WHY MAGENTO IS A SUITABLE PLATFORM FOR FASHION ECOMMERCE?

With the economic challenges post-COVID-19, IT outsourcing has become a go-to solution for businesses aiming to use their budgets effectively. They’re partnering with outsourcing companies for IT tasks instead of solely depending on in-house teams.

Meanwhile, the IT sector is rapidly growing, fueled by ongoing tech advancements. Outsourcing is crucial to this growth, which is expected to soar to USD 525.2 billion by 2030, growing at a CAGR of 9.4% from 2023 to 2030. This points to a sustained high demand for IT outsourcing well into the decade.

When considering outsourcing software tasks, it’s crucial to identify the best countries for the job. The ideal locations are those that excel in technological expertise, offer favorable business environments, lead in innovation, and have strong English language proficiency. The following list will highlight the top 10 countries with stand-out IT dedicated teams that could be considered prime choices for IT outsourcing services.

1. India

India has consistently been at the forefront of the outsourcing sector and is renowned for its extensive pool of IT and software development talent. The country’s cost-effective services, proficiency in English, and solid tech infrastructure have established it as a preferred choice for global businesses. With more than 1.5 million IT graduates each year, India ensures a continuous influx of skilled professionals to satisfy the increasing demands of the outsourcing market in Asia.

Moreover, India’s cost structure is generally more affordable than Western countries, making it an attractive option for companies looking to outsource development tasks. For instance, according to Upwork, software developers in India typically charge between $18 and $39 per hour, which is significantly lower than the $50 to $60 per hour rate in the United States or Germany, with the average rate from $150 to $250 per hour. This combination of a large, skilled workforce and competitive pricing positions India favorably against other leading IT outsourcing destinations.

2. China

Just like India, China’s massive talent pool and diverse skill set make it one of the best countries for outsourcing, and it has emerged as an IT outsourcing power dominating the labor market. With an education system that promotes Math and Science, China provides some of the world’s best technology and IT services.

In terms of talent pool, China is one of the largest producers of IT graduates worldwide, boasting over 3 million IT graduates a year (this number is quite significant compared to India due to its large population). This vast number of highly educated and skilled individuals further solidifies China’s position as a desirable destination for outsourcing.

Additionally, the Chinese government actively supports IT development and invests in education to build a strong talent base. It focuses on advancing STEM (science, technology, engineering, and mathematics) education, which is essential for the IT sector. This approach improves learning in science and math, which is foundational for IT expertise.

In 2024, China remains a competitive choice for outsourcing, with an average IT outsourcing salary of about $20-$45 an hour, striking a balance between cost-effectiveness and quality output. This affordable rate and the country’s commitment to technological advancement make China an appealing choice for businesses worldwide.

3. Philippines

The Philippines is a sought-after hub for software development outsourcing and BPO is favored for its cost-effective labor and proficient workforce. English is the official language, simplifying communication and aligning with the country’s strong cultural connections to the US. This understanding of Western work culture is a significant advantage, especially since 94% of the population speaks English.

With around 190,000 developers stationed in key BPO centres like Manila, Cebu, Davao, and Bacolod, the Philippines is recognized as a leading IT outsourcing hub, especially in the healthcare and fintech sectors.

The educational system in the Philippines annually produces approximately 200,000 IT graduates, emphasizing IT and technical skills to create an adaptable and globally competitive workforce. In 2024, the average IT outsourcing salary stood at around $20-$60 an hour, affirming the Philippines’ position as one of the most economical offshore outsourcing destinations.

4. Brazil

Similar to the Philippines, Brazil shares cultural affinities with the US, which translates into high-quality IT services at competitive rates. This cultural resonance, coupled with its strategic location, makes Brazil a preferred partner for North American IT firms.

Brazil’s commitment to building a skilled tech workforce is reflected in the production of about 150,000 IT graduates each year. The government’s efforts to perfect the technological education infrastructure set Brazil apart as a top destination for offshore software development.

Although Brazil’s outsourcing costs are slightly high, with the average IT outsourcing salary at approximately $20-$50 an hour and an annual software engineer salary of around $12,000, it remains a competitive market. The country’s youthful population, 38% of which are young, positions Brazil as an ideal locale for hiring junior developers, underlining its robust and skilled tech workforce.

5. Vietnam

Vietnam is advancing as a notable destination for IT outsourcing, backed by a vast pool of skilled IT professionals. The country’s educational system, with over 300 IT-focused universities and centres, produces around 57,000 IT graduates each year. The Vietnamese government’s dedication to the IT sector is evident through supportive policies and incentives, contributing to Vietnam’s ranking within the top 50 digital nations.

The IT outsourcing market in Vietnam is forecasted to reach $698.90 million in revenue in 2024, with an anticipated annual growth rate of 16.38%, leading to a market volume of $1,282.00 million by 2028. The enterprise software segment is expected to achieve a market size of $247.3 million by the end of 2024. Moreover, the average spend per IT outsourcing employee is projected to be $11.80 an hour in 2024. These figures highlight a dynamic IT outsourcing market with an outstanding IT dedicated team in Vietnam, with growing employment and increasing value per employee, reflecting the nation’s investment in education and technological infrastructure.

6. Poland

Poland is a standout choice for IT outsourcing within Europe. Its central position in Europe and EU membership and a strong pool of software engineering talent make it an attractive base for businesses looking to grow in the European market.

The country’s IT industry is well-developed and supported by numerous universities that provide computer science education. Recent reports indicate that there are between 63,000 and 78,000 students enrolled in IT and ICT degree programs, with an annual graduation rate of about 10,500 to 13,500.

