Reverse Logistics: How to Manage Your Product Returns Efficiently?

 

How does reverse logistics work?

For a better understanding, reverse logistics can be broken down into 3 stages:

1/ Return processing

The consumer signals that he or she wishes to return a product, the company accepts the return and schedules shipment. Some sites also provide returns already printed within the parcel. They are informed of the return when it is processed by an external service provider.

2/ Sorting returned products

Here you need to inspect the products and determine their return category. To improve the efficiency of your reverse logistics, don't hesitate to categorize products according to different options: to be repaired, resold as new, resold as a return, recycled, scrapped or refurbished.

3/ Restock

Put products ready for resale back on sale, and integrate them back into your existing stock

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by Haro Valentin

Marketplace: Essential Guide to Boosting Your E-Commerce

8.8 billion dollars: yes, that's quite a sum. And, above all, it's the estimated share of sales on marketplaces between now and 2025. This would represent 70% of e-commerce, according to McKinsey (2022) and Be STF research & analysis.

Digital marketplaces continue to grow and seduce buyers and sellers alike. Good news for your company: it's not too late to learn how to ride the wave.

If you're interested in the world of marketplaces, you've come to the right place: so, what is a marketplace? How does it work? What are the best practices for selling effectively on them?

Follow the guide!

Definition: What is a Marketplace?

A marketplace is an online platform that facilitates contact between buyers and sellers. It's also known as a marketplace, shopping platform, multi-vendor e-commerce site..

On this type of website, sellers (independent, professional or private) can sell their products, solutions or services. In most cases, a commission is charged by the marketplace for each sale made. Other remuneration models exist (and we'll tell you about them shortly).

To best visualize this definition, imagine a large digital shopping mall. The marketplace is the mall. Each store inside represents a partner vendor. Visitors, meanwhile, can stroll from store to store... without leaving the mall, without disconnecting from the marketplace.

Does this business model appeal to you? You're not alone. For several years now, the marketplace world has been booming. Consumers are seduced by it, with 92% of shoppers planning to use marketplaces more and more (Mirakl 2022). 52% of French people even say they prefer to do all their shopping on a single site (Yougov 2021).

For sellers, a presence on a marketplace offers increased visibility, web traffic and sales. For example, in 2020, despite the Covid-19 crisis, partner sellers increased their sales by an average of 24% on marketplaces. Marketplaces grew at twice the rate of e-commerce. And this is just the beginning! (Mirakl study, 2021).

How do Marketplaces work?

Do you sell products or services? BtoC or BtoB? There's bound to be a marketplace platform that's right for you. But before choosing one, it's important to understand the different models that exist.

Not all marketplaces are remunerated in the same way. For example, some marketplaces offer their vendor partners :

• A commission on sales: the marketplace takes a percentage of each sale. These commissions may be fixed or proportional to the amount of the transaction.
• Registration or listing fees: sellers must pay a one-off or recurring fee to publish their products, services or solutions on the platform.
• Additional fees: for example, some platforms like Rakuten offer services to outsource inventory management, storage or shipping of your products.
• Monthly subscriptions : the price of these subscriptions generally covers features and benefits for partner sellers (such as greater visibility for their offers, lower commissions, etc.).
• Paid advertising: to highlight certain products or services, platforms may offer paid promotion options on ads.

Some marketplaces may also combine different remuneration models, to diversify their revenue streams. What's more, some platforms also offer direct sales. This is not the case with Rakuten, which focuses 100% of its efforts on sellers.

At Rakuten, our compensation model is based on two offers, tailored to your business:

1. A free starter package, with a higher variable commission and management fees.
2. A paid expert subscription, with a lower variable commission and management fees.

 

Why sell on a Marketplace?

Now you know what a marketplace is, and how this type of platform pays for itself. But as a professional seller, do you know why you should choose this simplified form of e-commerce?

If you're still hesitating to take the plunge, here are 7 advantages of selling on Marketplace 2.0:

• Improve your company's visibility: each marketplace benefits from an established user base and traffic. Sellers can thus increase their visibility.
• Multiply sales opportunities: with its large, ready-to-buy customer base, a marketplace facilitates the generation of new opportunities. Sellers benefit from a continuous flow of potential customers to their listings.
• Reduce marketing costs: by joining a marketplace, sellers don't have to start from scratch. They can take advantage of integrated marketing tools (product promotion, targeted advertising, recommendation of similar products) and an existing website (without having to develop their own technological infrastructure and communicate on it). The marketplace's loyal visitor base also limits acquisition costs. The result? Big savings!
• Simplify sales and logistics processes: many marketplaces, such as Rakuten, offer order management, storage, packaging and shipping services. With such simplified processes, sellers can concentrate on producing quality products.
• Secure transactions: selling on a marketplace means taking no risks when it comes to secure payment. This ecosystem is highly regulated. As an intermediary, the platform guarantees the smooth running of your sales transactions and data management.
• Create a complementary sales channel: joining a marketplace doesn't mean giving up your traditional sales channel (physical store, e-commerce site, social shopping, etc.). It simply means multiplying additional sales opportunities! The marketplace is a choice compatible with your other channels, to amplify your reach on the Internet.
• Boosting trust and credibility : a reputable marketplace offers a high level of credibility to sellers. And the good news is that buyers prefer to shop on a platform they can trust. This is your chance to earn their trust too!

What are the different types of Marketplace?

There's a marketplace for every business. Whatever your sector, you can invest..

1. A B2C marketplace

A case in point? Rakuten.

At Rakuten, we've been supporting the digitalization of 8,500 B2C businesses since 2002. Sellers of products or services for private individuals can create their online store on our marketplace, in a digital shopping mall visited by 15 million people.

2. C2C Marketplace

A case in point? Rakuten too!

In our 2.0 shopping mall, 50% of products sold are second-hand. Consumers can sell their products, thanks to the "consumer to consumer" model. They benefit from numerous advantages (€5 free on the first sale, immediate redemption, Club R loyalty points, etc.)

 

 

3. B2B Marketplace

A case in point? Unite (formerly Mercateo).

Unite (formerly Mercateo) has been revolutionizing the B2B market for 20 years. On this business-to-business marketplace, companies can buy office supplies and furniture, industrial equipment, catering equipment... A total of over 3.5 million products, in 13 countries!

In B2B, there are also numerous "cloud marketplaces". These online platforms offer cloud services and solutions from different suppliers, accessible from a single location.

4. Services marketplace

A case in point? Rover.

Rover is a specialized marketplace enabling pet owners to find pet sitters and walkers, worldwide. Over 2 million pet owners in 10 countries have booked services through the marketplace!

5. Vertical Marketplace

A case in point? Doctolib.

Doctolib is the leading vertical marketplace for e-health. The site enables over 340,000 healthcare establishments in Europe to book appointments online for patients. today, 80 million patients use the platform!

