Ecommerce may look easy and may sound like a magic pill. The truth is that it is a very difficult business. It is probably easier (not financially) to open a shop in a busy mall than to run a successful ecommerce business in Cyberspace
When you run a retail business you do not have to think about the following:
1. Online store software and website
2. Product photography
3. Content creation
6. Customer Service
7. Personal Data Protection Act compliance
And the BIGGEST CHALLENGE – getting customers from the wide-open Internet World
The challenges of setting and operating a successful online business encompass all the above and much more
Each of the aspects listed above require skills and money
The chief failure reason for online businesses is to not be able to get customers at the cost that makes business sense
Cost of acquiring customers in a country like Singapore could be in the range of S$ 50 and above. This means that at a Gross Margin of 50% (Yes 50%) , transaction size needs to be at least S$ 100. And that is a challenge in itself.
Very few customers are loyal. And any investment in getting them to your online store does not guarantee repeat purchase
Setting up the webstore software and website is probably the easiest piece. Since you can see your business online, it also gives a sense of pride and accomplishment, especially if the website looks nice!
The rest of it is difficult business. Marketing, Processing, Fulfillment, Customer Service, CRM, Legal, Privacy and more
One way for Singapore based businesses to succeed in the online space is to look at a good outsourcing partner. And I do not mean IT partner. I mean outsourcing your entire ecommerce. Not just the IT part.
A partner who will manage all the key operational aspects of your ecommerce online store while the business manager focuses on merchandising and marketing.
A service partner like Tiger Pug Pte Ltd (www.tigerpug.com), A Singapore Headquartered company with its operations centres in India.
Service providers like Tiger Pug and ND Commerce (www.ndslindia.com) have the expertise and the back office capability to run your online business in a cost effective fully outsourced manner. They have their operations centres in India and therefore have access to a huge talent pool at economical rates. They can also help Singapore based businesses expand into India via ecommerce – Business to Business and Business to Consumer.
Contact Ajay at Tiger Pug Singapore on + 65 83886673 or email firstname.lastname@example.org to get advice on how to run your ecommerce business profitably