A significant draw for the IT Outsourcing market in Poland is the cost-effective yet highly skilled workforce, which is more affordable than in many other European nations. The cost for offshore software development services in Poland typically ranges from $40 to $56 per hour, depending on the project. This positions Poland as one of the leading Eastern European countries for cost-efficient programming expertise.

7. Malaysia

Malaysia is gaining traction in the IT outsourcing industry due to its cost-effective solutions and skilled workforce. Over 60% of Malaysians speak English, which, along with strong government support, makes the country an appealing outsourcing destination.

Annually, Malaysia produces around 100,000 IT graduates, reflecting its commitment to digital skills development. The government bolsters this with initiatives like tax incentives and funding for R&D.

In Malaysia’s tech sector, the average monthly salary is about $3,500, with an hourly rate of $14. These rates are lower than in the US or Western Europe. Moreover, a key development in Malaysia’s IT outsourcing is the growth of cloud computing and mobile app development. IT firms are investing in these technologies to offer better and more cost-effective services.

8. Argentina

Argentina’s IT industry is attractive to US and European clients due to English proficiency, cultural similarities, and time zone alignment. Competitive pricing and a highly skilled workforce add to its appeal. Web developers’ costs vary from $20 to $60 per hour, or around $14,100 yearly, based on experience.

With over 115,000 developers, many from top universities, Argentina’s education quality is evident. The country’s 2023 QS World University Rankings featured over 40 renowned computer science programs, 14 of which are in Buenos Aires, ensuring well-educated IT professionals.

9. Egypt

Egypt’s rise in the IT outsourcing market is attributed to its skilled workforce and cost-competitive services. The country’s low labor costs, combined with a large pool of engineering and development talent, make it a lucrative option for companies seeking IT outsourcing services.

The average hourly rate for IT outsourcing in Egypt in 2024 was between $25 and $50, presenting a budget-friendly choice for businesses. The ITIDA reports that an IT professional’s average annual salary in Egypt is about $10,000, significantly below the global average of $45,000.

Egypt’s educational system contributes around 50,000 IT graduates each year to the industry, ensuring a steady supply of technically skilled professionals. The Egyptian government is proactively enhancing the IT sector by offering incentives and training to expand the talent pool. This initiative is expected to grow the industry significantly.

10. Mexico

Mexico’s IT Outsourcing market is attractive for several reasons, including cost savings, access to a pool of skilled talent, and the ability to quickly scale operations.

In 2024, the average hourly rate for IT outsourcing in Mexico was estimated to be between $20 and $40. While this rate is slightly higher than some other outsourcing destinations, it is balanced by the advantages of geographical closeness, time zone compatibility with the US, and a deep understanding of Western business practices.

Mexico’s higher education system is on par with that of the United States and Europe, contributing to the supply of skilled IT professionals, with approximately 120,000 IT graduates produced annually.

The Mexican IT Outsourcing industry has seen steady growth over the past decade and is currently ranked as the fourth-largest IT outsourcing destination in Latin America. The industry’s expansion is expected to continue, driven by increasing demand for services such as software development, data analytics, and cloud computing.

To Sum Up!

The IT outsourcing market in 2024 is a strategic asset for businesses aiming to innovate and grow. It offers cost-effective access to skilled talent, driving operational efficiency and competitive advantage. Outsourcing is no longer just an option; it’s a strategic necessity that allows companies to focus on core competencies while outsourcing non-core activities to experts worldwide.

At Secomm, we can provide you with the best of our IT dedicated team, who have more than 10 years of experience in the IT sector. Feel free to contact SECOMM or call our hotline at (+84) 28 7108 9908 to ensure that your IT operations are handled by top-tier talent, fostering innovation and propelling your business forward.

eCommerce has been booming more than ever, driving the demand for new technologies to adapt to the continuous growth of the market. Some emerging eCommerce technologies include VR/AR, MSI (Multi-Source Inventory), PWA (Progressive Web Apps), Headless Commerce, etc. However, among these, the technology that developers and businesses are currently paying the most attention to is Cloud eCommerce.

What is Cloud eCommerce?

Cloud eCommerce utilizes server clusters and cloud computing systems from cloud service providers to process large transaction volumes and online sales channel traffic. In simpler terms, Cloud eCommerce involves renting Internet servers based on cloud platforms to process, store, or use applications for various eCommerce business purposes.

Before cloud-based eCommerce platforms and other solutions emerged, traditional eCommerce platforms like IBM WebSphere and Oracle ATG required on-premise server setups and continuous maintenance. Unlike those “on-premise” eCommerce solutions, cloud-based eCommerce allows companies to outsource their IT infrastructure without the need to invest in equipment and continuous maintenance as before.

This solution helps businesses adapt to the increasing demands of customers, enhance security, simplify maintenance, and integrate new eCommerce applications as needed. For these reasons, Cloud eCommerce is often combined with eCommerce platforms such as Shopify Plus, Salesforce, Magento, etc.

Cloud eCommerce Solutions

There are several cloud eCommerce solutions to choose from, including IaaS, PaaS, and SaaS, each with different resource requirements.

IaaS eCommerce

Infrastructure as a Service (IaaS) is where businesses rent physical resources such as servers, databases, and network equipment to build a sustainable eCommerce architecture. IaaS eCommerce focuses on providing on-demand data storage on disks and virtual servers, making it easy for businesses to use database services rather than dealing with hardware. However, businesses are responsible for managing applications, data, runtime, middleware, and the operating system on this infrastructure.

Notable IaaS providers include Amazon AWS, Microsoft Azure, and Digital Ocean. IaaS is suitable for businesses wanting full control over the system without the complexity of on-premise eCommerce.

PaaS eCommerce

Platform as a Service (PaaS) is similar to IaaS but requires less infrastructure management, allowing more time to build eCommerce applications using predefined infrastructure with pre-defined operating systems and processes to handle resources, planning, and error correction.