6. Joining and selling on a Marketplace: best practices

Tempted by the marketplace adventure? Here are the steps and best practices to help you get started:

1. Find the right platform: find out how to choose a marketplace for your e-commerce business. But beyond the platform itself, there's a crucial question: should you opt for a marketplace or create your own independent online business?
2. Setting up an account: each digital marketplace has its own procedures. With our solution, for example, registration takes just a few clicks. All you have to do is create a professional seller account and follow the steps indicated. Once your details have been validated, you can start selling your products straight away. Simple, fast and effective.
3. Define the right pricing strategy : on a marketplace, the prices of your products can be compared. Remember to set competitive prices to attract buyers.
4. Optimize your product descriptions: quality descriptions and photos are essential for selling your products. Without them, it's hard to establish your credibility and win the trust of buyers.
5. Ensure good stock management : if you choose a platform that doesn't manage your stocks, it's your responsibility to ensure that your products are always available, to avoid any problems when orders are placed. Check your stocks regularly, set a critical threshold for restocking, and work (if necessary) with several suppliers to keep up to date.
6. Deliver quality customer service : customer satisfaction is a priority. It is then analyzed by the marketplaces. At Rakuten, we use the Merchant Quality Score. It's based on ratings and opinions given by buyers, delivery experience and catalog quality. The higher the score, the greater the visibility of the partner seller's ads in strategic locations (Google Shopping pages, price comparison sites, product category home page, etc.)
7. Benefit from ongoing support: at Rakuten, all our sellers have access to an E-Commerce Consultant. These dedicated E-Commerce Consultants support the platform's 8,500 professional sellers on a daily basis. Got a question? A need? We've got you covered!

Ready to develop your B2C sales outlet on a marketplace? To help your growth take off, join Rakuten France.

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by Haro Valentin

How to Improve Inventory Management?

With our Rakuten Fulfillment Network method, you can put all the chances on your side to grow your business in the best possible conditions. A 100% intuitive solution tailored to your needs, which manages your inventory and replenishment requests in real time, as well as the preparation of orders and the storage of your goods in one of our many warehouses around the world. All this at a fixed price, with no hidden costs, truly tailored to your needs.

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by Haro Valentin

E-commerce Customer Service: How to Satisfy and Retain Your Customers

In e-commerce, the relationship between customer and brand is unique in that it is dematerialized. Brands rarely meet their buyers face-to-face, unlike in traditional retail. Yet e-buyers need attention, assistance and support just as much: that's what customer service is all about .

The aim of e-commerce customer service is to deliver impeccable customer service to consumers who buy online. The aim is to help customers before, during and after their purchasing journey. Typically, all these interactions are handled by a dedicated department within the company. But delivering memorable customer service and experience must be everyone's priority, in-house!

In this guide, find out how to optimize your online customer service. Benefits, differences with in-store customer service, best practices... Let's get started.

1/ The benefits of e-commerce customer service

5 out of 10 French customers contact customer service with a question or an update on their order or delivery (source: Essendex survey, 2023). More often than not, these requests concern the resolution of a problem... But that's not the only role of customer service!

 

Graph Source : Essendex survey 2023

 

A (good) e-commerce customer service department takes care of rapid assistance, managing returns and refunds, collecting customer reviews... But also of personalizing the shopping experience, by proposing exclusive offers and promotions. The aim? Take care of customer relations on digital channels, and offer a memorable consumer experience.

Deploying such an e-retail customer service strategy offers numerous advantages:

• Improved customer knowledge : at the heart of a customer service approach is listening. By listening to customers' needs, expectations and problems, you can improve your knowledge of them. And thanks to this customer knowledge, you'll be able toanticipate the best actions to satisfy each customer. Perfect for boosting conversion rates over the long term!
• Lower customer acquisition costs: thanks to exceptional customer service, companies can increase re-purchase and loyalty. And thus reduce their prospecting and acquisition efforts (and, above all, costs!). A new customer costs on average 5 times more to acquire than one to retain... Hence the importance of delivering perfect assistance, at every stage of the purchasing process.
• Increased customer loyalty : according to Microsoft, 95% of customers consider support to be an important criterion when choosing and deciding to stay with a brand. For an online store, customer service is the cornerstone of retention and loyalty. This is one of the main benefits: thanks to the efforts made by customer support, loyalty increases!
• Increased growth: the impact of good customer service on ROI and sales is considerable. First of all, if customer service helps build loyalty, this loyalty rate is reflected in profits. According to a study by Bain & Company, increasing customer retention rates by just 5% can boost profits by 25% to 95%. Today, 64% of business leaders say that customer service has a virtuous impact on their brand's growth (source: Zendesk, 2023). Food for thought!
• Improving the customer experience: in e-commerce, the experience is not just transactional. It's also relational! When a customer service department responds responsively to customer expectations, customers are all the more satisfied. This increase in customer satisfaction impacts loyalty, and all the other benefits described above. Remember: the customer experience (both in-store and online) remains the most important preference criterion for consumers... And customer service is part of the reason why! (Source: Dunnhumby Barometer, 2023)
• Improved team productivity: in e-commerce, having a dedicated customer service department is a guarantee of productivity. But it also enhances the quality of exchanges, thanks to a team trained in customer support and relationship management. Deploying a customer service department and a dedicated team increases the productivity of all other teams... Where everyone can concentrate on their missions, as efficiently as possible.

Now you know why you should set up a customer service department for your online store, DNVB or ONVB. But do you know how to differentiate it from in-store customer service? And which features to deploy, to deliver the right 2.0 support?

2/ In-store customer service vs. e-commerce

No, in-store customer service is not the same as e-commerce customer service. There are many differences. And online site owners must learn to adapt, to satisfy consumers.

Between the physical store and the e-commerce site, each channel has its own strengths and constraints, influenced by buyers and the specificity of the product or service on offer. And if you're an e-commerce player... Here's how to take advantage of customer service 2.0, which modernizes and improves the customer experience:

Criteria	Physical store	E-commerce
Availability	Limited to store opening hours.	24/7, accessible at all times.
Interaction	Direct and personal.	Mainly digital (e-mail, chat, social networks).
Problem resolution	Often immediate for returns and exchanges.	Can be delayed by delivery and processing times.
Personalization	Based on human interaction.	Use of data to offer personalized solutions.
Advice	Personalized advice and product demonstrations.	Advice via FAQ, forums or chatbots; less personalized.
Returns and exchanges	Immediate processing possible.	Requires shipping, with variable lead times.
Associated costs	Depends on store policy.	Return or shipping fees may apply.
Accessibility	Requires physical presence of customer.	Accessible from any location with internet.
Request tracking	Managed in-store without systematic digital tracking.	Detailed, automated online tracking of requests.
Technology	Limited to in-store equipment.	Technological advances such as AI to improve after-sales service.

