How Order Management Systems Can Streamline eCommerce

Posted on by Jennifer Ryan
BORN Views
How Order Management Systems Can Streamline eCommerce

The Covid-19 pandemic has irrevocably changed eCommerce. By April 2020, the industry experienced ten years’ worth of growth in three months resulting from a shift in consumer spending habits.1 The unprecedented demand for online goods stressed supply chains and forced retailers to reevaluate their operations. As the online shopping trend continues, competition among online retailers has never been greater.

Brands must be resilient and agile to compete against retail giants like Amazon. To offset the difficulties caused by an online-only ecosystem, retailers must find new sales channels and marketplaces to broaden their reach. However, a larger digital footprint and increased sales channels result in a complexity that can be overwhelming when combined with already steep customer expectations.1 An order management system (OMS) is essential for a business to grow, embrace multi-channel retail, and compete with other online retailers while communicating effectively with customers.

What is an Order Management System?

An OMS is software that enables an eCommerce store to manage the order fulfillment process more effectively. It collects data such as order information, customer data, and inventory levels which allows for the management of critical business areas.2 An OMS streamlines the process by unifying data and making the fulfillment process as cost-effective and automated as possible. OMS systems allow operators to manage orders coming in from multiple sales channels and process them from multiple fulfillment points.2 An effective OMS can help with various processes and tasks to ensure a business stays in sync and fulfills its promises to its customers. 

Key Benefits of Using an OMS

OMS tools are critical because they are more than just a means for shipping orders. Most eCommerce brands cannot grow without an effective OMS in place.3 These tools keep critical business processes organized and running smoothly as a business grows. Having a good OMS in place will also reduce human error, an enormous time and money waster for businesses. Reducing manual tasks will create time for solving complex customer problems, focusing on big picture projects, and optimizing the brand experience.4 An effective OMS is essential for sustainable growth and a smooth customer experience. 

Customer Satisfaction

Customers have grown accustomed to personalized, efficient, and cost-effective order fulfillment. As a brand grows, systems will be tested, and inefficient processes can result in negative customer experiences and potentially lost profits.5 Since order management systems are automated and integrated across every step, brands can ensure a consistent customer experience across every channel. From logging orders to organizing fulfillment to managing invoices and returns, an effective OMS covers each step of the order process.6 The goal of the OMS is to get the product to the consumer as efficiently as possible. This is accomplished by managing the journey of each item in the customer’s order from the moment the product goes into the shopping cart until the product arrives on the customer’s doorstep.7 A good OMS will integrate with fulfillment centers to keep customers updated on the status of their orders.8 By optimizing each step in the process, an OMS reduces shipping and overhead costs and increases the quality of data collected. 

Managing Product Availability and Inventory Insights

Selling products across multiple platforms can make it difficult to unify sales data. An OMS can integrate with each platform, collect all sales data, and bring that information together in one accurate and accessible place. Over time, this can provide insights into customer behavior and identify popular products and SKUs.9 Based on the collected data, inventory management decisions like what to order from suppliers and which fulfillment locations need new stock are simplified. 

Other Considerations

The eCommerce landscape changes rapidly, so a good OMS should provide the flexibility and functionality necessary for a business to grow. It should be intuitive and easy to use by non-technical retail and marketing staff and integrate with existing company technology and infrastructure. Opening new fulfillment options, changing promotions and pricing, and setting up workflows should be straightforward.10 The ideal OMS will fit seamlessly with the eCommerce system to enhance customer experience and meet business sales goals. 

Order Management Systems are the way of the future in the eCommerce world. This innovative software can simplify and streamline every system and process within the supply chain by reducing human error, enhancing delivery speed, simplifying multi-sales management, and forecasting future trends. In the competitive world of online retail, an OMS that optimizes the speed and accuracy of order processing across channels can positively affect the customer experience and give your business an edge over competitors. A seamless order fulfillment process provides an opportunity to enhance brand reputation, provide a positive customer experience, and grow revenue.11 Adopting modern, integrated OMS software is the only way for businesses to keep up with the competition and customer expectations by streamlining the entire virtual business process.

Footnotes

1)https://www.bigcommerce.com/blog/order-management/#what-is-ecommerce-order-management

2)https://richpanel.com/blog/order-management-system/

3)https://www.bigcommerce.com/blog/order-management/#what-is-ecommerce-order-management

4)https://kibocommerce.com/blog/order-management-system/

5)https://www.bigcommerce.com/blog/order-management/#what-is-ecommerce-order-management

6)https://paperform.co/blog/order-management/

7)https://www.bigcommerce.com/blog/order-management/#what-is-ecommerce-order-management

8)https://www.brightpearl.com/ecommerce-order-management

9)https://www.shopify.com/enterprise/order-management-system-oms

10)https://www.smartsheet.com/content/order-management

11)https://paperform.co/blog/order-management/

What’s in a name? Facebook, Meta, and trust in the metaverse

Posted on by Jennifer Ryan
BORN Views
What’s in a name? Facebook, Meta, and trust in the metaverse

Towards the end of October 2021 Facebook announced big news: the corporate business was changing its name to Meta, while Facebook the social media platform would remain. 

Mark Zuckerberg has solid reasons for the rebrand. The company needed a broader title, now that it also includes Instagram, Whatsapp and Oculus VR as well as mobile web analytics company Onavo, and Messenger precursor Beluga. Meta reflects a new focus on the metaverse and demonstrates the ambition to lead the way in this future digital realm. As an aside, it’s also worth noting that Facebook the social media site is more popular than ever, but it’s not attracting young people like it used to. A shrewd operator like Zuckerberg knows that it’s better to shift focus when a successful product is at its peak rather than on the decline.

All of this makes sense. First imagined in a 1990s sci-fi novel and conjured up in movies from Total Recall to Wreck-It Ralph, the future metaverse is an exhilarating concept, a place of boundless possibilities and experiences. Zuckerberg wants his company to be its guiding light. Yet many people are sceptical. Was this really the deciding factor for the name change, or was it to distance the business from negative press? 

Trust in Facebook was already low after testimony from whistle-blower Frances Haugen hit the press, telling of polarizing algorithms, understaffing in key areas concerned with safety and a culture that ignored known problems. The rebrand hasn’t helped its cause. A survey by SightX reported that 37.5% of respondents did not believe the name change would bring any real changes to the organization. Many believe it was because of poor public perception, rather than to better fit the company’s future goals and vision. Still, 2022 is a new year and as people start to see the metaverse taking shape they may be more accepting of the reasons behind the rebrand. 

