Understanding Minimum Order Quantity for E-commerce Businesses

To run a successful E-commerce business, having the right amount of inventory is crucial. While you need to meet the demand, you don’t want to hold onto stocks you can’t sell. 

But here’s the thing— sourcing and managing inventory aren’t that simple. As an E-commerce seller, you’d need to choose a supplier who doesn’t only sell at the right price but also allows you to order an optimal amount of units. 

There is a Minimum Order Quantity (MOQ) in the picture. Most manufacturers set a MOQ to make buyers like yourself to commit to buying enough to ensure they’re making a profit. 

But what is MOQ, and why do suppliers need to impose such constraints? What impact does MOQ have on your inventory, and how can you optimize your purchase orders with MOQs without risking your business? These are some of the questions we will answer in our blog. Read along! 

What is the Minimum Order Quantity?

Minimum Order Quantity (MOQ) is the minimum number of units suppliers want their buyers to purchase in a single order. MOQ is usually expressed as a minimum number of units, but suppliers sometimes set it for the order value. For example, a supplier, XYZ Ltd., may only accept an order valued at more than $10,000. 

The MOQ ensures a sufficient quantity of products to justify production or procurement costs. As a result, it reduces costs and streamlines production processes.

Manufacturers or suppliers typically use a minimum Order Quantity, but E-commerce merchants can also implement it when selling bulk orders to their retailers. 

Here are some examples of MOQ:

  • A Manufacturer’s MOQ maybe 10,000 units. It means a buyer like you must buy at least 10,000 units of inventory at a time. 
  • Likewise, a brand can have an MOQ requirement of wholesale or retail partnership where they must purchase a minimum of 1000 units or $1000 worth of product from you. 

In our next section, let’s try to understand why suppliers set Minimum Order Quantity constraints for buyers. 

Why do Suppliers Set a Minimum Order Quantity (MOQ)?

Suppliers, similar to any other business, face various costs and limitations. Ultimately, they must make some profit from each order to cover expenses such as transportation, storage, handling, and administrative costs. These overhead costs may only represent a small portion of the order’s total value, but smaller quantities can significantly reduce the profit margin.

Let’s look at the below scenarios to better understand the importance of MOQ: 

Why do suppliers set MOQs?

As you can see in the first case (case A), the supplier makes a handsome profit. However, in the second case (case B), where the order quantity is small, the supplier makes a lower profit. 

In the last case, where the supplier is selling individual units, they would make a loss on each transaction, making it the worst option possible.

Suppliers often set minimum order quantities to protect their margins, as selling products in small quantities is not financially viable for them. This simple example illustrates the reasoning behind this practice.

In our next section, let’s understand how MOQ impacts you as a buyer. 

Impact of Minimum Order Quantity (MOQ) on Inventory

A supplier’s MOQ, whether high or low, can significantly impact your business. For example, it will affect the inventory level you hold, the frequency at which you place the order, and the amount of working capital you tie up in the purchase order. 

Let’s take it a step further and understand how high MOQs and low MOQs affect your inventory and overall business. 

High MOQ

Suppliers with high MOQs require you to order a significant amount of inventory, which may involve longer lead times. As the stock would be larger, it would also take up more space in your warehouse and reserve a massive chunk of your working capital. Further, there’s also the risk of holding onto the stock for a long time and making it obsolete. 

However, there’s also a positive side to high MOQs. The administrative costs will be lower, as orders will need to be placed less often. Also, you’ll be able to buy more at lower prices, and the chances of running out of stock will also be low. 

Low MOQ

Ordering from a supplier with a low MOQ means there will be fewer products available. Depending on the customer demand, you may need to restock your inventory repeatedly which, in turn, may increase the administrative or shipping costs. As low MOQs mostly lead to small inventories, there’s always a risk of not having enough products in hand. In such cases, if there’s a sudden surge in demand, you might not be able to handle it, which can lead to a loss of revenue. 

But there’s also a silver line— low MOQ decreases the working capital investment. Further, this reduces the chances of your stock becoming obsolete over time. 

The table below shows the impact of high and low Minimum Order Quantity: 

Difference between High MOQs and Low MOQs

Benefits of MOQ for Buyers

Here are some of the benefits of MOQ for buyers 

Improved efficiency and reduced costs: When you purchase bulk orders, you can streamline your operations and reduce costs associated with ordering and receiving products. It includes reducing transportation costs and the time and resources needed to place and process orders.

Greater inventory control: Buying in bulk allows you to maintain an extensive inventory, which can help you avoid stock-outs and meet customer demand more effectively. It also allows you to take advantage of special deals or discounts that may not be available if you only purchase small quantities.

Lower risk of price fluctuations: By purchasing in bulk, you can lock in prices for an extended period, which can help reduce the risk of price fluctuations. Setting up MOQs with your suppliers can provide greater stability for your business and help you plan and budget more effectively.

Overall, purchasing in bulk can offer numerous benefits for buyers, including cost savings, improved relationships with suppliers, and greater efficiency and control. However, it is important to carefully consider your needs and negotiate with suppliers to ensure you get the best business deal.

Benefits of MOQ for Suppliers

Here are some of the benefits of setting a MOQ for suppliers or manufacturers.

Improved Cash Flow: When the suppliers set the MOQ, they take the total inventory cost into account, along with all the other expenses they had to make, before reaching the right profit level. With MOQs, they can streamline and better manage their cash flow.

Reduced Inventory Costs: Some manufacturers don’t have the warehouse space to hold finished products and usually start production only after receiving a MOQ purchase order from the buyer. This, in turn, keeps the stock out of their warehouse and reduces inventory and manufacturing costs. 

Increased Profit Margins: By setting up MOQs, suppliers can have better control over their profit margins. They will only take a purchase order when there is enough profit behind it. 

Types of MOQ

There are two types of MOQ— simple and complex, depending on the economic constraints associated with the orders. 

Simple MOQ: This is the most common type of MOQ offered by suppliers. A simple MOQ has a single restraint in order and can be set as a minimum spend or a minimum quantity ordered. For example, while buying from a watch manufacturer, you might have to order at least 200 items minimum or $1000 worth of supplies. 

Complex MOQ: As the name suggests, Complex MOQ is not that straightforward. Here instead of keeping a single restraint of number or spend amount like in simple MOQ, the supplier has two or more requirements to fulfill the order. 

For example, suppose you are ordering from a cloth manufacturer. In that case, you might have to purchase with additional restraints such as minimum order per colour, or type of fabric.

How to Calculate Minimum Order Quantity 

While there’s no direct formula to set the MOQ, there are four steps that can help you set the MOQ as per your business needs.

Step 1- Determine the Demand

As a merchant, it’s important to consider various factors, such as product type, competition, seasonality, and others, when forecasting demand for your inventory. This data can help you determine the appropriate quantity to order for your next purchase. Inventory forecasting is also important in ensuring that your supply matches the anticipated demand.

When placing an order with a manufacturer, you should consider the minimum order quantity required and compare it to your estimated sales volume. It’s also important to factor in the time it will take to get the inventory ready to ship, including lead times, freight transit times, and any potential delays with your third-party logistics provider.

To better manage demand, especially during volatile times, it’s helpful to stay in close communication with your supplier, maintain a sufficient safety stock, and review your sales forecasts on a regular basis to adjust production quantities as needed.

Step 2: Calculate the Break-even Point

To determine the MOQ, you need to consider your break-even point. It may start with the second transaction for D2C orders when you recover the customer acquisition costs and your customers make another purchase through your marketing efforts. 

For retail wholesalers, Consider offering volume discounts in exchange for a higher order value, but ensure that your profit margins are not too low. It is common for these discounts to be offered for larger quantities rather than charging a higher price for smaller quantities.

