SHOPPERTAINMENT IS TIPPED TO BE THE FUTURE OF ECOMMERCE

Author: Jennifer Diep
Publish date:28/12/2022
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The Covid-19 pandemic not only encourages the tremendous growth of eCommerce but also helps shift consumers’ priorities from in-store to online buying. However, instead of just buying, consumers frequently prefer to seek out novel, inspiring experiences.

Therefore, every company should strive to implement the approach of shopping combined with entertainment (Shoppertainment) in order to improve marketing effectiveness and boost sales.

What is Shoppertainment?

Shoppertainment is a combination of two elements “shopper/shopping” and “entertainment”.

Shoppertainment is described as “the provision of recreational or leisure facilities within or next to a retail store or shopping center, as part of a marketing strategy, which is designed to attract customers and stimulate purchasing” in the Oxford Dictionary (1990).

Shoppertainment Is Tipped To Be The Future Of eCommerce
What is Shoppertainment?

Many companies, notably IKEA, the biggest furniture retailer in the world, have used shoppertainment with success in the past. IKEA launched a campaign in 2019 called “IKEA nightclub – Tonight is to sleep” for 100 lucky individuals.

During this campaign, customers can partake in activities like manicures, massages, snacks, and tea instead of cocktails before spending the night in rooms with IKEA furniture that is soon to be released.

The brand has had remarkable sales success thanks to the campaign’s resonance in North America.

The shoppertainment trend, however, is no longer just restricted to stores or other physical locations thanks to the growth of eCommerce and digital marketing but has instead gained popularity and taken over online shopping activities.

In comparison to the prior definition, shoppertainment has been enlarged and changed. Shoppertainment is a trend that combines online shopping with entertainment, allowing buyers to engage with merchants in addition to purchasing products as usual.

In Vietnam and in the Asia-Pacific region, certain forms of entertainment-infused shopping are very common. Examples include live streaming, shoppable videos, and gamification.

What role does shoppertainment play in eCommerce?

According to the Vietnam eCommerce White Paper 2022, the size of the retail eCommerce market in Vietnam will increase from $11.8 billion in 2020 to $13.7 billion in 2021 and is estimated to reach 16.4 billion USD in 2022.

Meanwhile, the percentage of consumers shopping online on eCommerce websites is 78% in 2021, up 4% over the same period last year.

Because of the urgency, lack of options, and social isolation, the effects of the epidemic have actually contributed to a change in consumption tendencies from in-person purchases to online purchases.

Since that time, it has seen the quick decline of the conventional commerce model and the rise of eCommerce. By 2026, Statista projects that eCommerce sales will total $8.1 trillion.

Additionally, it is not surprising that consumers like shoppertainment. Although this combination is not novel, it promises to set the consumption trend in the years to come as eCommerce takes center stage.

The demand for online shopping will be higher there, and expectations for the best shopping experience—including both online shopping and fascinating experiences will also be higher.

Retail businesses around the world have seen a significant rise in sales during the outbreak by combining online shopping with live streams, entertainment videos, and video games to create real-time digital interactions with customers.

For instance, Taobao Live, which Alibaba introduced in 2016, saw a 150% surge in sales in 2020 when the epidemic first appeared in China.

“Shoppertainment is now a basic expectation. You really have to leverage engaging tools so the shopper gets to learn about the product, its superiority, and has fun along the way,” notes Alex Vogler, senior director and head of marketing, eBusiness, Procter & Gamble (P&G) Asia, Middle East, and Africa. 

The Covid-19 pandemic has had a significant negative impact on the human psyche, causing issues including depression and anxiety. On the other hand, a portion of the populace said that the social connections they were unable to have prior to the epidemic significantly improved their psychological well-being.

People need to connect with the community and others like them more than just for amusement. Brands have therefore concentrated on improving the consumer experience by transforming personal experiences into shared ones that bring communities together.

As an example, consider the hashtag #TikTokMadeMeBuyIt. Through the TikTok platform, users can easily and amusingly share their shopping experiences, resulting in videos going viral and receiving more than 4.5 billion views.