The good, the bad, and the need for regulation

Like Coca-Cola, Facebook the platform is nigh-on universal; open to anyone with internet access. Most of us have been Facebook users at one time or another and have had largely positive experiences. We’ve enjoyed its window into the lives of friends, family and colleagues, the way it has re-connected us with those we had lost touch with and enabled groups of people from all over the world to create communities around niche interests. But there’s no ignoring the bad stuff.

That bad stuff has been coming from all angles. Privacy and a lack of transparency over user data is one issue; the company’s low tax contributions is another. Cloning competitor apps like TikTok (Instagram Reels), and Snapchat (Facebook Stories), has also attracted criticism. Content moderators brought a lawsuit after reporting poor working conditions and post-traumatic stress disorder; some have now been compensated for their experiences. 

But the biggest concerns are to do with the disconnect between Facebook’s mission statement of bringing the world closer together, and the real-world damage caused to individuals, minority groups and sometimes entire nations because the business hasn’t done enough to take down and prevent the spread of fake news and harmful content.

A Wall Street Journal investigation found that changes to Facebook’s content algorithm stoked division and did not do enough to reduce Covid 19 vaccine hesitancy. In addition, Instagram was harming the mental health of teenage girls. UK natural beauty company Lush recently took the radical step of quitting Facebook and Instagram alongside Snapchat and TikTok, citing the negative impact the social media sites have on young people’s mental health.

Comments made by ex-members of Facebook staff together with the company’s own leaked research and that of many other organizations also suggest that not enough is being done to deal with misinformation and malign content. Former Facebook executive Chamath Palihapitiya didn’t pull any punches about the seriousness of the issue, saying ‘We have created tools that are ripping apart the social fabric of how society works’. 

Meta/Facebook stress that they make robust efforts to deal with negative content. The company has just announced the development of a new AI which is quick to ‘learn’ to spot harmful content, rather than taking months of training. 

However, the company has been criticised for placing too much emphasis on reacting to problems and not enough on preventing them. So far, AI does not seem to have been able to spot harmful content before the damage is done. Is it possible to do enough? And how can they be confident about policing behaviour in the future metaverse, with its billions of tiny interactions in every moment? We just don’t know the answers yet. 

Meta’s Horizon Worlds platform may provide a clue as to how moderation of the metaverse might work. Users in this colorful virtual space can report harmful behavior and send recorded data from their device as evidence. They can also activate a ‘safe zone’, a personal space where they can take time out and mute, block, or report users if necessary. Users can be suspended or permanently excluded if they are found to be breaking the rules. Community Guides with their own avatars inhabit the space and keep an eye on things. It’s a mostly reactive rather than preventative approach, but then it’s hard to see how prevention could work. Though some warning signs can be noted, we can’t – yet – predict crime in the way shown in Minority Report.

People might just have to accept that a future virtual world, like social media, reflects society and so will never be perfect. Techdirt editor Mike Masnick put it like this: content moderation is impossible to do well at scale, because in a situation where there are billions of interactions, even if 99.9% of content decisions are ‘right’, the 1% of ‘wrong’ decisions could still represent thousands of negative experience. It will be up to individuals to decide how much time they want to spend in the metaverse and, to a degree, how to keep themselves safe.  

But more regulation will be needed. Businesses exist to make money; it’s governments who must take charge of putting in measures for the sake of the public good. Future metaverse users will be under constant surveillance. VR headsets will be tracking what users see, hear, feel and how they react, both physically and mentally. This puts current concerns about how much Google and Facebook/Meta know about us in the shade. In the metaverse, users could be subject to a constant deluge of exceptionally nuanced marketing that taps directly into the emotions felt during virtual experiences. It needs regulation to ensure that users can control who their data is shared with and always know when they are being marketed to, whether they’re watching a video or talking to an avatar. Somehow, limits for manipulation, whether political or commercial, need to be set, so that people are free to enjoy the metaverse without fear of exploitation. 

The metaverse must be built

The consensus is that the Metaverse should be built by communities, rather than by one corporate entity with a guiding hand at best, or ultimate power at worst. Even Zuckerberg seems to agree, stating in his Meta Founder’s Letter that ‘The metaverse will not be created by one company. It will be built by creators and developers making new experiences and digital items that are interoperable and unlock a massively larger creative economy than the one constrained by today’s platforms and their policies’. Though it’s hard to see Facebook’s name change to Meta as anything other than an attempt to ‘own’ the space. 

Just in 2021, Meta spent $10 billion developing metaverse technologies. The company is creating 10,000 jobs in the EU as part of its growth program. It recently invested more than $50 million in non-profit groups to help ‘build the metaverse responsibly’. Other major players turning their attention to the metaverse are Epic Games, creator of Fortnite, Pokémon Go developer Niantic, graphics technology company Nvidia, blockchain-based virtual world Decentraland, Microsoft, and Apple. 

Meanwhile Elon Musk believes that his own Neuralink brain interface products will eventually offer a better way to experience virtual reality than spending much of the day trying to move around in a VR headset.

So, the issues of the future metaverse, the problems around trust, privacy, transparency, manipulation, and possible harassment are not just Meta’s to solve. All the more reason why it’s important that government regulations keep up with the technology. 

The metaverse will transform our lives. It could enrich our day-to-day experiences, and even reduce our environmental impact by allowing us to be ‘present’ in the office, ‘attend’ concerts hundreds of miles away, and ‘travel’ to see the world’s sites without ever leaving our homes. 

Like the internet in general, and social media in particular, the metaverse will hold a mirror up to our world. There’s extraordinary potential for good, and equally for bad. Meta and others cannot just go through the motions. To create trust, companies need to demonstrate that they are truly doing all they can to keep users safe. 

Above all, metaverse businesses and governments must work together to build the metaverse we want – a creative, inspiring space worthy of exploration, a place where we feel safe and protected, but have the freedom to make up our own minds. 

