Category Archives: E-Commerce

Why Ecommerce Brands Should Leverage User-Generated Content

With more than 24 million online stores in the e-commerce industry and lots of brands competing for undivided attention, an e-commerce entrepreneur may find it challenging to position themselves in front of their target clients. However, you can stay ahead of the competition and boost sales if you understand the power of user-generated content.

 

But what is user-generated content or UGC? UGC is authentic, unpaid content created by users of a certain product. It can be in the form of comments, testimonials, tweets, pictures and Facebook statuses.

 

So why should your company leverage user-generated content? Here’s how UGC can help you achieve your company’s goals.

 

1) Improves Brand Awareness

 

Besides SEO, social channels like UGC are a powerful driver for brand awareness. Statistics has it that 37 percent of consumers use social networks to research a product before making a purchase. In another research, 52 percent of customers say that watching videos give them confidence in their purchasing decisions.

 

It is, therefore, essential for brands to track reputation and unveil consumer insights. You can as well add reviews to a third-party site since users tend to view them as more reputable.

 

2) Enables You to Provide Better Customer Service

 

You can only improve your customers’ experience by identifying and understanding how consumers feel about the product.

 

Create loyal customers by allowing the existing ones voice their feelings and thoughts about your brand. This way, you will know their grievances and resolve any of their problems. Furthermore, providing a platform where people can air their opinions about your product encourages them to stay on your website longer and freely discuss their problems with other customers.

 

3) Nurtures Trust through Authenticity

 

Research shows that 92 percent of online consumers rely on recommendations from others. The big problem is that entrepreneurs spend most of their time running paid ads and making captivating posts to lure people to purchase from them. This alone does not give consumers enough reason to do business with you if you do not show real testimonials from real users.

 

Social proof assists companies to become more transparent and reputable.

 

4) Increase Website Engagement

 

User-generated content makes consumers feel more connected to you. Users know that you value their experiences with your brand and in turn, they will be more engaged and place you top on their list.

 

Rather than placing photos of your products on your website, it is better to include user-generated content images. This technique encourages visitors to purchase your product.

 

 

Reasons Why Content Providers Struggle Abroad

E-commerce has helped to erase all the boundaries in the global economic arena. In the past, businesses explored overseas markets and set up operation in new regions. It is the same reason why we see content providers are eager to venture into abroad locations.

 

Many American content-creating firms are motivated by an entrepreneurial drive and desire to make more profits. They look beyond the country’s borders in search of fertile terrain to map out a success plan. The reality of the matter is that some are successful while don’t succeed. The companies that have a better chance of becoming successful abroad are those that initially scout the new territory to recognize the opportunities available and the possible challenges that they may face before.

 

Currently, expanding your business to an overseas location has become an easy task because international trade restriction policies have been softened. Moreover, more consumers from all regions of the world are digitally connected through online channels and devices. However, that does not mean that all is easy. Many publishers face challenges such as piracy threats, difficult language translations, Jack of internet access, changing government regulations, shifting economic rules, and monetization and payment obstacles.

 

The CEO of Cue said that the biggest problem that American content firms face is the need to communicate to a global audience with messages that have been built around U.S. consumers. Paul Parreira added that localizing our message becomes a challenge regardless of the product. Another barrier to foreign markets is the conservative nature of foreign governments such as Burma, China, and Arab nations. Such countries restrict access and censor content that conveys messages that are at odds with the political ideology and opinions of the government. Moreover, some governments block content that they deem morally unacceptable or sexually suggestive. Asian countries like South Korea and China require users to register with internet providers using their real identification.

 

Such laws can promote identity theft. Monetizing content can be challenging depending on the territory because some consumers fear to make an online payment. Moreover, different countries have various forms of acceptable online payments.

 

Reasons Why Content Providers Struggle Abroad

E-commerce has helped to erase all the boundaries in the global economic arena. In the past, businesses explored overseas markets and set up operation in new regions. It is the same reason why we see content providers are eager to venture into abroad locations.