Shoppertainment will result in emotional and impulsive purchasing decisions since it emphasizes entertainment and connection. According to a recent TikTok research:

  • In Southeast Asia, 82% of consumers purchase goods from companies they hardly ever use.
  • 55% of consumers have made unplanned purchases.
  • After watching videos on TikTok, 89% of consumers made unplanned purchases.
  • Half of TikTok users confess to finding new brands or products while using the app.
  • One in three customers desires to purchase and is satisfied with it.
  • One in three customers wants to add fun and entertainment to shopping.
Shoppertainment Is Tipped To Be The Future Of eCommerce
TikTok study on recent shopping behavior by consumers

The studies mentioned above demonstrated the enormous influence that social networks and online shopping trends have on consumer decisions.

Because of this, Vietnamese retail companies have prioritized shoppertainment in their marketing plans.

Customers demand a more social and engaging online shopping experience, as well as the ability to connect and converse with one another while buying, which is the reason for any of this.

Best Shoppertainment practices

Live Selling

In recent years, both buyers and sellers in the Asia-Pacific (APAC) area have grown accustomed to live selling. Live selling is less common in the US and Europe than it is in APAC, but businesses there are nonetheless keeping an eye on this trend.

For instance, AliExpress initially introduced the live selling feature in France in May 2020, and since then, more than 3,000 live programs have been launched, with the involvement of more than 100 vendors.

Shoppertainment Is Tipped To Be The Future Of eCommerce
Live selling is one of Shoppertainment’s most prominent practices

The combination of sales, interaction, and entertainment makes this one of the top social selling strategies. Customers can interact with vendors directly, view actual product photos, and make decisions by pushing their shopping emotions.

Plus, the engaging social interactions that take place throughout live streaming help retailers make an impact on customers, resulting in a high return rate.

Due to the growth of the Shoppertainment trend and the effectiveness of live streaming in generating sales through social networks, eCommerce marketplaces have started to put more of an emphasis on investing in producing engaging entertainment material for users on their apps, particularly through live streaming.

The customer buying experience is improved by several well-known live stream channels, like TaobaoLive, LazLive, Shopee Live, TikiLive, etc.

These companies have the resources to develop this feature for themselves, but lower-budgeted companies can still try the live-selling concept by integrating Facebook or YouTube live stream with an eCommerce website.

Shoppable Video

Live-streaming videos will be effectively replaced by shoppable videos. One of the joys of using this type of video is that companies may produce videos in their own distinctive styles that quickly introduce customers to their products, explain how they operate, and demonstrate how to use them. These videos can be attached to an eCommerce website. Users can always click the product link in this kind of short video to find out extra details or to make a purchase. The short-form video has overtaken popular platforms like TikTok, Instagram Reels, and Youtube Shorts as the go-to method for branding, cultivating customer trust, and influencing purchasing decisions.

83% of people, according to Nielsen study, prefer watching videos of advertisements to GIFs or text. Short-form videos have gained popularity as a result of global digital transformation and consumer preference, and many brands now opt to use those as part of their video marketing strategies due to their useful advantages, which include the following:

  • Simplify the customer journey
  • Increase customer engagement
  • Improve the conversion rates
  • Get a boost in sales
  • Create brand loyalty
  • Build a better customer experience
Shoppertainment Is Tipped To Be The Future Of eCommerce
Shoppable Video will be an effective alternative to Live Selling

Gamification

Gamification or Gamification  Marketing is the skillful incorporation of a video game’s mechanics into promotional operations in a unique and impressive method to meet marketing objectives.

Gamification’s primary advantage, similar to live selling, is engagement, which keeps people on the site, drives conversions, and boosts sales.

Users are actually more likely to return for more shopping if a business can convince them that engaging with it is an interesting experience rather than a transaction.

A study by Bazaar Voice demonstrates the impact of gamification on businesses’ marketing strategies as follows:

  • 70% of shoppers want gaming elements incorporated into online shopping.
  • But only 42% of shoppers enjoy gaming in-store.
Shoppertainment Is Tipped To Be The Future Of eCommerce
Gamification piques users’ interest

For instance, take Bajaj Finserv’s Indian financial company’s Gamification Marketing campaign. The game was created by this firm to encourage people to use its travel loan services.