  1. Founder’s Letter, 2021, Meta, https://about.fb.com/news/2021/10/founders-letter/
  1. Facebook Wants To Attract Young People, But Gen Z Teens Say It’s A ‘Boomer Social Network’ Made For ‘Old People’, Insider, https://www.insider.com/facebook-gen-z-teens-boomer-social-network-leaks-2021-10
  1. This 29-Year-Old Book Predicted The ‘Metaverse’ — And Some Of Facebook’s Plans Are Eerily Similar, CNBC, https://www.cnbc.com/2021/11/03/how-the-1992-sci-fi-novel-snow-crash-predicted-facebooks-metaverse.html
  1. Facebook Whistleblower Hearing: Frances Haugen Calls For More Regulation Of Tech Giant – As It Happened, The Guardian, https://www.theguardian.com/technology/live/2021/oct/05/facebook-hearing-whistleblower-frances-haugen-testifies-us-senate-latest-news
  1. Facebook’s Name Change Receives Poor Marks In New Poll, Forbes, https://www.forbes.com/sites/edwardsegal/2021/10/29/facebooks-name-change-receives-poor-marks-in-new-poll/?sh=30c5c49a444b
  1. Facebook Will Pay $52 Million In Settlement With Moderators Who Developed PTSD On The Job, The Verge, https://www.theverge.com/2020/5/12/21255870/facebook-content-moderator-settlement-scola-ptsd-mental-health
  1. The Facebook Files: A Wall Street Journal Investigation, https://www.wsj.com/articles/the-facebook-files-11631713039
  1. ‘I’m Happy To Lose £10m By Quitting Facebook,’ Says Lush Boss, The Guardian, https://www.theguardian.com/business/2021/nov/26/im-happy-to-lose-10m-by-quitting-facebook-says-lush-boss
  1. Ex-Facebook Executive Chamath Palihapitiya: Social Media Is ‘Ripping Apart’ Society CNBC (via YouTube), https://www.youtube.com/watch?v=MakEIlvlyfE
  1. Our New AI System to Help Tackle Harmful Content, Facebook/Meta, https://about.fb.com/news/2021/12/metas-new-ai-system-tackles-harmful-content/
  1. Horizon Community, Oculus, https://www.oculus.com/facebook-horizon/community
  1. Masnick’s Impossibility Theorem: Content Moderation At Scale Is Impossible To Do Well, Techdirt, https://www.techdirt.com/articles/20191111/23032743367/masnicks-impossibility-theorem-content-moderation-scale-is-impossible-to-do-well.shtml
  1. Founder’s Letter, 2021, Meta, https://about.fb.com/news/2021/10/founders-letter/
  1. Facebook Says It Expects Its Investment In The Metaverse To Reduce Its Profits By ‘Approximately $10 billion’ This Year, Insider, https://www.businessinsider.com/facebook-metaverse-investment-reduce-profits-by-10-billion-2021-10
  1. Investing in European Talent to Help Build the Metaverse, Facebook/Meta, https://about.fb.com/news/2021/10/creating-jobs-europe-metaverse/
  1. Building the Metaverse Responsibly, Facebook/Meta, https://about.fb.com/news/2021/09/building-the-metaverse-responsibly/
  1. Breakthrough Technology For The Brain, Neuralink, https://neuralink.com/

Elon Musk Sits Down With The Babylon Bee, The Babylon Bee (via YouTube) https://www.youtube.com/watch?v=BaRKd4U6Ixg

What’s Causing The Supply Chain Breakdown And Why eCommerce Should Care

Posted on by Jennifer Ryan
BORN Views
What’s Causing The Supply Chain Breakdown And Why eCommerce Should Care

Supply chain disruptions are causing price increases and a growing shortage of goods as the global economy attempts to deal with the ongoing Coronavirus pandemic. Retailers must navigate an unprecedented set of challenges as they contend with delays, stock issues, and customer expectations.1 As lockdowns lift, extraordinary demand for goods has outpaced supply. Consumers are ready to spend money they saved during 2020 and 2021 and are accustomed to readily available goods and nearly instant gratification.2 Unfortunately, the global supply chain bottleneck has resulted in record shortages of once easily accessible products, such as household items, electronics, and automobiles. 

What Caused The Supply Chain Crisis?

The pandemic disrupted nearly every aspect of the global supply chain. It placed enormous strain on the usually invisible manufacturing, transportation, and logistics pathway that delivers goods where needed. The supply chain bottleneck led to PPE shortages such as N95 respirators, gloves, cleaning supplies, and other critical care items needed in medical settings, which threatened our ability to fight the COVID-19 threat.3 The supply chain is like an ecosystem with each part playing an essential role and one unfortunate event can result in repercussions downstream. As the world closed down in response to COVID-19, consumers discovered the safest way to buy products was through eCommerce retailers. Skyrocketing demand for products combined with limited supply led to unprecedented delays worldwide.4 The shipping industry did not have the technology or processing ability to cope with the extreme shift in consumer behavior, and items became backlogged. The disruptions stemming from the pandemic combined with economic issues, such as energy shortages, production shortages and issues at key shipping ports have all contributed to the supply chain problems eCommerce businesses face today.

Chip Shortages

COVID-19 mitigation strategies reduced the production of goods and services as many factories entered lockdowns. Workplace shutdowns in chip manufacturing companies in countries like China, Japan, Taiwan, Vietnam, and South Korea have resulted in a global shortage. This shortage affects the production of electronics like laptops, phones and webcams, appliances, and new cars in which chips are vital components.5 Currently, production of these items remains severely limited, while demand remains high.  

Labor Shortages

Much of the world is facing labor shortages. As companies struggle to find workers for their warehouses, production has struggled to keep up with demand. In August 2021, 4.3 million Americans quit their jobs, and the warehouse industry recorded 490,000 job openings.6 The labor shortage forces companies to go to great lengths to attract workers. Companies are increasing wages to keep up with rising prices, and in some cases offering incentives like free college tuition. Even with these attractive incentives, many potential workers have difficulty reconfiguring their post-covid work futures and are reluctant to return to work as the risk of COVID-19 infection persists.

The Energy Crisis

In countries with manufacturing economies, energy shortages and power cuts have forced productivity to slow in factories, threatening already stressed supply chains. Natural gas supply has failed to meet post-pandemic demand as the energy sector has recovered more quickly than anticipated following a year of reduced coal, oil, and gas extraction.7 Over 20 Chinese provinces are rationing electricity to meet energy efficiency and pollution reductions targets.8 However, there is insufficient renewable energy to replace natural gas, and a coal shortage worsens matters. Global prices for goods and resources produced in China, such as steel and aluminum, will significantly increase if factories contend with widespread power shortages. 