For example, Google App Engine provides a PaaS environment for developers to build web applications without worrying about infrastructure. PaaS eCommerce is suitable for businesses needing to build specialized eCommerce applications and are willing to eliminate infrastructure-related factors in their technology stack.

SaaS eCommerce

Software as a Service (SaaS) provides ready-made eCommerce services, including complete eCommerce solutions or individual eCommerce applications like Product Information Management (PIM) software, Order Management System (OMS), etc. SaaS eCommerce providers are responsible for managing both the infrastructure and software and businesses only need to configure the desired software. Additionally, SaaS eCommerce developers can work outside the user interface with APIs to develop custom solutions without the need for custom software development.

SaaS eCommerce is suitable for businesses that want to quickly deploy eCommerce solutions without significant involvement in infrastructure and software management.

Cloud eCommerce benefits

High scalability

Cloud eCommerce inherits features from PaaS, making it easier to expand system functionality.

Typically, when fashion businesses start, they may not initially focus on scalability. However, from a strategic perspective, investing in technologies with scalability capabilities, such as Cloud eCommerce, can help businesses expand system functionality in each stage of eCommerce website development to foster business growth.

Improve page loading speed

According to Think with Google, if a website takes up to 6 seconds to load, the probability of users bouncing increases by 106%. That’s why businesses need to focus on page load speed.

When an eCommerce website leverages Cloud eCommerce with data stored on a cloud platform, the speed of processing queries and API calls is significantly faster.

Increase security

In the current era of the 4.0 technological revolution, the concern for data loss is a major focus for business leaders. As a response to this, numerous new technologies have emerged to address this goal.

According to PC Magazine, Cloud eCommerce provides control over data and storage locations, along with options such as physical backups and file synchronization to ensure data safety. Additionally, Cloud eCommerce supports businesses in obtaining PCI-DSS (Payment Card Industry Data Security Standard) certification, enhancing the credibility of their website.

Increased stability

Typically, businesses struggle to optimize storage capacity on their websites, especially when facing a massive surge in traffic during peak seasons, such as the “sale hunting” period. This sudden increase in workload poses a significant challenge to storage operations.

Cloud eCommerce offers a flexible solution to meet the demands of unpredictable spikes in traffic, whether seasonal or even hourly. It can dynamically scale up or down to support the real-time needs of a business. Overall, Cloud eCommerce is becoming a widely adopted technology in the digital transformation journey, helping businesses expand their functionality, improve page loading speeds, and enhance the security and stability of their websites.

However, mastering these new technologies requires programmers to possess a significant amount of specialized knowledge and hands-on experience with various complex projects. As a result, the costs associated with implementing Cloud eCommerce can be relatively high.

With over 9 years of experience designing complex eCommerce systems for companies like An Nam Gourmet, Laybyland, Jasnor, etc., SECOMM understands the challenges that businesses face when exploring new eCommerce technologies. 

Contact SECOMM today for a free consultation on detailed eCommerce system development solutions!

In the current B2B market, buyers are becoming more tech-savvy, mirroring the independent purchasing patterns of B2C consumers. This shift is driven by the changing demographics of B2B buyers, with 64% being Millennials and Gen Z, according to Forrester. Moreover, Gartner notes that 44% of Millennials prefer to make purchases without the involvement of sales representatives.

As a result, B2B eCommerce trends are rapidly evolving, influenced by both consumer behavior and technological progress. The increasing integration of generative AI into eCommerce, and the merging of online and offline experiences, are all pivotal trends. Keeping pace with these developments is essential; otherwise, businesses risk lagging in the fiercely competitive B2B eCommerce landscape.

In this article, let’s explore the top 8 B2B eCommerce trends that will shape the industry in 2024 and for many years to come.

1. AI For Personalized Customer Experiences

AI is making big strides in online shopping. AI chatbots are now a key part of customer service, offering personalized assistance and product suggestions. For example, Shopify Magic has AI tools that help create content and provide tailored shopping advice.

Chatbots are widespread, with over 1.4 billion people interacting with these AI systems worldwide. Retailers who have adopted AI have seen a significant increase in sales. It’s predicted that by 2027, 80% of retail leaders will use AI to enhance efficiency in their operations.

Beyond retail, AI is set to make a major impact on the economy. PwC estimates that AI could contribute as much as $15.7 trillion to the global GDP by 2030, affecting many industries.

2. Utilize Tools & Features For Workflow Automation

Businesses are increasingly turning to automation to improve efficiency without growing their teams. According to Markets and Markets, the marketing automation industry is expected to grow from USD 5.2 billion in 2022 to USD 9.5 billion by 2027, with a 12.8% yearly growth rate. Additionally, 57% of companies plan to use automation to make their employees more productive.

Shopify Flow is a tool that automates routine tasks for businesses. It activates specific actions based on rules set by the user, simplifying the workflow.

3. Embrace The B2B Omnichannel Model

With the rise of AI and automation, businesses are increasingly embracing an omnichannel strategy. This trend allows for seamless interaction across various channels, helping companies to be more budget-efficient in managing both their online and physical storefronts, ultimately enhancing customer satisfaction.

Data shows companies with robust omnichannel engagement retain 89% of customers, compared to 33% for those without. Additionally, 59% of consumers prefer self-research over interacting with sales-focused staff, highlighting the need for sales teams to prioritize customer guidance. Moreover, establishing a solid omnichannel base is essential, followed by streamlining all digital touchpoints for a unified and efficient customer journey. You can learn more on how to build an effective omnichannel strategy here.