Thanks to electronic channels or tools, connected customers want to benefit from unified assistance. The challenge for e-commerce customer service? To offer reactive, personalized assistance, accessible from any support and seamless. Indeed, customers hate having to repeat themselves, between different channels of exchange with the company. 93% of them are even prepared to spend more if the brand avoids repeating itself. And 73% of customers want to be able to start a discussion on one channel, then continue on another... And face an interlocutor who understands them, who knows them.

But how do you create this seamless, unified customer service experience? How do you deliver the best online support? Follow the guide!

 

3/ E-commerce: 6 best practices for outstanding customer service

1. Focus on omnichannel customer service

Today, 57% of customers prefer to interact with a company via digital channels. Even if, in the event of a major problem, the most suitable channel remains the telephone for 81% of professionals (source: Salesforce Report, 2023). So, e-mail, telephone, social networks... which channel should you choose?

Rather than asking the question of "which channel to choose", ask yourself: what are the complementary channels for my target e-commerce customers? To meet the needs of all your customers, you need to be omnichannel. The aim is to offer consistent points of contact to meet consumer expectations. But be careful! Each channel requires resources (human, technological or financial). The multiplication of channels must not impact your responsiveness!

2. Respond quickly to customer requests

Responsiveness is one of buyers' top expectations when it comes to e-commerce customer service. in fact, 39% of customers consider it a priority to receive a response or solution as soon as they make their first request (source: Qualimétrie, 2022). On the other hand, waiting hours on the phone, or e-mailing support several times... that's the best way to drive customers away!

To deliver quality customer service, you now know what to focus on: responsiveness! Digital channels such as chatbots and instant messaging are particularly interesting for responding to customers in real time.

3. Offer customer autonomy tools, such as an FAQ page

94% of French people want to solve their own problems (source: Yext study, 2023). Today, autonomy is paramount. With just a few clicks, consumers want to find accessible answers, at any time of the day or night. To guarantee such access to information and answers to the most frequently asked questions, here's a golden tool: the FAQ.

On an e-commerce site, FAQs can be used to group together the most frequently asked questions, such as :

• What delivery methods are available ?
• What are the conditions for returning a product?
• What should I do if an item is defective?

The ideal solution? Create a dynamic FAQ. This tool integrates a search bar on the FAQ page, enabling the customer to type in specific keywords... to bring up the right question, providing the right answer. Rather than scrolling endlessly through a web page.

4. Personalize assistance, for maximum satisfaction

Being treated like a number: that's what customers hate, in e-commerce as in retail. Especially when it comes to asking for help! As soon as a customer contacts your customer service department, make sure you personalize your exchanges. Customers need to feel unique, listened to and recognized.

Here are a few best practices to demonstrate this personalization:

• Collect, analyze and centralize customer data. When you contact them, your support team will know their purchasing history, preferences, key information, etc
• Address customers by name. Whether you're communicating with them in writing (by e-mail, on social networks, by chatbot, etc.) or over the phone, always make sure you name them, to create a sense of proximity.
• If there's a quid pro quo to offer (such as a gift, as compensation), be sure to offer a personalized product or service recommendation. Rely on previous purchases to offer the most appropriate attention.

5. Train the team for maximum efficiency

You can't become a customer support expert by snapping your fingers. To take care of customer relations, offer effective assistance, respond to customer problems in a responsive and appropriate way... Training and a qualified team are necessary! Human and interpersonal skills are required, as well as technical skills.

Indeed, to respond to the concerns of online buyers, it's important to be trained in the products, services and tools used in-house. Knowledge base, customer support channels, self-care tools such as chatbots... A properly trained customer service team means optimized customer satisfaction!

6. Collect, manage and respond to customer feedback

Online reviews are an integral part of customer service. What do customers have to say about your company after they've purchased your products or services? And what do you do with these reviews once they've been collected? And who is responsible for responding to each customer?

Defining a customer feedback strategy is essential to delivering a quality experience. In e-commerce, your three priorities are to :

• Collect post-purchase reviews : via a satisfaction questionnaire, or through spontaneous review platforms.
• Manage the opinions collected : share them with all internal teams, and use these opinions to demonstrate continuous improvement (on the product, marketing, the online purchasing process, etc.). Don't forget to publish each product review on its own product page.
• Respond to all feedback: whether it's positive or negative, show customers that every piece of feedback counts.

By doing so, you take care of existing customers, while attracting new buyers! To find out more about customer feedback strategy and measuring customer service success... Be patient. We'll explain it all right after.

4/ Should you automate your e-commerce customer service?

This is THE big debate. Should you automate all or part of your customer service for your e-commerce site? At Rakuten, here's our opinion: automation tools are golden levers for relieving the burden on support teams... without replacing them! Indeed, technology is not intended to replace an entire team of online customer advisors. On the contrary, it can speed up the processing of the most common customer requests.

Thanks to these automated tools and processes, customer service teams can concentrate on less time-consuming or repetitive tasks. Like responding to the most important customer issues. It's a real time and efficiency saver.

Among the automation tools most frequently used by e-commerce customer services are selfcare solutions. These chatbots or FAQ solutions enable customers to be more autonomous, and get instant feedback on their questions. Certain channels can also be automated, such as e-mail or telephone messaging. The latter is known as an IVR, or interactive voice response system.

Finally, knowledge-base or CRMtools are particularly important for automating part of the customer management process in-house.

If you'd like to start automating your e-commerce customer service, here are a few interesting tools, depending on your needs:

E-mail automation	Salesforce Pardot, Mailchimp, Sendinblue , ActiveCampaign HubSpot Email Marketing Get Response , Constant, Contact ConvertKit, Drip, Autopilot
Live chat and chatbots	Dialogflow, ManyChat, Drift, Intercom, Chatfuel, Zendesk Chat, Tidio, Botsify, LivePerson, Watson Assistant
Customer relationship management (CRM) software	Salesforce, HubSpot CRM, Zoho CRM, Microsoft Dynamics 365, Freshsales, Pipedrive, Insightly, Oracle CRM, SAP CRM, Nimble
Interactive Voice Response (IVR)	Twilio, Genesys, Avaya, Cisco Unified Contact Center, NICE inContact, 8x8, Five9, Aspect, RingCentral, Interactive Intelligence
Skill-based routing	Avaya, Cisco, Genesys, NICE inContact, Five9, 8x8, RingCentral, Aspect Software, Mitel, Interactive Intelligence

5/ Customer service and marketplaces: how to manage after-sales service?

Now you know how to manage customer service on an e-commerce site. Now imagine: you decide to join our 12,000 sellers on Rakuten, our marketplace. You create your e-shop, complementary to your e-commerce site, directly on our digital marketplace. Our 13 million loyal buyers are just a click away ... And you'll quickly make your first sales. But if you have any questions, how do you handle customer relations? How do you provide customer service on a marketplace?

At Rakuten, nothing could be simpler. Our marketplace offers complete, dedicated support for after-sales service. We provide you with specific tools for your online store. And as a Rakuten seller, you'll benefit from extensive support via internal messaging, to help you manage and optimize your after-sales service.

