How online shopping sites make profit through a mobile app?
Everyone is interested in the question — how online shopping sites make profit theoretically sell through iPhone / Android mobile applications? Obviously, large sellers have acquired their applications for a long time, but small online stores are not in a hurry yet — they do not understand the impact! We will help you make a decision :) and for this we considered our client: one retail point of about 100 m2, an online store with an attendance of 1500–1700 per day. Fashion segment. And what are the results?
For 10,000 Dollars. orders per month, 6,000 installations and the numbers are growing from month to month. With a margin of 30%, the company receives net profit from applications up to 3,000 Dollars per month. Interesting?
E commerce is tricky to begin with, in my opinion it’s all about the customer one day you can see you website booming with new customers coming in and buying products and on any other day you can see the vice versa. You never really know what’s gonna happen in the future but if your price is right and your services are great you can build and customer experience which can make lasting impressions on the consumer.
WORD OF MOUTH IS KEY for any business and it’s the same with E commerce, in India price is one of the if not the biggest factor when it comes to eCommerce So companies try their hardest to bring in customers with discounts an hope they can retain them. In India the consumer has also became smarter with the day and is now more aware about different platforms, their advantages and their disadvantages. For Example — My Family only buys products from Amazon even if they have to pay higher in comparison to Flipkart because Flipkart customer service and delivery services are not up to the mark. So always remember the way you enter the market matters because changing opinions of a single person is tough now compare that to billions of Indians out there.
Written By: Bhargav Srinivas & Maxim Kulgin