Digital Touchpoints Need To Be Streamlined

In B2B e-commerce, the harmony of digital touchpoints is essential for delivering an exceptional customer experience and driving sales. Integrating all digital channels, such as payment systems, online stores, and customer support, is crucial. This integration provides a unified customer profile, streamlining management across multiple channels and focusing on omnichannel sales.

Streamlining transcends mere system connections; it ensures seamless data flow for personalized customer interactions. For instance, leveraging browsing habits for advertising and purchase history for customer service can develop comprehensive customer profiles.

Ultimately, streamlining is about fostering a consistent, reliable customer experience that bolsters brand interaction. Companies excelling in this are well-positioned for enduring success in the competitive B2B e-commerce market.

4. B2B Subscription eCommerce

Subscription models are becoming vital for customer loyalty in B2B eCommerce, with the Global Subscription eCommerce Market expected to hit US$ 478 billion by 2025. These models offer a predictable revenue stream and deepen customer relationships beyond one-time sales. They cater to various business needs, from product supplies to software services. Moreover, as buying habits shift online, subscriptions align with customer preferences for self-services and problem-solving services.

Moreover, businesses often find that prioritizing the enhancement of the customer experience yields better results than constantly pursuing new leads. In the B2B sector, nurturing existing relationships and promoting additional purchases can be more profitable strategies than seeking out new customers. Find more about subscription eCommerce here.

5. Headless B2B eCommerce

Headless architecture is a way of building online stores where the front-end and back-end work separately but talk to each other through an API. This setup lets the back end hook up with any front end, making it perfect for businesses that sell across different channels.

Looking ahead to 2024, headless B2B eCommerce is on the rise. It’s not going to replace traditional eCommerce completely, but it gives businesses a leg up by being more adaptable, integrating better with other systems, scaling up easily, and making life easier for developers. All this leads to a better experience for business customers. The headless commerce market is booming; it’s expected to grow to $32.1 billion by 2027, with a yearly growth rate of 20.5%. You can find more information about headless eCommerce here.

6. Mobile Commerce

The trend of using mobile phones for online shopping is on the rise, primarily due to the advancements in online payment systems. This shift is attributed to the seamless buying experience provided by mobile commerce, where customers are quickly redirected to payment apps like MoMo or ZaloPay, offering a hassle-free transaction compared to traditional website payments that require them to pick up their phones for the payment process.

Furthermore, mobile devices are leading the charge in the B2B digital commerce evolution, with a significant majority of consumers preferring them over desktops and tablets. This growing preference underscores eCommerce platforms’ importance in crafting responsive and well-tuned mobile shopping experiences.

To leverage this trend, eCommerce sites need to go beyond mere mobile-friendliness and aim for mobile optimization. This involves designing interfaces that facilitate thumb-friendly navigation, expediting the checkout process, and ensuring swift site loading times. By concentrating on these aspects, eCommerce sites can become preferred shopping destinations, boosting online sales. In the realm of mobile commerce, the ease and speed of the shopping experience are directly proportional to the likelihood of completing a sale.

7. B2B Payment Innovations

The B2B eCommerce sector is rapidly adopting digital efficiency in payment processes. Automation and advanced digital transactions are replacing traditional methods, significantly reducing operational costs and manual labor. This modernization benefits both companies and customers, offering a more streamlined payment experience.

In the dynamic realm of B2B eCommerce, the transition from traditional payment methods to automated and advanced digital transactions is accelerating. A study by Markets and Markets highlighted that adopting automated payment systems can reduce operational costs for accounts receivable departments by 50% and cut down manual tasks by 85%. This evolution is beneficial not only for businesses but also for customers, who now have the convenience of making payments at their own pace, thus enhancing the overall payment experience.

Mobile Payments

The proliferation of mobile technology has revolutionized both shopping and payment behaviors. As smartphones become integral to the consumer journey, offering various payment options, including digital wallets like Apple Pay or Samsung Pay, has become essential. The year 2024 will mark a point where not accommodating such payment methods could be detrimental to customer retention.

Buy Now Pay Later 

The ‘Buy Now, Pay Later’ (BNPL) model is emerging as a significant trend, particularly in Vietnam, where it’s a departure from the traditional installment payments. Platforms like Shopee are incorporating BNPL, indicating its potential to reshape the B2B payment landscape significantly.

In the US, Buy Now, Pay Later (BNPL) has won over more than a third of consumers recently, and it’s also gaining traction in Europe and Africa. This surge is tied to shifts in how people, particularly the younger crowd, prefer to manage their money, with BNPL’s flexible and wallet-friendly options being a hit. Gen Z is leading the BNPL charge, as they’re stepping into the workforce in big numbers. The trend shows that BNPL use among Gen Z is set to grow from 36.8% in 2021 to 47.4% by 2025. You can read more about BNPL here.

8. Augmented Reality (AR) in B2B eCommerce

Augmented Reality (AR) is transforming B2B eCommerce, turning simple spaces into interactive showrooms. With AR, businesses create 3D models that customers can explore in detail, offering an engaging experience far beyond what static images can provide.

Vietnam is riding the AR wave with remarkable vigor. The market is booming, with forecasts predicting a surge from US$96.4 million in 2023 to US$181.5 million by 2028, thanks to an impressive annual growth rate of 13.48%. AR is already a hit in children’s books and playgrounds, but it’s set to become a staple in our everyday lives, moving beyond novelty to become a standard in our daily routines, especially in the B2B eCommerce market, much like the memorable Oreo campaign during Tet 2020.

Wrap Things Up!

B2B eCommerce is booming, outpacing traditional stores. This surge is driven by digital advances and the economic shift after the pandemic. It’s not just a change; it’s a new online business era, where tech innovations benefit both shoppers and companies.