Delivering service excellence (omotenashi) is one of Rakuten's fundamental pillars. Our priority? To guarantee a caring approach and a committed presence with our sales staff... And to encourage them to adopt a similar attitude towards their customers!

To find out more, find out how to communicate with a Rakuten buyer and answer their questions.

6 / Measuring the success of your customer service: the last essential step

E-commerce customer service now holds no secrets for you. Ready to launch your own digital customer support strategy? Once you've deployed your support and initiated the first interactions, think about this indispensable step: measuring the strategy's performance. Gathering KPIs is essentialto improving customer experience and operational efficiency .

Here are the main KPIs to collect and track:

1. First Contact Resolution Rate (FCR): Indicates the percentage of problems resolved on first contact.
2. Average Response Time (ART): Calculates the average time taken to respond to customer queries.
3. Average Resolution Time (ART ): Measures the average time required to completely resolve customer queries.
4. Call Abandonment Rate: Percentage of calls abandoned by customers before speaking to an agent.
5. Contact Volume: Tracks the total number of requests received by all service channels.
6. Agent Satisfaction Rate: Assesses the level of satisfaction and well-being of customer service agents.
7. Sentiment Analysis: Uses AI to analyze the emotions expressed in customer communications.
8. Cost per Contact: Calculates the average cost of handling a customer service request.
9. Customer Satisfaction (CSAT): Measures immediate customer satisfaction after an interaction or purchase.
10. Net Promoter Score (NPS): Evaluates the likelihood of customers recommending your company to others.

These last two indicators are particularly important. As we mentioned earlier in this article, collecting customer reviews is essential for gaining insight into customer satisfaction and recommendation.

At Rakuten, this monitoring is a priority. We offer you the opportunity to evaluate your quality as an e-retailer through several criteria linked to customer satisfaction, your delivery strategy and your catalog. So you can improve the quality of your customer service... and much more besides!

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by Haro Valentin

Influencer marketing and e-commerce : complete guide

92% of consumers trust influencers' recommendations more than the brands themselves (source: Nielsen). To gain the trust of their target audience (as well as credibility and authenticity), e-commerce sites have every interest in relying on this lever. This is known as word-of-mouth 2.0 or influencer marketing.

The aim for e-tailers is to forge partnerships with influencers, who can then promote their products online, particularly on their social networks. Interested in influencer marketing? Follow the guide and find out everything you need to know about influencer marketing in e-commerce.

What is influencer marketing in e-commerce?

Influence and influencer marketing: definitions

At the heart of the concept of influencer marketing lies that of the influencer. An influencer is a person who, through his or her notoriety and media exposure, has great power to influence public opinion and consumers. Now recognized as a profession, influencers create content for their audience. This content is often created in partnership with e-retail brands, to promote their products or services. When a brand chooses to work with an influencer, it implements an influencer marketing strategy.

Influencer marketing is a type of marketing based on a partnership between a company and an opinion leader (influencer). The aim is to promote a brand, product or service through content created on social networks.

Before choosing an influencer with whom to collaborate, the brand needs to decide :

• • The type of influencer: some public figures have a small, engaged audience of less than 5,000 people. These are known as nano-influencers. In ascending order, we then classify micro-influencers (between 5,000 and 100,000 subscribers), macro-influencers (between 100,000 and 500,000 subscribers) and celebrities (1 million subscribers).
    
  • The type of collaboration : among the various possibilities, we find the traditional product placement, through a post on social networks (this is a technique favored by 76% of influencers in 2023, according to Reech). Online stores can also be seduced by content sponsorship or the organization of a competition. In B2C, unboxing is also a popular format: the influencer unwraps a product received live, and expresses his or her emotions first-hand.
  • Retribution: in exchange for such promotion, the influencer may receive financial remuneration, a commission on sales or material compensation, such as a free product.

Influence marketing trends in e-commerce

Influencer marketing has been a preferred lever for e-tailers for several years now. Content created by influencers helps to increase visibility and boost sales. But every year, new trends emerge. Knowing about them and making them your own increases your chances of selling more... and better!

New trends in the e-commerce influencer market include, for example:

• The rise of long-term collaborations: Internet users are not fooled. To trust an influencer and a brand, they need to be sure that the collaboration is real, authentic and credible. Today, consumers prefer influencers who collaborate with fewer brands, but on a long-term basis. Your mission as an e-commerce site? To collaborate with an influencer ambassador, over a period ranging from 6 months to 1 year. The quality and durability of a partnership are real levers of trust.
  
• The rise of micro-influencers: campaigns run with micro-influencers generate an average engagement rate of 7%, 22 times higher than that of major celebrities (source: Influencer Marketing Hub study). This statistic confirms the impact of smaller influencers, capable of creating more personal and authentic relationships with their audience. E-tailers therefore have every interest in incorporating nano- and micro-influencers into their thinking in 2024. It's no longer the size of the community that counts... but the rate of engagement!
• An increasingly strict legal framework: the new Law of June 9, 2023 now provides a framework for commercial influence, in order to combat the excesses of influencers on social networks. This law now requires content creators to specify the words "advertising" or "commercial collaboration" when publishing a post paid for by a company. They are also obliged to declare for tax purposes the receipt of products or gifts sent by brands. To maintain their credibility, e-commerce sites therefore need to pay extra attention to the reliability of the influencers with whom they collaborate, as well as to compliance with the new legal rules

Source: Reech study, 2024

The benefits of Influencer Marketing in e-commerce

• Increased brand awareness

An influencer marketing campaign enables you to promote your e-commerce site to a wider audience. When a content creator communicates about your products, thousands of people discover (or rediscover) your brand.

In this way, you benefit from the reputation of an opinion leader to increase your own brand awareness. This rise in brand awareness is also accompanied by increased visibility and traffic on your e-commerce site, as well as on your social networks.

• Boosting sales and ROI

Influencer marketing is a genuine acquisition lever. It influences Internet users' thinking and buying behaviour, thanks to the recommendations of content creators.

71% of consumers are more likely to buy a product or service thanks to a publication on social networks (Source: Hubspot). As for influencers, the average conversion rate achieved thanks to their sponsored content is 2.55% (Source: Grapevine study).

So it's no surprise that many retailers are investing in this marketing strategy. Return on investment is a driving force: 89% of marketers claim that the ROI of influencer marketing is comparable or better than that of other marketing channels (source: Mediakix study).

Let's take an example of collaboration, between the Lancaster brand and influencer Juste Zoé. Together, they decided to go further than sponsoring a TikTok video or organizing an Instagram contest. The brand and the content creator co-created a unique handbag in 6 colors. In just one weekend, over 800 sales were made, with the bag selling out in 48 hours. This success story perfectly illustrates the power of influence on sales!