Users will complete tasks and respond to questions about their preferred travel destinations. Customers adored the campaign, and it immediately trended on Twitter with more than 75 million impressions.

Thus demonstrating Bajaj Finserv’s efforts to develop engaging experiences and provide them to customers in line with its marketing strategy. Brands attract more potential customers, enjoy the better engagement, and increase conversions as a result of the viral impact.

Shoppertainment has been around for a while, but it wasn’t until Covid-19’s effect that this trend truly took off. Businesses should take advantage of this trend to improve the online shopping experience for customers and increase sales in the era of eCommerce.

Due to the growing demands of customers for a better shopping experience and the ongoing changes in the market, achieving this goal is difficult and labor-intensive. As a result, companies must work with expert agencies to plan the proper eCommerce deployment from the start.

With many years of experience in successfully implementing eCommerce for many customers in many countries, SECOMM specializes in providing consulting services with comprehensive and professional eCommerce implementation solutions.

Contact SECOMM today for free support and advice.

Ready to Maximize Your eCommerce Potential? Let’s talk

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Top 10 Largest eCommerce Websites in Singapore 2024

Online shopping has become an indispensable trend in Singapore. Therefore, consumers in this city have set higher demands for their online shopping experience, driving businesses to strive for optimizing their eCommerce websites to provide a unique and best shopping experience for customers.

Below are 10 brands heavily investing in the online shopping experience in Singapore, as collected by SECOMM from BuiltWith, AfterShip, and Similarweb.

1. Charles & KeithCK

Charles & Keith, a leading fashion brand in Singapore, was founded in 1996 by two brothers Charles and Keith Wong. Focusing on footwear, handbags, and fashion accessories, Charles & Keith quickly gained attention in the market for its modern, youthful fashion style at affordable prices.

Charles & Keith has chosen Salesforce Commerce Cloud to build its website. Thus, Charles & Keith’s website features a range of functions to create the most convenient and comfortable online shopping experience for users. These include advanced search with filtering and sorting, detailed product views with high-quality images and customer ratings, secure shopping cart and payment, along with order tracking and purchase history. Additionally, customers can enjoy loyalty rewards, seek customer support, read fashion blogs, and connect on social media to stay updated on the latest trends. With this diversity and convenience, Charles & Keith’s eCommerce website in Singapore has provided an excellent online shopping experience for users.

  • Website: https://www.charleskeith.com/
  • Industry: Fashion
  • Platform: Salesforce Commerce Cloud
  • Traffic: 2.412M/month
  • Ranking: #18,543 (Singapore) & #24,487 (Global)

2. FortyTwoForty Two

FortyTwo is a furniture and home accessories brand established in Singapore in 2007. FortyTwo offers a range of products from bedroom furniture, living room, kitchen to household items and interior decoration. The brand is known for providing quality products at competitive prices with fast delivery and attentive customer service. FortyTwo regularly updates and expands its product portfolio to meet diverse customer needs.

FortyTwo’s website is built on the Magento Open Source platform (Adobe Commerce free version). With this website, users can easily search and filter products, explore a variety of product categories from furniture to household items. Additionally, the website offers the ability to integrate attractive promotional campaigns and customer support, along with fast and secure delivery services.

  • Website: https://www.fortytwo.sg/
  • Industry: Furniture
  • Platform: Magento Open Source
  • Traffic: 625,855/month
  • Ranking: #493 (Singapore) & #107,563 (Global)

3. COURTSCOURTS

COURTS is a leading electronics retailer in Singapore, Malaysia, and Indonesia. With over 40 years of experience, COURTS offers customers a wide range of product choices, convenient services, and competitive prices.

COURTS uses Magento Open Source to build its eCommerce website. This website provides diverse and convenient online shopping experiences for users with functions such as product categories, specific product search, store information, and order tracking on the website. COURTS also provides support services and information about promotional programs and product news.

