Profitability is the lifeline of any business, but many online sellers in the high-growth D2C eCommerce segment are struggling to maintain their profitability.
The D2C eCommerce market in India is booming, with a whopping 40% annual growth rate. By 2027, it’s expected to reach $60 billion. While these numbers sound promising, the reality for online sellers is tough.
In a customer-centric online world, sellers work hard and invest a lot of time and money to attract new customers and keep the old ones happy. Despite their best efforts, many sellers find it hard to make a profit due to competition and irresponsible shopping behavior. Big players like Amazon and Flipkart control over 60% of the Indian eCommerce market, making it tough for smaller players to grow.
Crucial Challenges that Hinder Profitability
In recent years, more online stores have emerged, and sellers now often find themselves in bidding wars on marketing platforms like FB & Google Ads to acquire customers. With soaring CAC, they try to increase the lifetime value of their customers to adjust the acquisition costs through loyalty programs. Most of these efforts fail as sometimes customers may forget to redeem their rewards or take too long to redeem them. Customers can also be a source of challenges. Returns, Cash on Delivery (COD), and Return to Origin (RTO) can increase costs and stress seller finances. If ignored, returns can reduce profits by 25%.
On the flip side, big players such as Amazon & Flipkart enjoy a strong loyalty base due to their joint ecosystems where shoppers have many categories and products to choose from, and many sellers list themselves on these platforms to boost sales. However, it costs more money to list, and marketplaces don’t provide them with insights and control over customer relationships. The loyalty also goes to the marketplace and not the seller. Tata recently introduced Tata Neu to boost loyalty across all its brands through one platform. However, this only benefits Tata-owned brands. Individual sellers either don’t get to enjoy the perks of these ecosystems or even when they do, there are major compromises to be made.
With competition from established players and financial struggles imposed by high CAC, returns, and low loyalty, countless online store owners have long been finding it challenging to grow and scale their businesses.
WyseMe Ushers the Era of Profitability
With 100+ merchants onboard, WyseMe is poised to help sellers achieve and boost profitability through an AI-powered joint loyalty and acquisition solution, that brings online sellers on one platform and provides the benefit of a joint ecosystem without any compromises.
WyseMe addresses the pain points of sellers by reducing their CAC, promoting loyalty, and instilling responsible shopping behavior in customers through AI. WyseMe’s advanced AI encourages good shopping habits by rewarding more Wyse points to shoppers who shop online frequently, return less and opt for online payments instead of COD. These points can be used for gift cards from different brands, making shopping fun and building loyalty.
Additionally, WyseMe connects sellers with top quality shoppers for a fraction of their marketing budget, maintains their brand identity, and lets them run targeted campaigns and cross-promotions with non-competitive brands.
Sachin Garg, Founder of Saara, says, “Sellers have full control over their brand and customers, and all the customers acquired through WyseMe, directly contribute to the seller’s business growth and expansion. Low CAC and high loyalty ensure financial sustainability, and reduced returns benefit both sellers and the environment.”
In an ideal world for online stores, success thrives on efficient customer acquisition, strong loyalty, reduced returns, and financial sustainability. WyseMe, developed by Saara Inc. and supported by Binny Bansal’s 021 Capital and 9Unicorns, is bringing about the much-needed change in the eCommerce landscape and ushering in a profitable era for online stores. Using smart AI, WyseMe helps online stores save money, make customers more loyal, and be kinder to the planet. This way, online stores can achieve profitability, focus on growth and take care of the environment at the same time.