• Increased credibility and confidence

When a popular content creator recommends one of your e-shop's products, you instantly increase your "trust capital". As we've seen, Internet users are more likely to trust recommendations from trusted third parties, such as friends or influencers.

This impact on trust goes hand in hand with an increase in credibility: if a subscriber trusts an influencer who recommends a brand, then he or she is more likely to find the brand credible... And to make a purchase.

So, to develop your credibility, brand awareness and customer acquisition, you know what you have to do: rely on influencer marketing. 

How do I find influencers?

Now you know why you should implement an influencer marketing strategy. Ready to take action? The first step is to find the right influencers, to create the right partnerships. 34% of brands say they have difficulty finding influencers, not least because 67% are concerned about fraud or unreliable content creators (source: Shopify).

So, to find influencers, here's our advice for e-commerce sites: if your social network monitoring isn't working, get in touch with influencer agencies. These key partners offer complete support, to set up the whole campaign, in complete security. While the price may be higher, this solution offers a great deal of comfort.

 

Which communication channels should I choose for an e-commerce influencer campaign?

Territory Influence recently told BDM: "In 2024, as audiences diversify their online presence, brands need to adjust their strategies accordingly. This requires collaborating with influencers whose presence spans multiple channels".

Among the most effective communication channels for e-tailers' influencer marketing campaigns are :

1. Instagram

Instagram is the world's most powerful social network for influencer marketing. With overa billion monthly active users, brands can take advantage of a wide range of target demographics. What's more, the average engagement rate for an influencer on Instagram is 1.9%: a very good score!

On this social media, influencers can publish visual content, whether photos, videos, stories or real. The formats lend themselves perfectly to different types of collaboration: insights, sponsored ads, unboxing... Or even direct collaborations with influencers via Instagram Shopping.

On the other hand, influencer marketing is increasingly competitive and expensive on Instagram. With the rise of influencers on the network, some collaborations may seem less authentic. Finally, beware of frequent algorithm updates, which can affect the visibility of brand publications... And influencers!

2. TikTok

TikTok has only been around since 2016, but had accumulated over 1.5 billion active users on the app by January 2024. 45% of marketers use Tik Tok for their influencer marketing campaigns, mainly to target a young, dynamic audience that appreciates the short video format, a symbol of engagement and virality.

On this medium, the power of micro-influencers is no exception to the rule: they have an engagement rate of 17.96%, compared with 4.96% for better-known influencers (source: Affde). The algorithm is also favorable, as it values organic discovery and trending content.

However, e-commerce sites need to understand that a young audience dominates on TikTok, which may not be suitable for all products to be promoted. What's more, the lifespan of a video is only a few days. As trends evolve rapidly, long-term campaign planning can be difficult.

3. Facebook

Facebook is the most widely used social platform, with 2.8 billion monthly active users . Thanks to its highly precise advertising tools, influencer campaigns can be targeted effectively, and performance can be measured efficiently.

On Facebook, influencers can also leverage different formats: written posts, photos, videos, stories, groups and communities in which to interact... Community interaction is also at the heart of Facebook usage, particularly within groups.

However, organic engagement (or reach) is declining over the years, requiring brands to increase their advertising spend. The audience also tends to age, which can be a disadvantage for e-commerce sites targeting a younger audience. Finally, if you're new to marketing, the complexity of Facebook's advertising tools can be frightening.

4. Other promising channels

Other promising channels for influencer marketing (B2C or B2C) include :

• LinkedIn: ideal for reaching a professional and B2B audience, LinkedIn also helps reinforce a brand's credibility and authority. The audience and engagement rates are more limited, and influencer campaigns can be costly, but it's a platform of the future for B2B influence.
  
• Twitch: this live streaming platform broadcasts reliable, authentic content. Subscribers can respond live to content creators' product presentations, increasing engagement. To date, 6% of professionals say Twitch is their most influential channel.
  
• YouTube: vlogs, tutorials and reviews (of brands and products) are the most popular content on this platform. With its accessible, dynamic video format, it's a preferred lever for marketers. Today, 90% of Internet users discover new brands thanks to YouTube videos... A great opportunity to increase visibility and boost e-commerce sales!

5 tips for a successful influencer marketing campaign

Would you like to launch an influencer strategy to promote the products on your e-commerce site? Excellent decision. To help you implement this new marketing lever, here are our recommendations:

1. Define objectives: clear, measurable objectives are the common thread running through your strategy. So, why do you want to use one or more influencers? On average, 50% of the campaigns launched are aimed at improving brand image, 42% at generating online sales and 39% at expanding the audience.
   
2. Choose the right influencers: depending on their relevance, the size of their audience, their positioning on one or more themes, their rate of engagement... To help you choose and contact influencers, you can call on the services of a specialized agency.
3. Draw up a precise brief: to ensure that the influencer's communication is as credible as possible, your mission is to brief them effectively. A brief document can include a presentation of your e-commerce site, your values, a detailed presentation of the products to be promoted, examples of arguments to be put forward... The brief is also accompanied by a contract, to secure the expectations and financial terms of the partnership.
   
4. Discuss the content: before the influencer publishes a post or video, discuss and agree on the content to be created. The more personalized the campaign, the greater the impact of the content. For long-term collaborations, also discuss an editorial calendar, various commercial highlights and brand news. At the time of publication, also make sure that the content creator complies with the legal framework in full transparency, by mentioning the collaboration.
   
5. Track and measure performance: this is the final step in any influencer strategy. Performance analysis is essential to calculate the campaign's ROI. To achieve this, monitor the following KPIs: engagement rate, number of subscribers on the brand's social networks, evolution of website traffic, conversion rate... Depending on the results, you can make continuous improvements to your future marketing campaigns!

E-commerce: 3 examples of successful influencer campaigns

• Joone

This baby care brand has increased its popularity through influencer marketing, in particular through long-term campaigns with influencers. Macro and micro-influencers share Joone's values: transparency, authenticity and simplicity.

Thanks to publications on social networks, over 3 million targets have been reached. The EMV (earned media value), which corresponds to the means of measuring the return on investment of the content created, is around €96,000.

• Hello Jack

Hello Jack is a D2C (Direct to Consumer) pet food company . To conquer the market, right from its launch, the brand relied on an influencer marketing strategy: for the first two months, the company sent products to over 500 KOLs (Key Opinion Leaders) on Instagram and Facebook.

The results? Nearly 3 million reaches of the publications, and the creation of an active community of 9,000 followers on the brand's Instagram, as well as numerous sales.

• Daniel Wellington

The watch brand is a benchmark in influencer marketing. Daniel Wellington has collaborated with hundreds of micro-influencers and macro-influencers, to promote their products. Influencers share photos of themselves wearing the watches, on Instagram, with a dedicated hashtag and a promo code for their followers.

In one year, thanks to these advertising campaigns, over 1.2 million publications have been indexed thanks to the hashtag. The company's subscriber base grew by 1.1 million, and sales soared: 214%!