  • Website: https://www.courts.com.sg/
  • Industry: Electronics
  • Platform: Magento Open Source
  • Traffic: 510,240/month
  • Ranking: #502 (Singapore) & #105,498 (Global)

4. Guardian SingaporeGuardian

Guardian is a retail chain specializing in health care, cosmetics, and other consumer products. Guardian has a presence in many countries and regions around the world, including Singapore, with a range of products from famous and reliable brands.

Guardian’s website is built on the SAP Commerce Cloud platform, offering many useful features for users. Customers can easily search and purchase products, manage their shopping carts, and make convenient payments. At the same time, the website offers promotions and online support services to help customers have a comfortable and safe online shopping experience. Moreover, customers can also rate and provide feedback on products, providing useful information for other users.

  • Website: https://www.guardian.com.sg/
  • Industry: Cosmetics
  • Platform: SAP Commerce Cloud
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  • Ranking: #462 (Singapore) & #110,350 (Global)

5. Sephora SingaporeSephora

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Sephora’s eCommerce system in Singapore is built on the Vue.js and Nuxt.js programming languages. With this system, Sephora customers can quickly search and explore products through smart search and various filters. The online shopping experience is optimized with detailed product information, sharp images, and customer reviews.

Sephora’s app is also highly rated, making shopping easier for customers with features like “Virtual Artist” and receiving notifications about promotions. In general, Sephora offers a range of features and services to meet customers’ cosmetics shopping needs, creating a professional and convenient online shopping experience.

  • Website: https://www.sephora.sg/
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  • Programming Languages: Vue.js, Nuxt.js
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6. Pet Lovers CentrePet Lovers Centre

Pet Lovers Centre is a leading pet products and services retailer in Asia. Established in 1973 in Singapore, Pet Lovers Centre now has over 160 stores in 5 countries: Singapore, Malaysia, Thailand, the Philippines, and Vietnam. Pet Lovers Centre is committed to providing quality products and services from reputable brands at competitive prices.

The Pet Lovers Centre website is built using PHP programming language and has outstanding features to provide users with a convenient online shopping experience. Users can search for products based on various criteria and use filters to select suitable products. The multi-layered product categories are classified by pet type, ensuring diversity and richness. The VIP Member program brings benefits to customer loyalty strategies. Integrating customer reviews on Google Maps helps users evaluate the quality of products and services provided by Pet Lovers Centre. Additionally, the website builds a quick shopping function to save time, customer management feature, and reorder support to efficiently manage customer information and orders.

7. HipVanHipVan

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The Hour Glass’s online store is built on the WooCommerce platform and CMS WordPress, providing a convenient platform for customers to explore and purchase watches from renowned brands like Rolex, Patek Philippe, Audemars Piguet, and other luxury brands. In addition to product offerings, the website also provides detailed information about the services offered by The Hour Glass, including repairs, maintenance, and polishing of watches, to help customers maintain and preserve their products effectively. Furthermore, the website continuously updates the latest news in the watch industry along with special events organized by The Hour Glass, creating a comprehensive and immersive experience for users.

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9. MegafurnitureMegafurniture

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10. Skin IncSkin Inc

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Shopify apps are recognized not just for their range of exceptional tools and features but also as robust and adaptable catalysts for business growth within the Shopify ecosystem. Beyond the code and user-friendly interfaces, Shopify apps are reshaping how businesses engage with customers both online and in-store.

But what happens when these Shopify apps are integrated into an Omnichannel system? The answer lies in the seamless combination of technology and business strategy, creating a unified and appealing shopping experience across every channel.

In this article, let’s delve into 10 top Shopify apps that you need to know to elevate your Omnichannel eCommerce strategy to new heights and deliver true value to your customers.

