E-commerce generates $1.2 mn revenue every 30 seconds
Social media is contributing significantly to the growth of e-commerce business which is generating over $1.2 million revenue every 30 seconds, says a study. “Every 30 seconds, global e-commerce industry generates over $1.2 million revenue with social networking sites like Facebook, Pinterest and Twitter contributing $5,483, $4,504 and $4,308 respectively,” said a joint study by Associated Chamber of Commerce and Industry (ASSOCHAM) – Deloitte. According to the study, the maturity of social networking tools and their reach makes them a suitable tool to boost online sales. "Social media pages provide information regarding new products in the market, user reviews and ratings of the product, recommendations, and information technology (IT) products," it said. The study report said that the e-commerce industry is growing at a larger pace, thanks to the robust technological innovation and contribution from online social networking tools. “Access to product reviews and ratings and direct linking with social networks is making things easier for e-tailers in reaching out to prospective buyers,” it said. If the analysts are to be believed, the product reviews, ratings and recommendations are the most popular features integrated into leading e-commerce sites. E-commerce has become an innovative platform for all kinds of marketers ranging from blue chip brands to startups looking to expand their marketing borders, besides ensuring safe transaction for buyers. Payment gateways help online retailers to receive money instantly rather than waiting for the Cash-on-Delivery (CoD) payments, thus reducing chances of theft and fraud. Online retailers also offer cash back, easy monthly installment (EMI) and other options on online transactions to attract more customers. Use of credit and debit cards also give an edge to e-retailers to analyse basket size, average order value and conversion ratio. But, the study suggests, with the increasing customer base, e-commerce players need to deploy deeper analytics solutions with the inclusion of end-to-end process starting from the vendor management and supply chain to customer satisfaction. The availability of e-commerce applications on various mobility devices is helping to drive sales and revenue, it said, adding that the e-tailers focusing on app-based sales are now making brisk business. “E-tailers like Flipkart, Amazon and Jabong now get 50% of their revenues from consumers shopping on their mobile phones. Predictive analytics is helping the e-tailers to provide better solutions in real-time enabling compelling user experience even on mobile screens,” the study said.
August 20, 2015 | 4:50pm IST.
to success.