Transportation and Logistics Challenges

A global shipping problem is compounding the supply chain crisis by making it difficult for sellers to obtain needed goods, even if they are available. Transportation bottlenecks at ports such as Los Angeles, Long Beach, and Oakland have increased wait times for ships to unload cargo.9 A robust trade of goods strained the available supply of shipping containers, ships, and port operations worldwide. 

When the pandemic halted international trade in April 2020, empty containers were no longer collected and redirected for reuse. Over a year later, shipping companies are still trying to get containers to ports where they are needed most. In response, the cost to ship items has risen by 480%, which makes some international trade no longer profitable.10 To complicate matters, a shortage of dockworkers and truck drivers prevents goods from being offloaded and reaching their destination in a timely fashion.11 The lack of these critical components results in more scarcity in the supply chain, leading to even more shortages and price increases. 

What eCommerce Retailers can do to Mitigate the Impact of the Supply Chain Crisis?

The global supply chain is a fragile and highly interconnected ecosystem. When unprecedented issues occur, they produce a ripple effect that eCommerce retailers can feel on the other side of the world. Businesses will need to be proactive in their approach to managing these effects. Optimizing operational performance and prioritizing efficiency at every leg of the supply chain is essential to ensure the best use of existing capacity. Retailers should consider implementing productivity improvements such as redesigning warehouses and investing in lean operations to increase productivity and mitigate the risk of disruptions caused by labor shortages.12 It is imperative retailers understand precisely how their supply chain functions. It can be helpful to locate and work with alternative suppliers to ensure a steady flow of necessary parts and materials.13 It is tempting for retailers to concentrate the majority of their business with one supplier in pursuit of volume discounts, but fragmenting the supplier base can help to ease capacity constraints and create new opportunities for sourcing materials as demand for products continues to fluctuate. 

If a business can source more of their needs locally, that can also be helpful. Though adding new suppliers is not an easy solution and may result in a higher cost of sourcing materials, it can help a business mitigate risk and avoid disruptions to production.14 Additionally, eCommerce retailers should consider allowing double or triple the lead time for ordering stock due to potential shipping delays.15 It’s essential to stay ahead of seasonal curves when consumers are more inclined to make purchases. Finally, retailers should maintain customer expectations of quality while being honest with their customers and communicating any potential delays.16 Customer expectation management is critical when it comes to protecting brand reputation. 

1)https://abcnews.go.com/Politics/whats-causing-americas-massive-supply-chain-disruptions/story?id=80587129

2)https://cnet.com/features/you-shopped-like-never-before-the-supply-chain-couldnt-handle-it/

3)https://abcnews.go.com/Politics/whats-causing-americas-massive-supply-chain-disruptions/story?id=80587129

4)https://www.bloombergquint.com/gadfly/supply-chain-disruptions-almost-too-many-reasons-to-count

5)https://www.bloombergquint.com/gadfly/supply-chain-disruptions-almost-too-many-reasons-to-count

6)https://abcnews.go.com/Politics/whats-causing-americas-massive-supply-chain-disruptions/story?id=80587129

7)https://www.bloomberg.com/news/articles/2021-09-27/europe-s-energy-crisis-is-about-to-go-global-as-gas-prices-soar

8)https://blog.edesk.com/resources/us-supply-chain-crisis/

9)https://www.nytimes.com/2021/10/22/business/shortages-supply-chain.html

10)https://blog.edesk.com/resources/us-supply-chain-crisis/

11)https://info.waxie.com/blog/key-factors-responsible-for-supply-shortages-in-2021

12)https://www.mckinsey.com/industries/retail/our-insights/ten-steps-retailers-can-take-to-shock-proof-their-supply-chains

13)https://www.mckinsey.com/business-functions/operations/our-insights/risk-resilience-and-rebalancing-in-global-value-chains

14)https://blog.edesk.com/resources/us-supply-chain-crisis/

15)https://www.modernretail.co/startups/dtc-briefing-how-supply-chain-shortages-are-impacting-e-commerce-operations/

16)https://blog.edesk.com/resources/us-supply-chain-crisis/

17)https://blog.edesk.com/resources/us-supply-chain-crisis/

Recommerce: Exploring Reselling Within eCommerce

Posted on by Antony
BORN Views
Recommerce: Exploring Reselling Within eCommerce

The resale market is getting a makeover. Companies are finding ways to take back used consumer goods and repurpose or resell them to interested customers. Recommerce refers to the buying and selling of previously owned items and is set to grow at a rate of 11x that of regular retail.1 Consumers are keen on the idea of recycling and repurposing and have been increasingly buying secondhand goods. In response, the number of online resellers has exploded to keep up with consumer demand for affordable and sustainable alternatives to buying new. While the concept of reselling goods is nothing new, the way that consumers and sellers are coming together is currently evolving.2 Recommerce platforms have enabled peer-to-peer transactions to increase. Even high-profile brands recognize the opportunity resale has to offer, and have created their own recommerce marketplaces. Recommerce is more than just a cost effective way to achieve sustainability; it is a business opportunity rooted in circular economic principles.

The World of Recommerce is Changing

Once confined to brick and mortar stores, sites like eBay and Etsy now provide a platform that allows buyers and sellers to purchase and sell items in a thrift-like marketplace. However, a plethora of online startup recommerce brands like Poshmark, Mercari, Tradesy, ThredUP, and The RealReal have allowed the industry to grow to new heights.3 While eBay and Etsy allowed for sellers to list just about anything for sale, these newer sites have boosted transactions by building online communities and using data to learn which brands are currently trending. Poshmark’s annual report revealed consumer buying habits depend greatly on generation. Baby Boomers favored well-known, higher-end brands, like Coach and Michael Kors, while Generation X preferred more mid-priced goods like Tory Burch, Kate Spade and Patagonia. Millennials are most likely to purchase goods from brands that would typically be found in an American mall, like Nike and Antrhopologie, and Gen Z purchased secondhand items from across the spectrum. Their top Poshmark brands are Gucci, Adidas, and Brandy Melville.4 

Recognizing the success of recommerce among peer-to-peer platforms, large companies, particularly clothing retailers, are seizing the opportunity to connect with consumers like never before. For example, buy-back campaigns create incentives for recycling and strengthen the relationship with consumers by offering a way to address concerns over sustainability.5 In moving towards a circular economy, companies can generate profits and eliminate waste by keeping materials in use for as long as possible. The cost effectiveness of recommerce combined with the ability to strengthen the bond between retailer and consumer makes it an appealing strategy for businesses.