Navigating the digital marketplace can be complex, but you don’t have to do it alone. With a solid decade of crafting B2B eCommerce solutions, SECOMM is here to support your business’s growth journey. Feel free to contact SECOMM or call our hotline at (+84) 28 7108 9908 to discover solutions that align with the latest trends and propel your business forward.

Subscription-based eCommerce, while not a novel concept, is increasingly being adopted in tangible forms, preserving its inherent value. Consider, for instance, the scenario of launching a seafood restaurant. You enter into an arrangement with a seafood supplier who commits to delivering fresh seafood daily.

This arrangement exemplifies a subscription model, which often includes perks such as discounts, promotional offers, or simply more favorable pricing compared to purchasing items individually from various suppliers.

If the concept still seems unclear, fear not! We’ll delve deeper into the mechanics of subscription eCommerce in the paragraphs below.

What Is Subscription eCommerce?

Subscription eCommerce is a business model where customers subscribe to receive regular deliveries of products or access to services over a specified period. Transactions are facilitated online, and customers continue to receive deliveries until they choose to cancel their subscription or until the agreed-upon subscription term concludes. Payments can be various, including one-time payments, periodic billing cycles, or automated payments.

In addition, there are several types of subscription-based online shopping, but in this blog, we will mention three common types. The first one is product or service subscriptions in which customers will receive annual product delivery or service access like gym memberships, daily grocery goods, etc.

The second one is the membership program, which is quite similar to most people. A good example of this could be “Hoi Cam” from Guardian, where customers can get exclusive discounts and a lot of benefits when joining.

The third one might be familiar to many of you, which is called Software-as-a-Service (SaaS). For example, when using Microsoft 365 or Canva customers need to pay monthly or yearly to use all the functions of the tools and software. You can find more about SaaS here.

Additionally, the eCommerce subscriptions market seems to have risen steadily in recent years with the global market size reaching US$ 193.6 Billion in 2023. Moreover, this number is forecasted to reach US$ 5,014.4 Billion by 2032, showing a growth rate of 43.56% from 2024 to 2032.

From the information above, it prompts an important consideration: what are the tangible benefits and drawbacks for businesses when adopting eCommerce subscription programs? Assessing the impact of these programs is crucial for understanding their influence on operational dynamics and customer engagement.

The Benefits of The Subscription eCommerce Model for Businesses

ECommerce subscription models aren’t just a trend; they are a strategic approach that offers businesses a plethora of benefits, from predictable revenue to deepening customer relationships.

Predictable Revenue Stream 

Contrary to the unpredictable nature of one-time transactions, subscription models offer a steady revenue flow. This advantage enables your organization to formulate a comprehensive budget for marketing endeavors spanning an entire quarter or year, necessitating only slight adjustments. Essentially, businesses are equipped to more accurately project their financial trajectory by establishing a consistent subscriber base pledged to recurrent payments. This later helps enhance strategic planning and facilitate expansion prospects.

Strengthening Customer Relationships 

Subscriptions are more than transactions; they are the foundation of a long-lasting relationship with customers. A study by Zuora highlights that 93% of subscribers believe companies should invest more in customer satisfaction. By adopting a subscription model, businesses are not merely selling a product—they are nurturing a connection that encourages customers to return, fostering loyalty and trust.

Actionable Customer Insights 

Truly understanding customers goes beyond superficial interactions. It involves analyzing their behaviors and preferences over time. Subscription models are instrumental in gathering this data, offering insights into customer tendencies, shopping habits, and interests. This information is crucial for customizing products and services, enhancing marketing strategies, and identifying growth opportunities – all while potentially reducing market research costs.

Efficient Marketing Expenditure 

Additionally, enterprises need to capitalize on the insights derived from their eCommerce subscription base to enhance marketing initiatives, rather than allowing this valuable data to remain underutilized. Traditionally, significant financial resources are allocated to market research to amass sufficient consumer data for constructing an impactful persona. However, the utilization of extant subscriber data can streamline this process, yielding more efficacious outcomes. Armed with an in-depth understanding of customer predilections, companies are empowered to devise bespoke experiences that truly engage their clientele. This strategic personalization not only bolsters customer loyalty but also fortifies the company’s market position, diminishing the likelihood of customers exploring alternative options.

Maximizing Sales Opportunities 

Subscribers typically exhibit greater loyalty and, as a result, have a propensity to increase their expenditure over time, which can significantly enhance a company’s profitability. Additionally, the subscription framework provides fertile ground for upselling and cross-selling strategies. Businesses can boost their average order value and realize extra revenue from their current subscribers by offering assorted subscription options or supplementary products and services. Take, for instance, a fitness establishment that could propose special offers on workout gear to its patrons, thereby establishing a reciprocal relationship where the customers benefit from the perceived value, and the business sees a rise in sales.

Crafting An Effective Subscription eCommerce Model

Understanding the purpose and goals of your eCommerce subscription model is essential. Whether you’re targeting revenue growth, increased profitability, or business expansion, defining these objectives upfront will shape a successful strategy.

Additionally, your end goals will inform the development of user personas and the structure of your pricing strategy. By aligning your subscription features with the varied needs of your audience, you set the stage for a successful market entry.

For instance, if your goal is to boost profit margins in the upcoming quarter for a special campaign, consider enhancing your subscription benefits with exclusive deals or limited-time offers to attract a broader customer base.

Simplifying The Subscription Process 

Ease of subscription is crucial in the eCommerce industry. A straightforward and user-friendly sign-up process not only improves conversion rates but also increases the value perceived by customers, making them more likely to sign up.