Step 3: Understand your Holding Costs

Holding costs are the costs incurred by storing inventory. These costs include storage fees, insurance, taxes, shrinkage, obsolescence, and more. The total cost of holding inventory will vary depending on the inventory size, the product storage type, and the storage facility itself.

Step 4: Now Decide your MOQ

Let’s assume you consistently have relatively high demand. Your retail partners buy on average 1000 units per order, and you need to sell at least 550 units per order to be profitable. Now, if your customers were willing to purchase 1000-unit orders in the past, you can set 1000 units as your MOQ or even get down to 550 and stay profitable.

Tips for Optimizing your MOQs

Here are some of the tips to optimize your minimum order quantity

Incentivize a Higher Spend on Order

Whether you’re in retail or wholesale, you need to set a MOQ for bulk orders to ensure that retailers pay a minimum amount in exchange for products. In addition, you can further incentivize MOQ purchases by offering bulk discounts to retailers.

Also, you can adjust prices to incentivize higher spending by setting MOQs based on volume or cost. For low-cost items, a higher MOQ is necessary to ensure profitability.

Conversely, a lower MOQ can be used for higher-cost items, as the items are already expensive. This strategy will help you make a profit no matter what quantity you sell. 

You can also apply this strategy to direct-to-consumer orders by requiring a minimum number of products to be purchased or by implementing a minimum spend threshold for free shipping. 

Get Rid of Slow-Moving SKUs

Many times, brands end up with too many SKUs, leading to unnecessary costs for storage and minimum order quantities for low-selling or unprofitable products. 

Keep a close eye on SKUs that are selling quickly and those that have been sitting in storage for a long time. Then, cut down on these slow-moving SKUs. Remember, it’s much easier and more cost-effective to manage fewer items. Reducing the number of SKUs can help streamline operations and improve efficiency.

Boost Inventory Turnover

By ordering a larger quantity of inventory, you will be motivated to sell your inventory more quickly in order to achieve a higher inventory turnover ratio. This does not necessarily mean that you should only rely on flash sales but rather explore other strategies to attract and retain customers. 

However, if you have not yet proven the success of your business model or product-market fit, it may be wiser to avoid ordering a large quantity of inventory, as it could result in a financial loss that cannot be recovered, as well as added warehousing costs.

Focus on Building the Relationship

By starting off on good terms with your suppliers and consistently maintaining a solid relationship, you can ultimately benefit from improved terms and greater flexibility. 

To achieve this, focus on selling your vision to the manufacturer and ensuring that your E-commerce business continues to thrive. Always treat them respectfully and view the relationship as a partnership rather than just a transaction.

If a manufacturer is unwilling to work with you, consider finding another partner to support your success. In today’s world, building and maintaining strong partnerships is more important than ever.

To Conclude

MOQ is a critical concept when it comes to ordering and stocking inventory. While there is no one size fits all number here, you’ll need to find the MOQ per your business needs. Finding the right MOQ will help you scale your business and keep it profitable. 

Now that you know what the minimum order quantity is, how to calculate MOQs, and how they impact your inventory and business profits, you are ready to start sourcing suppliers, negotiating MOQs, and building long-term partnerships.

In our upcoming articles, we will discuss more interesting topics. Stay tuned!

In the meantime, we would love to hear how you manage MOQs in your business. Let us know in the comments below. 

How Can ANS Commerce Help?

If you aren’t looking at managing your own fulfillment warehouse and are interested in outsourcing inventory storage and E-commerce fulfillment, we can help!

ANS Commerce provides end-to-end fulfillment and logistics services, including warehouse management, supply chain management, multi-category storage support, and return management. In addition, our Just-In-Time flexibility ensures your inventory is always on track. 
Schedule a free consulting session with our experts today to learn more about our warehouse management services.

E-commerce Product Photography: A Complete Guide

Are you an online business looking for ways to improve your product presentation? Look no further than this product photography blog! With the right tools and techniques, taking compelling product photos is well within your reach. Here, we share everything about E-commerce product photography – from different types of product photography, to where to look to hire a professional photographer, to tips and tricks to create stunning product photos! Read along. 

Different Types Of Product Photography 

Product photos are an essential part of any successful E-commerce store and can vary in style and purpose. Let’s explore the different types of product photography, from classic everyday shots to more creative and unique ones and how having a consistent look across your product pictures, or tastefully combining different styles can have a stronger visual impact.

Individual shots 

The individual shot is basically a shot of an individual item or product. Here, the photographer will typically try to capture the product in all its glory – from texture, colour and design to shape and size. Product shots can be really exciting for buyers when they’re trying to decide if they want to buy something or not! 

An excellent example is from BoAt in which they have shot the product on a grey background, giving it a clean and elegant look. 

Example of Individual shots in product photography

Credit: BoAt Website 

Group shots 

As the name suggests, a group photo displays a group of items, such as a set of books or clothes. By displaying different ranges and styles within one image, you’re showing buyers that there’s something for everyone in your product lineup!

Here we share an example of how Dermafique displays its different range of skin care products in a single group shot – from cleansing lotion to face serum. 

Example of group shots in product photography

 Credit: Dermafique Website

Lifestyle shots 

Lifestyle shots are a type of photography where products are featured in action with a model. This style allows businesses to tell their customers the story behind their products and show how they can be used in everyday life.

See how Farida Gupta – an online clothing brand uses lifestyle shots for the branding of its handcrafted men and women apparel.

Example of lifestyle shots

Credit: Farida Gupta Website 

Packaging shots  

Packaging shots are pictures of products in their branded packaging. These images give customers a taste of what to expect when they purchase the product. 

For example, Juicy Chemistry provides beautiful images of its products alongside its packaging boxes to give potential customers an idea of the overall look and feel. Packaging shots can be a powerful tool to showcase your product’s unique branding strategy and make it stand out from the competition.

Example of packaging shots

Credit: Juicy Chemistry Website 

Detailed shots 

Detailed shots are a form of photography that helps capture the tiny intricacies that might otherwise go unnoticed in traditional photography. These shots require specific lighting and camera settings, such as a macro lens, to magnify those details and make them more visible. 

For instance, see how Anita Dongre showcases her jewellery designs on a white background so that you can easily spot the vibrant hues and intricate patterns of each piece.

Example of detailed shots

Credit: Anita Dongre Website 

Essential Equipment for Product Photography

For product photography there are a few essential items you’ll need:

  1. Shooting Table – If you’re looking to capture the perfect shot of your product, you’ll need a sturdy surface. A shooting table provides a level, smooth surface and can be used in combination with different surfaces, backdrops and lights to create the perfect photograph. There are a variety of shooting tables available on various marketplaces.
  1. Camera – Professional cameras are great for product photography because they offer high-quality images with accurate colour reproduction. However, you don’t need the most expensive camera out there; any good DSLR will do the job just fine. Furthermore, if you have a good smartphone like an iPhone, then also you are good to go.
  1. Pro Tripod or stand – A professional tripod ensures your photos stay steady and give you the perfect shot. You can use different types of tripods for different purposes, such as light stands and ball heads that let you adjust the camera angle easily if needed.
  1. Lighting equipment (reflectors, diffusers, etc.) – A good light setup can really make or break an image. A simple white background will give your images a natural look, but if you want to add extra drama or impact you’ll need to invest in more specialized lighting equipment such as reflectors, diffusers, etc.
  1. Backgrounds, backdrops, and props – You can use backdrops such as light tents. A light tent, also known as a lightbox, is an inexpensive backdrop that photographers can use to take stunning and professional images. 

Process To Take Professional Photos 

Set up your table 

Once you have gathered all the equipment, set up your table or lightbox to create the perfect shooting area! If you have a shooting table, make sure you choose a white background for better product photos. Ensure that you are close to the window so that shadows don’t invade your frame. A tip is to turn off all other lights as they might ruin the delicate balance of natural light entering through your window.

