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Ecommerce is by nature transactional and thus built to succeed. The question is, why do some well-funded companies manage to thrive and others fall apart? Of course, all strokes can’t be painted with the same brush, and there are many operational and marketing oriented reasons that lead to a company’s success or failure. However, starting with a winning formula from inception goes a long way in guaranteeing long-term sustainability.
So, what are best practices for building a successful ecommerce company in 2017 and beyond? Here are some simple rules:
Vertically integrated ecommerce companies own the entire customer lifecycle, from coordinating manufacturing to final delivery. Since the inception of Warby Parker in 2011, vertically integrated ecommerce companies have thrived, and with due cause. By virtue of being both the manufacturer and retailer, they can provide greater value and service to customers while maintaining reasonable margins. They also don’t have to engage in price wars on Amazon, which inevitably bring down profits and don’t allow for differentiation.
Everyone needs a mattress. Similarly, lots of people need glasses. Pursuing large markets has been to the benefit of online disruptors out of the gate. But, Warby worked not only because it went after a large market, but that it also went after one that was inefficient and over-priced. Its better service and branding helped, but the market itself was ripe for disruption.
Dollar Shave Club sold to Unilever for $1 billion. Why do subscription companies do well? The reason is simple: They can handle a higher user acquisition cost vs competitors. Take subscription vs. non-subscription players for lower cost items. If you’re selling a $9 razor one time only, you probably aren’t justifying the price you paid for Facebook ads to acquire that customer. If you’re Dollar Shave Club and that person pays you $9 and sticks around for three years, the customer is actually paying you $324 over time. Guess who wins out in the long run?
The largest ecommerce exit ever, Chewy.com, in some ways operates as a subscription model in disguise. Pets need to be fed daily and Chewy, by making it simple and easy to buy again, got lots of its consumers to return to Chewy.com the next time they needed a fill-up.
Complex businesses with lots of specialized SKUs can be difficult to turn into effective businesses. For example, there have been a few fashion and apparel wins during the last few years, but lately apparel exits haven’t been the toast of the town. Even the vertically integrated apparel trailblazer, Bonobos, sold for much less than its investors were hoping. Why? Because apparel is inherently complicated. There is seasonality, inventory and converting one-time shoppers into loyal consumers can be difficult in a world of styles and trends. It can happen, but it requires an experienced team, a great product portfolio and strong technology. Retention and data driven etailer Stitch Fix has thrived by getting customers to purchase more than once; others not as much. If generating loyal shoppers doesn’t work out, well, you have the makings of some of the less successful ecommerce transactions we’ve seen lately.
Inherently smart businesses should have more efficient marketing over time. The bad news is that even if greater efficiency happens in isolation, as a space gets more competitive, pricing for user acquisition usually goes up and conversion rates go down. The good news is that there is a way to get past this issue: Provide a differentiated product from your competitors.
In the online mattress category, we’ve seen over 60 companies enter the category during the last three years. It’s become expensive to enter the space and market effectively online. For example, the price of Google in-market spending has risen by four times in the last four years. At Saatva, we’ve been able to continually be one of the top players because we provide a unique luxury product and differentiated service. We custom install a non-compressible product in-home; our competitors arrive via UPS rolled into a box. It’s this type of core distinction that allows us to convert a greater percentage of buyers, even as marketing costs get more expensive.
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Looking for a unique and perfect place to stay? enjoy amazing discounts for a night stay at Marble Brand hotel that has modern facilities with very clean and cozy environment that will make your stay memorable. And our trained staff who are always there to assist with your needs. You will definitely love the luxury atmosphere of the hotel. Spacious accommodation with luxury settings to make you feel completely at home. We do not only provide paradise-like rooms for our guest, we have also streamlined our rooms to meet our guest budget and taste. We have Standard, Executive Suite and Royal Suite for booking. We have an exquisite Bush bar that offers mouth watering dishes, meat and assorted drinks that will bring back your joyous mood. Playing music from the ambient sound system that will compliment your day with unforgettable memories of MARBLE BRAND HOTEL relaxation and happy atmosphere. Marble brand Hotel have provided Free Airport Pick-up that will comfortably bring you to our luxury hotel. This facility is only available to Marble brand Hotel guest or business group who registered for our pick-up Marble brand hotel is located in the metropolis of Ikeja Lagos. 35, Oritshe street off Balogun bus stop, Awolowo Way Ikeja Lagos. Nigeria
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Coupon(s) valid until 2017-02-09 (unused Coupons after this date will not be honoured/refunded by Merchant/DealDey)
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What is a Classified Ad
A classified, is an advert posted by an individual, company or organization offering a product or a service. Posting an Ad is free on www.classify.com.ng.
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Classic eye shadow primer Intensifies the impact of any eye shadow,Helps color last longer, Is a must for every artists makeup kit! Is a must for every artists makeup kit!
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1st Contact Eye Clinic is dynamic and fully equipped with ultra-modern facilities to provide the best standards of primary eyecare to our clients. We are committed to creating value through excellent clinical diagnosis, management of a wide range of visual conditions as well as good customer satisfaction. This deal shall cover the clinic registration and consultation in addition to a computerized/comprehensive eye examination on every coupon holder. this excludes the cost of frames, lenses & drugs respectively. However, any spectacle frame bought in the clinic throughout the validity period will be entitled to a 20% discount.
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HOLIDAYS SPECIAL PACKAGE!!! Enjoy this Exotic Shiatsu Massage: Its an ancient technique from Japan. It combines gentle stretches with finger pressure to work on different pressure points of the body.The idea is to fix imbalances in the flow of energy in your body. A scientific explanation is that shiatsu calms an overactive sympathetic nervous system, which improves circulation, relieves stiff muscles, and alleviates stress. This package comes with free facials OR PEDICURE! Come let us Pamper You…Because you deserve it! After-all its the holiday season!!!!
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What is a Classified Ad A classified, is an advert posted by an individual, company or organization offering a product or a service. Posting an Ad is free on www.classify.com.ng. How to post a Classified Ad Click on the “Post an Ad” button. If you don’t have an account, click on the register link to […]
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