Recommerce is Gaining Traction

An emphasis on conscious consumption has grown in the past few years, but changes in attitudes and actions have increased significantly in response to the pandemic. Consumers are concerned about the effects of their purchases and are re-evaluating their priorities and choices. By changing their buying habits, consumers can continue to shop while still caring about sustainability, and resellers can earn extra money, save space and avoid waste.6

Already gaining popularity pre-pandemic, recommerce websites received a huge boost when COVID-19 forced many stores to close their doors and individuals to tighten budgets.7 With more free time, reliable internet (5G), and a desire to escape the pandemic, shoppers discovered an endless aisle of secondhand goods to browse on the internet. Despite decreased disposable income, retail therapy continued to thrive as recommerce websites connected shoppers with affordable goods without ever leaving home. To make the situation even more appealing, apps like Poshmark accept almost every form of payment including credit or debit cards, Affirm, Apple Pay, Google Pay, PayPal, and Venmo.8  All of these factors encourage shoppers to visit recommerce marketplaces and contribute to the growing recommerce economy. 

Benefits of Recommerce

Both individuals and large companies can benefit from recommerce. While individuals have much to gain from peer-to-peer platforms that allow for an easy exchange of goods, large companies are finding different ways to capitalize on the recommerce industry. Consumers are concerned about the negative impact of their purchases on the environment and are looking for ways to reduce their consumption. In response, retailers are developing creative solutions to source and reuse materials for new products so that consumers can feel better about buying their products. 

Upcycling, the act of converting a used product into something new,9 is a concept that is being adopted by many notable companies such as Timberland, Adidas, Zara, and Patagonia to name a few. Timberland is reusing rubber from used tires for the soles of many of its boots. Similarly, Adidas has produced nearly 6 million pairs of shoes using recycled ocean plastics, and Zara is producing a line of denim made exclusively from recycled denim waste.10 Programs that provide customers with incentives for recycling such as Patagonia’s Worn Wear initiative encourage customers to return used goods to be refurbished and sold in exchange for credits towards future purchases once received.11 All of these measures are cost effective means of sourcing materials. 

Recommerce is Here to Stay

Many notable companies are embracing the concept of recommerce as a way to reconnect with customers. There is a changing consumer mindset regarding ethical and environmental issues. Younger consumers care deeply about the environment and will continue to demand accountability from companies.11  According to a study conducted this year by Green Print, an environmental technology company, 75% of Millennials and 63% of Generation Z are willing to pay more for an environmentally sustainable product.13 In many cases, younger consumers prefer secondhand products because they are more affordable and better for the environment.

Recommerce offers an avenue for retailers to acquire new customers who might not have previously purchased full-price items in the past. For example, Levi created a buy-back and resale program where customers return their used denim in exchange for a gift card. Levi then sells the used clothing at a fraction of their original cost on the store’s website. This allows Levi to reclaim and authenticate its goods at a low cost to them, and turn a profit on an item that they have already sold once. This is a win-win as shoppers know they have made a sustainable purchasing decision, and Levi can earn additional profits, protect the authenticity of their brand, and strengthen the relationship they have with their customers.14

There is real consumer demand for sustainable recommerce models. Consumers will seek products from brands that align with their values and will expect retailers to offer transparency regarding how they source materials and manufacture goods. Through the implementation of recommerce initiatives companies can save resources, restore value to used items, improve brand image and generate profits. With increased pressure on the retail sector to act more socially and environmentally responsible, recommerce offers an opportunity for businesses to succeed in the post-pandemic world. 

Footnotes

1. https://www.greenbiz.com/tag/recommerce

2. https://www.liebertpub.com/doi/full/10.1089/sus.2020.29178.ers

3. https://nymag.com/strategist/article/recommerce-apps-changing-online-resale-depop-poshmark-real-real.html

4. https://superposher.com/blog/top-poshmark-brands/

5. https://www.zerowastescotland.org.uk/content/what-are-circular-economy-business-models

6. https://www.easyship.com/blog/rise-of-recommerce

7.  https://support.poshmark.com/s/article/284791087?language=en_US

8.  https://getshogun.com/learn/what-is-recommerce

9. https://www.liebertpub.com/doi/full/10.1089/sus.2020.29178.ers

10. https://www.zara.com/us/en/z-join-life-mkt1399.html

11. https://www.easyship.com/blog/rise-of-recommerce

12. https://www.businesswire.com/news/home/20210322005061/en/

13. https://www.forbes.com/sites/niallmurphy/2021/02/17/theres-a-quiet-revolution-underway-with-recommerce/?sh=7b2c9a405bfc

14. https://www.forbes.com/sites/niallmurphy/2021/02/17/theres-a-quiet-revolution-underway-with-recommerce/?sh=7b2c9a405bfc

eMarketplaces: Unlocking The Value of Platform Economy

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eMarketplaces: Unlocking The Value of Platform Economy

By: Aditya Basu

Unlocking & navigating the platform economy through a nuanced ecosystem strategy are en vogue these days, both in boardroom discussions and consumer preferences. Today, the world’s 6 most valuable companies by market capitalization and around 80% of the world’s unicorn startups operate a digital ecosystem that enables two-sided market dynamics and have gained enormous market share through network effects.

Platform businesses bring together producers, sellers, and consumers in high-value exchanges. Their chief assets are information and interactions, which together are also the source of the value they create and their competitive advantage. One of the classic examples of leveraging the platform economy through achieving critical mass & network effect is through the meteoric rise of Apple’s iPhones between 2007 – 2015. Though Nokia, Samsung, Motorola, Sony Ericsson, and LG collectively controlled 90% of the industry’s global profits in 2006, by 2015 the iPhone singlehandedly generated 92% of global profits by leveraging the power of platforms through a two-sided marketplace strategy.

McKinsey forecasted that 30% of all global economic activity, $60 trillion, will be mediated by platforms and ecosystems in 10 years’ time & Gartner says that “By 2023, at least 70% of the enterprise marketplaces launched will serve B2B transactions.” Yet, only 3% of established companies worldwide have adopted an active marketplace strategy. 

