Distributor Profitability – How much margin to give to a distributor?

Assume you're a brand or a manufacturer trying to select a distributor for your business and the terms you'll be providing are a gross-margin of 5%, zero credit period (the credit period for the distributor is zero days from the manufacturer) and the average costs for the distributor is 2%. The distributor has to extend …

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High margin, High volume, High velocity – Which do you prefer?

Let's say we have three products: high margin and low volume, low margin and high volume, and low margin and fast selling. Which product do you want to sell as an entrepreneur? Generally, the most common answer is that we should sell the highest margin product. But, from an Return on Investment (ROI) or Return …

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E-commerce Marketing Touchpoints, Channels, Funnels and Attribution

Rarely will a buyer click your advertisement, fill in the details, read a blog post, then purchase your product in one single continuous journey; the journey is just not that linear. Customers evolve w.r.t. their awareness, trial, usage and brand/product loyalty across time and across devices and platforms. Therefore, how you want to develop a touchpoint …

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Ecommerce Selection – How to get it right?

In retail, getting the selection or assortment right is a continuous pursuit in response to the changes in the market and is driven by both a quantitative and qualitative understanding of the category and, therefore, there is no clear science to it. A category should maintain a constant selection pipeline to drive customer value – driven …

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The Consumer journey on an ecommerce app (Home->CLP->PLP->PDP->Cart)

We all read about marketing or consumer journey funnels in school. Ecommerce apps too have a unique consumer journey from clicking the app and entering the home page to category listing page to product listing page to product detail page and then the cart. In today's world of progressive web apps (link) there is no …

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ROI of a distributor or supplier – business turnover, margins and rotations (in e-commerce and FMCG)

Retail excites me a lot because it is a simple business of buying and selling goods and yet it covers almost every complexity under the sun. It has a complex supply chain from raw material to finished goods, yet seeming so simple and convenient when we add items to our shopping cart in offline and …

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How are eCommerce companies valued?

This article is written by Radhika P. Nair from Your Story.  The link to the original article is here. Aviral Jain, Director at American Appraisals, says companies are, typically, valued on the basis of income (discounted cash flows) and the market (trading or transaction multiples) approach. E-commerce companies usually have a longer gestation period and …

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Myntra.com

Myntra.com is currently among the top e-commerce companies in India. Recently, they started above the line (ATL) advertising with the television commercial(TVC) below. As most of us know, if you have the pockets, a TVC is probably the best way to create awareness of your brand in India. Myntra.com TVC on air Going on TV …

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