Shopify POSShopify-POS

POS (Point of Sales) is known as Shopify’s most comprehensive solution for supporting online, offline and omnichannel sales activities. This Shopify app comes in two versions: Lite and Pro. Both enable merchants to accept payments, manage customer profiles, handle inventory, and track orders from all channels on a unified platform. Integrating Shopify POS helps deploy Omnichannel eCommerce more efficiently, delivering a seamless customer experience from online to offline with various shopping options such as:

  • Buy online, Pick up in store
  • Buy online, return and exchange in store
  • Buy in-store, ship to customer
  • Browse in-store, buy online

Rating: 4.1/5

Key features:

  • Offers diverse shopping methods to boost conversions
  • Manages customer profiles, product details, orders, and inventory rigorously
  • Seamlessly connects and syncs data across sales channels
  • Facilitates the sale and redemption of digital and physical gift cards both in-store and online
  • Allows accepting multiple payment methods in a single transaction

Price:

  • Shopify POS Lite: Included in all Shopify plans. Limited staff access, basic customer profiles, and allows returns at the original purchase location
  • Shopify POS Pro: $89/month/location. Free for Shopify Plus merchants. Unlimited staff access, enables omnichannel sales, advanced customer profiles, professional sales reporting, and allows returns at any purchase location.

Smile: Loyalty & RewardsSmile Loyalty Rewards

Smile is an easy-to-use platform designed to create promotional campaigns and customer loyalty programs, aiming to boost sales and customer retention. With Smile, you can establish point systems, discount vouchers and special offers to encourage repeat purchases and enhance customer interactions across various channels.

As one of the valuable Shopify apps for deploying Omnichannel eCommerce, Smile facilitates seamless integration with other marketing and sales campaigns such as email, subscriptions, and POS. This ensures a more intuitive, diverse, and engaging experience for customers.

Rating: 4.9/5

Key features:

  • Create and customize loyalty programs with flexible point accrual and redemption rules
  • Seamlessly integrate with popular apps like Klaviyo, Gorgias, Shopify POS, and Judge.me
  • Automatically translate loyalty programs into six available languages including English, French, Portuguese, German, Spanish, and Chinese
  • Allow non-members to earn and redeem points

Price:

  • Free: Installation at no cost, with up to 200 orders per month
  • Starter: $49/month, with up to 500 orders per month
  • Growth: $199/month, with up to 2,500 orders per month
  • Plus: $999/month, with up to 7,500 orders per month

Avada Email Marketing & SMSAvada

Avada is one of Shopify Omnichannel apps that allows to create and automate email marketing and SMS strategies. Regarded as an efficient solution, it enables brands to engage, follow up, convert, and foster long-term customer relationships through various channels such as email, SMS, pop-ups, push notifications, and WhatsApp. This facilitates seamless Omnichannel Marketing optimization across online and offline platforms.

Rating: 4.9/5

Key features:

  • Automates Omnichannel Marketing workflows
  • Offers a diverse range of email marketing templates
  • Allows creating and sending of various email types within newsletter campaigns
  • Captures potential customers through forms and pop-ups
  • Personalized email and SMS messages
  • Provides a simple and user-friendly editor

Price:

  • Free: Includes up to 12,000 emails, basic automation, and standard email templates
  • Pro: $16/month, includes up to 12,000 emails/month, unlimited automation, access to all email templates, and supports SMS and WhatsApp
  • Advanced: $47/month, includes unlimited emails, all Pro plan features, integration with Google and Facebook Ads, and admin account management.

ZendeskZendesk

Deploying Omnichannel eCommerce or any type of online business requires meticulous customer care services. Zendesk is the perfect solution to streamline this process.

This Shopify Omnichannel app enables you to engage with customers via email, hotline, live chat, social media, and various other channels, all managed through a single, simple and intuitive dashboard. Integrating the Zendesk app into the Shopify system can enhance customer relationships and efficiently resolve customer issues.

Rating: 2.9/5

Key features:

  • Allows access to customer data for quick and personalized support
  • Processes refunds, and cancels orders directly from the Zendesk app sidebar
  • Embeds live chat into any sales channel with just one click

Price:

  • Suite Team: $55/month
  • Suite Growth: $89/month
  • Suite Professional: $115/month
  • Suite Enterprise: $150/month

StockyStocky

This inventory management app is specifically designed for Shopify POS Pro, offering the most advanced and comprehensive inventory solution to date. It’s also a valuable Shopify app to integrate for effective Omnichannel eCommerce deployment. Stocky allows the synchronization of order and inventory data between online and offline retail stores. This helps optimize inventory management, streamline business processes, and provide a seamless shopping experience for customers.