While the platform economy offers the most profitable & lucrative business model, online marketplaces are tough to build and achieve the “Critical Mass.” The classic chicken & egg conundrum, “To attain a critical mass of buyers, you need a critical mass of suppliers—but to attract suppliers, you need a lot of buyers.” 

We are in the midst of a seismic shift in business and society. Understanding platform strategy will be vital to grasp tomorrow’s economic models.

Evolution of Brand Economy: Omnichannel to Ecosystem Play

Today’s customers increasingly expect a seamless, integrated, consistent, and personalized experience with their service providers which current multi-channel models, with their multiple silos of customer contact, are unable to provide. A fully integrated response to these new customer requirements will need to be both customer-driven and omnichannel in nature. As we speak, large conglomerates are struggling with the “IF & HOW” to leverage digital platforms and ecosystem models for their industries. The key CXO challenge today is to create a core platform that can deliver incremental growth along with the new business & operating models around customers, partners & competitors.

Digital marketplaces have been the pulse of the consumer industry, yet many brands struggle to strike the correct chord. The shift in consumer behavior during the COVID-19 pandemic accelerated digitization even further. However, the online marketplace model has persisted, driven by consumers seeking the convenience and broad assortment that marketplaces provide. In fact, online marketplaces now represent 58% of global web sales, totaling more than $2 trillion annually.

Broad Pivots of Marketplace Operations: Strategy to Execution

The typical marketplace model has millions of customers, multiple systems, and complex operations. Any brand trying to enter the marketplace will have to swim through the chaos to ace their digital marketplace strategy. We simplify the Marketplace model from the lens of 5 broad pivots of Marketplace Operator, Enterprise commerce & marketing capabilities, the right partnerships & alliances in Fulfillment, logistics & Financial services along with building a best in class Tech & Data Ecosystem, as depicted in the graphic below.

Our key capabilities encompass our methodology of Imagine, Build and Run; we develop and implement strategies for customers to grow profitably in a borderless, digitally-and-physically connected world. We lead brands from strategy to execution by setting up feasible business & operational models, defining KPIs, setting up integrated applications to enable associates, and finally delivering exceptional customer experience driven by our Stella Framework.

A few notable value drivers on Marketplace implementation include, but are not limited to;

  • Revenue augmentation with multi-channel & cross-border sales
  • Improved customer targeting & analytics through digital marketing, micro-segmentation & social integrations
  • Cross-sell & Up-sell opportunities through tailored pricing, product bundling & increase AoV (share of wallet)
  • Business process optimization
  • Walking the Talk Leadership: Marketplace Implementation across the globe

Walking The Talk Leadership: Marketplace Implementation Across The Globe

Recently we were approached by one of Asia’s largest transportation hubs to become their digital growth partner, to develop & manage its next-generation omnichannel e-Commerce Marketplace for onboarding and tenant management. BORN developed an experience-led Marketplace platform to provide a personalized shopping experience for Sellers (B2B), consumers (B2C), Enterprise users (B2E). The implementation has helped them to optimize marketing effectiveness, improve operational efficiency with faster time to market, accelerate conversions, and enable topline growth through upselling & cross-sell.

For more information in regard to BORN Group’s Marketplace offerings and further case studies, please inquire here.

Best Practices: 11 Trends in ERP Systems

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Best Practices: 11 Trends in ERP Implementation

Enterprise Resource Planning (ERP) software has undergone significant changes since its earliest incarnations. ERP has historically consisted of monolithic standalone systems dedicated to specific business processes found, for instance, in early Manufacturing Resource Management (MRM) systems1. These implementations were limited in scope and restricted to local instances, unlike the distributed systems in use more recently. 

Current ERP solutions are more flexible and configurable than ever, with many ERP vendors moving to cloud-based solutions. These systems can be upgraded and configured on the fly with little to no need for on-site support. Alongside this shift toward reconfigurability and flexibility afforded by cloud solutions, we’ve also seen a broader movement to integrate a range of innovative contemporary technological paradigms. For instance, with the use of the cloud, many vendors have begun to conceive of ERP as a SaaS rather than a traditional licensing model. Other offerings include increased integration of data and analytics, which can help improve productivity, more tiered ERP services, security features, support for mobile devices, the Internet of Things, and the use of Artificial Intelligence.

Overall, many of these trends can be attributed to a significant change in the landscape of the ERP vendor industry. Here we outline 11 top trends in ERP systems today, especially as they apply to digital agencies.

Trends in ERP Systems #1: Cloud-based ERP 

Cloud-based ERP solutions are becoming increasingly popular due to their flexibility, scalability, and cost-effectiveness. Traditional ERP systems require businesses to make a significant upfront investment in hardware and software, which can be a major barrier to entry. Businesses pay a subscription fee based on usage, making it a more affordable option for businesses of all sizes. Additionally, cloud ERP offers greater flexibility, allowing businesses to scale their operations up or down as needed.

Note that the shift to cloud-based ERP solutions didn’t fall out of the sky. The trend has been emerging since the mid-1990s wherein, rather than concentrating on enhancing core functionality, ERP companies are moving toward reconfiguring their systems for cloud compatibility. As Frank Scavo, president of management consulting firm Strativa, explains, “Many companies are finding it easier to add in cloud-based point solutions for things like human capital management, CRM (customer relationship management), expense management, and other functions.”2 With the cloud, such improvements can be thrown in ad-hoc with minimal to no downtime.

Trends in ERP Systems #2: Mobile Apps & Remote Work

Mobile ERP apps are becoming more popular as remote work becomes the norm. These apps provide employees with access to critical business data and functions from their mobile devices, making it easier for them to stay connected and productive.

Mobile ERP apps allow employees to access the system from anywhere at any time. This is especially important for businesses with remote workers or employees who travel frequently. Mobile apps also allow employees to collaborate more easily, regardless of their physical location.

Trends in ERP Systems #3: SaaS systems

As part and parcel of the move to the cloud, many ERP solutions have begun to operate through a software subscription model or as a Software as a Service, or SaaS. This adds an important layer of convenience and flexibility for digital agencies over a traditional software licensing model. With ERP delivered as SaaS, many of the time-consuming software pitfalls, like site-wide upgrades, security issues, and costly user provisioning, are reduced or eliminated altogether. As PCMag explains, “Traditional ERP applications are stored on your servers, which means you’re responsible for upfront hardware costs, long-term hardware maintenance and expansion, and data backup and recovery. SaaS-based apps are stored on cloud-based servers, which are much less expensive, much quicker to update and scale, and don’t take up any valuable office space”3. By using a multi-tenant SaaS model, your ERP is fully scalable and grows as your agency increases in size, impact, and productivity.

