Advancements in technology have bought in new opportunities to the doorstep for a host of businesses. And technology is nowadays a part of all that a business does.
Technology is not just used for a business’s internal processes; it’s a part and parcel of marketing a business as well. We use technology to advertise and make sure that a business gets its core ideas and unique selling potential across to a greater number of people, and most importantly, to a cross section of people who matter the most.
Advertising has transformed the world for a host of businesses. And especially with the advent of digitalized communication and digitalized advertising, for a business that is able to acquire the reach that it desires, sky is the limit. The possibilities of growth are endless.
In the same coin, with the advent of technology, especially in the field of advertising, it is believed that unless a brand takes the required steps towards updating itself with the latest trends and methodologies, it is very difficult to thieve in the fast paced business environment of today.
THE E-COMMERCE PERSPECTIVE
If we take the e-commerce perspective into consideration, we come to realize that while advertising and getting an idea across to a greater number of potential consumers is important, servicing a consumer from a distant location is equally important.
Let’s consider a very basic example. Suppose we have a very simple e commerce business in India, which is doing reasonably well for the quality of goods it supplies. Now if this brand chooses only to deliver the goods locally, like within the state or the city it operates from, the margin of profits is most likely to be within certain limitations.
However, if this e commerce business chooses to extend its operations to a national level, a greater number of consumers would have access to the products. This in turn implies that the sales would be higher and so would the profit margins. And the business would grow!
If we go ahead and consider the scenario that the business starts shipping even to international locations, it would further be a boost to the growth of the business. And that would be a transformation of a locally run business operation to an international brand, which is a significant change by itself, and something very desirable.
Prospect of growth in e-commerce industry comes with its own challenges. The challenges include getting across to a new audience, and marketability of the goods.
EFFECTIVE LOGISTICS MANAGEMENT
However in terms of growth, effectively handling e-commerce logistics is an equally challenging task. As an example, making sure that an e-commerce brand is able to ship to a far flung location is probably a bigger challenge.
The challenge becomes even more significant when we take a new e-commerce startup into perspective. And that’s simply because as a young company in the dynamic business landscape of today, a brand might not be aware of the best practices in the field of e commerce logistics. So that not just affects the profitability of shipping to a far flung location, but also affects timely delivery of goods and customer retention.
Moreover as a new e-commerce startup, you might come to realize that logistics are taking a toll of your time, far more than you would prefer!