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12% customers utilize retail subscriptions for access to products

retail subscriptions

The aspects driving customers’ utilization of retail subscriptions assistance shifted over the matter of 2021. Presently, an outstanding share of customers utilizes retail subscriptions to get permits for high-quality items. The items that they are unable to get anywhere else.

This is as per the sticky.io collaboration, a PYMNTS, and the Subscription Commerce Conversion Index, depending on an analysis of 2,424 customers. This is a significant change from the main three areas of 2021, in which extra subscribers noted utilizing retail subscriptions mainly for convenience.

Presently, 12% of customers say their main cause for utilizing retail subscriptions is limited access. 10% of customers assert the reason is subscriptions are more useful than buying from a shop. Customers also utilize subscription assistance because they are a strategy to amplify fun and enjoyment.

They are the main way to get a permit for the item. They are also time-saving. The leading aspect differs by generation. The biggest share of millennials, bridge millennials, and Generation Xers utilize retail subscriptions for limited access.

However, units of Generation Z utilize them for saving time. Seniors and baby boomers utilize subscription assistance because it enables them to buy the items they want. And they can purchase the items without remembering to buy daily for them. Retail subscription assistance providers’ services have shifted over time, too.

The stake of dealers offering free delivery, refund, or guarantee policies expanded for 4 straight quarters. Presently, more dealers are offering 6 of the 15 main traits. These traits enhance the user experience of the subscribers.

Several dealers are still attempting to bear up with the remainder of the retail subscriptions, though. Traits enable the leading providers to distinguish themselves from the lowest performers. They include item reviews and ratings, plan options, quick add-to-cart features, refund or guarantee strategies, and password rules.

Contactless payment strategies keep transit agents operating smoothly

contactless payment

Contactless payment acceptance rose in early 2020. Customers converted to technology to deal with health concerns and in-person restrictions. Presently, almost 60% of international customers like contactless techniques over PIN, cash, chip-enabled cards, and magnetic-strip cards.

Students and workers return to fully on-premise or hybrid work categories. They want their payment choices to extend their regular commutes. Several transportation experts have responded accordingly.

They accept innovative and new payments technology to get riders back to general transit vessels. The MTA will launch a four-month pilot strategy of their new contactless payment technique. Riders of New York City will presently utilize the tap-and-pay OMNY strategy.

So that they can take benefit of discounted prices generally paid to riders. Riders can spend as they move, with prices limited to $33 per week. The upcoming policy shift is one portion of an initiative to get tourists back to common transit outlets.

Comparable trends are exploding the rails globally. Railway sites in the UK are increasing their contactless payment system for their safety and health-conscious passengers. Their combined railway strategy will facilitate travelers to utilize a touchless system.

The ultimate objective is to exclude fare offices and ticketing queues while facilitating fair pricing. Health concerns and remote work cause a huge decrease in ridership for general transit administrations across the U.S.

As workers back to jobs and pandemic concerns subside, vehicle experts are utilizing technology. However, they can urge tourists to return to the tracks. Nicole Fontayne-Bardowell noted commuters are starting to notice the advantages of contactless payment and mobile payment choices.

Commuters are utilizing them at an increased frequency to subsidize their rides. Transit administrations historically have depended on closed-loop fees to obtain tourists’ ride costs. The pandemic changed customers’ fee expectations.

But presently, an increasing volume of transit administrations are responding by facilitating “open-loop” potentials. 92% of vehicle companies intend to integrate ticketing options and contactless payment to get riders to return post-pandemic.

Ocado to provide Lighter robots to Grocery Giants like Kroger

grocery giants

Ocado introduces the new warehouse robot to assist grocery giants. It will serve great importance to take over competition like Amazon. Ocado is a tech company. It comes up with new products to help fast grocery delivery.

It can create a new wave for the growing start-ups. Ocado is best-known for its extensive online supermarket. The company deals with robotics and automation tools. It aims to ease the process of warehousing to pick and pack items.

Ocado sells its technology to grocery giants like Kroger. Britain’s Morrison and France’s casinos also make use of Ocado’s tech. The hype is all about the new robots. The first is the 600 series bot. It is lighter and more energy-efficient. Over half of the parts are 3D print.

The second robot features advanced robotic arms. It can pick items directly off the grid in the company warehouse. The tech company tried to soothe the picking process.

Ocado also came up with the virtual distribution center. It will be a combination of software smarts and small micro-fulfillment. It will increase the maximizing capacity of grocery giants in product deliveries.

The Ocado shares rose by 5%. The stock, though, had a sharp decline of 46% over the past year. The reason is the pandemic. The central banks tighten monetary policy.

The rapid delivery will enhance the overall performance of the grocery giants. Getir and Gorillas had a flash from venture capitalists. The rapid delivery race can increase revenue acquisition.

These companies depend on dark stores. They are the tiny warehouses that ship online orders. It tends to serve the customers in-store.

Tim Steiner, Ocado’s CEO, states, “There’s very little differentiation between all the players out there.”

Rapid delivery plays a great threat to companies like Amazon. The company plans to fund its technology products. Also, he adds that the firm intends to have enough cash on the balance sheet.

Walmart acquiring two fintech companies

fintech

A Walmart-backed fintech is set to acquire two companies. It intends to build an all-in-one app. It aims to facilitate a platform where customers can manage money. The combination of three will call itself “ONE”.