 

Many American content-creating firms are motivated by an entrepreneurial drive and desire to make more profits. They look beyond the country’s borders in search of fertile terrain to map out a success plan. The reality of the matter is that some are successful while don’t succeed. The companies that have a better chance of becoming successful abroad are those that initially scout the new territory to recognize the opportunities available and the possible challenges that they may face before.

 

Currently, expanding your business to an overseas location has become an easy task because international trade restriction policies have been softened. Moreover, more consumers from all regions of the world are digitally connected through online channels and devices. However, that does not mean that all is easy. Many publishers face challenges such as piracy threats, difficult language translations, Jack of internet access, changing government regulations, shifting economic rules, and monetization and payment obstacles.

 

The CEO of Cue said that the biggest problem that American content firms face is the need to communicate to a global audience with messages that have been built around U.S. consumers. Paul Parreira added that localizing our message becomes a challenge regardless of the product. Another barrier to foreign markets is the conservative nature of foreign governments such as Burma, China, and Arab nations. Such countries restrict access and censor content that conveys messages that are at odds with the political ideology and opinions of the government. Moreover, some governments block content that they deem morally unacceptable or sexually suggestive. Asian countries like South Korea and China require users to register with internet providers using their real identification.

 

Such laws can promote identity theft. Monetizing content can be challenging depending on the territory because some consumers fear to make an online payment. Moreover, different countries have various forms of acceptable online payments.

Walmart is Competing With Amazon

Amazon has been the leading corporate giant when it comes to shopping online, but it seems Walmart is looking to overtake this position. According to the Business Insider, Walmart is on the verge of purchasing Jet.com, a move that is sure to challenge Amazon’s arena in e-commerce.

Jet.com is an online retailer founded by Nate Faust and Marc Lore. Launched in 2015, Jet hopes to provide a competitive alternative to Amazon. Investors have poured in at least $500 million into Jet. The new retailer plans to compete with Amazon by offering lower prices and free shipping for orders over a certain price. Recently Jet distanced itself from its subscription-based service in order to focus on individual transactions.

Walmart wants to purchase Jet in order to meet the needs of a customer base that is increasingly using e-commerce. Even though Walmart already provides online shopping for customers, it is vastly behind Amazon when it comes to fast and free shipping. However, one advantage that Walmart will have over Amazon is distribution centers. Walmart already has stores located all over the United States. With the help of Jet.com, Walmart hopes to turn its online retail it a short, easy and efficient online business.

According to Conlumino CEO Neil Saunders, “It [Walmart] is somewhat jumbled and unfocused which makes it hard for the company to compete with the likes of Amazon… Jet remedies this and would give Walmart a much more focused and powerful offering and platform with which to compete against Amazon.”

Walmart Eyes Jet.com In A Bid To Catch Up To Amazon

Walmart would love to become the number one e-commerce website, however, they have a long way to go to catch up to Amazon. In 2015, Amazon sold $107 billion worth of goods, while Walmart’s online sales were only $13.7 billion. Despite having a well-known name, a reputation as a place to go for savings and a long-time e-commerce presence, consumers just don’t like shopping at Walmart.com. Perhaps consumers don’t like Walmart’s spotty online inventory or its search feature that never gets it right, or perhaps few people know about Walmart’s free shipping program that is similar to Amazon Prime.

Walmart is considering buying Jet.com, a fairly new e-commerce website that has a robust household goods department. Many people go to Walmart’s stores to buy groceries, cleaning products and pet food, yet they turn to Amazon or Jet.com when they buy these items online and Walmart wants to change this. Jet sees several hundred thousand new customers each month, who are drawn to the low prices and free shipping on all orders over $35. Unlike Walmart and Amazon, there’s no paid program to join to get free shipping with Jet.com, although the company initially had such a program, however, they quickly discarded it.

While Jet.com isn’t making a profit yet, they have an excellent e-commerce platform, which is all Walmart really needs, since they already have a massive distribution system in place.