Trends in ERP Systems #4: Data Utilization

The move to the cloud has also allowed the broad-level use of data to improve ERP functionality. Imagine a customer relationship management software that is capable of building sophisticated models of your highest-performing customer demographics and then integrating this information across your agency’s business operations. Or perhaps you’d like to base a proposed HR investment in business development on analytics that relate BD employee performance with overall profit figures. These are only a few of the applications that become possible with a robust ERP solution that integrates powerful data sources for a competitive advantage. Such possibilities based on the integration of data in ERP solutions will only continue to expand. The best advice for marketing and ad agencies: start utilizing data in your ERP solution today.

Trends in ERP Systems #5: More tiered services

As digital agencies grow, some will adopt multi-tiered business structures. If your agency does not already have an HQ and subsidiaries, the prospect may be around the corner, or it may remain for some time a distant goal. Traditionally, ERPs have not addressed these tiered structures directly; ERP functionality was generally the same regardless of which business hierarchy was using it. Over the years, many have asked how an effective ERP solution could better support such a tiered business structure. Thankfully, ERP systems have begun to fully support such tiered structures, for instance, by offering specific services to the top-tier headquarters and others designated for the operation of subsidiaries4. Regardless of the size of your agency, you’ll want to seriously consider the benefits of future-proofing your operation by choosing an ERP solution that supports tiered services.

Trends in ERP Systems #6: Security

The need for intelligent and reliable security has grown exponentially alongside the increased dependency on cloud-based connected ERP solutions. Importantly, the shift toward cloud-based ERP solutions has occurred alongside a sharp increase in security threats across the board, creating a potentially alarming demand for security as an integral component of an effective ERP solution. Cyber attacks, in general, can cause immense irreparable damage. Estimates have put the total global cost of cybercrime at over $8 trillion in 20235. A trend that will be increasingly important for agencies is the prevention of such cyber attacks, especially where an ERP system is involved.

Trends in ERP Systems #7: Artificial Intelligence (AI) & Customer Experience

AI has been a driving force in the rapid transformation of technologies across industries, and the ERP landscape is not exempt from these changes. Broadly speaking, AI is a field of computer science that is concerned with the modeling of human cognitive processes for use in any and all computational applications. The implications for ERP systems are innumerable in that virtually every ERP component can utilize AI for performance enhancements and improvements in integration and productivity.

Take, for instance, the use of AI for improving customer relationship management. A noteworthy CIO article states, “An AI-enabled ERP solution for customer service integrates the customer interaction with the work order management process. The AI solution understands and learns from historical inspection reports and work orders.” The article explains further, “Depending on the nature of the customer inquiry, it gives a proposed answer to the service agent. The AI solution assists with the planning and scheduling of the work by finding the earliest possible date to dispatch a service technician,” which is possible because the AI agent knows the required skill set and availability of the required parts.

Trends in ERP Systems #8: Internet of Things (IoT) 

IoT refers to the proliferation of devices, products, and objects that are connected to the Internet. What this means for ERP systems is that your entire infrastructure—including hardware, physical systems, and even employees—can be monitored and tracked. The data produced through this process can then be integrated into the functionality of the ERP system. Want to track how often a workspace is used in your ad agency to help determine future infrastructure plans? A room equipped with sensors and biometric tracking can provide real-time analytics to help with critical resource allocation decisions. Such a scenario represents only the beginning of the possibilities that will arise with IoT.

Trends in ERP Systems #9: Startups

As noted above, many recent and forthcoming innovations on the ERP landscape’s horizon can be attributed to the dynamism introduced by the increased presence of startups. For instance, the push toward cloud-based solutions has come to a large extent from smaller ERP startups whose cloud-based features have, in turn, influenced larger vendors to follow suit. This is an example of the phenomenon that occurs when a smaller company is able to use its flexibility to its advantage by fulfilling a unique position in the marketplace. Such a situation is doubtless a boon to marketing and ad agencies, who continue to benefit from the rapid innovation we regularly see from startup disruptors.

Trends in ERP Systems #10: Content Management

ERP systems are increasingly being used for content management. By integrating with content management systems (CMS), businesses can manage all their content in a single system. This can improve efficiency and reduce the need for multiple systems.

Content management features include asset management for documents and digital assets and web content management. These features allow businesses to manage all their content in a single system, reducing the time and resources required to manage multiple systems. 

Trends in ERP Systems #11: Empowered Users

Enhanced ERP features related to cloud-based services, SaaS systems, data integration, tiered services, security, AI, mobile devices, and IoT all mean ERP users are more empowered than ever to choose an ERP solution. With the introduction of new startups to an ERP landscape formerly dominated purely by large-scale vendors, the result is a more rapid turnover of new features and competitive functionality.

An equally valuable shift is the decrease in cost for ERP customers. As Amit Patel, managing director in the enterprise solutions business at Huron, has explained, “ERP vendors are being very aggressive in protecting their core offering and, as a result, pricing models are being updated to ensure they remain competitive6. This means customers now get the best and most comprehensive ERP features at highly competitive prices.

For more information on BORN Group’s service offerings across ERP, please visit here.

[1] http://whatis.techtarget.com/definition/Manufacturing-resource-planning-MRP-II

[2] http://searcherp.techtarget.com/feature/The-top-seven-ERP-trends-for-2017-and-beyond

[3] https://www.pcmag.com/article/351807/5-enterprise-resource-planning-erp-trends-to-know-in-2017

[4] http://searcherp.techtarget.com/feature/The-top-seven-ERP-trends-for-2017-and-beyond

[5] https://securityintelligence.com/articles/7-reasons-global-attacks-will-soar-2023/

[6] http://searcherp.techtarget.com/feature/The-top-seven-ERP-trends-for-2017-and-beyond

Personalization: The Key to Creating an Exceptional Customer Experience

Posted on by Antony
BORN Views
Personalization: The Key to Creating an Exceptional
Customer Experience

Personalization has come a long way from only addressing the customer by name in a direct marketing email that arrives in your inbox – of all the digital strategies being talked about in the race to better customer experience, and thereby setting your brand apart from the competitors, personalization has now grown to be the most paramount.

