5 business models gaining pace and poaching space in e-commerce

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5 Business Models Gaining Pace And Poaching Space in eCommerce

Transcript of 5 business models gaining pace and poaching space in e-commerce

5 Business Models Gaining Pace And Poaching Space in eCommerce

The Changing Scenario

• Retail chains revamping their online portals

• Future group sells apparel through Amazon

• Reliance entered e-space through reliancefreshdirect.com

• Offline retailers increasing discounts to battle e-offers

Indian Ecommerce Market

13 bn

76 bn

$0

$10

$20

$30

$40

$50

$60

$70

$80

2015 2021 (Projected)

India's Ecommerce Market (in Billions)

The Latest Trends

1. Surfing on commissions

They receive 2.5% - 5% commission

Paytm and Freecharge are mobile recharge websites

Earns commission from restaurants

Cater to their home delivery needs

Charges 5% to 50% commission

Brings visitors for ecommerce stores

Ease consumer’s online transactions

Transaction Brokers

2. Tasting Success Through Aggregator Model

Provides a digital meeting and transaction place for

buyers and sellers

Market Creators

3. Banking on Omni-Channel Presence

Website + Mobile Site + App + Email, SMS

Marketing + Social Media

Till 2014Physical Stores for buying

and exchanging the products

In 2015

10%

40%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2015 2020

Increase in retail sales over the next 5 years

2015 2020

Offline Stores Coming Online

Online Stores Coming Offline

4. Riding on Flash Sales

Limited Supply+

Limited Time=

Flash Sales

Indian Ecommerce Flash Sales

5. Rise of Subscription Based Model

Success of Subscription Model

Product Discovery+

Demo+

Utility

Flexibility

Predictable Inventory

Easy Upselling

Steady & Recurring Cash Flow

Deep Customer Relationships

No Price Wars

No Stock Piling

No Wastage

Why Companies love it?

• Create your business centered around the customer

• Create unique and unforeseen experience for the customer

• Innovation is the key

Concluding Notes

Thanks