To ensure optimal accessibility and ease of registration, it is crucial for eCommerce subscription services to be prominently featured and straightforward to navigate, thereby accommodating a broad digital audience. For instance, consider the “Hoi Cam” program by Guardian: the membership is subtly referenced via a brief mention in each social media post, rather than being highlighted in a dedicated post. Similarly, on their website, the registration option is relegated to a minor tab, devoid of any prominent banners to signal its presence.

Even in physical outlets, the program is scarcely communicated by staff members. This approach necessitates that customers invest effort into seeking registration details, which could lead to frustration and a diminished user experience.

Fostering Customer Relationships 

In the eCommerce subscription business, building strong customer relationships is crucial. It involves recognizing your customers’ importance. If customers don’t see the value, they may feel overlooked and undervalued, and consider other options. So, it’s important to grow loyalty and strengthen these bonds over time. Remember, when your service team consistently provides excellent support, customers will trust your brand more, which is key when they decide to renew their subscription.

Also, developing detailed customer personas is helpful. Knowing your customers’ preferences, habits, and spending limits helps you tailor your services to fit their needs, keeping them engaged and happy. When customers notice that you care about their preferences, they’re more likely to stay loyal and not switch to another business.

Balancing Pricing with Customer Satisfaction 

Your pricing strategy should reflect your product/service type, business objectives, and customer personas. Starting with a basic package covering essential services is advisable if you’re unsure of customer preferences. This approach allows you to launch your service while remaining adaptable. As you gather customer feedback and preferences, you can adjust your packages to suit different customer segments, ensuring your offerings evolve to meet customer demands effectively.

Challenges for Applying Subscription eCommerce Model

When implementing a subscription-based eCommerce model, it’s crucial to be aware of potential pitfalls to ensure seamless business operations.

Customer Engagement 

The key to a successful subscription model is maintaining long-term subscriber engagement. Incorporate personalized elements, exclusive content, and loyalty rewards to make subscribers feel valued. Moreover, you could highlight the unique benefits your service offers over competitors to discourage churn.

For new subscribers, businesses need to simplify the sign-up and showcase their services’ value straightforwardly to reduce the likelihood of early drop-offs.

Inventory Management 

If your business involves physical goods, managing inventory against customer demand is critical. Monitor customer preferences closely and adjust inventory accordingly. Always have a contingency plan for supply chain disruptions to maintain consistent product availability.

Scaling Infrastructure

As your subscriber base expands, the complexity of your infrastructure must evolve accordingly. It’s wise to invest in the appropriate technology and systems ahead of time to avoid a frantic rush during periods of rapid growth. Consider the user experience – a seamless service is expected, particularly for digital offerings akin to Canva. Your infrastructure should be robust enough to handle a spike in users without compromising performance.

Embracing automation is the way forward, replacing outdated manual processes with streamlined, efficient operations. Employ artificial intelligence for routine tasks, freeing up your team to concentrate on strategic initiatives.

Is everything making sense so far? Before we conclude today’s session, let’s examine the following case study for a practical understanding.

A Case Study from Amazon

Amazon Prime serves as an exemplary model of subscription eCommerce success, offering a suite of benefits that extend well beyond swift shipping. Subscribers gain access to an array of advantages, such as complimentary two-day delivery, an extensive library of streaming content, and exclusive shopping deals. This service is not merely about rapid order fulfillment; it represents a continuous stream of value and convenience.

The distinctiveness of Amazon Prime lies in its amalgamation of various services into a single subscription package, which streamlines customer experience and fosters brand loyalty. The program’s expansion reflects Amazon’s dedication to customer satisfaction and its strategic addition of new perks, all while integrating seamlessly with the larger Amazon eCommerce ecosystem. This strategic bundling is a key factor in customer retention, positioning Amazon as a leader in the eCommerce sector.

To Wrap Ups!

Subscription eCommerce is a strategic approach adopted by numerous businesses, yet only a select few have truly harnessed its potential. This guide is designed to deepen your understanding and provide actionable insights to effectively utilize subscription eCommerce. For those ready to embark on this journey and in search of a trusted advisor, Secomm is your ideal partner. We offer end-to-end solutions to address all your eCommerce needs, from technical infrastructure to event management.

Over the past decade, Magento has solidified its position as one of the leading eCommerce platforms in the market. With its robust capabilities, the platform serves not only B2C businesses but is also a popular choice for enterprises.

By combining Magento’s strength with the specific requirements of B2B Commerce, you can leverage this platform’s powerful benefits. In the following part of the article, let’s explore 10 reasons why Magento is the ideal choice for deploying this great business model.

What is B2B Commerce?

Business-to-business commerce (B2B Commerce) refers to the buying and selling of goods or services between businesses rather than between a business and end consumers (B2C). In the B2B environment, transactions often occur on a large scale and involve large orders, long-term contracts, and strategic partnerships.

This business model has distinct characteristics and requirements compared to B2C Commerce. In the B2B world, businesses typically have more complex demands regarding product management, order management, customer management, and compatibility with enterprise resource planning (ERP), customer relationship management (CRM), and other systems.

Additionally, the business model often requires features such as order confirmation, complex payment processes, batch ordering, and wholesale pricing. For B2B enterprises, choosing a suitable eCommerce platform is crucial to ensuring business efficiency and delivering the best user experience for their partners and customers.

What is Magento?

Magento is a powerful and flexible eCommerce platform developed by Magento Inc., a subsidiary of Adobe. Launched in 2008, it quickly became one of the top choices for you looking to build and operate professional online stores.

It allows you to create custom eCommerce websites. This platform provides a range of features, including product management, order management, payment integration, customer management, and many others, enabling you to easily manage and operate your online stores efficiently.

It is built on open-source code, meaning that you can access and customize the platform’s source code based on specific technical requirements.