ONE is the name of the firm Walmart Fintech start-up will acquire. The other fintech company is Even. Walmart is the USA’s largest private employer. And also one of the biggest grocers across the country. They aim to develop unique, affordable financial products. They made this as an announcement last year.

Walmart also announced its team-up with Ribbit Capital. It is an investment firm behind Robinhood. They launch independent fintech start-ups.

Goldman Sachs bankers will lead the joint venture. They hired two of them. Omer Ismail will lead ONE.

Walmart is a major stakeholder in the fintech start-up. It called the start-up Hazel. Also, the board includes most of the top executives of Walmart. The fintech includes CFO Brett Biggs and U.S. CEO John Furner.

The start-up will try to strike 1.6 million U.S employees and 100 million shoppers. It will also focus on the untapped customers. The untapped sections include Walmart’s shoppers. The start-up will capitalize millions of Americans who have no access to a bank account.

This venture will serve as a one-stop platform to spend, borrow and spend. It already features an app for its employees. The app helps with budgeting and emergency savings. Walmarts, PayPal, Mattress Firm, and Humana, are some of its customers.

ONE will offer debit cards and savings accounts to customers. The Walmart-backed start-up will also help people keep track of their money. It will serve as an assistant to the budget.

The acquisition will have 200+ employees. The combined business will account for more than $250 million on the balance sheet. It will include fuel growth, Walmart, Ribbit Capital. The start-up expects the closing of the transaction in the first half of 2022.

Buyers and suppliers trying to accelerate B2B payments

B2B payments

For the last few decades, suppliers and buyers have been trying to boost B2B payments.

Both of them are wrestling to make payments faster. Also, the paper check is sticky.

In the last few years, people have embraced a few methods in space. They are BNPL (buy now, pay later), dynamic discounting, and virtual cards.

According to Ron Shultz, it needed approval for accelerating payments. He also said that large companies are slow in processing payments.

The small supplies have paid their price. Getting paid in 45 days is not enough to keep SMBs from the crunch of a cash flow.

Tackling such problems is necessary. So, the payments network announced Mastercard Track Instant Pay’s debut. It is a virtual card for facilitating instant B2B payments.

Mastercard Track Business Payment Service and open-loop B2B network of Mastercard works together. It leverages the existing credit lines of the purchasers. It makes sure that the supplies are quickly-paid.

It eliminates manual intervention. The payments go straight to the bank account of the supplier. AI (Artificial Intelligence) is also used.

Mastercard has support for all payment and rails types from the purchasers. It includes ACH. Mastercard leverages the capabilities of machine learning. It can calculate the performance risk of the supplier.

The instant B2B payments will be open to all the partners of Mastercard. Faster cash will remove the small firms’ struggle. Business expansion will become easier for the small suppliers. It can be a boon to the liquor stores and restaurants.

Mastercard can collect data from providing services. It will use the data for optimizing the acceptance preference of the supplier. It will help the companies to become more efficient in the way they invoice for services and goods.

Shultz said innovation is about leveraging existing assets and bringing them together. There is no need for anything new.

$761 billion dilemmas as online sales surges

online sales

Retailer’s returns jump to 16.6 % in 2021 as Online sales surge. National Retail Federation and Appriss Retails records 6% hype from last year. It will add up to $761 billion in merchandise. The merchandise will travel back to the warehouse.

With the increase in online sales during the pandemic, retailers panic transfer goods. The returns surges with consumer’s buying goods online. Online shopping increased sales as it lacks visualization.

Online sales account for 23% of the total U.S. retail sales. It was $4.583 trillion as per the NRF. The returns on orders are currently a big headache. Retailers will have to make a decision to resell or send back.

The writing off goods will lead to loss. Retailers saw a 20.8% increase in the average rate of returns. It was 18.1% last year. The after-effects of sales were not necessary earlier. With the increase in online sales, the returns are no longer a primary problem.

Mehmet Sekip Altug, a business professor at George Mason University, demands serious measures. He gives the example of Warby Parker. It opened showrooms to make people better visualize. It also features waiving fees when a product bought online returns. The brand wants to bring customers to the stores.

Holidays will also increase the return on sales. They are expecting an increase of 17.8%. It will account for $158 in merchandise sales. It comes from the month of November and December. Holiday sales expand to 14.1% year over year. Also, it hit a record $886.7 billion.

There are categories that record more returns. Auto parts are one of them. It records 19.4 % on average. However, apparel and clothing hold returns of 12.2 %. And housewares and home improvements to an average of 11.5%.

There are companies like Amazon which came up with tactics. They are accepting returns but also telling us to keep some products. They are trying to get rid of the cost of shipping back and processing bulky.

Kohl shares soared by 36 percent on Monday

Kohl shares

Kohl shares record surge with takeover offers from Sycamore. Sycamore, the private equity firm, plans to pay $65 per Kohl share. It is way more than the stock’s last close. It was $46.84, which adds to the 39% premium.

Sycamore was not the only buyer. Another offer came from Acacia Research. They are the investment firm Starboard Value. They also chose to pay $64 per Kohl Shares.

Acacia and Starboard want to partner with Oak Street Real Estate Capital. And they will sell Kohl’s real estate to get enough money. Earlier, Kohl opposed the sale-leaseback deal.