Conclusion

Have you just created your e-shop, from an e-commerce site or marketplace? Now you know how to boost your visibility and product sales... Thanks to influencer marketing.

In addition to this acquisition strategy, think of other useful marketing levers to boost your growth. 

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by Haro Valentin

Choosing the Optimal Pricing Strategy for E-commerce

39.4 million French people buy on the Internet: that's 500,000 more buyers than last year, according to Fevad (2024). E-commerce is winning over more and more customers... And the number of online stores is growing too. France is even considered Europe's second-largest e-commerce market, just behind the UK.

So, for professionals, the competition is real. But how do you stand out from the crowd, make a profit and attract as many customers as possible, all at the same time? The answer can be summed up in 3 words: pricing strategy.

With a good pricing strategy, sellers are sure to sell more, and better. And this is true whether they offer their products via e-commerce or marketplace. So, what are the different pricing strategies? And how do you choose the right price for your products? Follow the guide!

The importance of pricing strategy in e-commerce

Pricing strategy is a crucial issue in e-commerce. In fact, it's one of the most important elements for consumers: while a fair price can be a motivating factor for purchase, a price deemed too high can drive buyers away to the competition.

For 2.0 sellers, product pricing is a strategic action to be taken as early as possible, right from the creation of the e-commerce site or before joining a marketplace such as Rakuten. It's part of the 4P strategy (Price, Product, Place, Promotion)... And the only one to be a profit structure, rather than a cost structure!

Beyond simply offering "the best price", this strategy must reflect the company's pricing identity. This pricing identity rests on 4 pillars (source: La stratégie Prix, Dunod):

1. Consistent price positioning: product prices must be consistent with each other and with the brand image. This pricing positioning must be clear to buyers (low-cost, high-end, mid-range, etc.).
2. Offer legibility: buyers must be able to find their way easily between the different products. Product price comparisons must not be complex or illogical.
3. Price promise : the prices offered must respect the promise made to the customer, with regard to the product or range of products.
4. Responding to needs: e-tailers must ensure that their prices respond to customers' needs, without restricting the shopping experience.

Once these fundamentals have been defined, an optimal pricing strategy offers sellers the following benefits:

• Improved competitiveness: pricing is a golden differentiation lever, enabling you to maintain your competitive edge in a booming e-commerce market.
• Increased profits and profitability : the right pricing increases margins, profits and growth.
• Customer loyalty: as long as price doesn't become an obstacle, customers remain loyal and committed. Ideal for long-term retention!
• Optimized inventory management: an effective pricing strategy allows you to optimize inventory management, in particular through prices that fluctuate according to the time of year, to sell off items that were previously unsold.
• Enhanced brand image : price is an essential component in the perception of a company. Perceived value varies according to the prices set for products.

However, to take advantage of all these benefits, you need to know which pricing strategy to choose, for your online store or marketplace presence... Let's discover the different possibilities.

6 e-commerce price strategies

Traditionally, product manufacturers share a recommended retail price (RRP). However, e-tailers are free to set their own prices, in particular to increase their margins. Different approaches are possible. Here are 6 of them:

1- Competition-based pricing

The prices charged by competitors are key indicators for setting your own prices. For example, if you offer your products on a marketplace like Rakuten, you can analyze the selling prices offered by other sellers before posting your own:

Based on competitors' prices, you can then opt to :

• A premium strategy: sell your products at a higher price than your competitors, because your perceived value is higher and more upscale.
• An alignment strategy: sell your products at the same market prices as your competitors, to avoid a price war.
• A low-cost strategy: sell your products at lower prices than your competitors, to attract more cost-conscious customers.

2- Cost-based pricing

To calculate the "right price", you can also take into account internal cost factors. What are your manufacturing and storage costs? Your delivery costs? Your target gross margin?

Depending on your answers to these questions, you'll be able to set pricing based primarily on costs. Your mission: to ensure a profit margin that enables you to achieve the best possible profitability.

This margin depends on the type of product you sell and your sector. It can vary from 7% to 50%. The higher the margin, the more profitable your online store.

Find out more about the KPIs you need to follow in e-commerce, to maximize your success.

3- Value-based pricing

This indicator is based on the value perceived by customers, to define selling prices. Do you know what your brand equity is? Are your products perceived as high-end, mid-range or low-end? How do consumers describe the quality of your products?

Based on the answers to these questions, you can determine value-based pricing. The more upscale and qualitative the brand is perceived to be, the higher the prices can be.

To take things a step further, you can also adjust your prices according to customer demand. This is known as Yield Management. This technique optimizes stock levels and profit margins, based on customer demand (which also depends on perceived value!).

4- Dynamic pricing

This strategy involves adjusting prices in real time, using predictive algorithms. They take into account numerous factors, such as customer demand, inventory, sales seasonality, promotions, economic trends, etc

To implement dynamic pricing, complex software is required. Prices then become flexible and evolve in line with the market. This strategy is ideal for maximizing profits, but if you're just starting out in e-commerce... Beware of costly solutions!

5- Penetration pricing

This method is often used by new e-tailers. It involves offering a low price to attract customers and "penetrate" an existing market. The seller then gradually increases the price over time.

Over time, market share is built up and products become better positioned. However, this practice is not immediate: it requires a great deal of patience!

6- Skimming pricing

This strategy is the opposite of the previous one. Whereas penetration pricing consists in gradually increasing the price of products, skimming allows you to lower prices over time. The aim of skimming is to set a high initial price, in order to attract customers known as "early adopters".

This type of customer is ready to pay a high price to benefit from a product quickly. Then, over time, products lose their value: it becomes necessary to adjust their prices downwards, to continue generating sales and profit.

How to choose the right pricing strategy?

Are you hesitating between different pricing methods? Don't panic! Here are our key tips for successfully carrying out your e-commerce project. They'll help you make the right choice, then adjust your strategy over time... to generate maximum success!

Know your market and your customers

A "good" strategy is always based on "good" data. And that data comes first and foremost from your customers' behavior: what are their preferences? Their demographic characteristics? Their buying behavior? Price sensitivity?

All these elements will help you to better understand how your customers perceive the value of your products. You'll then be able to propose pricing that's advantageous for your customers, and relevant to the rest of the market, to set you apart from the competition.

Evaluate costs and margins

Beyond customer and market analysis, the second factor to consider is your costs and margins. List your various production, transport, storage and customer delivery costs... as well asthe commissions charged by marketplaces, if you choose to sell on a platform like Rakuten.

For example, at Rakuten, our rates are adapted to your needs and the value of the item sold. Ideal for greater profitability!

Click here to discover our rates.

Experiment, test, iterate!

There's no such thing as a perfect pricing strategy. To find the method that best suits your products, your market and your customers, we advise you to experiment with different approaches. Dynamic pricing, pricing based on competition or added value, penetration strategy..