Ten reasons why you should choose Magento for B2B Commerce

Reason 1: Customization and scalability

Magento’s open-source platform characteristic enables businesses to easily and effectively expand their business scale. This is particularly important as businesses grow and must enhance the system’s scalability.

Additionally, the platform provides high customization capabilities, allowing businesses to adjust to their specific business needs flexibly. This also means that the shopping experience can be customized to become unique and tailored to the target customers.

Reason 2: The Comprehensive B2B platform

In addition to offering built-in Magento B2B features, the platform allows businesses to seamlessly and quickly integrate with many third-party applications and systems, thereby creating a comprehensive and automated eCommerce system. Some integrated systems may include:

• Enterprise Resource Planning (ERP) systems
• Customer Relationship Management (CRM) systems
• Product Information Management (PIM) systems
• Point of Sale (POS) systems, and so on.

Reason 3: Order management

Magento B2B provides a variety of order management features, from creating and editing orders to tracking and processing orders efficiently. This helps B2B businesses easily monitor and manage their orders accurately and consistently.

Additionally, it offers tools and features that allow tracking and analysing their orders’ performance. From generating overview reports to tracking order history and purchasing trends, the eCommerce model deployed, you can better understand your activities and make informed strategic decisions.

Reason 4: Payment and shipping options

Implementing Magento B2B allows you to offer more payment methods to customers, from online payments through electronic payment gateways to cash on delivery (COD).

Additionally, you can integrate various payment gateways through Magento, such as PayPal, Stripe, Authorize.Net, and many more. This ensures security and convenience in the payment process for both businesses and customers.

Reason 5: Segmentation

Magento B2B provides features and tools to implement customer segmentation strategies effectively. Among these, the most notable is the Advanced Reporting feature, which provides a dashboard for tracking and analyzing sales data.

With this feature, businesses can segment customers and customize experiences based on web browsing behavior, purchase history, and various other criteria.

Reason 6: Custom user roles and permissions

Customizing user roles and permissions is an important part of optimizing the B2B purchasing process. This feature allows B2B customers to create multiple accounts with different contact details for purchasing, ordering, quoting, negotiating, and payment. Additionally, Magento B2B allows sellers to create and assign admin accounts to manage specific customers.

Reason 7: Manage pricing through shared catalogs

In B2B Commerce, Magento helps manage quotations through shared catalogs, which effectively provides product information and prices to B2B partners and customers. These catalogs can be created based on criteria such as product type, product group, or other suitable business needs.

Within each shared catalog, administrators can define prices and special conditions for each product or product group. This helps create customized quotations that meet the specific requirements of each customer.

Reason 8: Advanced inventory management

Inventory management is a challenging task for businesses implementing B2B Commerce. The eCommerce platform provides advanced features to effectively manage and control your inventory levels. These features allow administrators to track inventory quantities and forecast future inventory needs.

Additionally, Magento B2B helps manage special types of inventory such as damaged goods, special inventory items, or batch inventory.

Reason 9: Enhanced security

Security is an important issue when building and developing online stores in general. Magento provides many advanced features to help B2B businesses to secure their eCommerce systems. Among these, PCI Compliance, 2FA, WAF, DDoS protection, and preventing CSRF and XSS attacks are notable.

Reason 10: Technical support

Technical support plays a crucial role in maintaining and operating an efficient online store. Magento B2B provides tools and support services to help users address technical issues and optimize the performance of their eCommerce websites.

This includes expert support via phone, email, or online. Additionally, Magento has a large and vibrant community of developers, experts, and end-users. You can search and ask questions on the forum to receive assistance from the community.

Build your first Magento B2B site today!

In the context of the increasingly developing and fiercely competitive eCommerce market, using a powerful eCommerce platform is extremely important to ensure the success. With its unique features and superior flexibility, Magento has proven to be a top choice for building and developing B2B stores.

Need more deep advice? Contact SECOMM or call (+84)28 7108 9908 now!

Upgrading to Shopify Plus is a strategic decision for growing ecommerce enterprises. Many merchants have encountered the challenges and opportunities this upgrade brings along their journey.

From optimizing business performance to expanding operations globally, upgrading to Shopify Plus isn’t just a technical step but also an opportunity to transform ecommerce activities into a springboard for market breakthroughs.

In this article, let’s explore the steps to upgrade to Shopify Plus and some critical considerations.

What is Shopify Plus?

This is the premium version of the Shopify platform, specially designed to meet the needs of large and rapidly growing ecommerce businesses. With Shopify Plus, you can experience many powerful features and services that help optimize operations, expand scale, and enhance customer experiences.

One notable aspect of Shopify Plus is its flexibility and ease of customization. You can leverage features such as multi-store management, integration with ERP and CRM systems, creating multilingual and multi-channel websites, as well as adjusting interfaces and features according to your specific needs.

In particular, Shopify Plus provides a secure and easily scalable infrastructure that is capable of handling large volumes of traffic and online transactions robustly. With Plus, you can ensure that your website operates smoothly and seamlessly, even during peak shopping seasons.

Why upgrade to the Shopify Plus plan?

Upgrading from the standard versions of the Shopify platform to the Plus version is a significant milestone in the transformation of ecommerce businesses. Below are eight benefits and also eight main reasons driving businesses to undergo the transition:

Enhanced customization & scalability

Shopify Plus offers a range of powerful features and tools to customize and expand ecommerce websites flexibly and efficiently. These include customizing checkout pages, personalizing customer experiences, and customizing product displays.

Additionally, you can utilize some exclusive solutions, such as LaunchPad, Shopify Scripts, and Shopify Functions, to customize shopping experiences and automate sales processes.

Increased bandwidth and staff accounts

High traffic volumes will require a large amount of bandwidth to maintain a stable website. Shopify Plus allows you to access unlimited bandwidth, 200TB of storage, and unlimited staff accounts to handle large transaction volumes efficiently.