When you’ve chosen a spot, rotate the set around for different styles–try a 90-degree angle or go for 45. Either way, releasing the power of light is sure to bring striking results and provide you with stunning shots.

How to set up a table for product photography

Adjust your camera 

As mentioned earlier, having a professional camera is critical to successful photography. If you have a DSLR, here we share some suggested camera settings: 

  1. First, adjust the white balance of your camera. You can either set it to auto or to the same Kelvin temperature as that of your studio lighting
  2. Then, depending on what kind of photo you’re taking, choose either a wide or small aperture to capture just the right depth of field
  3. Turn off your flash as you should have already adjusted for either natural or artificial light in advance
  4. Set your camera to use all available pixels so it can create an image with unrivalled quality – select both Large size and Superfine quality settings before getting ready to click away
  5. Set your ISO to 100 for maximum clarity and minimal noise. The ISO of your camera is like the sensitivity sensor – if you crank it high, you get an eye-watering amount of grain in your shots and when you keep it low, you get clean, professional imagery
  6. Lastly, check the exposure settings. If your camera has an exposure compensation dial, go ahead and give it +1 or +1½ for the perfect shot. But if all you have is running man photos to select from, go with ‘Sunset’ – that should do the trick!
Important parts of DSLR camera

Frame your product correctly

Capturing your product at the perfect angle and in the best light can take some time. Make sure your product is perfectly presented by arranging it front and centre on a sturdy surface like a table or lightbox. If it’s an item with labels or intricate design, you may need to make slight adjustments until everything looks just right.

Adjust your lighting 

For quality product photos, good lighting is absolutely essential! Whether you choose natural or artificial illumination, carefully modulating both its strength and direction ensures that you capture stunning images with minimal editing required afterwards. 

If you’re shooting a sunny-day lifestyle photoshoot, take advantage of the natural light that Nature offers! The sun at its peak is when you can get really beautiful, optimal light that’ll make your model or product shine like never before. 

If you desire to shoot during random times of the day, artificial light could be the ideal solution for your needs. Utilizing reflector cards or diffusers that help fill in the shadows could give you perfect shots. 

Click and evaluate 

Now, put your product photography skills to the test! Make sure you get a variety of shots by taking pictures from different distances, angles, and positions. Remember that practice makes perfect—you might need a few tries before you’re really satisfied with your results. Once you’ve taken as many photos as needed, upload them to your computer so that you can view them in full quality. You can use Adobe Lightroom or a similar program if necessary for organizing and refining the images

Use software and editing tools if needed – 

As the last step in your product photography process, use some sort of editing tools such as Adobe Photoshop, Pixlr, or Canva to turn those average shots into images that will exude professionalism. 

With editing or retouching, you can ensure all product images across your website have consistent quality and positioning. You can do colour corrections, remove unwanted objects, and lighting adjustments easily and in no time with this editing software. 

Optimize images for website/online store  

Time is paramount, and every second counts for shoppers who don’t have the patience to wait for a site that won’t load quickly. That’s why it’s essential to optimize images so they look great, but also ensure page loading times are speedy. Big images might look stunning – but can really slow down your website loading time and impact the site SEO (Search Engine Optimization).

Also, make sure all your product photos are clearly labelled with relevant metadata and keywords as it helps in improving search visibility!

When To Consider Hiring a Professional Photographer?

Investing in professional product photography could be a game-changer for your business! Not only will the high-quality photos boost your appeal and professionalism, but they’ll also amplify your marketing potential. Here, we share some reasons for hiring a professional photographer: 

Get professional quality images 

Most companies don’t have access to the best equipment and software, which are typically in the hands of experienced professionals. A talented photographer with top-notch equipment is a guaranteed formula for spectacular product photos that will surely wow visitors to your website.

Consistency matters 

With a professional product photographer on your side, they will ensure you get stunning results every single time. Working in unity with you to create a unified brand look across images; the same backgrounds, colours and logo use – which ultimately leads to consistency in branding! You’ll know that no matter what photos are produced, the quality will always be top-notch.

Maximize ROI

You can maximize your return on investment with professional photographers. By investing in quality product shots to create an original portfolio, you can stand out from the crowd and last longer over time. Professional photographers ensure that your photos look as good as they should – so you can get maximum return from every penny spent on your marketing campaigns!

Where To Look For To Hire a Professional Photographer?

Finding an expert photographer within our budget is no easy task. Here are some amazing product photography services that can help you in your search for the right photographer: 

  1. Picnara – This site will help you find the perfect professional product photographer, providing an overview of their past assignments, their portfolio, skills, the cities they are available to serve in and even the languages they speak. You can call or WhatsApp them directly via the contact number given on the site. 
  1. Creative pool – You just need to enter “product photography/photographer” in the search bar on the homepage and it will show profiles of different photographers with some personal information about them, their experience in different sectors, their clients, along with their location and languages were known. 
  1. Upwork – Upwork is a great option for finding expert product photographers. The website displays its extensive listing of talented individuals with ratings, the number of hires and a portfolio to show off each person’s unique style. 

A Few More Tips For Photographing Products Successfully

  1. Write great product descriptions – Product photography shouldn’t be the only thing your customers see when they browse through your product page! Great descriptions can help to draw in potential buyers and entice them to check out more details about the product
  2. Utilize natural lighting whenever possible – It makes the photos authentic and warm 
  3. Experiment with different backgrounds – Adding texture or pattern to an empty background can add depth and quality to your photos 
  4. Test different camera settings to get the best image quality – Altering the angle of light, placement of lamps or reflectors, or changing the white balance on your camera can all produce different results in how your photo looks

Get As Creative As You Want! 

That is everything about product photography! 

Achieving remarkable product photos isn’t something that happens overnight – it’s part of an ongoing process, and you may need to experiment a bit until you get the perfect shot! 

Good photos are a critical part of your overall creative strategy. Whether it is an Instagram post or conversion focussed social ads – you need beautiful product photos everywhere. 

Want to know what kind of creative strategy will give you the best ROAS? We can help. Get a free performance marketing strategy session with our experts and get actionable insights to scale your E-commerce business.

About ANS Commerce 

A Flipkart group company, ANS Commerce, is India’s #1 Full Stack E-commerce Enabler trusted by 200+ Brands! 

From creating your online store, running profitable performance marketing campaigns, managing marketplaces to order fulfillment & warehousing – we do it all to supercharge your brand’s growth!

10 Common Pricing Strategies For DTC Brands

When it comes to making purchase decisions, price is often the deciding factor. Several studies have shown that pricing is critical and relevant to consumer buying behavior. With so many options available in the world of DTC, getting your pricing strategy right can be a make-or-break moment for your business.

In this article, we’ll dive into 10 common pricing strategies that DTC brands can use along with examples of each. Keep reading to learn more!

What Is A Pricing Strategy?

Setting the best price for goods or services is a process known as pricing strategy. This method helps to level prices and margins according to market demand in order to boost profits and enhance shareholder value. 

There are several things that need consideration when selecting your pricing strategies such as marketing aims, business revenue aspirations, target audience, brand placement, and consumer demand. An effective pricing technique will reduce expenses while creating value for your customers; thus assisting with the expansion of your venture.

A Few Things To Check Before You Choose Your DTC Pricing Strategy 

  1. Know the total cost of your product 

Before you set your prices, be sure to know the total cost of your product. If you order products, add up their cost per unit — that’s your cost of goods sold. When crafting each piece yourself, consider the bundle of raw materials you need and how much time it takes to create one item for sale. You can also take into account the following costs, so that your business turn out to be profitable:

  • Production Cost 
  • Marketing Cost  
  • Shipment and Handling Cost
  • Business Cost
  1. Identify your ideal customer profile 

It’s important to note that your hard work won’t amount to anything if you don’t have any buyers. 

