Excel at Commerce

Opening an online store is easy, but making real money is tough. To be able to make real money, online stores need to excel at commerce. While Konigle makes it easy for brands make real money at e-commerce through its storefront  and automation tools  used by both DTC & B2B brands in over 80 countries helping them do 100s of millions of dollars in GMV, and we share insights every day from what we learn at our tactics feed and reader apps on iOS and Android,  not a lot is heard from operators on the front lines working hard and smart building and running profitable brands. 

There's a lot to learn from their experiences; hence, we decided to reach out to them and have chats to gain insights from their work and share with our community of brand operators in over 80 countries in the Excel at Commerce podcast. I hope you all find it useful.

1. Understanding e-commerce shipping

Every online buyer wants free shipping. In fact according to the latest state of digital report, free shipping was the most important purchasing trigger for e-commerce buyers, and a major cause of cart abandonments is shipping costs. So is Shipping a cost centre or an opportunity to improve profit margins?

We spoke to Ross Brenner, Senior VP at Profit Trust, a Shipping auditing platform that helps companies optimise their shipping costs to increase profit margins.

Some ideas discussed :

• Insights on shipping with DHL, FedEx, and UPS
• Role of 3PL providers and opportunities to increase profit margins on shipping.
• Brand building myths
• The Future of E-Commerce: Offline as a loss leader for your digital storefront

Key insights

1. Any brand that ships with logistics providers like  DHL, FedEx  and UPS loses out on refunds due to 30+ reasons. This can help the brand recover up to 15-25% of shipping costs. 
2. If you're using a  3PL logistics provider to manage fulfilment, you can try and negotiate lower rates as the 3PL with higher shipping volumes can help pass on the benefits to you and help improve your profit margins.
3. Post purchase engagement with buyers is an often under rated strategy to increase customer LTV and improve profit margins.
4. Lines between Offline and online commerce are blurring and offline storefronts are evolving to become loss leader marketing strategies for brands. They exist for potential customers to know about the brand and market its presence, but increasingly purchases are happening online.
5. Embracing automation and technology is key to scaling a brand profitably.

About Ross Brener

Ross Brenner also serves as the managing partner of the NYC and Long Island offices, overseeing ProfiTrust's entire logistics division. 

About Profit Trust

With a mission to ensure businesses pay the lowest possible rates for shipping, ProfiTrust has developed cutting-edge technology that revolutionizes the shipping process, enabling businesses to save significant costs without the need for carrier changes, vendor changes, or system changes.

2. E-commerce in Vietnam

Vietnam is projected to have ~70% e-commerce user penetration  with a market size of ~71 million buyers by 2025, second only to Indonesia in Southeast Asia. While Indonesia gets a lot of attention by brands, solution providers, and investors. Vietnam is not so well understood.

In the E-commerce in Vietnam episode, we spoke to Ngân Pham, a Vietnam based digitalisation expert who also writes a newsletter on the Vietnam digital landscape on LinkedIn to understand the e-commerce market in Vietnam. 

Some ideas discussed:

• Understanding consumer needs, how and when to follow up, Absence of clear value proposition
• Brand building myths
• Value of software in e-commerce and how to evaluate impact.
• The Future of e-commerce in Vietnam.

Come explore 🇻🇳 with us in this episode.

Key insights

1. Avoiding these 3 mistakes to thrive in e-commerce: not understanding your customer's needs, not having a clear value proposition, and lack of follow-up.
2. Crafting a compelling brand story in conjunction with offering quality products is paramount to e-commerce brand building.
3. When evaluating software, factors such as business goals, adaptability, expertise, user feedback, and return on investment (ROI) should be thoroughly assessed.
4. Vietnam's rapid digitalization, young population, and government support create favorable conditions for sectors such as logistics, digital payments, and social commerce, making Vietnam an immensely attractive market within Southeast Asia.

Digitalization in Vietnam has witnessed remarkable growth in recent years, and the trend has accelerated further due to the impact of the pandemic. The country has also seen a significant shift towards cashless behavior, with people adapting to digital payment methods. According to Statista, Vietnam's e-commerce market value is projected to reach 39 billion US dollars by 2025, ranking second in Southeast Asia.