Rating: 2.9/5

Key Features:

  • Pre-built integration with Shopify POS Pro
  • Allows review and receipt of inventory data input from POS
  • Utilizes barcode scanning functionality to expedite receiving inventory data from POS
  • Enables creation and management of orders and contacts with suppliers
  • Facilitates inventory counting by either manually counting or scanning items in the warehouse and making necessary adjustments
  • Provides in-depth reports to make accurate inventory decisions through inventory data analysis

Price: Free to use

DeputyDeputy

Managing personnel during Omnichannel eCommerce deployment is a challenge. Deputy is here to help overcome that challenge. With Deputy, you can optimize employee management processes and your schedules.

This Shopify app enables managers to monitor employee schedules, efficiently manage shifts, and assign tasks effectively. Additionally, Deputy leverages real-time data from Shopify sales reports, allowing managers to optimize employee schedules to minimize costs. Deputy also offers quick and accurate digital timesheets for payroll calculations.

Rating: 5/5

Key Features:

  • Provides easily understandable sales data to plan and schedule employees more effectively
  • Avoids costly timekeeping errors and ensures accurate payroll for employees
  • Export timesheets to the business’s payroll software with just one click.

Price: Free 30-day trial. $25/month.

Endear CRM and ClientelingEndear CRM and Clienteling

Endear is a powerful CRM and customer care app designed to help retailers increase sales and strengthen customer relationships. This Shopify app allows businesses to organize customer data, send personalized emails and SMS messages, and analyze employee outreach capabilities and sales performance.

Rating: 4.3/5

Key Features:

  • Enables access to and management of all customer data on a single platform
  • Builds and automates SMS and email campaigns using pre-designed templates
  • Provides in-depth sales reporting and built-in integration

Price: Free 14-day trial

  • Starter: $60/month. Up to 1,000 emails + 250 SMS
  • Growth: $160/month. Up to 9,000 emails + 500 SMS
  • Pro: $300/month. Up to 15,000 emails + 1,000 SMS

OmisellOmisell

Omisell is a leading multi-channel management application, that allows one to manage orders, inventory, and deliveries across multiple sales channels from a single interface. This Shopify app helps optimize management processes and ensures synchronization between various sales channels.

Rating: 4.6/5

Key Features:

  • Easy integration and management of multiple sales channels: Lazada, Shopee, Shopify, Tiktokshop.
  • Seamless management of categories and synchronization across channels
  • Order management, automatic synchronization, and processing
  • Inventory management and synchronization
  • Integration with 50+ shipping service providers across Southeast Asia

Price: Free to use

Progus Store Locator MapProgus Store Locator Map

Progus is one of the useful Shopify apps that allows users to create a map displaying retail stores on the eCommerce website. This will help customers easily search for and locate the nearest store to them. This Shopify app creates a convenient and seamless shopping experience for customers from online to offline, while helping increase conversion rates.

Rating: 5/5

Key Features:

  • Multiple map styles, customizable markers, colors, and fonts
  • Provides advanced and customizable reporting
  • Multilingual system, providing language translation apps
  • Quick and easy setup, no API connection required

Price: Free 14-day trial

  • Free: 1 store location. Multilingual, various map styles, and markers
  • Basic: $9.99/month. Up to 100 store locations. Multilingual, various map styles, and markers
  • Standard: $19.99/month. Up to 500 store locations. Multilingual, various map styles, and markers
  • Unlimited: $29.99/month. Unlimited store locations. Multilingual, various map styles, and markers.

JivoChat: Live Chat & WhatsAppJivoChat

JivoChat is an app that enables users to engage in messaging exchanges to directly support customers from the eCommerce website. JivoChat can integrate and receive messages from popular platforms such as Facebook, Instagram, WhatsApp, and LiveChat. All messages are efficiently managed through an internal CRM system, allowing appropriate notifications or marketing messages to be sent to current and potential customers. This Shopify app not only provides an engaging multi-channel chat experience for customers but also strengthens the relationship between them and the business, significantly increasing conversion rates.