It pays to think about your customer’s disposable funds. Some may search for the best bargain, while others have no qualms with parting ways with a few extra dollars if it means getting something of quality. Understanding these preferences will give you a better footing in gauging what prices to offer in order to maximize customer satisfaction!

Thus, it follows that you must calculate a value-driven profit margin, so your product is attractive to the desired target market and makes financial sense for you as well.

  1. Find your USP/value proposition 

What sets your business apart? Finding the perfect pricing strategy is key to highlighting the unique value you’re offering to consumers. Take the story of Tuft & Needle for example: they carved out a special place in the mattress market with their affordable prices and exceptional quality. Similarly, find what sets you apart, and let it guide your pricing decisions to make sure no one has any trouble recognizing how unique your business is!

10 Common Pricing Strategies Used By DTC Brands

Competition-based pricing strategy 

As the name suggests, competition-based or competitive pricing strategy is based on understanding competitors’ prices and using them as a benchmark. Customers often compare prices when making their purchase decisions, making small price differences crucial for success in this type of market.

You can opt to go a few cents lower of the price your competitor is offering, offer the same as your competition, or exceed the prices of your competition to be in the game.

For instance, D2C brand Dollar Shave Club launched the first subscription-based business that sends fresh razors and other grooming products to your doorstep via email.

Yes, a D2C startup came onto the scene, took on a global brand like Gillette, and won with a quality product and a competitive pricing strategy. In fact, Dollar Shave Club eschewed the traditionally high margins on razors and delivered them at a competitive price.

Cost-plus pricing strategy 

A cost-plus pricing or also known as the markup pricing strategy involves charging customers a price that is higher than the cost of producing the good or service.

Cost-plus pricing can be effective when there are high fixed costs associated with production, such as manufacturing materials and labor. By charging customers more than these costs, businesses can increase revenue while limiting their exposure to price risk and market fluctuations.

For example, let’s say you started an online shoes business and want to calculate the selling price of one shoe:

  • Material Cost: $50
  • Labour Cost: $200
  • Shipping Cost: $10

So now, the cost of your product will be $260. Now, you can add a 45% markup of the total cost of the product to have a profitable business. The formula, then, for the total price of the product would be: 

Total production cost ($260) * Markup (260*45/100) = Selling Price of your product ($377)

Value-based pricing strategy 

Value-based pricing strategy is when the price of a product or service is based on its value to the customer, rather than on the costs incurred to produce it. Businesses show the product is premium and exclusive for buyers. 

In a value-based pricing strategy, price is set high enough to cover costs (including variable costs and overhead), but competitive enough so that customers feel they are getting a good deal. This approach may be more effective in competitive markets where customers can switch providers easily.

For instance, fashion lifestyle brand Ralph Lauren often follows a value-based pricing approach. 

Price skimming strategy 

This E-commerce strategy refers to the business tactic of starting off at a high price in order to satisfy consumers who don’t mind paying extra for its products. As other businesses start to join the market, then reduce their prices in order to entice a new, more budget-conscious customer base. 

For instance, Apple is a brand that uses a price skimming strategy, especially during the launch of its latest iphone. It starts off at high prices and slowly lowered prices over time to attract budget-conscious consumers.

A skimming pricing strategy can be a great way to make a lasting profit from your products, but it can also backfire. If you lower the prices too much, consumers who paid full price may get irked and competitors will sense an opportunity to swoop in and imitate your ‘fake’ margins.

Penetration pricing strategy

Contrast to skimming price strategy, the penetration pricing strategy is when the company sets a low price for its new product or service to gain customers’ attention and raise awareness.

It is also known as the discount pricing strategy and works best for price-sensitive customers but is not sustainable in the long run for businesses. This strategy is usually best for brands that are new in the market and want to attract customers. However, there is always a risk of losing those customers once the business increases its prices back to normal. 

Pro-tip: To truly make an impact with your product, emphasize its value instead of the price tag. 

Netflix pulled off one of the greatest feats in pricing strategy history with their ‘penetration pricing’ model: charging a low fee for access to their instant streaming service with subscriptions, they boosted their customer base exponentially and gained an unbeatable market share. In doing so, Netflix managed to establish a monopoly over the industry. 

Psychological pricing strategy 

This marketing strategy has been used by businesses across various industries to optimize pricing and boost sales. It does exactly what the name suggests – targets human psychology to increase sales. 

Take example of the 9-digit effect. Customers see a product worth $99.99 as attractive and a good bargain even though the price is almost the same as $100. The “9” makes all the difference in perception.  

Apart from this, a BOGO offer or changing the colors and fonts of the pricing tag have also proven, in various stances, to be effective.  

For instance see how Indian D2C brand BoAt uses the psychological pricing strategy to up its sales:

Example of psychological pricing strategy

Credit: Boat Website 

Keystone pricing strategy 

Keystone Pricing is an approach that involves setting a price for a product or service that is double the cost of production (or the wholesale price). This method can help businesses maximize their profits while also keeping prices competitive and attractive to customers. It is usually used by retailers. 

Here’s an example to help illustrate the concept. Let’s say a company produces a product with a cost of production at $100. Using keystone pricing, they would price that product at $200 – effectively doubling their investment with a 50 percent markup!

Bundle pricing strategy 

A bundle pricing strategy involves selling multiple products or services together at a discounted price (than the total amount of all the products individually). This allows the business to increase their revenue by selling more products per unit than if each product was sold on its own.

Let’s understand this with an example – a combo meal from Mc Donald’s. The combo includes small fries, a small drink, and a burger. If the customer only wanted the small fries they would have to pay some extra for it separately. However, if the customer buys the combo meal consisting of all 3 items, then they can keep all 3 items for a discounted price. 

Example of bundling pricing strategy

Credit: Mcdonalds 

This strategy is effective because customers value having multiple products in one package more than paying extra for each product individually.

Anchor pricing strategy 

Anchor pricing is a product pricing strategy that businesses use to create a favorable comparison between their discounted prices and the original prices. This way, consumers can quickly and easily see the savings they’ll get when they make their purchase. The comparison can also be between the price of your and your competitor’s product. 

One way businesses show this is by cutting the anchor price prominently and displaying the discounted price near it! You can find this strategy being used by many businesses, in the malls, and on online marketplace such as Amazon. 

Example of Anchor Pricing Strategy

Credit: Ring Alarm

Economy pricing strategy 

An economy pricing strategy is an approach that involves pricing your products low and gaining more revenue through higher sales volume. This type of pricing works particularly well for commodity goods like groceries, drugs and medications, etc. where there isn’t a lot of brand recognition. 

This business model relies on regularly introducing new customers to the product in order to generate the desired revenue.

Again, Dollar Shave Club is the perfect example of a D2C brand utilizing economy pricing, as they outrun Gillette and their pricey razor blades. 

Find The Right Pricing Strategy For Your Business 

There is not one single way of establishing a successful pricing strategy; what works for one D2C business may not be ideal for another. Therefore, doing a thorough research and figuring out which method is right for your product, marketing plan, and buyers is essential.

With the knowledge gained from this article, you can make sound decisions and find the optimal pricing to provide customers with an enjoyable shopping experience.

About ANS Commerce 

A FlipKart group company, ANS Commerce, is India’s #1 Full Stack E-commerce Growth Partner trusted by 200+ Brands! 

From creating your online store, running profitable performance marketing campaigns, managing marketplaces to order fulfillment & warehousing – we do it all to supercharge your brand’s growth!

Want to know how we can scale your E-commerce business? Book a free consulting session with our experts today!

How to Create an Effective Call to Action for Instant E-commerce Sales?

Marketing is all about persuading your audience to come to your store and make purchases. Attracting the audience, instilling a desire in them for your product or service, and ultimately driving them to buy is what successful marketing is all about. 

But it’s not as easy as it sounds!