Although Vietnam's e-commerce ecosystem is still in its early stages, it offers a multitude of opportunities for various key sectors to expand. These sectors include logistics, fullfilment centers in vietnam for ecommerce, digital payments, social commerce, live-streaming, infrastructure, fintech, and robotics. The country benefits from its favorable geographical location, close proximity to Singapore and Southeast Asia, and excellent connectivity via airports and seaports. The logistics sector, in particular, is well-advanced, with businesses seeking fulfillment services from e-commerce brands and online sellers.

Vietnam has also quickly embraced emerging trends such as TikTok and live streaming, creating new avenues for e-commerce sales and marketing. The country's familiarity with digital payments, such as Pay Vi-Va, facilitates seamless transactions in the e-commerce space. Infrastructure development, including technology adoption and robotics for warehouses, is essential for expanding e-commerce businesses. The government and Vietnamese organizations have taken steps to support e-commerce development, creating a favorable environment for growth.

Vietnam's potential as a key Southeast Asian market is attracting brands looking to sell in the country. It also presents opportunities for software solution providers to cater to the growing demands of businesses. Infrastructure-level players, including third-party logistics providers, can enter the market and capitalize on the e-commerce boom. Additionally, Vietnam's proximity to Singapore makes it an ideal trial market for big brands looking to introduce new models.

Despite being a relatively small country, Vietnam's young population's tech- savvy and widespread availability of free Wi-Fi contribute to its e-commerce potential. The government and organizations continue to take gradual steps to support e-commerce development.

In conclusion, Vietnam's e-commerce ecosystem is set to experience significant growth in the next few years. With its rapidly digitalizing landscape, young population, and supportive government initiatives, Vietnam presents abundant opportunities for brands, software solution providers, and infrastructure players. By tapping into this dynamic market, businesses can leverage Vietnam's potential as a thriving hub for e-commerce in Southeast Asia.

About Ngan Pham

Ngan Pham is a seasoned senior growth manager at Anchanto Vietnam. With over 9 years of experience in developing high-performing sales volumes and spearheading digital transformation initiatives, Ngan has made a significant impact in helping her customers achieve business success. 

About Anchanto

Anchanto is a global B2B SaaS company that enables enterprises to manage end-to-end eCommerce operations through its proprietary SaaS products & partnerships.

3. Understanding e-commerce marketing

Understanding the key components of a comprehensive marketing strategy can significantly enhance your profit margins in an e-commerce business. In this insightful chat with Alexandro Wibowo, a highly experienced C-Level Growth Marketer in Indonesia who has a distinguished 23-year career driving transformative growth through technology and marketing, he shared his insights and practical experiences, shedding light on the importance of pricing and marketing. Join us as we delve into the world of digital business and discover how to maximize profit margins.

Topics discussed:

• Three mistakes in digital marketing to avoid
• Building a Comprehensive Marketing Strategy: Unleashing the Power of Social Media, Influencers, and Ads
• Maximizing Customer Lifetime Value: The Impact on Acquisition Costs
• The Art of Pricing in E-commerce: Maximizing Margins and Driving Sales 
• The Future of E-commerce: Embracing Evolution and AI

Key insights

1. Avoid these 3 mistakes to failure: short term thinking, illusion of traction, digital marketing as a magical solution
2. Components to a comprehensive marketing strategy: social media, online presence, customer engagement, offline activation, and influencer marketing
3. The intricate relationship between customer retention, customer lifetime value (CLV), and the cost of acquiring new customers (CPA)
4. Successful e-commerce brands employ tactics such as phased pricing, price-keeping automation, bundling, and negotiating for free shipping to achieve sustainable growth in the competitive e-commerce landscape.
5. Understanding and effectively leveraging AI as a tool to drive efficiency, enhance customer satisfaction, and unlock new opportunities in the ever-evolving e-commerce landscape are of paramount importance.
6. Developing a pricing framework that aligns with the brand's narrative allows e-commerce merchants to differentiate themselves in the market.