Rating: 4.7

Key Features:

  • Integration with the most popular messaging platforms
  • Allows making calls from the eCommerce website (even video calls) using phone numbers
  • Deploy pop-up message campaigns + WhatsApp to convert potential customers
  • Utilizes an internal CRM system to track offers, support requests, and build customer profiles

Price:

  • Free Forever: Free for up to 5 users, unlimited live chat and website support, supports translation into 20 languages
  • Pro: $29/month. Free 14-day trial, provides detailed information about website visitors and real-time tracking of their behavior on the website.

The Bottom Line 

In recent years, deploying Omnichannel eCommerce has become not just an option but a necessity for a brand to survive and thrive. With support from leading Shopify apps, brands can build a robust and flexible multi-channel sales system, providing a memorable shopping experience for their customers.

From Shopify POS to Smile, Zendesk, and Stocky, each application offers unique solutions to optimize Omnichannel eCommerce strategies. From inventory management to creating promotional strategies and direct customer interactions, each tool plays a crucial role in enhancing the shopping experience and strengthening customer relationships.

Need advice on choosing the most suitable Shopify app? Contact SECOMM or call the hotline (028 7108 9908) today!

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24/04/2024
Top eCommerce trend
THE NEXT WAVE: B2B ECOMMERCE TRENDS BEYOND 2024

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

 

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

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

Omnichannel

 

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

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 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 CommerceMobile eCommerce

 

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

B2B payment

 

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.

Oreo AR Campaign

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.

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Top 10 IT outsourcing countries
TOP 10 IT OUTSOURCING COUNTRIES IN 2024

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. IndiaIndia

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. ChinaChina

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. PhilippinesPhilippines

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. BrazilBrazil

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. VietnamVietnam

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. PolandPoland

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. MalaysiaMalaysia

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. ArgentinaArgentina

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. EgyptEgypt

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. MexicoMexico

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.

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What is Cloud eCommerce Benefits from Cloud eCommerce
WHAT IS CLOUD ECOMMERCE? 4 KEY BENEFITS OF CLOUD ECOMMERCE

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.

What is Cloud eCommerce Benefits from Cloud eCommerce-What is Cloud eCommerce
What is Cloud eCommerce?

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.

What is Cloud eCommerce Benefits from Cloud eCommerce-Cloud eCommerce Solutions
Cloud eCommerce Solutions: IaaS, PaaS and SaaS

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

What is Cloud eCommerce Benefits from Cloud eCommerce-Cloud eCommerce Benefits
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!

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On-Premise CRM vs On-Cloud CRM: Key Differences
ON-PREMISE CRM VS ON-CLOUD CRM: KEY DIFFERENCES

When it comes to Customer Relationship Management (CRM) software, businesses often have two choices: On-premise CRM and On-cloud CRM. This article will focus on clarifying the key differences and pros and cons of each option.

Understanding the distinctions between On-premise and On-cloud CRM can help businesses make well-informed decisions, optimize customer relationship management, and succeed in today’s business landscape.

Related Reading: What is CRM? Top 5 benefits of using CRM software in 2023

On-Premise CRM Software

On-premise CRM is a type of CRM software installed and hosted on the servers and infrastructure owned by the business. When deploying On-premise CRM, the business takes responsibility for all aspects of the CRM system, including hardware, software, maintenance, security, and database management.

Pros

On-Premise CRM vs On-Cloud CRM: Key Differences
Pros of On-premise CRM
  • Data Control: Businesses have complete control over their CRM data, which is particularly crucial for safeguarding sensitive and essential information.
  • Customization: On-premise CRM systems frequently provide a high level of customization, allowing businesses to tailor the software to meet their specific needs and operational workflows.
  • Security: With full data control, businesses can implement their security measures and protocols to ensure the protection of both customer and business data.
  • Operational Efficiency: On-premise CRM software can offer robust operational efficiency and faster data access as it is stored and operated entirely on the internal servers and infrastructure of the business.
  • Cost Efficiency: On-premise CRM requires businesses to pay for hardware and software licenses upfront. However, ongoing costs can be significantly lower than cloud-based CRM, making on-premise CRM cost-effective in the long run.