Remember to analyze the data from each strategy tested in real time, to adapt according to the results obtained. This experimentation phase can take several months, and that's perfectly normal. Take the time to test, measure and iterate.

Test approaches such as dynamic pricing, competition-based pricing or value-based pricing to assess their effectiveness. Analyze the data in real time and adapt your strategy according to the results.

To adjust your strategy effectively, you'll need to measure the right performance indicators. These include conversion rate, profit margin, sales over a given period... Compare all the KPIs obtained, if you are testing different pricing methods.

Implement promotions and discounts

Promotions, sales, discounts... Reducing the sale price during a given period is effective not only for increasing sales in the short term, but also for attracting new customers. It also helps you sell off excess stock. An ideal operation to stimulate growth!

Promotions can take many forms:

• Sales: these discount periods generally cover a wide range of products on a fixed date.
• Launch offers : these special promotions are organized to coincide with the launch of new products.
• Group purchases: these discounts encourage the purchase of several items together, to take advantage of a discount.
• Flash sales: these major discounts on certain products over a short period of time are particularly effective in e-commerce. Flash sales are even considered a growth lever!

Whatever the nature of the promotion, be sure to round down low prices to the nearest decimal place, or to round up high prices to the nearest round. For example, a promotional item will sell better if it costs €20 or €9.99, rather than €21 or €9.35.

A final tip: for easy promotions and extra discounts... Use Rakuten Coupons and Rakuten Points, if you sell your products on our marketplace!

Rakuten Coupons are discount coupons valid only on your products.

They enable you to gain instant visibility on our platform: your ads that benefit from Rakuten Coupons are automatically placed in strategic Rakuten locations, such as the Rakuten Deals page.

Rakuten Points are additional discounts you can offer your customers, without affecting the face price of your products. Rakuten Points are available to Club R members, who can receive up to 20% extra discount on your products. Ads benefiting from additional Rakuten Points discounts are also featured on the most attractive positions on our platform.

In short, our marketplace is home to over 12,000 professional sellers, free to set their own prices and offer their customers exclusive promotions on their Rakuten e-shop. 13 million loyal, regular buyers are just a click away. Perfect for making your first sales quickly... and growing your online store, directly from our marketplace.

So, are you ready to embark on your e-commerce adventure?

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by Haro Valentin

Second Hand: Key Benefits and Tips

The second-hand market is booming. It's worth over 128 billion euros worldwide (source: Tripartie), and more and more buyers are turning to this type of product. After reading this article, you'll know all about second-hand goods, their advantages and how to make the most of them.

What is second hand?

Second-hand products, also called pre-owned or refurbished products, are products that have already been owned by a buyer and are being offered for sale again. In short, we give these items a "second life" by enabling them to be used again by a new buyer.

More and more consumers are turning to pre-owned products every year. In 2023, 52% of French people planned to give second-hand items as Christmas presents, compared with just 20% in 2021. Online sales sites and marketplaces are the preferred place for these purchases. According to Fevad, 45% of online shoppers bought at least one second-hand product in 2023.

These items are therefore rich in opportunities, and many retailers are well aware of this. In fact, 29% of them were already offering second-hand products in France in 2023(ACSEL barometer, 2024).

Advantages of refurbished products

Second hand products offer many advantages, both for sellers and their customers:

Second hand advantages for customers

• Cost savings: these products are generally less expensive than their new equivalents;
• Quality products at lower cost: the lower price allows consumers to discover brand-name or higher-quality products, which the new price might put off;
• A wider variety of products: buying pre-owned allows access to items that are no longer on sale. This is particularly true of fashion items, whose availability is limited in time depending on catalogs;
• Reduced environmental impact: buying a refurbished item reduces its impact at every stage (production, transport, packaging, etc.). What's more, buying second-hand extends the life of products, which drastically reduces the volume of waste generated.

Second hand advantages for sellers

• Better margins: second hand products often generate higher margins, especially on refurbished or reconditioned items. In fact, the cost of putting them back on sale is generally lower than their production cost;
• Attract a new customer segment: as we saw earlier, second hand market is booming, and new types of customer are emerging. Selling this type of item is a way of attracting this clientele;
• Improving brand image: consumers are increasingly aware of brands' eco-responsible initiatives. 72% of French people say they choose environmentally-friendly products (Fevad, 2024). Giving a second life to your products can therefore become an asset for your brand image;
• Better inventory management: putting back on sale products returned by your customers, or unsold items from the previous season, is a good way to limit your inventory while generating additional sales.

 

How can I sell pre-owned products online?

To sell pre-owned goods online, you have several options:

• Create an e-commerce site: a site dedicated to your products, which you can configure and customize as you wish. This option gives you the advantage of flexibility, but requires significant investment (site construction and maintenance, audience development, search engine optimization, etc.);
• Join a marketplace: your products are sold alongside others on a virtual marketplace. This option has the merit of limiting the effort required on your part for technical aspects and product promotion (the platform takes care of this). What's more, it allows you to benefit from the reputation of the chosen marketplace, making it easier to reach a large number of customers.

At Rakuten, you can combine both approaches. In fact, becoming a Rakuten seller allows you to create your own E-Shop on our marketplace, a fully customizable space dedicated to your store. This means you can keep control of your brand and customize your visuals and customer experience to your heart's content.

Once you've made this choice, it's essential to adapt your strategy to selling second-hand goods online. Consider the following elements in particular:

• Product selection and evaluation: Identify items that are likely to be resold, whether they are returns, end-of-series items, reconditioned items, etc. Make sure that these products meet customer expectations. Make sure these products meet your customers' expectations.
• Reconditioning and reconditioning: If necessary, carry out repairs or reconditioning to ensure that products are in good working order and appearance before they go on sale.
• Effective presentation: Present your products attractively on the e-commerce site or marketplace of your choice. Use detailed descriptions, quality photos, and highlight the economic and environmental benefits of these purchases.
• Customer service: Offer quality after-sales service, with return and warranty policies adapted to second-hand sales, to reassure potential buyers.

Second-hand, at the heart of Rakuten's DNA

At Rakuten, second-hand is a historic pillar of our growth in France, and an essential marker of our identity. Today, one out of every two products sold on our marketplace is refurbished. We have more than 50 million pre-owned product references, and their sales are growing fast. During Black Friday 2023, for example, 43% of products sold were second hand.

To encourage our customers to turn to these products, we have also created the Vision'R badge, a system that rewards second-hand purchases. We were also keen to remove disincentives to the purchase of refurbished products. Our CeRtifié reconditioned program and our buyer protection guarantee customers quality, functional products. These initiatives enable our sellers to reach more and more customers, for the benefit of all.

Do you sell second-hand products, or would you like to start doing so? Then don't wait any longer! Join our 12,000 sellers and embark on the Rakuten adventure!

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by Haro Valentin

How to calculate your e-commerce shipping costs?

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by Haro Valentin

Marketplace or dropshipping: which model to choose?