Today’s audience has become very smart; you cannot make them do what you want until you give them a reason. Further, you need to persuade them and guide them until the end so that they do not get diverted to the competitor’s store. To grab people’s attention and guide them in the proper direction, you need a strong call to action, or CTA.

A call to action (CTA) is a marketing term that refers to the next step or the action that the marketer wants the consumer to take.

In this blog, you will find all the necessary information that is required to create successful CTAs.

What do you mean by “call to action”?

A call to action (or CTA) is a text that encourages your readers to take action or do something in particular, like asking them to buy something, making a comment, or signing up for your newsletter. They are created in the form of a clickable button or hyperlinked caption. They can also be seen in the form of pop-ups or pictures.

Depending on where the customer is in the purchasing process, there are both hard and soft calls to action. As a customer, learning about a new product or brand and being given the opportunity to “learn more” is an example of a soft call to action, whereas “buy now” is used as a more direct or hard call to action.

Why is a call to action important?

  • Every time someone comes to your website, they’re trying to achieve something or find a solution to their problem. If you can help them with any of their goals, and guide them to your instant service via CTA you are more likely to convert them into your customer.
  • Effective CTAs can encourage your visitors to interact with your site more frequently. For instance, a CTA at the conclusion of a blog post or article can offer connections to more reading or prompt readers to leave their own comments. 
  • When you ask someone to do something with a real-time CTA while providing them assistance, they are more likely to comply as the steps are simple and easy to follow. It enhances the likelihood that the visitor will go through your sales funnel and ultimately convert.
Quick Tip – Through practices such as A/B testing, marketers can learn which CTAs are most effective in getting the audience to do a specific action.

How to create an effective call to action?

An effective CTA is written in a way that captures your audience’s attention, fosters a feeling of urgency, and persuades them to take the intended action. There is no one-size-fits-all formula for designing the ideal CTA for your business; in fact, there are many various formulae you may attempt.

If you run an e-commerce site and want to boost conversion or click-through rates, you need to use your unique selling proposition (USP) to build up to your call to action. Or if you are trying to gain subscribers, ask them for their email addresses, and tell them how it will improve their lives. 

An illustration of a CTA writing formula is:

problem + solution + action

Here are a few effective CTAs that you can use-

  • Keep it simple and casual
  • Put the advantages first
  • Give something worthwhile
  • Maintain your brand identity
  • Pick clarity above cleverness
  • Develop a sense of urgency
  • Don’t avoid action words
  • Continue to experiment

What are the common CTAs used?

Some of the common CTAs that you can use are-

  • Sign up
  • Sign up for free
  • Subscribe
  • Join free for a month
  • Get started
  • Give it a try
  • Our work
  • Join
  • Let’s start a new project together
  • Claim your free trial
  • What’s next?
  • Grab the template
  • Get involved
  • Learn more
  • Contact us
  • Limited Edition
Quick Tip – Use action words in clear size, shape, colour, position, and language. If nothing works, the “Try it free” button will always be compelling regardless of what combination you take.

How can ANS Commerce help?

ANS Commerce is a leading e-commerce facilitator that works with companies to help them establish an online presence with robust services. Our efficient performance marketing, marketplace management, warehouse and fulfillment, and brandstore solutions will relieve you of all stress and allow you to grow without difficulty. Our proprietary brandstore solution, Kartify, is fully customizable and integration-ready to help you create an instant online store. You won’t need to worry about anything once you are linked to our specialists. So, get your DEMO to take advantage of full-stack service in India now. 

Kartify integrated what3words- Now win customers with efficient deliveries!

With the increasing popularity of online businesses, the requirement for accurate geolocation has become a MUST. It doesn’t matter whether you live in a mountainous area, an overcrowded city or a village in the desert there is always a need of the hour where you have to place an order online and expect to get your delivery on time. 

However, the places with the same name, thin lanes and sometimes empty spaces make it difficult for the personnel to reach their customers on time. Thereby, causing problems not just for personnel and customer but also for the brand as it loses its reputation and loyalty. 

This is why an in-depth location detector is required to give the exact location of the customer or the site where the delivery needs to be done. There are dozens of navigational tools that are available online, Google Map which is the most prominent one…helps to find out a way around an unknown area, making it possible for mankind to explore more.

These applications DO meet critical needs, but lack at some points— are unable to give accurate results when it comes to telling the precise area.

What is what3words?

what3words is a new era geolocation technology that has taken over the world with its simple but precise addressing system. While you walk through lanes, travel to new places and order different products, the problem you face at every stance is to tell the exact location where you are. You might be able to tell the street, nearby shop or store number, but when it comes to conveying the same thing to another person it becomes frustrating. what3words removes this frustration from your life and tells the exact three-meter square areas where you are present. 

It is a finely thought geolocation app that is carved out of the needs of people to help them find locations faster and easier. It has divided the earth into three-meter square areas and assigned each square a combination of three random words. These 3 word addresses are unique, remain the same and do not hold any meaning. For example,///drones.feels.objecting

Well, it’s not that someone is having objectionable feeling for drones, but rather he is giving you the exact location of the ANS Commerce entrance as given in what3words.

Why did Kartify integrate what3words?

The ANS Commerce brand store, Kartify, has come up with a significant development on its checkout page. It has now included what3words to help our client serve their customers better. The exceptional geolocation service of what3words can make deliveries very smooth both for companies as well as customers giving a win-win situation. All your customers need to do is provide their 3-word address while checking out for accurate deliveries.

With the integration of what3words in Kartify, you will not only get the ideal destination or the optimum location to drop off a package but will also be able to build a brand reputation with a better customer experience.

The what3words address starts with three forward slashes without any spaces, followed by three lowercase words separated by a dot, again without any spaces. When the customer enters what3words address while checking out, it gets instantly recognized by the API making the location an exact callout destination for the customer as given. 

For instance: ///wager.skate.swanky is the three-meter square location of the entrance of your customer’s house that has been provided while checking out. The delivery person will get this location as the callout location for handing the package safely. 

How can customers use what3words on Kartify?

Do you have a store on Kartify? If YES, then you don’t have to worry as we have got everything covered. All your customer needs to do is get their three-word address from the app and enter the address on the space provided while checking out. A hassle-free deliverywill be on its way.

The technology is already in use, we are just fine-tuning it for you. 

If you are among the one who is still running their business in the traditional way. It’s time to evolve when the world is running so fast. Bring your store online with Kartify and avail of maximum benefits in an instant.

How can ANS Commerce help?

ANS Commerce is a full-stack e-commerce enabler that helps businesses attain an online presence with the ultimate brandstore service, Kartify which is easily customizable and integration ready. We also help businesses get rid of all the stress of digitalization and focus on their core services, by helping them with performance marketing, marketplace management and warehouse and fulfillment.  

How To Boost Your E-commerce Business This Holiday Season?

The e-commerce industry in India has changed how business is conducted. A variety of market niches are online to increase the ease of people and reduce the distance between them. Approximately 150 million people now purchase online due to the buying habits shifted by the pandemic. The global e-commerce industry is further anticipated to increase by 21.5% in 2022 to reach US$ 74.8 billion and is projected to reach US$ 350 billion by 2030.

“E-commerce and mobile commerce have dramatically changed the way brands reach customers, making it faster and easier for customers to make purchases on the fly while avoiding the hassle of going to the store.”

–          HIL DAVIS, Co-founder of J. Hilburn

As the holiday season is right around the corner, you are expected to increase yearly sales by up to 40%-50%. But this is also the time to face the competition. There are certain steps that you need to take if you want to stay ahead of your competitors. People living near or far are waiting for the deals to be grabbed and to surprise their family and friends.

Don’t wait! Get Started!

Top Tips To Enhance Your Store For The Holiday Season

Get Prepared for Incoming Traffic

The busiest days for online stores are the holidays. There is always incoming traffic for your products, and nothing could be more detrimental than a site outage at a crucial moment, so make sure your supply is full.