The company affirms receiving a letter of interest in the business. It gave the statement that BOD would take the decision. They are looking for an option that best suits the interest of the company. Also, they care a great deal about the stakeholders.

Kohl also tends to feel pressure from Macellum Advisors and Engine Capital. They are putting pressure to improve business. They also want to boost their stock price.

To which Kohl responded that their strategy was working. They point out their growth in sales. And they had a nice quarter. They recorded profitability in the third quarter. The company launched new initiatives.

The company recently added two of the group nominees to its board. The group featured activists, including Macelleum. They will be independent directors to the board members. Margaret Jenkins and Thomas Kingbury joined the team.

Michel Binetti, Credit Suisse Analyst, states, “We do think there’s some merit to Kohl’s embracing a slightly more aggressive real estate strategy to bolster shareholder returns today.”

The surge in Kohl’s share is a great deal for stakeholders. The price can go even higher now. Binetti expects the price to rise between $70 and $80. At the same time, Kohl expanded the buyback plan to $2 billion.

The Monday closing recorded Kohl’s market cap at $8.9 billion. The investors can strike a deal with one of the offers. With the rise in the valuation in its retail operation, there are high chances of negotiation.

Starbucks expands online services in China with Meituan

online services

Starbucks tied up with Meituan to expand coffee delivery in China. The tie-up will focus on delivering online services with the Meituan app. Customers can order customized Starbucks drinks with the app.

They can also book activities in local Starbucks like coffee-tasting experiences. The partnership with Meituan faces stiff competition. The domestic beverage chains HeyTea and Manner can serve as a great competition.

Starbucks online service is calling it a delivery debut in china. Starbucks Reserve range of coffees deals with premium products. It is trying to bring its native taste to the competitive market of China.

Meituan App will serve a great deal in customer attraction. Customers will be able to customize their drinks. The members can participate in a customer reward scheme. They will receive all the benefits from the app. It will have all the features and more than a normal Starbucks app in China.

The tie-up between Starbucks and Meituan app is also for offline experiences. With the Meituan app, customers can reserve places for any activity. They can sign up for private events in a local shop.

This service is currently available in 60 stores across china. Beijing, Shanghai, Shenzhen, and Chengdu now offer these plans. Starbucks will further expand to other cities in China.

Starbucks also introduced a new feature in the app. It will make sure that 5000 plus stores in china feature a food delivery app. It promises that each coffee giant by the end of the year will have it.

The Meituan app features 660 million users in China. It is one of the biggest food delivery apps in the country. It will give Starbucks online services a great boost. It opens a high potential to attract more customers. Smartphone users tend to use multi-utility apps in China. And, Meituan is one such example.

The tie-up will face strong competition from tea-based HeyTea. And, a local coffee chain, Manner has prominence in attracting customers and finance in the region.

Shopify plans to expand in China with JD.com

Shopify

Shopify partners with Chinese e-commerce giant JD.com. Now, US merchants can easily sell goods in the Chinese market. JD will distribute American goods via its channel for brands on Shopify.

It is one step ahead for JD.com as well. The internationalization effort of the company took another leap. It gave the following statement: “JD said it will open an “accelerated channel” for brands on Shopify to begin selling via its cross-border e-commerce site in China. Merchants can set up shop in three to four weeks rather than the typical 12 months that it takes foreign brands to begin selling in China.”

JD is responsible for price conversion for the company. It will also handle the logistics from the U.S. to China. With its own logistic arm, JD stands as a big competition to Alibaba. It has a wide network of delivery workers and warehouses.

The expansion goes two ways. Shopify will also work to ease the access of Chinese brands in the US. Chinese merchants can provide their brand to western customers.

Shopify tried targeting the Chinese market before. But, not much came into the hands. In the year 2020, it started accepting payments by Chinese digital wallets. Alipay is one of the popular digital wallets in the country. It is a product from Alibaba.

The success rate of the collaboration is high. It is a good opportunity for both parties. Merchants from the eastern and western sides of the globe can sell products to each other.

JD has more than 550 million annual active customers. Shopify gets a broad customer space to sell the product. With foreign brands and products, JD wants to give tough competition to Alibaba. It is trying to differentiate itself from its rival.

This expansion is a key focus for the company. The dream of capturing the American market is getting clearer. Last week, it opened its first retail store in the Netherlands.

It is also adding up to the target set by the Chinese government. It is going to increase national online sales by 44% between 2021 and 2023. JD and Alibaba are key players in the push.

Metaverse will open gates to attract younger shoppers

younger shoppers

Fashion brands will be successful in attracting younger shoppers. Patrice Lovet, CEO at Ralph Lauren, metaverse will provide a plethora of opportunities.

Ralph Lauren now features a virtual visit. Young shoppers can buy digital apparel. Also, it can even have virtual coffee at Madison Avenue Store. In the National Retail Federation’s annual conference, retailers are busy making decisions.

They are considering buying real estate in the digital world. The digital world will feature e-commerce. Gaming and social media will create a virtual platform. Louvet himself is participating. He has already made his avatar. The avatar is wearing rugby.

He stated, “There are a lot of parallels actually between the metaverse and Ralph’s vision because we are not a fashion company. We are in the dream business.”

The strategies will set the younger shoppers open to retailers. Online retailers will try their best to acquire more shoppers. There are a lot of parallel factors involved in the metaverse.

