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by Ted Chong, co-founder of Ice Dice Advertising and marketing
Traditionally, we suggested native companies to keep away from partaking in e-commerce instantly. As an alternative, we beneficial itemizing their merchandise on main platforms like Lazada, Shopee, or Qoo10. These platforms provide an intensive vary of merchandise, making it difficult for particular person companies to compete. Many objects on these websites are bought at a loss, with the platforms subsidizing costs to draw customers. They recoup these losses over time as prospects return to buy different objects.
These massive platforms have important funding, permitting them to maintain losses on sure merchandise for prolonged intervals. Nevertheless, we’ve lately noticed a shift, with a lot of our purchasers starting to search out success in e-commerce. Whereas they will not be seeing returns of 10x or 20x, they’re reaching a optimistic return on funding (ROI). This optimistic ROI justifies continued funding, as they can cowl promoting prices and purchase new customers at no internet value.
Traits of Profitable E-commerce Companies in Singapore
Among the many native companies that thrive in e-commerce, a number of widespread traits stand out:
1. Promote Your Personal Model.
As an alternative of promoting well-known merchandise from manufacturers like HP or Philips, give attention to promoting your personal branded merchandise. Widespread model objects are simple for customers to price-compare, main them to buy from the most cost effective retailer. Nevertheless, with your personal model, the competitors shifts from worth to perceived worth. If you happen to can successfully talk the worth of your product, prospects usually tend to buy from you, even when your costs aren’t the bottom.
2. Goal Impulse Consumers with Inexpensive Costs.
Goal to cost your merchandise inside a spread that encourages impulse purchases, sometimes below $100. This pricing technique is especially efficient on platforms like Fb, the place customers are sometimes looking casually and open to spontaneous shopping for selections. Excessive-ticket objects require extra consideration and might result in delayed purchases or misplaced curiosity. On social media, the place customers usually tend to be partaking in leisure looking, a well-priced, engaging product can result in fast gross sales with out intensive worth comparisons.
3. E-commerce isn’t confined to bodily merchandise.
Service-oriented companies in Singapore can even carve out their area of interest within the e-commerce sector. That’s right; you may provide companies and settle for funds on-line. This is named O2O, or on-line to offline. For instance, you may promote a trial session for $50 on-line or provide your full bundle with an upfront deposit cost. There are quite a few benefits to this strategy, essentially the most important being that it will increase the chance of purchasers exhibiting up for his or her appointments since they’ve already made a cost. This gives larger likelihood of success as in comparison with conventional types of lead technology whereby no cost is collected. Moreover, this methodology reduces administrative work by automating cost processes. Moreover, the income generated on-line will help offset a few of your promoting bills, making your advertising and marketing efforts more cost effective.
E-commerce is quickly gaining traction, particularly with the rise in distant work. Customers have gotten more and more snug with conducting transactions on-line. No matter whether or not your small business is service-oriented, product-focused, or event-driven, there are alternatives to interact in e-commerce. Make sure that you capitalize on this rising development and don’t get left behind!
Ted Chong is the co-founder of Ice Dice Advertising and marketing, a Google Premier Accomplice digital advertising and marketing company in Singapore that has been working since 2015 and has helped greater than 500 SMEs develop their enterprise by means of Fb and Google adverts.
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