Check up with suppliers early to make sure you’re adequately stocked, especially for potential gift goods. Do not let your customers wait or get disappointed that their must-have gift is out of stock or on backorder.

Also, work on the speed and security of your website. Revenue is directly related to the speed at which your website loads. Your site must be stable and scalable to be able to meet the demands of your visitors. Check the most recent statistics with your e-commerce provider to determine your level of coverage. Review your integrations with external parties. Don’t add anything after testing them to make sure they can manage the load.

Surprise & Delight Customers

The holidays are the ideal time to retarget past visitors and draw in new ones to your website. Create a reason for your traffic. You must first have a solid sales plan to start the holiday season. 

  • Choose gift baskets, ana r exclusive specials and consider the marketing approach to delight your customers. 
  • Increase the number of your sales channels. There are other places to share holiday happiness than your e-commerce shop. Think about additional sales channels.
  • Include BIOPS (buy online, pick up in-store) for consumers who like online shopping but need their purchases the same day, BOPIS is a fantastic solution.
  • Enhance your delivery strategy in order to be ready for the increased traffic.
  • Outsource 3PL as they are quick and also allow you to concentrate on your business-related tasks rather than shipping queries.

Prepare Strategic Holiday Marketing Campaigns

Choose a lovely festive theme and decorate the homepage of your website accordingly. The entire website does not need to be redesigned. With design adjustments, you may improve your website to offer seasonal enchantments and meet the expectations of your visitors. Work on just the primary parts and use your creativity to the fullest. 

You can set up a timer to count down the days or till the end of your holiday campaign. This tactic increases the festive atmosphere by creating a sense of urgency that the holiday is approaching and that customers need to make their purchases as soon as feasible.

Personalization increases your chances of increasing sales. Keep in mind that individuals do not spend time reading impersonal advertisements. Construct your campaign in a way that makes people feel that the offer is just for them.

Increase Customer Assistance & Experience

Consumers today want to be able to get what they require quickly and with as little hassle as possible. That implies that your website must offer solutions that are tailored to their particular demands and a smooth checkout process. 

Is your online shop capable of the task?

Let’s look at some essential ways you may improve your website to offer seasonal enchantment and meet and exceed client expectations:

  • Increase the quality of your retail experience
  • Streamline your merchandise strategy
  • Personalize the shopping experience
  • Help them find the desired products
  • Improve checkout
  • Allow multiple payment options

Create a Flexible Return Policy

According to a poll, 96% of customers will return to businesses that make exchanges and returns as simple as possible. So, make sure that your return policy is clearly visible. People purchase at Amazon because they are familiar with their return procedures. Nobody likes dealing with returns, not consumers and definitely not retailers. 

You can also enhance your cart conversion if you highlight the fact that your shop will accept returns for items purchased during the holiday season. Building trust is key, so make sure your return policy is completely open-book and equitable.

How Can We Help?

ANS Commerce is a full-stack e-commerce enabler that provides high-end solutions and services to help businesses increase their revenue and achieve their goals. We are a team of dedicated professionals skilled in assisting clients from scratch. Whether you are a growing business or are new to digital services, we will guide you, enhance your knowledge, and help you create your own space in the online world.   

  

Top 5 Sales Channels & Their Benefits in E-commerce Business

The E-commerce sector is expanding at a fast pace due to advancing technology and shifting customer tastes. People today are making new purchasing choices with smartphone applications, shopping websites, social media platforms and marketplaces. This is why diversifying your sales channels is essential if you want to pour sales immediately into your bucket.

Initially, new businesses might want to concentrate on a single sales channel but businesses that connect with consumers where they already spend their time are the most successful ones. So organizing a multi-sales channel plan and making a presence on various platforms can help you reach a large audience and boost sales instantly.

However, don’t hop on every sales channel that you come across. Not every platform is meant for the sales of your product. You should select the sales channels that best represent your brand and match your company’s enterprise. The most prominent sales channels are given to help you choose the ones that can meet your requirement well.  

5 Important Sales Channels for your Business 

Marketplaces

The use of marketplaces is a common choice for both consumers and sellers. Brands can post their items on these platforms, take care of the logistics, or let the market handle them. However, sellers must pay fees, which reduces their sales profitability.

Although most customers who use marketplaces are searching for a great deal rather than brand loyalty, they remain a significant entry point for customers. Selling on marketplaces can therefore be a beneficial addition to your sales channel plan if done sparingly.

Social Media

In spite of the fact that marketplaces facilitate huge sales, social networks are seeing a significant increase. They enable marketers to sell to their followers directly without having to go through another platform in the middle. Several social media firms have already launched integrated e-commerce channels to increase their product sales. Users can instantly view the price, and place their order for the desired goods by clicking on a picture or video.

These choices are already accessible on well-known social media platforms like Facebook, Instagram, and Pinterest. 

Own Website

You won’t have to worry about market constraints, costs, or rules if you run your online store. Your e-commerce store is one of the greatest sales channels accessible. However, investing in it could take more e-commerce resources but the long-term rewards outweigh them. Moreover, the brand involvement makes it easier for the customers to access, rely and purchase the products from the site. 

Product Comparison Site

An increasing number of products and their variety in different brands make it difficult for customers to select the one that is suitable for them. So, they dig for details on product comparison sites to get a clear idea of the desired product. The sites like Shopzilla and PriceRunner help customers get complete knowledge and also make fine choices on the product. However, these sites also play a huge role in increasing the sales of the brands as well. The distinction and benefit of this kind of channel are that the comparator connects the product directly to the pages of your website rather than acting as a middleman or as a salesperson.

Retail

When we talk about retail the first thing that comes to mind is the store. Retail is not limited to just a store but includes outlets such as pop-up shops, artisan fairs, farmer’s market booths, or even a shelf in a neighbour’s shop. Retail is a fantastic method to get your goods out there, whether you manage the store independently or whether the store owner supports your business as a distributor. The biggest benefit is that you get to interact personally with your consumers and receive real-time feedback.

Quick Tip – With multiple sales channels managing inventory and fulfillment can be a hassle. Prefer taking the help of a third party in such a case. 

Benefits of Using Multiple Sales Channels

Provides Buying Flexibility

It provides an omni-channel experience to the customers allowing them to purchase the product in many ways. Customers get more alternatives to choose how and when to buy if you make it simple for them to access your goods in many ways, such as through an Instagram post or a smartphone application.

Generates More Revenue

The more channels you open, the more probable it is that new customers will find your stuff. Thus, making a presence on new sales channels can result in more opportunities to expand your business and diversify the sources of your revenue. 

Drives Quality Traffic

The main objective of every e-commerce company is to focus visitors on the online store since this is the most lucrative source of income. By establishing connected sales channels, you can bring in more visitors to your website who are more likely to suit the buyer’s profile you are seeking.

Improves Customer Experience

You’ll not only attract new customers, but you’ll also give your current customers more options for purchasing your goods, thus enhancing their experience. Customers prefer having alternatives and flexibility when making purchases, and multichannel selling enables you to give them both.

Highly Cost Effective

Investing in an online store and selling through multiple sales channels is still less expensive than opening a physical store with several branches around the country. The Internet makes it more affordable and simple to expand a business globally in a world that is becoming more and more digitally interconnected.

How can ANS Commerce Help?

ANS Commerce is a leading e-commerce enabler that helps businesses create an online presence with an integration-ready proprietary brandstore service- Kartify. We are a team of experienced professionals that provide everything e-commerce to our clients and partners. Our highly customized and tailored services help brands connect with their consumers and increase sales with solutions like performance marketing, marketplace management, and warehouse and fulfillment. Once you are connected to our experts you do not have to worry about anything. Whether you are lacking resources, technology or operational front, we will handle everything for you. So request your DEMO now and enjoy stress-free growth in your business.

