Ecommerce has seen huge growth lately, especially since the pandemic.
While e-commerce giants like Amazon and Flipkart have thrived due to their size and big investments, there are many smaller players struggling to expand their e-commerce businesses. Why? As more sellers jump into the game, competition has increased. This has led to skyrocketing customer acquisition costs, making it challenging for smaller sellers to make a profit. Additionally, returns create financial and environmental issues. Returned items often go to waste, and the money spent to get those customers is lost when they return products. Small sellers need help, and it's important because these challenges have financial and environmental impacts.
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Economic Impact of eCommerce -
Sellers often find themselves in bidding wars on advertising platforms such as Facebook & Google, spending a lot of money just to get noticed. These high bid prices increase their acquisition costs, hurt their finances, and impact their finances. To adjust high acquisition costs, sellers then try to retain and increase the Lifetime Value of the customers through loyalty programs. However, most of these efforts fail, as customers might forget about their rewards or take a long time to redeem them. Low customer lifetime value impacts their finances further and puts them into a vicious cycle of high acquisition costs and low loyalty, ultimately leading them to losses.
Environmental Impact of eCommerce -
Returns are a significant issue. They not only affect sellers' finances but also have environmental consequences. A single return trip of a delivery vehicle to collect a return can produce as much as 25% more emissions compared to the original delivery. Many returned items end up in landfills, causing harm to the planet. There are also challenges from the customer's side. Sellers implement easy returns policies to encourage purchases. However, some customers misuse these policies, unaware of the environmental impact and the cost of acquiring them. Customers opting for COD pose a great risk of refusing to accept orders if it doesn't meet their expectations. There's also RTO, where undelivered orders are sent back, causing more losses and environmental damage.
How do online stores overcome these challenges?
WyseMe: Bring Wisdom to eCommerce
WyseMe helps online stores become sustainable so they can focus on growing. It reduces the acquisition cost, helps build loyalty and educates customers to make wise and sustainable choices, like returning fewer items and using online payments.
WyseMe's advanced AI encourages good shopping habits by rewarding shoppers who make sustainable choices with Wyse points. These points can be used for gift cards from different brands, making shopping fun and building loyalty.
Additionally, WyseMe connects sellers with top shoppers for a fraction of their marketing budget, maintains their brand identity, and lets them run targeted campaigns and cross-promotions with non-competitive brands.
Joint Loyalty on WyseMe
Online marketplaces like Amazon have a clever way to keep customers coming back. Their joint ecosystem allows shoppers to choose from various brands and products. Whereas solo loyalty programs do not provide a variety of options. For instance, if Raj buys shoes and earns reward points today, but he won't need more shoes for a year, he might forget about those rewards.
However, selling in marketplaces has its drawbacks. While marketplaces can bring in customers, loyalty usually goes to the marketplace, not the individual sellers. Sellers can't see who buys their products or communicate directly with customers.
Sachin Garg, Founder of Saara, says, “WyseMe changes this. It lets online stores enjoy the benefits of a joint loyalty system while still having control and ownership over their brand and customers. Plus, all the customers acquired through WyseMe directly contribute to the store’s growth and success.”
Benefits All Around
WyseMe is beneficial for sellers, shoppers and the environment. For sellers, it provides cost-effective acquisition and loyalty strategies and the power to shape their online store’s destiny. Shoppers enjoy a fun and rewarding shopping experience with reduced costs and a variety of options to choose from. And importantly, the environment benefits from reduced waste and environmental impact. WyseMe, developed by Saara Inc. and supported by Binny Bansal's 021 Capital and 9Unicorns, is set to revolutionize how online stores approach acquisition and loyalty in the future, helping make eCommerce wise and sustainable.
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