About Alexandro Wibowo

Alexandro Wibowo has a distinguished 23-year career driving transformative growth through technology and marketing, he is known for his hands-on approach and unwavering commitment to excellence. As a C-level executive, he has leveraged collaborative leadership and stakeholder engagement to foster inclusive environments that value every contribution.

4. Selling expensive things online

Can you sell expensive things online? In the Selling expensive things online episode, we had the pleasure of speaking with Mitchell Jiang, a 20-year veteran of e-commerce sales and marketing. Currently the vice president of sales at RISIS, a company that sells expensive premium products, he has a deep understanding of both offline and online sales tactics. Mitchell shares invaluable insights on unconventional pricing strategies and offers expert advice on building brand awareness with highly discerning customers.

Topics discussed:

• The history of e-commerce
• Customer Focus and Continuous Innovation
• Maximising  Value in E-commerce
• The Power of Scarcity in Brand Positioning
• Harnessing the Power of Community Engagement
• The Continuing Balance Between Online and Offline

Key insights

1. Common mistakes to avoid in e-commerce: choosing the wrong e-commerce platform, neglecting target market considerations, and selling generic products without innovation.
2. By tailoring products and services to meet the unique needs of a target market, entrepreneurs can establish deep customer insights and foster loyalty.
3. Understanding the perceived value of products is essential, as customers assign different values based on their preferences and needs.
4. Consistency in branding and presentation throughout the customer journey is important to maintain the perceived value.
5. Investing in a targeted online presence through SEO and strategic placements help users easily find and connect with the brand.
6. A gradual integration of online and offline channels, with advancements in augmented reality (AR) will potentially reshape future of e-commerce, especially for try before you buy brands.

About Mitchell Jiang

Mitchell is a highly experienced professional in the e-commerce industry with over 20 years of expertise. As the Vice President of Sales at RISIS in Singapore, he plays a crucial role in overseeing the growth and development of key departments, including e-commerce, wholesale, corporate, and export. Mitchell's responsibilities encompass end-to-end product development, design, and sourcing. 

About RISIS

RISIS started its roots in Singapore since 1976 and was renowned as the brand which encapsulated Natural Orchids in Gold. Since then, RISIS have been producing collections of Jewellery, Home and Lifestyle that are encapsulated in 24K Swiss Gold and other precious metals, singing to the different facets of its unique identity. 

5. How to start an e-commerce business

How to start an e-commerce business? In the How to Start an E-Commerce Business episode, we speak to Michelle Fu, a Marketing Manager at SoftBank Corp., boasting a decade of experience in both B2B and B2C sectors. Having done both, start her e-commerce business and also work for a big corporation Michelle shares her unique perspective on the pivotal role pricing plays in the realm of marketing, shedding light on how it directly impacts sales generation, while also sharing interesting insights and her experience starting her own marketplace e-commerce business.

Topics discussed:

• How to get your first sale
• Role of Videos in e-commerce
• Sustainability, Ethical Shopping, and Personalization
• Harnessing Data, Pricing Strategies, and Effective Marketing Channels

Key insights

1. To generate initial sales, it is essential to identify the target audience and a unique selling point, while pricing products supported by competitor research.
2. Good quality videos are a great way to improve conversion rates on your online store.
3. The future of e-commerce is expected to lay emphasis on sustainability and ethical shopping.
4. Successful e-commerce operators rely on data-driven decision-making and ways to build brand loyalty.
5. Personalized marketing campaigns resonate with customers and reduce CAC. 

About Michelle Fu

Michelle has over 10 years of experience in sales and marketing in both B2B and B2C sectors. Michelle has a proven track record of leading successful marketing campaigns and driving growth through integrated omni channel digital marketing strategies. Currently serving as the APAC Marketing Manager at SoftBank Corp, Michelle spearheads regional marketing efforts to boost customer acquisition and enhance brand awareness across Asia Pacific markets.

About SoftBank Corp

SoftBank Corp. group is one of the leading platform companies in Japan, holding a nationwide telecommunications network, the Internet media platform Yahoo! JAPAN, the payment platform PayPay, and the social media application LINE.