Optimized transaction costs

Upgrading to Shopify Plus can help optimize transaction costs. If you use Shopify Payments, transaction fees are the lowest in all Shopify pricing plans but will be customized based on geographical regions. Conversely, Plus merchants must pay 0.2% per transaction for security and compliance costs.

Deploy Headless Commerce

In the Plus version, you’ll be provided with tools and solutions to build a Headless ecommerce website. Through the Hydrogen + Oxygen solution, you can leverage the power of Headless architecture to create more customized and flexible customer experiences.

Deploy B2B Commerce

Shopify Plus provides features and tools to expand your B2B operations. The recent Shopify Editions Winter ’24 update introduced new features to optimize B2B Commerce activities.

From Headless B2B and advanced order management to integrated payment systems and unique features for B2B customers, Shopify Plus helps you streamline your operations and enhance customer relationships.

Expand international sales

With Shopify Plus’s multilingual and multi-channel capabilities, you can efficiently expand your operations to international markets. Shopify Plus provides tools and features to customize websites according to each market’s needs, from handling currencies to managing orders and shipping.

Ultilize POS Pro

The Plus merchants can utilize the exclusive POS Pro system for free. With advanced features, POS Pro allows seamless integration of multi-channel sales operations into the website, enables unlimited staff account access, and provides professional retail reports. This helps enhance customers’ shopping experience and optimize your offline and online sales activities.

Advanced customer support

When upgrading, you can expect more in-depth customer support services, especially in terms of consultation and technical support by a team of experts. Through hotlines, emails, and live chat, you can access the 24/7 support team.

Additionally, to help clients better understand this platform, Shopify offers a free learning program called Shopify Plus Academy. There, you can access detailed tutorials on setting up stores, customizing store interfaces, and much more.

When to upgrade to the Shopify Plus plan?

You currently on one of Shopify’s standard pricing plans may consider upgrading to Shopify Plus under the following circumstances:

• Monthly revenue exceeds $800,000 with over 100 transactions per minute. In such cases, a more robust system is needed to handle high traffic volumes without compromising user experience, and to effectively manage and optimize business performance.

• Expanding sales to international markets requires flexibility in managing multilingual, multi-currency, and region-specific inventory.

• Desire to harness the advantages of Headless Commerce architecture to enhance user experience and achieve deeper customization of user interface and technical infrastructure.

What to prepare before upgrading to Shopify Plus?

Before deciding to upgrade to Shopify Plus, there are four important steps that businesses need to take to ensure a smooth and effective upgrade process:

Define business goals

Firstly, you have to clarify your needs and wants. This includes evaluating the current and future growth of the business, as well as the necessary features to meet specific needs.

Prepare the data and Infrastructure

Next, you’ll need to prepare data and technical infrastructure for the transition process. This may involve backing up current data, checking the compatibility of current applications and features, as well as ensuring that the technical infrastructure is robust enough to satisfy your requirements.

Define features and tools in need

Finally, you’ll identify the specific features and services you desire from Plus. This may include considering features such as multi-store management, integration with ERP and CRM systems, multi-language and multi-currency support, as well as special features like deploying Headless Commerce and accessing POS Pro systems.

Set up a Shopify Plus store

Setting up a Plus store will differ from deploying previous standard pricing plans. Plus usage fees start from $2,300 per month, and this price isn’t fixed but customized based on each case’s specific needs. Therefore, you’ll need to contact the Shopify Plus team for advice. When collaborating with a Shopify Plus agency, the developer will work with the platform to provide a specific pricing quote.

The six-step process to upgrade to Shopify Plus

Below are six specific steps for the entire process of upgrading your ecommerce website system from a lower version to Shopify Plus:

Step 1: Partner with a professional Shopify Plus agency

The first and most important step is collaborating with experienced teams specialising in Shopify Plus to optimize the upgrade process and post-operation, especially concerning costs.

To select a suitable Shopify Plus development partner, you should consider previous Shopify Plus projects they have completed, how they identify and solve problems in each project, and feedback from previous clients regarding those projects.

Step 2: Evaluate and plan

The next step is equally important as it determines the effectiveness of the conversion and future operations. You and your development partners need to clarify business goals, identify necessary features and data to be transferred, and develop a specific deployment schedule based on these goals.

You’ll also need to ensure data backup and updates are safely conducted to avoid data loss during the conversion process.

Step 3: Execute deployment

After assessment and planning, proceed with upgrading to Shopify Plus. The development partner will set up and configure new features, migrate data from the old platform to the new one, and test compatibility to ensure the website operates smoothly.

Step 4: Test and adjust

After deployment, test and adjust the Shopify Plus website to ensure all features and functions work correctly. The development partner’s QA/QC team will collaborate with you to check the quality of the website experience as actual end-users and correct any issues that arise.

Step 5: Golive

Once testing is complete, the new ecommerce website will be launched into the market, and promotional campaigns will be deployed to attract initial traffic and orders.

Step 6: Train staff

Finally, employees should be trained to use and manage the new website on the Shopify Plus platform. You’ll provide detailed instructions on new features and how to use them to optimize the performance. Additionally, since Plus has unlimited staff accounts, personnel allocation should be reasonable and planned accordingly.

The Final Words

While upgrading to Shopify Plus can be complex, it significantly benefits business growth. From high flexibility and customization to scalability and deep customer service, Shopify Plus is the perfect choice for expansion.

Various insights and a systematic 6-step deployment process make the upgrade process more manageable. However, to increase efficiency and maintain the stability of the new website, businesses need a professional development partner to accompany them.

Contact SECOMM or call us at (+84)28 7108 9908 to plan your deployment today!