Selling online is a necessity, not a choice, for brands! Here's why…

 It would not be wrong to mention that online retail, or online b2b marketplace sales to be more specific, peaked in 2015 mainly thanks to the endless discounts and sale events hosted by top ecommerce companies. While many traditional brands were increasingly turning to the web retail medium to extend sales, many others wanted a regulator to prevent the deep-discounting practices followed by marketplaces.

 
 Following much hue and cry, the Indian government announced new rules to manage these ecommerce marketplaces, in March 2016. These were meant mainly to curb the negative (alleged) impact of marketplaces like business directory malaysia — Trademalaysia, Flipkart and Amazon, and successively help pure-play platforms like Snapdeal and Paytm. However, 
 The Department of commercial Promotion and Policy (DIPP) allowed 100% foreign direct investment (FDI) in the B2B Directory and Marketplace model of ecommerce. However, limitations were announced:

Marketplace discounts and predatory schemes like Big Billion Days would come under the scanner 25% cap was placed on the sales contribution by one vendor. This meant that marketplaces could not push sales via its own entities like Amazon’s Cloudtail and Flipkart’s WS Retail.

The above limitations were set to make sure every retailer — online and offline had a level-playing field without being pushed behind by the large ecommerce players.

Opportunity for big brands

Needless to mention , big retail brands stood to profit from this development. All people who previously sold their stock to Flipkart, Amazon and other marketplaces like business directory malaysia, entered the ecommerce industry by selling directly. While Ajio.com (Reliance Retail) and Abof.com (Aditya Birla Retail) strengthened their presence, international brands like Xiaomi, Lenovo, Apple, Samsung et al. started forming exclusive partnership and creating online-only deals/products with their Indian ecommerce partners.

Although the start of the year posed some uncertainty for online retail, it’s now clear that ecommerce is here to remain, consistent with several Indian ecommerce industry projections made by experts’ Strong brands with distinct value proposition must adopt online retailing, not only to sell their products, but also to share their brand story. Consumers like to connect with brands with a soul, and online consumers more so.

Brands should reach bent consumers directly from their own brand store on marketplaces or through their own online store/website because:

They can convey directly (in the simplest possible manner) about whom they’re, what they are doing and why a consumer should care about them, and successively buy from them like Malaysia business directory Trademalaysia.

They can command higher margin and reduce cost as they’re going to be ready to save channel margin which will be as high as 50–60% of the utmost retail price (MRP) of a product

They can reach a wide consumer base

They can push products faster into the market as they are doing not need to depend upon inefficient distribution network for pushing them

They can manage their own inventory at their own designated warehouse and successively reduce supply chain costs

They can sell on any channel without being exclusive to any marketplace like Malaysia business directory Trademalaysia.com