5 Simple Ways to Improve your Brand’s Performance when Selling on E-marketplaces in Southeast Asia
Setting up an official store on e-marketplace is a great step for brands to expand their ecommerce presence. E-marketplace allows brands to set up their store within a matter of weeks and considered as one of the easiest and fastest ways to sell online. Not to mention that it has ready access to millions of customers with the intent to buy.
However easy it is to set up an official store on e-marketplace, there are strategies that brands should employ when selling on e-marketplace win over the many competitors that also selling their products there and attract consumers. E-marketplace data analytics platform BrandIQ lists out some of the simple and quick improvements brands can do to optimize their store performance on e-marketplace.
Improvement #1: Comparing Products and Prices against the Brand’s Competitors
Similar to the conventional business, monitoring competitors is essential for ecommerce brands to stay ahead, but the process of monitoring competitors on their offline channels is easier than online. As Aviroot Prasitnarit, Sales Director, Kimberly Clark Thailand admitted, it’s almost impossible to keep track of your competitor’s movement on e-marketplace in real time.
“Monitoring your competitors on offline channels is easier. You can simply check prices and promotions at the store because we know that prices won’t change for at least 14 days. But this [online channel] is a totally different ball game. Tracking [price and promotions] is much complicated and they are constantly changing,” Aviroot Prasitnarit told BrandIQ.
BrandIQ also found that product prices on leading e-marketplaces in Southeast Asia change 3-4 times in a month. Sometimes it can go up as high as 11 times a month.
Not only do brands have to keep a watchful eye on their competitors but they also have to watch out for the unauthorized sellers (AKA grey sellers) who also their products and sometimes at a lower price. From one quick experiment for the Pet Food category, BrandIQ found 27 grey sellers that are selling one same product on an e-marketplace and 42% of them selling it at a lower price point than the brand’s official store.
These undercutting prices strategy could drive business away from the brand’s official store, especially as grey sellers often offer an additional promo code to waive delivery fee and attract more shoppers.
Improvement #2: Optimizing the Brand’s Official Store with Content and SEO
The customer acquisition cost has risen 50% over the past five years and organic content consequently becomes preferred solution brands turn to drive traffic to their online stores. Through an A/B testing, BrandIQ proved that the brands could increase their revenue as much as four times by optimizing the content — but, how?
Adding more generic keywords into the product name will allow consumers to find the product easily and give the brand a higher chance to appear on the search result without having to type in a specific brand name. Keyword feature on BrandIQ helps identify the most searched keywords in the category and allows Nivea Thailand to optimize their product’s naming. The result is 7X growth in revenue and a 23.4% increase in conversion rate after the practice.
Inserting a generic keyword of the product in the bracket so it will always appear when the consumer searches; aCommerce
Providing multiple product images is also vital as it helps online consumers make their online purchase decision. Product images that portray the texture, packing, skin tone and labels of the product are especially important as these images assist the consumers to understand what the actual product may look and feel like. After optimizing their images, Nivea sees 2.6 times improvement in revenue and a 9.2% increase in conversion rate.
Additional images added to the gallery to give more visual information about the product; aCommerce
Improvement #3: Encouraging Shoppers to Leave Reviews on the Brand’s Official Store
Lazada recently introduced ‘Verified Purchase’ badge for the reviewers to label which reviews came from a genuine consumer who has purchased and used the product, while Shopee has made it easy for shoppers to leave a review with comment suggestions. All of these initiatives have the same objective: encouraging more consumers to leave reviews.
Shopee is helping consumers save time and prompting them to leave a review simply by clicking on the suggested comments; Shopee
It’s important for brands to understand how much reviews mean to ecommerce shoppers. Globally, 63% of shoppers are more likely to make a purchase from a site with reviews and they tend to spend 31% more on a store with positive reviews. The lack of touch and trial in ecommerce drive the consumer’s need for these reviews to answer the questions such as whether or not the material of the blouse is good or if they’ll be likely to have allergic reactions to the moisturizer.
Giving out incentives (e.g. discounts or free samples) for their consumers can help brands increase the reviews on their product, while a platform like ReviewIQ is also helpful to brands in achieving this objective.
Improvement #4: Upping your Customer Service Game
The in-app chat feature has become a vital part of ecommerce’s experience as digital consumers demand a quick response from sellers. Waiting 24 hours for an email reply or holding on the line of the brand’s hotline can no longer satisfy consumers. In the US, 55% of online shoppers are likely to abandon their online purchase if they cannot find a quick answer to their question.
Brands should not neglect the importance of instant message on the marketplace. According to ecommerceIQ, only 25.9% of the brands offer a real-time response through Lazada live chat.
The live-chat feature also enables brands to cross and up-sell their products and build a customer relationship. An automatic response implemented by brands can put customers at ease and shoppers will be assured that their queries will be attended to in time. At the moment, only 37% of the brands on Lazada Thailand tested had auto-replies enabled.
At the end of the day, you want to make sure customers leave your store with content and brands should ensure they do everything in their power to ensure the satisfaction of their customers.
Improvement #5: Monitoring the Brand’s Performance
The constant change of consumer behavior forces brands to consistently monitor itself to enhance the customer experience and the marketing tactics to get the customers satisfied and eventually convert. Unfortunately, looking only at the sales number and ROI do not tell you everything about the brand’s performance on e-marketplace.
Brands should dig deeper into the data that they have gathered from the customers in this platform that will allow them to create brand loyalty and improve their overall performance. Check out the various metrics tracked by BrandIQ below that can help brands improve their performance on e-marketplace.
Interested in monitoring your brand and competitor? Get BrandIQ’s free trial here or email Ashish at email@example.com.