Fashion brands will score high when it comes to younger shoppers. Online retailers are trying their best to go ahead in the race. Recently, Nike bought virtual sneaker RTFKT. It aims to create a digital world.

Walmart also filed trademarks. It indicates the vision to sell virtual goods. It will sell goods ranging from home decor to personal care. It will offer virtual currency. The shoppers can use non-fungible tokens or NFTs.

Luxury brands like Ralph Laurel will launch better virtual experiences. Gucci also tends to follow the same pattern.

The CEO also informed about the participation in Zepeto and Roblox. The shoppers can dress their avatars with products from Ralph Lauren apparel. Metaverse can bring in a lot of revenue to the company. They sold 100,000 units in just one week of collaboration.

Ralph Lauren is yet to sell NFTs. However, it will bring more money to the company. Metaverse is here to change the retail business.

Ford and Stripe hinged for five-year payments deal

payments deal

The car company Ford Motor signs a payments deal with Stripe. The deal will strengthen the e-commerce strategy. It will use Stripe’s technology to process payments now. Stripe will allow digital payments across North America and Europe.

The online processor company will take vehicle orders. It will also bundle financing and reservation. The payments deal will route the customer’s payment. The payment will migrate from Strips to local Ford.

The five-year payments deal is the major client win for Stripe. It is one of the growing start-ups in Silicon Valley. The net value of the start-up today is $95 billion. The company builds software for payment acceptance.

It is competition for firms that take charges on processing the transaction. The one like Shopify & Deliveroo. However, there are rivals like Adyen and checkout.com. They hold a value of $40 billion and $1 billion.

Marris Harris, CEO of Ford Motor, states the tie-up as “We are making strategic decisions about where to bring in providers with robust expertise and where to build the differentiated, always-on experiences our customers will value.”

Ford will incorporate the services from this year. This was because people shifted to digital payments. People pay digitally for even smaller things now. For example groceries, food & even health care. Ford wants to bring in the same function for vehicles.

Ford recently topped $100 billion. The electric vehicle strategy was a great hit. The company was the best performing last year. It was a great year. The company beat big Tesla and General Motors. Ford’s restructuring plan was also a great player.

The investment with Stripe will increase customer acquisition. It will serve as a turn-around plan for Ford. Stripe is a privately owned company. The Stripe may go public soon. But, the timeframe is still under the cloak: John Collison, President at Stripe’s plan to stay private.

Amazon will no longer accept Visa credit cards in UK

Visa credit cards

Amazon will stop accepting Visa Credit cards from UK shoppers. It will strictly bring it into a function from Jan 19, 2022.

Amazon spokesperson notified that “We are working closely with Visa on a potential solution that will enable customers to continue using their Visa credit cards on Amazon.co.uk.” The reason is the high transaction charges. In November last year, Amazon brought this up.

Visa and Amazon came to a truce in the past. It introduced a 0.5% surcharge on Visa Credit cards in Australia and Singapore. There are still things to understand about U-turns. The decision still stands in the hallway. Amazon is still to call out the final decision.

The Visa spokesperson affirmed cardholders with the use after January 19. Visa and Mastercard increased interchange fees. Card networks raised the charges after UK’s withdrawal from Brexit. But, not any of the companies called that the reason.

This move will give Amazon some bargaining power. Also, it may bring down Visa to negotiate. David Ritter, the Service Strategist at an IT firm, called this action nothing shocking.

Though, this move will create serious problems. Customer’s Visa credit card today is with digital wallets. For example, Apple Pay, Google Pay, and PayPal. And, it is even with Amazon’s own Prime subscription service.

David Ritter further goes on explaining, “It’s more likely that Amazon has been applying pressure tactics. Major players in the retail space tend to have bespoke rates with payment firms, rather than paying published rates…”.

The move is particularly to bring down the processing charges. Amazon wants to come out at long-term fixation on rates. Or, it can also demand to freeze the current rates.

With Amazon, grocery chain Kroger’s is also complaining about high card costs. Meanwhile, card networks are facing competition from Klarna and Afterpay. They offer the ” buy now, pay later” option. Amazon as a brand is showcasing its power at the perfect time.

Walmart creates cryptocurrency to enter Metaverse

Walmart

Walmart is all ready to enter the world of Metaverse. It will create its own cryptocurrency and NFTs. It recently filed new trademarks. It intends to spread its wings by selling home decorations to electronics. It will offer the shopper virtual currency to buy products.

It will also feature selling sporting goods & personal care products. It filed the application on December 30, 2021. Walmart notified that “continuously exploring how emerging technologies may shape future shopping experiences. It declined to comment on the specific trademark filings.”

It intends to test all the ideas to grow the company. The great idea becomes the product or service. Walmart will test, iterate and learn from all of it.

The trademark attorney, Josh Gerben, notices that Walmart is preparing many things off-screen. The greatest thing to address now is cryptocurrency. Also, how they will function the process into the Metaverse. It looks like Walmart is ready to become a part of the virtual world.

With Facebook announcing the change of the company’s name to Meta, all the others hyped to the virtual world.

Similarly, Nike also filed the trademark application for virtual sneakers and apparel. It teamed up with Roblox. It aims to create Nikeland. It also brings in the RTFKT, a virtual sneaker company.

Every other business is shifting to accept all virtual parameters. GAP, an apparel maker, sold NFTs of its logo sweatshirts. The NFTs pricing falls between $8.30 to $415. It comes with a physical hoodie.

