Strategies for choosing and collaborating with the right enablement partner in e-commerce
New Delhi: Redseer estimates e-commerce in India to grow nearly three times in the next three years to reach $163 billion by 2026, growing at a compound annual growth rate (CAGR) of 27%. It offers great opportunities for Indian retail businesses and brands. Yet, less than 5 million MSMEs are registered to sell online, according to a joint report by ONDC and McKinsey and Company. Furthermore, an even lesser number of sellers are getting meaningful business from the large commerce platforms, the report observes.
They lack either digital access or the money and confidence to operate via digital trade platforms,” the report notes. Of the scores of digital businesses launched every year, only few manage to survive due to the lack of proper know-how and support.
This is where e-commerce enablers come into the picture. Enablement companies support a business through the tricky maze of digital commerce. As of May 2023, there were over 119000 e-commerce enablers in the world, according to a research firm Tracxn. However, the success of an e-commerce business boils down to finding the right partners.
How It Works
E-commerce enablers offer a range of services to support a business on its digital commerce journey. Some of the services include launching, designing and managing an online store, inventory management, digital marketing, creative services, customer service management, payments, managing post-purchase journeys, shipping, tracking and returns management, supply chain management and fulfillment and even business financing.
“Be it automated shipping or additional value-added services like abandoned cart recovery and early COD remittance, Shiprocket has turned out to be a growth hack for our brand,” Dheeraj Bansal, co-founder and director, Recode Studios said.
Here are five reasons why e-commerce businesses that want to grow should consider partnering with an enabler
Scalability
According to Codest, over 40% of all new startups worldwide end up failing due to lack of meeting market needs. Enablers provide the necessary infrastructure, tools, and services that enable e-commerce businesses to scale rapidly. Whether it’s cloud computing platforms or payment gateways, enablers offer scalable solutions that can handle increased demand, customer traffic, and transaction volumes. Some key areas where enablers really matter are logistics and fulfillment services and returns and refunds, which help a brand/businesses satisfy and serve customers across geographies.
Scalability is essential for the growth of an e-commerce business as it allows for expanding operations and serving a larger customer base without being limited by technical or logistical constraints. A good enabler can help a brand overcome all the challenges and take the business to new regions and geographies. e-commerce enablement unicorn Shiprocket alone has helped 3,00,000 companies to scale.
Efficiency And Cost-Effectiveness
Enablers often specialize in specific areas of e-commerce operations, such as inventory management, order processing, or customer support. By leveraging these enablers’ expertise and services, e-commerce businesses can streamline operations and improve overall efficiency. This increased efficiency not only enhances the customer experience but also helps reduce costs through automation, optimized workflows, and economies of scale.
Enablers can provide cost-effective solutions, allowing small e-commerce businesses to understand the nuances of e-commerce and focus on core competencies while benefiting from specialized support.
Technological Expertise
E-commerce businesses can benefit from the technological expertise of enablers. As technology continues to advance, enablers stay at the forefront of innovation, constantly updating their tools and services to align with the latest industry trends.
Small businesses may not have the technical expertise or resources to handle the intricacies of e-commerce platforms and tools. Enablers offer state-of-the-art technology solutions and guidance, assisting small businesses in setting up their online presence, integrating payment gateways, configuring shipping options, and troubleshooting any technical issues that may arise.
By partnering with enablers, e-commerce businesses can also gain access to AI-powered analytics, personalized marketing tools, or mobile optimization, which can significantly enhance online presence, customer engagement, and the overall growth trajectory of e-retailers.
Atul Mehta, COO, Shiprocket said, “E-commerce enablers possess the expertise and experience necessary for successfully managing an e-commerce business. With a deep understanding of industry best practices, they offer invaluable insights that pave the way for a thriving online business. From setting up your website to implementing effective entry strategies, enablers bring the knowledge and tools needed to drive your brand’s success. By leveraging their expertise, brands can navigate the complexities of the e-commerce landscape with confidence, ensuring a solid foundation for growth and profitability. Partnering with an e-commerce enabler is the key to unlocking the full potential for brands in the digital realm.”
Market Reach And Access
Enablers often have an extensive network and partnerships that can help e-commerce businesses expand market reach. Enablers’ established relationships with various marketplaces, social media platforms, or advertising networks allow e-commerce businesses to reach a wider audience and target specific customer segments effectively.
These partnerships provide exposure and access to new customer acquisition channels, helping e-commerce businesses drive traffic, increase brand visibility, and ultimately boost sales.
Risk Mitigation And Compliance
E-commerce losses to online payment fraud were estimated at $41 billion globally in 2022, according to business data platform Statista. e-commerce enablers can assist online businesses in managing various risks and compliance requirements like secure payment gateways, fraud prevention measures, and data protection services, mitigating the risks associated with online transactions.
Additionally, enablers can also support businesses in adhering to regulatory frameworks, such as privacy laws or consumer protection regulations, ensuring compliance and minimizing legal and reputational risks. By leveraging the expertise of enablers in risk management and compliance, e-commerce businesses can focus on core operations while maintaining trust and credibility with their customers.
Overall, enablers play a key role in the growth of an e-commerce business by providing scalable infrastructure, improving efficiency, offering technological expertise, expanding market reach, and mitigating risks. Partnering with enablers allows e-commerce businesses to focus on core competencies while benefiting from specialized support, ultimately driving growth and success in the competitive e-commerce landscape.
For more such insights and resources on growing an e-commerce business, be a part of Shiprocket Shivir – Aapke Unnati ka Saathi at the Pullman, New Delhi Aerocity on 4th August 2023, a platform where e-commerce businesses will find everything they need to sustain, scale and thrive.
