain allows you to transact without any additional costs, whether the payments are international or local.<ul><li>Fraud Prevention</li></ul>Since tampering with a single block in the chain requires tampering with the whole network, which is almost impossible, there are zero chances of fraud. Implement Blockchain to take care of any fraudulent transactions and efficiently track the culprits.<ul><li>Smart Contracts</li></ul>Smart contracts present all the terms of the parties involved in the form of a code. These self-automated programs run without any downtime and make sure you get paid once you?ve held your end of the deal.<ul><li>Tracking Client Data</li></ul>Blockchain provides a unique connection to each block in the chain, making it easy to track where specific data is coming from. This could be implemented in marketing campaigns to see what customers are purchasing what items, and hence the campaign can be personalized.Where does Blockchain go next?While no one knows what the future holds for Blockchain, one thing experts agree on is that the disruptive effect it has had on the world economy is not going away anytime soon. Two industries that will be the most affected by Blockchain soon are International Trade and eCommerce. And this is not only limited to financial transactions. New and innovative use cases will completely transform every aspect of the value chain from manufacturing goods to stocking, supply chain, marketing, and customer care. Furthermore, since a significant part of the world economy will be affected by Blockchain, the governmental regulations will be high. From taxation policies to the rules of international trade, everything will be completely transformed.

The Promises & Drawbacks of Blockchain

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