Adidas and Under Armour were successful in selling their debut NFTs. Now, they set high prices on the NFT marketplace OpenSea. These ventures will open new revenue streams.

NFTs let the retailers tokenize their products. Luxury Brands like Gucci and Louis Vuitton serve the most authentic NFTs.

Retailers are planning to create their own ecosystem. The ecosystem will function on the blockchain. Customers are slowly and steadily shifting to the virtual world. It will provide a win-win for both retailers and buyers.

How To Trade In Cryptocurrency?

How To Trade In Cryptocurrency

The buzz around cryptocurrency is not expected to mellow down anytime soon. So your search query on crypto investment is very well justified. In this article we have explained all the necessary details that you would need to start trading in cryptocurrency. Read along to find out.

1. Select a Crypto Exchange

The first and important step is to find a good currency exchange. The trick is to go with the one that has been in the industry for some time. You can also look for online reviews of the crypto you are willing to invest in to be doubly sure.

Since the exchange plays a significant role in your crypto trade, it is very important that you choose the one that is trustworthy and ensures a smooth trading experience. Before finalizing the crypto exchange you want to open your account in, ensure that it lets you withdraw crypto to your own wallet. This will ensure the safety of your money.  Best Crypto Exchange Australia is the most preferred option for a safe start.

2. Open a Trading Account

The next step after finalizing the crypto exchange is to open a trading account with the exchange. For opening an account, you will have to submit personal identification documents for verification as you do at the time of opening a bank account.

Open a Trading Account

There are no specific documents that you have to produce for verification. It totally depends upon the norms of your state. After your documents are verified by the exchange, your account will be ready for trading.

3. Attach a Payment Option

Now that your account is ready for trading, you will have to add funds to it to begin.  Before attaching the payment details, make sure that your bank allows investment in that particular crypto you are willing to trade in.

After confirmation, transfer the funds you want to invest from your bank account to your crypto exchange account. You can transfer it online. Depending upon the policy, you might have to wait for a stipulated time before you make your first purchase.

4. Purchase and Store the Crypto

After the waiting period is over, buy the cryptocurrency you wish to invest in. Some Of the most popular cryptos that you can consider are Bitcoin, followed by other altcoins such as Ethereum, Cardano, Binance Coin, Tether, XRP, and Dogecoin.

Purchase and Store the Crypto

After you have bought them, you will have to store them safely. For the safety of your funds, it is important that you store the codes in your personal crypto wallet. This will ensure that only you access it.

Crypto wallets is a software program designed to keep cryptocurrencies. It could be hot- connected to the internet, or cold-not connected to the internet. You should choose a wallet that maintains a good balance between security and convenience.

5. Choose a Strategy

When it comes to investing in crypto, there are a plethora of strategies to choose from. The strategy would greatly depend upon your experience in crypto investments, the amount of risk you are willing to take and expectations of returns. Some popular strategies for crypto investments are Day Trading, Trend Trading, Buy and Hold, Swing Trading, and Scaling.

Before investing your money, understand these strategies and choose the one that suits your needs the best.

A Pro Tip

To put it straight, cryptos are even more complex than stock, but the fact that people have been able to make significant money through it makes it worth a try. However, as a beginner, my advice to you is to start small. You should have your finances in place as a proper risk management plan, a diversified portfolio of investment, and most importantly, an emergency fund.

How Can Businesses Achieve Successful Returns Management?

How Can Businesses Achieve Successful Returns Management

Studies found that more than 80% of customers consider the ease of making returns when deciding whether to shop online or through brick and mortar stores. Interestingly, a higher percentage will likely shop again with online merchants with a convenient return process. Unfortunately, dealing with product returns isn’t fun for most retailers. However, merchants can minimize and capitalize on returns if they handle it the right way. Below are tips for successful returns management.

1. Differentiate between controllable and uncontrollable returns

Product returns are costly to your business and customers, and you should do everything possible to mitigate possible returns. This begins from understanding and differentiating between controllable and uncontrollable product returns. Controllable returns are those that can be reduced or eliminated through efficient logistics processes, such as proper product descriptions, better packaging to avoid damages, and speedy delivery.

On the other hand, uncontrollable returns are those that merchants can’t do anything about. For instance, if the buyer places an order but changes their decisions afterward. Once you’ve understood these elements, you can implement strategies to prevent such from happening.

For instance, you can provide detailed product descriptions to mitigate controllable returns. You can also use better packaging materials and fast delivery couriers. There is little you can do about uncontrollable returns, but you can consider reducing the window period that customers have to return items.

2. Understand the costs associated with returns

Implementing a good returns policy helps businesses achieve great customer satisfaction. Customers also prefer businesses that offer free product returns. However, you should understand how returns affect your business, specifically the cost of tracking and reverse shipping. You should also account for work hours spent and pain points associated with managing product returns, as this process is mostly manual.

These cost and time estimations provide great insights into the effect of returns on your business. If figures show that returns cost almost the same as creating new products or making purchases wholesale, you’ll be better off issuing refunds and allowing customers to keep the delivered products.

3. Develop a clear return policy

A clear return policy is important, as it determines customer experience. Like shipping policies, you should ensure that your returns policy is accessible to customers by posting it on your site and other partner sites. You should also enclose hardcopies when delivering products. This eliminates misunderstandings and frustrations associated with return deadlines, refunds, and product exchanges.