It has been shown time and again that personalization drives engagement and builds relationships with the customer, making it one of the most important tools in a marketer’s toolbox. A whopping 91% of consumers are more likely to shop with brands who recognize them by name, remember their preferences, and provide them with relevant offers and recommendations1. A customer that is seen and heard and feels special is one that will return.

As opposed to the customization of products or services to suit a particular individual, personalization is the tailoring of an experience based on the customer’s previous buying behavior and preferences. The holy grail is to offer the customer an intelligent and contextual, and therefore superior customer experience, which in effect creates more value for the business.

In the past, marketing communications was mostly one-way. The new approach using data to ground insights begins a conversation with the customer.

The underpinning of personalization is data. Most of this data already exists within an organization in the form of the technology that enables every sale – sales and support information can be folded into customer data platforms (CDPs) and enterprise resource planning (ERP) systems, unstructured data in the form of positive or negative feedback, reviews and social commentary consolidated into reputation management systems – all that data just needs to be harnessed, analyzed and put to work not just as the end of the shopping funnel but throughout the customer journey.

Here are a few paths to personalization of the customer experience:

  • Personalized home page, navigation, and copy: New visitors need to be targeted with tailored messages, pages, and navigation compared to returning visitors or regular customers because they aren’t very familiar with the brand or the website. Personalized pop-ups and greetings are one way to do this. Encouraging social sign-ins are another. By understanding target customers’ pain points, interests, and problems, you can also target relevant copy for different segments, thereby increasing conversion. Knowing device types also means mobile users can be offered a different experience compared to those using a tablet or laptop.
  • Location targeting/geofencing: Visitors from different countries are segmented and these segments to allow for personalized pages and experiences. A US apparel brand could have different sizes, not to mention currencies, compared to the UK site. Geolocation targeting also enables daily or seasonal weather-related personalization. One new development is geofencing which puts a ‘virtual fence’ around a physical location. Geofencing triggers a command to the mobile phone when an individual enters or leaves a geofence. Whole Foods launched geofences around their competitors’ locations. When a customer using the Whole Foods app came into or left the geofence, they would receive ads with store-specific offers2. The campaign is said to have had a post-click conversion rate which is more than 3x the industry average. 
  • Predictive personalization: Amazon, followed by Youtube and Netflix, made the ‘Recommended for you’ feature famous. These days, many brands suggest options while the customer is buying or even at checkout to upsell their products and increase average order value. Uniqlo measures neurotransmitters in their UMood kiosks to gauge customers’ reactions as they are shown different clothing items in kiosks. The AI algorithm then uses that data to recommend products3.
  • Retargeting: Google Ads offers brands the ability to remarket their product to visitors who visit their website in other locations. Since they have already shown interest in the brand, retargeting offers another avenue to complete the sale. Conversely, personalization also means that the transition from clicking from an ad to get to your website is seamless and the text matches to suit.
  • Category specific offers: Just as with initial contact, segmentation offers a chance to target specific offers to specific customers. One effective example is how Sephora used to announce all their products to all their customers, but now they send only relevant information with their behavioral-based email program4.
  • Gamification: Using gamification in your brand marketing strategy helps brands know their customers better through features such as quizzes or creating user profiles and avatars. Awarding points is another method can keep consumers loyal. Makeups and skincare brands such Sephora’s skincare quiz or Roadrunner Sports’ “Which Nike shoe fits your personality” are great examples of gamifying your commerce experience to drive return traffic5.
  • Video tutorials and inspiration: Offering how-to videos and tutorials post-sale turns customers into repeat customers. Technology has made it easy to offer personalization even in video and editing techniques mean that text in a video can be customized for easy consumption. Inspiration areas are used by many brands’ websites to guide customers through their product line.
  • Lead generators: Displaying offers free trials or discounts tactically are a useful feature to generate customer leads and keep them on your page. An exit discount pop-up box is one way to do this.
  • Omnichannel delivery: Features such as ‘Continue watching’ and ‘Watch from the beginning’ made popular by Netflix are also being used by retail brands that have a presence on different channels. Headless CMSes can enable shoppers to switch between devices for a seamless experience while also remembering their preferences. Neiman Marcus, for example, remembers your size when you return6.
  • Chat and customer support: AI and machine learning is being used especially with chatbots which can gather data and segment customers, especially if you don’t have the resources to offer round-the-clock support. Information and predictive analysis can be pulled up for customer-facing employees for an enhanced customer service experience. 

More brands are offering hyper-personalized experiences at every customer touchpoint. With enough data, customers can be shoehorned into each segment of one. However, personalization can make the marketing mix more complex and such complexity is both time and resource intensive. Therefore, A/B testing is a key factor to check efficacy before embarking on individual personalization strategies.  

Furthermore, using customer data for the purposes of curation and interaction is treading a fine line – brands would reap the benefits if they were to make their processes transparent, respect data privacy, and safeguard customers’ data while doing so. In the end, personalization is as much about customer behavior and their needs as it is about their data.

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Footnotes

1. Accenture 2018 Personalization Pulse Check. https://www.accenture.com/_acnmedia/PDF-83/Accenture-Pulse-Check-Infographic.pdf 

2. Thinknear Location Score Index, Q4 2017. http://info.thinknear.com/rs/835-JWB-681/images/Thinknear_Location_Score_Index_Q4_2017.pdf?utm_source=&utm_medium=&utm_campaign=&utm_term=&utm_content=

3. AI In Retail: How Tech Is Changing The Customer Experience, Forbes.com, March 26, 2019. https://www.forbes.com/sites/forbestechcouncil/2019/03/26/ai-in-retail-how-tech-is-changing-the-customer-experience/?sh=47f31dc1958a

4. Accelerating Agility: eCommerce Marketing Lessons from Sephora, Bluecore.com, https://www.bluecore.com/blog/accelerating-agility-ecommerce-marketing-sephora/

5. Roadrunnersports.com, https://www.roadrunnersports.com/blog/quiz-which-nike-shoe-best-fits-your-personality-free-rn-or-free-rn-flyknit/

6.  5 Outstanding Omnichannel Retail Examples In Fashion, Intelistyle.com, https://www.intelistyle.com/omnichannel-retail-best-examples-fashion/