Drone Delivery in E-commerce: How Can It Change the Future of Logistics?

Technology is changing its face drastically, and e-commerce, being the most advanced sector, is experiencing a high level of enhancement. Consumers are purchasing things with the touch of a button and are getting their products as fast as possible. But this is not enough!

Consumer expectations are increasing with cultural enhancement and technological innovations; they are willing to acquire the product instantly whenever they require it. Thus, merchants and retailers are considering creative methods to shorten delivery times in order to boost their revenue and conversion rates.

What Are Drones?

Drones are referred to as unmanned aerial vehicles (UAVs) or unmanned aircraft systems. A drone is essentially a flying robot that can be remotely controlled or fly on its own using flight plans that are controlled by software, onboard sensors and a global positioning system (GPS).

UAVs were frequently linked to the military. They were first employed as platforms for weaponry, which was more contentious; anti-aircraft target practice; and information collection. Today, drones are employed in a variety of civilian capacities, such as search and rescue, surveillance, firefighting, monitoring traffic, tracking weather, photography, videography, agriculture, delivery, and others.

Drones in E-commerce

Drones for delivery can propel the e-commerce sector to new heights. The use of delivery drones can not only help businesses save time and money on the last mile but can also satisfy the urgent demands of their clients. Thus, retailers are considering using drones to shorten delivery times in order to boost their revenue and conversion rates.

The market for delivery drones is expanding as a result of rising demand for quicker deliveries, drone technology breakthroughs, and the growing desire to cut carbon emissions. They are becoming more and more prevalent in contemporary logistical operations than the traditional delivery routes. Thus, by 2028, the market for delivery drones is anticipated to reach a value of $1.29 billion, growing at a CAGR of 40% from 2021 to 2028.

Stakeholders of the Drone Delivery Ecosystem

  • National Aviation Administration (primary stakeholder for any aircraft traffic management operation)
  • International Civil Aviation Organization
  • The company that owns drones
  • Drone pilots (who fly drones)
  • The ground support team (manages drone launch pads and the loading and unloading of packages)
  • System for registering UAS (including capabilities for registration, operator and pilot information)
  • Aerial vehicle traffic control (UAS and operator identification; UAS traffic flow management; airspace management; flight operation management; metrological, spatial, and obstacle info management, etc.)
  • Businesses that produce drones (UAV/drone makers)
  • Technology companies that offer a range of services, including mission planning and altitude permission, drone flight planning, and real-time drone flying)

Early Adoption by Retail and Logistics Industries

Drone technology is a tool that the retail and logistics sectors use to build innovative and scalable delivery strategies. Drone delivery services have already been made available on the platforms of major industry players like Amazon, UPS, DHL, Walmart, and others. Specialized drone delivery companies and technology suppliers like Wing, Zipline, and Matternet also help the sector.

The Benefits of Drones in E-commerce

Improves customer experience

With faster and hassle-free delivery, drones would elevate customer service to a whole new level. Since merchants would own and manage the drones, there would be no need to rely on outside carriers to deliver goods. Customers will receive their purchases at their doorsteps more quickly as a result, which will enhance the customer experience.

Reduces carbon footprint

The traditional delivery system involves the transportation of goods from the warehouse to the consumer, which not only requires a lot of time but also the consumption of fossil fuels, causing an increase in pollution, traffic and unnecessary hassle. With drone delivery in use, the use of fuel for delivering items will be reduced. 

Enhances the supply chain

An enhancement and up-gradation will be required in supply chain procedures if drones start making deliveries. In most situations, drones will take the role of carriers, necessitating the development of new systems to match items with drones and load goods onto the aircraft before they take off for various consumer locations. To operate these drones in accordance with aviation regulations and the company’s service standards, personnel will need to be educated.

Caters delivery challenge

There are many places where delivery of products is not possible by traditional methods due to challenging conditions or lack of road facilities. Drones make it simpler to get through these areas, whether it’s tough terrain like hills, mountains, or rainforests. 

Drone delivery has many other applications and will continue to expand in the years to come. To fully achieve this potential, businesses will need to continue to engage in drone delivery initiatives and technological advancements. Laws are constantly changing due to their widespread. So, drone pilots and companies must review the rules of their nation and the area in which they are using the equipment.

How Can ANS Commerce Help?

ANS Commerce is a full-stack e-commerce enabler that provides highly curated services to brands to extend their reach and enhance their sales. We believe that it is just hard for businesses to connect due to a lack of resources on the technological, product, and operational fronts. Thus, we provide in-depth assistance with brandstore, performance marketing, marketplace management, and warehouse and fulfilment. Our curated services are highly customized to help you acquire the kind of assistance you are looking for and get commercial benefits without any hassle. Request your DEMO now.

How Can Augmented Reality Enhance the Customer Experience in the E-commerce Industry?

Technological innovations have brought great variation in the shopping experience of people. From offline to online, further different browsing options at various sites have made it easy for people to make purchases just by sitting at their place. However, the sensory experience was still a big challenge, which made replace and return more prominent.

Well, with Augmented Reality in the queue, things are no longer the same. With this technological advent, people can actually sense their products. It allows customers to experience the services or preview their items and acquire in-depth and comprehensive information about their items of choice—from the comfort of their homes.

According to the report, the augmented reality industry is expanding and is worth $30.7 billion, with roughly 810 million active smartphone users.

What is Augmented Reality?

AR (Augmented Reality) is a technology that overlays a computer-generated image over the user’s real-world perspective to give them a more accurate representation of reality. This entails incorporating digital data (sounds, pictures, and text) into the user’s current surroundings.

The idea is to blend the virtual and real worlds and offer the user a sense of seamless integration. These virtual assets might be in the form of 2D or 3D images, music, films, and so on.

“I do think that a significant portion of the population of developed countries, and eventually all countries, will have AR experiences every day, almost like eating three meals a day. It will become that much a part of you.” 

— Tim Cook

Virtual Reality and Augmented Reality: What Is the Difference?

Augmented reality and virtual reality are two concepts that are sometimes used interchangeably since they have many similarities but also some variances. Virtual reality (or VR) requires the user to wear a headset with earbuds that totally replaces the actual environment with the virtual world. Virtual reality aims to remove the user from the current world as much as possible. 

Quick Tip: Although virtual reality has business uses in product creation, teaching, architecture, and retail, the bulk of VR applications are now centred on leisure, particularly gaming.

Augmented reality, on the other hand, combines the virtual and real worlds. Most apps use the screen of a smartphone or tablet to do this, with users directing the phone’s camera towards an area of interest and the screen displaying a live video of that scene. The display is then filled with helpful data, such as servicing instructions, navigation data, or diagnostic data. 

Quick Tip: AR is more commonly used in entertainment applications, but now it is also being used for providing expert assistance, transforming shopping experiences and predictive maintenance. 

Augmented Reality in E-commerce

AR has piqued the curiosity of investors, businesses, and the general public in recent years, particularly when Mark Zuckerberg purchased Oculus. Many web companies, such as Sony, Samsung, and Google, are now investing heavily in augmented reality.

E-commerce is expected to take a huge leap with this technology as augmented reality can bridge the gap between conventional brick-and-mortar retailers and current e-commerce companies. Customers may see the product as they would see it in person using augmented reality. It’s a breakthrough that gives online shopping a more genuine feel while also increasing e-commerce sales by enhancing the shopping experience.

This [Retail] is a sector where AR is revolutionising the way we shop by bridging the gap between digital and physical worlds. A radical store re-invention will offer retailers new ways to increase convenience and personalisation, and consumers the opportunity to experience re-envisioned shops. 

–Muchaneta Kapfunde

The Benefits of Augmented Reality

Here’s why augmented reality is more important—and how they’re already helping early adopters.