4. Process returns quickly

Most businesses don’t like product returns because of the tedious, manual processes involved. Unfortunately, a study found that 88% of eCommerce customers stop or avoid shopping from merchants who take a long to process refunds. Besides, 77% of customers said they wouldn’t recommend such retailers.

If your business has this challenge, you might be missing out on many customers. Fortunately, you can implement this smart eCommerce returns experience solution. G2 Reverse Logistics returns management software helps businesses maximize efficiency and value from returns.

Endnote

Managing returns or reverse fulfillment is challenging and expensive for most businesses. Fortunately, you can improve your customers’ return experience with these tips. You can also provide returns visibility through tracking and using fulfillment centers for seamless returns management.

5 Tips To Increase Traffic Of Your Ecommerce Store

In 2020 and 2021, online shopping has grown worldwide. People began to buy more and more things from the comfort of their own homes. It is fast, convenient, and even economical. Therefore, a lot of new online stores with different categories of goods have appeared recently.

In this article, we will describe the main tips to increase eCommerce traffic. It will help you drive traffic to your eCommerce store with minimal investment.

Preparing

The growth of organic traffic to an online store is impossible without some elements:

  • A complete web design with a clear structure and product categories
  • Availability of products in all categories with prices and descriptions
  • Metadata
  • Active indexation of the pages (SEO parameters)
  • Unique content with keywords

Remember that organic traffic is possible only 1-2 months after the creation of your online store. You have to wait for some time for all pages to be indexed in search engines if your site is newly created. Only after that, you can move on to the main actions to increase eCommerce traffic.

Tips №1

Create unique content. Each text on the pages of your online store should be unique and contain keywords. The semantic core should be created by an SEO specialist. You can do it yourself using special services like Wordstat. Add descriptions for each product with keywords and specify the characteristics. Over time, this will increase traffic to the site. If you correctly fill out the product pages and specify the characteristics with the price, they will be displayed in the search engines on request for those or other products.

Tips №2

Start your blog and do content marketing. To be successful in attracting customers, you need to not only sell but also be helpful. To achieve the latter, help your audience solve their problems and find answers to their questions. In other words, engage in content marketing.

Content marketing offers users valuable and interesting information from your company that will draw them to your online store’s website.

Start your blog. This is a successful way to retain customers and increase traffic. A blog is an additional reason for users to come back to the site, in addition to making purchases. Provide information that promotes products and satisfies audience interest. Familiarize yourself with effective types of blog articles and start writing about what’s relevant to the product and your business. Submit publications to outside sources to reach more potential customers and make yourself known.

Tips №3

Run marketing campaigns. A marketing campaign is a strategy for converting potential customers into buyers. Typically, these are enticing offers to users that encourage them to interact with the online store.

You have several ways to increase traffic:

  • Organize a contest or giveaway to drive online sales. People love encouragement. Offer free shipping or a coupon for their first purchase if they sign up for the newsletter.
  • Create a sense of urgency. Free shipping until the end of the month, an announcement of an upcoming limited sale. Events like these will attract visitors. Add a countdown timer to your site for sales to get customers to visit the site again and again in anticipation.
  • Offer a second item as a gift for purchase. People are more likely to buy knowing they’ll get something for free.

Tips №4

Use backlinks. Link building is an essential and effective search engine optimization tool. It works very simply. Create unique and interesting content with hyperlinks to your site (to pages, products, or articles). Place articles with backlinks on other sites. This will greatly speed up indexing and attract additional organic traffic.

You can automate this process and use link-building tools. Various backlink service for eCommerce allow you to send backlinks to different resources. You will save time if you use such a service.

Tips №5

Run an email newsletter. The distribution of emails in many sources refers to outdated methods. However, with its help, you can still successfully attract traffic to the site and convert it into sales.

  • Define the purpose of the mailing. Sending must have a clear goal. For example, to inform potential customers about a promotion or to tell them about a new product collection.
  • Set a theme. The headline and the text of the mailing influence the conversion. Write letters to recipients about online store promotions and a wide assortment.
  • Think about content. It is important to put useful data in the letter. It should catch the attention and motivate the user to go to the site;
  • Use calls to action. Text and images connect with the advertised web resource, you should also place a prominent button with a call to action;

Conclusion

We have described some useful tips for attracting organic traffic to your online store. You can use one or several tips. However, you can be sure that they are effective if you follow them correctly.

Visit the link for more useful tips on how to promote your site.

Organizational Change In eCommerce: The Types And How To Cope

Change is a fact of life, something that we all have to deal with despite our best efforts to resist it. When dealing with change as a business however, there are definite hurdles and drawbacks that need to be accounted for, especially since the knock-on effects of any organizational change will be a blow to efficiency and therefore productivity no matter what you do to mitigate it.

By identifying what type of change you’re dealing with, you can start to understand how to plan for and how best to implement your changes while causing minimum disruptions to the organization’s daily goings on, allowing the change to happen without much fuss. Note that there will always be some level of resistance to change within your organization no matter how much you plan – resisting change is human nature after all.

Transformational Change

Transformational change is about structure, about your goals and plans as an organization. Anything that would change the strategies that your business employs falls under the umbrella of transformational change.

