5 WHAT’S to Answer before starting your Multivendor Marketplace
Running short of time? Get PDF of the blog in your mail.
The rise of e-commerce is meteoric and the future seems even more phenomenal. The global retail e-commerce sales have been predicted to be over $4000 billion by the year 2020 (Statista.com). Mind boggling it is!
And to add teeth to this claim is the hyper growth witnesses by Indian e-commerce startups like Flipkart, SnapDeal, ShopClues, Paytm, OLA and OYO.
The rise of these multi-vendor platform based startups has overshadowed the success of others. And looking at the gargantuan opportunity that this multi-vendor marketplace vertical offers, it becomes all too tempting to start your own multi-vendor marketplace and start riding the e-commerce wave.
Accepted. E-commerce, today, presents a bigger opportunity than any other vertical. But it is not a cake walk as well. Thus, Answer to the 5 What’s will pave the way for your success.
1. WHAT about the Proof of Concept?
No one is Alien from this technology. An idea can strike you anytime, and the person who got the idea is most certain about the success. It is essential that a person believes in his idea but most importantly it is uber most important to get a feedback of others, precisely, the targeted audience, whether they consider your solution to be the most appropriate one or not?
READ FORBES – What’s More Important: Your Product Or Proof-Of-Concept?
It is quintessential to do surveys on large scale by conducting researches, coming up with the revenue model and the business viability. Do you have an answer to the long-term sales projection and the development cost? Getting answers to these question will calibrate your efforts and give direction to your business.
2. WHAT about the Revenue Model?
Don’t worry a lot about the revenue model. Revenue models do change several times and there are countless examples where businesses have done the overhauling of their revenue models while in operation.
READ: BUSINESS INSIDER: 10 Huge Companies That Radically Changed Their Business Plan
However, monetizing the business idea remains the topmost priority. So you can come up with the short-term revenue model and then can decide on the sustainable business model. There are different types of revenue models practiced by different companies, commission based remains the most popular. Apart from this, there are other types of revenue models such as Lead Generation, Subscription based, Advertising Driven, and Freemium. Your Multi-Vendor Marketplace can choose any of these, or a combination of these and can come up with an entirely new concept. If you’ve already figured it out. Great!
3. WHAT Technology you intend to use:
It is the most important aspect. The solution you proposed to a prevalent problem can only be addressed by leveraging the power of technology. You can’t have out and out control over your business model, your marketing can be shoddy. But it is the technology that you have the most control over. You can hire in-house developed which is the best or you can use the tailor-made Multi-Vendor Marketplace solutions existing in the Multivendor marketplace. It saves you the time and money.
READ CEDCOMMERCE: Start Amazon Like Multi vendor Marketplace For Free
Developing a solution that is extensively tested, abrased with latest technology trends and has an element of a great customer experience can be a potential viral product. One should jump with the most consumer-friendly solution and must not wait till a perfect product is developed.
Because “Perfection kills profitability” by Mark Cuban (Billionaire & Tech Mogul)
4. WHAT is your Pre-Launch Marketing Campaign?
The online marketing comes into play well before the product is launched. Developing an active fan base, loyal community and proactively engaging with them is necessary for the success of a business. There must be an air of interest, curiosity, and enthusiasm about the product before it gets launched.
READ MARKETING LAND: 7 Key Elements To A Perfect Product Launch
The important element that lies at the core of a successful pre-launch campaign, irrespective of their vertical is+, – Meticulous analysis of targeted audiences, creating great content, distributing them to with online community and on relevant platforms, Preparing eyeball catchy and attention seeking jargons, Determining the perfect pricing and ideal customers.
5. WHAT are your Customer Acquisition Costs:
Now that everything is done, deeply delve about your customer acquisition costs.
Customer acquisition cost is the ratio total money spent on the marketing and advertising the product to the total customers acquired. The high CAC or customer acquisition costs are potential business killers.
Although they can’t be calculated before starting your business. But surely one thing that can be kept in the mind.
READ KISSMETRICS: Customer Acquisition Cost: The One Metric That Can Determine Your Company’s Fate
What can be done before starting your venture is thorough research and meticulous analysis of your competitors’ campaign. Try to find out all the channels where they market, deduct their marketing strategy and gain insights into the jargons and images they use. Also, try to calculate or chart out the costs of reaching out to your potential costs through different channels. Low customer costs can help you investors and the opposite will repel them from you.
The startup ecosystem in India is growing with breathtaking the pace and the government’s START-UP INDIA STAND UP INDIA has added to the colors. As the government is doing every bit to remove the hurdles from your path, the aforementioned hurdles are the one that is MUST be addressed before you start your journey.