Personalized Experience

AR allows customers to see how items appear on them. They show what sizes might fit them, or illustrate the real size of a product in their area, as well as other features that address the issues with online shopping. Instead of seeing mannequins wearing the items in an online store, buyers can view themselves in all of the ensembles to evaluate which ones would look best on them.

Reduced Return Rate

AR offers consumers the unique option to test before they purchase since it provides an immersive experience with 3D visualizations, virtual try-on, and product demos. As a result, augmented reality technology aids in the battle against high return rates by allowing customers to make an informed purchase, resulting in a decrease in return rates.

Improved Customer Satisfaction

AR’s immersive experience allows e-commerce firms to not only interact with new customers but also to create a long-term and trusted relationship with them. This technology helps boost consumer interaction with e-commerce firms, leading to increased sales.

High Conversion Rate

It is one of the most notable advantages of augmented reality in e-commerce. If users have a clearer picture of the product they are going to buy, they are more likely to convert. Augmented reality in e-commerce allows store owners to provide a more immersive and engaging product experience, which leads to higher conversion rates.

Those who browse sites that use augmented reality (AR) technology are more likely to make a purchase. So, bring it to your store and leave the rest to us. 

Role of ANS Commerce

At ANS Commerce, we assist businesses in enhancing their brand’s position through higher sales. We assist organisations in focusing on their core competencies while also delivering other services such as performance marketing, marketplace management, warehousing, and fulfilment. We give e-commerce consultancy for the brandstore through technology interventions so that they are aware of the present gap and may use the best industrial practise to optimise the funnel.

We also assist businesses with our core product, Kartify, which provides the foundation for establishing an online presence without any hassle. You can request a DEMO now.

How Cryptocurrency can Transform E-commerce Industry?

Cryptocurrency, also known as “virtual currency” is drastically making its way into the market. There are lots of investments taking place every day showing people’s interest in cryptocurrency worldwide. According to a report, the worldwide cryptocurrency industry is expected to increase at a CAGR of 12.8 percent, from $1.49 billion in 2020 to $4.94 billion in 2030.

“The Blockchain Technology could change our world more than people imagine”

Jack Ma, Co-founder of Alibaba

With all of the hoopla around cryptocurrencies and blockchain, it has become essential to understand what cryptocurrencies are and how they can be utilised for online transactions.

What is Cryptocurrency?

Cryptocurrency is a digital currency that works by encrypting data. It is not regulated by the government or any bank, instead, it employs a decentralized system to log and verify transactions. You can also say that all the transactions are handled peer-to-peer.

Every transaction is validated by network users, and in most cases, such transactions become public records to prevent the same user from spending the currency several times. Understanding that each coin is unique and that certain currencies offer greater safety and privacy than others is crucial to adopting cryptocurrency.

Top Cryptocurrencies in Use

Bitcoin

Bitcoin is the original cryptocurrency developed by Satoshi Nakamoto. Through a digital transaction system, Nakamoto sought to decentralise the financial industry and return authority to the people.

“Every informed person needs to know about Bitcoin because it might be one of the world’s most important developments.” 

Leon Luow

Ethereum

Ethereum is a currency that was established as a result of the development of bitcoin, however, it is more energy-efficient. Vitalik Buterin, the project’s inventor, intended to create a platform that would completely revolutionise the internet.

Dogecoin

Dogecoin was started as a joke, a Doge meme by software programmers Billy Markus and Jackson Palmer. However, with time it has grown from a humorous take on cryptocurrency to a viable investment option, beyond its creators’ expectations.

XRP (Ripple)

XRP, commonly known as Ripple, was created to let users transmit money digitally without the high transaction costs and conversion periods associated with bitcoin. It is a decentralized digital asset that is operated by a network of peer-to-peer computers. 

How can Cryptocurrency be Used in E-Commerce?

E-commerce and cryptocurrencies complement each other well, according to the technologically informed customer. With the growing demand for digital payments among internet customers, it is an alternative method for individuals searching for a quick and easy method to pay for products and services.

There is no need to travel to a bank, withdraw money, or even input credit card information before completing payment at checkout when using bitcoin. Digital payments are being driven by the same need that has fueled online shopping, and if done correctly, might be a terrific complement to your present offerings.

Benefits of Cryptocurrency in an E-commerce Industry

Large Market Base

The number of people who own and utilise cryptocurrencies is steadily increasing throughout the world. Allowing consumers to pay using their crypto wallet on your site might broaden your target demographic and attract new client traffic. Early acceptance of crypto payments may provide you with an advantage over your competition and allow you to win the loyalty of this customer base before your competitors. 

Quick Transactional Service

Unlike credit card systems, which take a few days to batch out and process, Bitcoin is handled instantly, allowing you to access payments much faster. Fast transactions can help your company’s cash flow run more smoothly.

Low Transactional Charge

Blockchain transactions are significantly less expensive than regular e-commerce transactions. When brands use Razorpay or Paypal to handle transactions, they pay an average of 3-5 percent per transaction, compared to roughly 1% for bitcoin transactions. The costs will vary depending on whether you accept cryptocurrencies into your personal wallet or through a third-party source like Coinbase, but they will almost certainly be cheaper than those charged by PayPal or credit card companies.

Anonymous Transactional Ease

By employing encrypted wallet addresses, cryptocurrency enables anonymous purchases – it’s essentially the same as using unmarked cash. This lets your consumers purchase things without revealing their personal information, and it allows you to conduct business without fear of violating any privacy laws.

High-Security Assistance

Unless you have the merchant’s permission, it’s tough to reverse a bitcoin transaction once it’s been completed. This gives shops additional protection against E-commerce fraud since there is no middleman, such as a bank, who may remove cash from your account without your permission.

Stores Accepting Cryptocurrency

A number of well-known companies, markets, and payment processors have already begun to accept Cryptocurrency as payment.

eGifter- eGifter, a prominent participant in the field of gift card exchanges, was one of the first to take bitcoin in 2014. The company’s leadership has long believed in bitcoin’s ability to revolutionise payments. It is expanding its digital currency payment options by adding dogecoin and litecoin to the mix.

Overstock- Overstock was the first big online retailer to adopt bitcoin in early 2014 by taking crypto payments in the United States.

PayPal- In March 2021, PayPal introduced “Checkout with Crypto,” a tool that lets PayPal’s US clients pay online businesses with their cryptocurrency. All cryptocurrencies may be held in the PayPal digital wallet and converted to fiat cash with no additional transaction fees at checkout.

Expedia- Expedia has begun accepting payments for over 700,000 hotels and lodgings using (more than 30) cryptocurrencies, thanks to a collaboration with crypto-friendly travel booking site Travala.

eBay- eBay revealed earlier this year that they are considering adopting cryptocurrencies as a means of payment in the future. 

Many E-commerce stores have also started accepting Cryptocurriencies as payments such as Shopify, WooCommerce, BigCommerce and Magento.

How to Accept Cryptocurrencies in E-commerce Store?

Accepting cryptocurrencies in your eCommerce business can be done in two ways:

Personal wallet- You’ll need a virtual wallet if you want to accept cryptocurrencies through your personal wallet. You can purchase a hardware wallet or download most wallets fast to your phone or PC. A hardware wallet is a physical safe that keeps bitcoin on a specific hard drive within the device. It’s actually the only safe hardware device for storing a user’s private key.

Third-party payment processor- Third-party payment processors like Coinbase or BitPay, manage the full payment process, much like credit card payment processors.

One advantage of using a third-party payment processor rather than a personal wallet is that they may convert cryptocurrencies into cash instantaneously, avoiding price fluctuations.

Role of ANS Commerce

We are a full-stack brand E-commerce enabler that helps businesses with curated solutions like brandstore, performance marketing, marketplace management and fulfillment. We provide high-level customized service to our clients and customers and help them dominate the industry with seamless integrations. Our experts skilled in taking care of all your demand will work professionally as your extended team and will help you increase your ROI with zero hassle.