This type of change is very situational, and plans can change in response to the ever-shifting markets and cultural trends. Digital transformation is an example of such a change, with the way that organizations think about and do things being rapidly transformed by the new technologies that are implemented.

This type of change can be among the slowest to plan and implement, as anything that would so radically alter a business’ goals needs to be carefully thought out lest it lead to disaster.

Remedial Change

Remedial change is slightly different to the below categories of change, as it occurs retroactively when you already have all of the facts, in order to address poor performance or efficiency in your organization. Note that while this seems to imply that personnel are at fault, efficiency and performance issues can be as much a result of changing circumstances or lackluster leadership.

A great example of remedial change that takes us back a bit would be the introduction of ecommerce itself, with many retailers initially dismissing it as a fad or a sideshow that would never replace physical commerce, then scrambling to implement it during early 2020.

Remedial change is often the easiest to implement as you already have most of the facts about what went wrong, the only issue being how to solve it.

Organization Wide Change

Organization wide change is anything that happens on a large enough scale that it affects your entire organization. This can be changes in policy, implementing new software, using a new means of communication and more. It’s important to note that this type of change will affect every level within your organization.

This type of change requires careful planning, and needs details and flexibility to work. It’s all well and good to know what you want to implement, but if you fail to take into account the specific circumstances that different departments or teams find themselves in you won’t get very far. Information is key in this type of change, with planning often being done backwards starting from an end goal and branching out as different obstacles come into the picture. It’s not important that everybody gets going at the same rate, or even that they take the same route, compared to everyone arriving at the same endpoint.

Personnel Change

Personnel change is exactly what it sounds like, any change in personnel that occurs within your organization. It may seem inconsequential compared to the large-scale changes mentioned above, but can be among the most critical due to its effect on employee morale.

Any change within a team is going to shake the stability of that environment, whether it’s new hires, layoffs, promotions etc. In the case of layoffs, a feeling of reduced job security might make your employees feel nervous about their future, whilst paradoxically new hires can have the same effect, with personnel wondering if they are going to be replaced. Empathy and reassurance can mitigate these fears, but can only go so far towards easing doubts.

Promotions, on the other hand, are more complex. When examining the change here you need to factor in that every team member has their own approach and flair to doing things – even when a standardized protocol is in place it can’t account for everything. When a promotion removes a player from the team and replaces them with someone who isn’t as familiar with how things are done this can have a damaging effect on productivity, especially in collaborative departments.

Unplanned Change

Another case of stating the obvious, unplanned change is simply any change that you didn’t account for making due to factors you didn’t foresee coming. These changes are among the most annoying and difficult to implement, especially if the changing circumstances that lead to them are still unstable, but they are necessary nonetheless. Unplanned change can overlap with any of the above three types of organizational change, the mere fact

The most striking example of this in recent years is obviously the 2020 COVID-19 pandemic, with thousands of businesses having to shift their strategies to more digital approaches or close their doors due to lockdowns and restrictions.

Unplanned change can occur at any scale, and while it’s unlikely we’ll see another shift in the business environment as rapid as that which occurred in 2020, the lessons learned from it can be applied to other changes too.

Note that a change can fall into multiple categories, meaning that the strategies for coping with both types will need to be adapted in order to properly facilitate the change. For instance, the rapid digital transformation of retail businesses that occurred early in 2020 as lockdowns restricted the ability to use physical stores would fall under unplanned change for being unforeseen, organization wide change for its scope, and transformational change for the necessary changes to business strategies as the pandemic went on. Change is complex, and not something that can be done without preparation.

How to Evaluate the Worth Of An eCommerce Business?

The valuation and funding of e-commerce businesses are two of the most important matters to consider when looking to determine the worth of such an online business. When all things are done and dusted, arriving at a fair value should be what matters most for both the seller and the buyer. Here is a list of useful tips on how to evaluate the worth of an eCommerce business in a correct and realistic manner that is advantageous for all involved parties.

Multiple of SDE

One of the most important methods of evaluating an eCommerce business has to do with multiplying the SDE or Seller Discretionary Earnings. This is done by analyzing the historical earnings of the business and multiplying them by a value that’s usually between 1.5 and 3.5. The result will be the value of the said eCommerce business. It’s important to explain that the historical earnings of a company represent its net profit over at least the past year.

So, an eCommerce business has a certain net profit over the last twelve months which you multiply by 1.5, for example. It’s worth noting that the value of the multiplier depends on a number of important factors that we will get into a bit later. To put it simply, the more favorable these factors are, the higher the multiplier is and, obviously, the higher the value of the business is. The final result represents the company’s value.

Precedent Sales in Similar Markets

Another very good method of evaluating the worth of an eCommerce business is by analyzing precedent sales that have happened within similar markets. This may not be the most popular or most telling valuation procedure but it can offer valuable insights, especially if you are not sure where you stand.

However, you need to do some research and find out the companies that are worth comparing with your own because being in a similar market doesn’t necessarily mean that other eCommerce businesses will provide a good starting point. So, in order to do that, you should be looking at a company’s time in business, size, revenue, and many other factors. This evaluation method is not as precise as the aforementioned one but it can provide a base in case the buyer and seller have different opinions when it comes to the company’s value. It’s like a reality check that should be taken into account by the involved parties.