6. Brand positioning for e-commerce

How to position a brand in a competitive landscape? In the Brand positioning for e-commerce episode, we had the opportunity to speak with Fliss Newland, the Commercial Director and Global D2C Lead at WhatIF Foods. She is helping position her sustainable plant based milk brand in a competitive landscape where she has to content with incumbents and also bigger startups. In this chat we discuss SEO, SEM and also Gen Z mindsets. Topics discussed:

• The Digital Shelf
• SEO vs SEM
• Emphasizing Organic Content and High LTV Customers
•  Blurring Online and Offline, Empowering Small Brands, and Social Media

Key insights

1. SERPs on a search engine result page are essentially the equivalent of a Digital Shelf.
2. Search Engine Optimization (SEO) should be used to capture search engine demand in the long run while Search Engine Marketing (SEM) techniques should be used for getting sales in the short term.
3. By striking a harmonious balance between organic and paid channels, encouraging repeat purchases, and harnessing the power of word-of-mouth marketing brands can achieve sustained growth and enduring success.
4. Key ways to win at e-commerce as a new brand : adopting an agile mindset, creating authentic content, and prioritizing availability and stock management are essential for success.
5. Regardless of primarily operating offline, embracing e-commerce is indispensable in the future of commerce. As the lines between online and offline channels blur, e-commerce provides opportunities for small brands to grow.

About Fliss Newland

Fliss has over 7 years of experience in Fast-Moving Consumer Goods (FMCG) across diverse markets and functions, Fliss currently serves as the Commercial Director and Global D2C (Direct-to-Consumer) Lead at WhatIF Foods. Her role involves managing the company's website, where she focuses on optimizing user experience, conversion rates, and off-site traffic through powerful strategies like social media marketing, search engine optimization, search engine marketing, and email marketing.

About WhatIF Foods

WhatIF Foods is a planet-based food company that goes beyond sustainability to create “A Better Better.”  WhatIF is committed to making food products that replenish hungry bodies, restore degraded lands, and reconnect with the farmers who grow their crops. They are driven by a philosophy of regeneration, not just preservation.

7. How to build a brand

How to build a brand from scratch? In the How to build a brand episode, we spoke to Navalayo Osembo (Nava), Co-Founder and CEO of Enda Athletic. In this fascinating chat we went behind the scenes of how Enda is building a shoe brand out of Kenya and competing with the most well known brands in the US market. Lots of insights around building a brand from scratch, obtaining financing at the start, acquiring an initial customer base, and continue scaling the brand.

Some ideas discussed:

• How to run a crowd funding campaign
• How to use media coverage 
• Product-led SEO
• Pricing 
• Creating Authentic Connections through Storytelling
• Pitfalls of Direct-to-Consumer (D2C) Business

Key insights

1. In a Kickstarter campaign, determination and meticulous planning are crucial, with a focus on creating captivating video content and offering compelling incentives to attract backers. 
2. E-commerce operators who align their narrative with their vision and values ensure an authentic connection with the audience, solidifying their position in the industry.
3. Maintaining a customer-centric approach to pricing involves continuously seeking customer feedback and making adjustments based on their input to achieve value based pricing.
4. Common mistakes made in the direct-to-consumer business realm: outsourcing without a solid understanding of digital marketing, relying solely on paid advertising, and pursuing initiatives without a clear return on investment.
5. It is a myth that more money in paid advertising automatically leads to a bigger brand. The significance lies in the consistent communication of the brand's purpose and values.
6. By focusing on building a community through engaging touchpoints and fostering transparency and authenticity, businesses can establish a strong and genuine brand presence.

About Navalayo Osembo and Enda Athletic

Navalayo Osembo is a social entrepreneur, humanitarian worker, lawyer, accountant, mentor, and runner-in-training. As the Co-Founder and CEO of Enda Athletic, she is leading a movement to bring Kenyan athletic greatness to runners worldwide. Enda Athletic is revolutionizing the running shoe industry by producing the first made-in-Kenya performance running shoes, capturing the essence of Kenyan running culture and drawing inspiration from the expertise of Kenyan athletes.