Cons

On-Premise CRM vs On-Cloud CRM: Key Differences
Cons of On-premise CRM
  • High Initial Costs: Implementing on-premise CRM entails substantial initial payments for acquiring servers, obtaining software licenses, and establishing the necessary infrastructure. This considerable upfront investment might pose challenges for some businesses.
  • Maintenance:  Businesses have responsibility for all maintenance tasks, security measures, updates, and issue resolutions. This can consume a lot of resources and requires a highly skilled technical team.
  • Limited Accessibility: On-premise CRM software is quite limited in terms of remote access, making this system less appealing to businesses with multiple branches in different locations.
  • Limited Scalability: Scaling up the on-premise CRM system can be complex and incur significant costs for purchasing and configuring additional hardware and software.
  • Software Backup: Businesses must deploy their own data backup solutions to ensure the availability of data in case the CRM system encounters unforeseen issues.

Some popular on-premise CRMs like Microsoft Dynamics, Oracle Siebel CRM,…

On-Cloud CRM Software

On-Cloud CRM is a form of customer relationship management software hosted on the remote servers of a third-party provider. With this software, businesses are relieved from the task of managing and maintaining fundamental infrastructure like servers and central databases, as those responsibilities are handled by the On-Cloud CRM provider.

Businesses can access the CRM system from anywhere with an internet connection through a web browser or mobile application.

Pros

On-Premise CRM vs On-Cloud CRM: Key Differences
Pros of On-Cloud CRm
  • Easy Deployment: On-cloud CRM systems are typically deployed quickly because they don’t require complex hardware setups or software installations.
  • Low initial costs: Cloud CRM solutions often have lower upfront costs compared to on-premise CRM solutions because businesses don’t need to invest in servers and infrastructure.
  • Scalability: Cloud CRM can easily scale to meet the growing number of users and changing business needs without the need for additional hardware investments.
  • Accessibility: Cloud CRM users can access the system from anywhere with an internet connection, making this software appealing to businesses with multiple branches in different locations.
  • Automatic Updates: On-cloud CRM providers are responsible for handling updates and maintenance, ensuring users quickly access the latest features and improvements.
  • Data Security: On-cloud CRM providers are highly regarded for their ability to offer optimal security measures to protect customer data.

Cons

On-Premise CRM vs On-Cloud CRM: Key Differences
Cons of On-Cloud CRM
  • Data Control: The entire data is stored on servers owned by the third-party provider. This raises concerns about data control and security, as well as risks from the provider’s end.
  • Dependency on the Internet: Cloud CRM operations rely on Internet connectivity. If the connection is slow or interrupted, it may impact the overall system performance.
  • Customization Limitations:  While many cloud CRM solutions are highly configurable, compared to on-premise CRM solutions, they still have limitations in terms of customization.
  • Subscription Costs:  Using on-cloud CRM, businesses will incur ongoing monthly or annual usage fees. Initially, the upfront costs may be lower than on-premise CRM, but there are ongoing fees such as user quantity fees, customization fees, etc., which businesses will continuously have to pay throughout the deployment process. This leads to an increase in the total cost of using the cloud CRM system over time.

Some popular Cloud CRMs include Salesforce Sales Cloud, SAP Sales Cloud, Oracle CRM On Demand,…

Related Reading: 

What is The Difference Between On-Premise and Cloud CRM?

On-Premise CRM vs On-Cloud CRM: Key Differences
Difference Between On-Premise and Cloud CRM

On-Premise CRM vs On-Cloud CRM: Which is The Better Choice?

The choice between On-premise and On-cloud CRM becomes a crucial decision in the strategy of deploying CRM. Each type comes with its own set of advantages. On-premise CRM offers high control and customization, while On-cloud CRM is convenient, flexible, and helps reduce the burden of infrastructure and initial costs. 

The ultimate decision depends on the deployment needs, data control requirements, and budget.  Nevertheless, both can serve as valuable tools for businesses to manage customer relationships and amplify operational efficiency. 

Contact SECOMM or call the hotline at 02871089908 today to learn more about deploying and developing a comprehensive CRM system and determine the optimal choice between On-premise and On-cloud.

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