DCF Analysis

The analysis of the Discounted Cash Flow represents another good way to evaluate the worth of an eCommerce business. This method aims to provide a glimpse into the future and possibly let you know how much your business will be worth. In short, the DCF analysis represents an estimated return on investment when it comes to buying a company that’s adjusted for certain factors like inflation.

This is a very good valuation method if we are talking about an established business. However, it’s important to mention that because of the increased volatility of eCommerce businesses and the differences when it comes to the regular cash flow of such a company, DCF analysis might not be the best valuation method. This doesn’t mean, however, that it is not a useful analysis to make and one that will also help you repeat some steps that have brought positive outcomes in the past.

The aforementioned tips on evaluating the worth of such a business are not mandatory but are definitely helpful. Every business is different and every owner knows what’s best for their brand. This is why doing some research beforehand and only picking the methods that work the best for your case is a mandatory thing to do.

Important Valuation Determinants

There are certain eCommerce business valuation determinants that are worth taking into account when calculating the worth of a company. Here are some of them:

  • Size and age: A company that has been consistently successful for the past years and has witnessed growth is certainly attractive for buyers, regardless of whether it’s an eCommerce one or any other type of business. Besides that, a business with a clean history will always find a buyer. Don’t forget to do your research on similar markets to see where similar sized-businesses have stood in the past;
  • Reputation: Having a good reputation is imperative for an eCommerce business that wants to have good value and happy clients. Things like customer support and high-quality services are the most important when determining the worth of a business. Besides that, making sure that the demands of the clients are met, the orders are fulfilled, and any problems are immediately solved is the key to having a valuable eCommerce business;
  • Logistics and operations: Certain types of operations can increase or decrease the value of a business. Things like order fulfillment, cost-cutting, and employee satisfaction are mandatory when it comes to analyzing the possible worth of a business. Take a look at all the important logistics and operational details when evaluating the worth of a business, regardless of its nature.

Conclusion

All in all, we can safely say that evaluating the worth of an eCommerce business depends solely on the management capacities of its owner. From this stem other important factors like the success and recognition of the company. Besides that, even if nowadays the number of strictly eCommerce-focused businesses is large, thinking of a physical business that you can extend into the eCommerce market is a very good idea too. Planning and then executing certain steps that will help your company develop and, subsequently, have a higher value, is one of the best things that you can do.

Payments tech to answer small business problems

payments tech

Small-to-medium-sized businesses (SMB) are facing persistent problems with payments tech. They are still facing the same problems as last year.

Amir Jafari, CFO at Plastiq, says that SMBs can get rid of these challenges with automation. It will help in finding new innovative ways. Payment technology is the lifeblood of the business. Money is what businesses work for.

Half of the SMBs can go under with one missed payment. As per a recent survey, 80% of the SMB need financial support to survive another lockdown. The corona period worsened their growth. 74% out of today was once resilient.

The huge risk involved is the movement of transfer. The SMBs are asking for help from FinTechs. They tend to outsource with other companies to browse safer options.

They need a stable payment structure. It should aim for a long-term trajectory of success. Customers are opting for digital payments. But, the B2B side business is still very evident with friction.

FinTech can resolve this problem for SMBS. It will open an opportunity to move ahead of cash and checks. The Payment tech will lead them forward towards a new standard of payment.

SMBs lack the resources to adopt modern payment technology. The money is tight when it comes to investment in Payment Tech. Entrepreneurs own most of them. There are no CFOs to think of the financial part.

FinTech, through its platform, will help in mitigating risks. It will assist the firm to go from small to medium. Automation like account payable (AP) and account receivable (AR) is necessary. It will help SMBs change the face of their business.

With progress in payments tech, SMBs will steadily better manage the operation. They can opt for a platform like Plastiq. It will keep a watch out for money laundering. It will also help in reducing corruption at a later stage.

SMBs have a long way to go. It must have the knowledge of this technology. It will help them survive in the current economic condition.

Retail industry to help with normalcy in America

retail industry

The National Retail Federation informs that the retail industry will push America towards normalcy. Speakers and attendees will take part in the conference this Friday.

The gathering will include conferences and trade shows. It usually hits the streets of New York City on weekends. With a new variant of the corona, the planning for the conference was difficult.

There was a lot of talk about whether to go with it or not. The J.P. Morgan Healthcare Conference was virtual this year. It is also one of the biggest conferences of the year. It features medical professionals and pharmaceutical companies all across the world. This year it incorporated healthcare startups.

CES (Consumer Technology Association) 2022 featured small crowds as well. Berlin International Film Festival is also set to amaze the world in February. At the same time, Sundance Film Festival decided to go with a virtual event.

Shifting to normalcy seems difficult for the companies. We can see that more and more companies are opting for virtual conferences. It is getting harder to attract customers. Groceries and drugstores have the upper hand. They were open during both the waves. The retail industry will most likely bounce back.

Movie theatres are also trying to bring back the customers. With many streaming platforms, theatres have a hard time wooing back customers. NRF also notified that “As we move beyond the pandemic to endemic, this year’s convention is a step forward in this new environment”.

The conference may turn out messier. It will not give much of an opportunity to socialize. The conference may not be as it was before the pandemic. The Retail show removed certain parts from its schedule. It removed awards gala and intimate dinner with NRF’s foundation.

The foundation notified the award recipients of the change in plan. It made masks and proof of vaccination compulsory. It will also hand out the N95 masks. With an increasing case in the U.S, this retail industry is close to what we think of normalcy.