In the e-commerce ring, two key concepts clash. On our left are marketplaces. On the right, dropshipping.

But are these two models (really) vying for the attention of online shoppers? What are their differences? Are they complementary? And above all, should you choose marketplace or dropshipping to sell your products online?

Follow the guide, and find out all the answers from Rakuten in this article. On the program:

• Marketplace and dropshipping: definition
• Marketplace vs dropshipping: what are the differences?
• Why choose the Marketplace model?
• Dropshipping and marketplaces... How can they complement each other?

Marketplace and dropshipping: definition

What is dropshipping?

Dropshippingis a form of e-commerceinwhichthe seller has no stock of products. The system is simple: a customer places an order on an e-commerce site, which then transfers it to a wholesaler (supplier). This supplier then ships the goods to the consumer.

In this system, the seller is merely an intermediary. He does not handle inventory management or shipping. However, he remains legally responsible for the sale of products and commercial transactions.

Very popular in recent years, the drop shipping market was estimated at around $128 billion. Now booming, it should reach $301.11 billion by 2024 .And according to forecasts by Grand View Research, dropshipping is set to continue expanding: annual growth isestimated to rise by 23% between 2023 and 2030 .

What is a marketplace?

Amarketplaceis an online platform that facilitates contact between buyers and sellers .On this multi-seller site, brands can sell their products or services online, usually for a commission or monthly subscription fee.

The system is as follows: merchants create an e-shop on the marketplace to sell their products. They manage inventory and order dispatch. Some marketplaces, such as Rakuten, also offer tomanage logistics, thanks to the Rakuten Fulfillment Network .

In other words, the marketplace is a large digital shopping mall. Each store inside represents a partner vendor. Visitors (or web users) can stroll from store to store... without disconnecting from the marketplace.

Does this business model appeal to you? You're not alone. More and more e-merchants are choosing to sell their products through a marketplace, to gain greater visibility, multiply sales opportunities, secure transactions and simplify logistics processes.

The results? In 2020 alone, marketplace sellers increased their sales by an average of 24% on this channel. Growth was twice that of e-commerce (according to a Mirakl study, 2021).

Marketplace vs dropshipping: what are the differences?

1. Bringing buyers and sellers together

In dropshipping, this is the e-merchant's mission: to create a website, promote his products... and attract buyers. Although the stock of goods is released by the suppliers, it's up to the distributor to sell the products, from their own website. Marketing costs are therefore higher than with a marketplace.

A marketplace, on the other hand, facilitates the relationship between buyers and sellers. Internet users can discover different e-shops in a single location. Rakuten, for example , has 13 million loyal buyers. All e-tailers have access to this large-scale community, to boost their sales!

2. The players involved

Dropshipping and the marketplace are two tripartite models... but they don't involve the same buyers!

On the one hand, dropshipping involves a seller, a supplier and buyers. The seller sets the selling price, based on the purchasing costs negotiated with suppliers.

On the other hand, a marketplace like Rakuten involves a platform (or operator), third-party sellers and buyers. It's the sellers who manage their offers, prices and sometimes even logistics. Whether it's a B2B or B2C marketplace, the players involved remain the same.

3 . Customer acquisition costs

Customer acquisition costs are a very important e-commerce KPI. The higher this cost, the more the company has to invest to attract customers to its e-shop.

Dropshippers are considered to have a higher acquisition cost. Indeed, e-tailers need to invest in marketing, and mainly in social ads, to attract traffic and generate sales on their store.

On the other hand, marketplace e-tailers benefit from a strong audience. At Rakuten , 15 million unique visitors visit our marketplace every month. Sellers benefit from this continuous flow of customers to their ads, and save money in the process.

Example of an ad on the Rakuten marketplace

4. Logistics

Drop shipping doesn't always get good press in the eyes of consumers. One of the main reasons? The lack of transparency in logistics. Indeed, many buyers purchase a product without knowing that the sender is not the brand, but a supplier (often located on the other side of the world).

Suppliers ship products in the distributor's name, giving the impression that the product comes from the distributor. Delivery times are generally long.

Conversely, in a marketplace, the seller ships the product directly to the customer. Logistics are simpler and more transparent. With some platforms, such as Rakuten, e-tailers can even outsource logistics, on a long-term basis or for more occasional needs .

Our tailor-made logistics service supports your e-commerce expansion, without compromising customer delivery times. With Rakuten Fulfillment Network, 99.8% of orders placed before 2 p.m. are delivered within 24 hours, to satisfy even the busiest shoppers!

5. The business model

A drop-ship e-shop enables e-tailers to collect the total amount of orders placed. They then pay their suppliers. The dropshipper's profit margin is the difference between the purchase price and the selling price. Onaverage ,the profit margin varies between 45% and 65%, depending on the nature of the items sold and supply conditions .

In the marketplace, the business model is as follows: the marketplace takes a commission on sales by third-party sellers, in addition to any other fees (registration fees, subscriptions, sponsored links).

At Rakuten, our 12,000 sellers can choose between two offers :

• The starter pack, free with commissions starting at 14%
• The expert pack, €49 per month with commissions starting at 8%

Our first freemarketplaceoffer is ideal for getting started in e-commerce :

"The Starter Pack aims to facilitate access for small businesses, looking for a complementary audience, to the Rakuten platform, its ecosystem of services and its community of active members. It's in line with our promise of 'e-commerce that puts everyone on the same page', whether you're a young pure player new to the market or a long-established local business", explains Matthieu Denime, Sales Director at Rakuten France.

6. Customer service

Late delivery? A problem receiving a parcel? A question from a buyer? All these situations require the intervention of an e-commerce customer service department. In fact,itisestimated that 5 out of 10 French customers contact a customer service department for a question or an update on their delivery or order (source: Essendex survey, 2023).

In dropshipping, the distributor manages customer relations and customer service, including returns, which it then passes on to suppliers. In many cases, a contact form is set up for after-sales service.

On digital marketplaces, third-party sellers also manage returns and after-sales service. However, if they choose a marketplace like Rakuten, they can entrust us with the management of after-sales service. Rakuten Fulfillment Network takes care of resolving any logistical problems encountered by consumers. Meanwhile, sellers can concentrate on what they do best: selling.

Why choose the marketplaces model?

Ready to embark on your e-commerce adventure, and join the 207,000 online stores in France? Here's our advice on how to set up your online store safely: opt for the marketplace model to develop your e-shop. And if you're wondering "why choose the marketplace model?", here are our answers:

1. High visibility

When you join a marketplace, you're not starting from scratch to find your first buyers. On the contrary: you benefit from an already established reputation, which makes it easier to build your brand image and sell your products.

For example,Rakuten attracts 15 million unique visitors a month and 13 million recurring buyers who are members of Club R. Ideal for our 12,000 professional sellers!

2. Transparency and trust

Unlike dropshipping, marketplace customers know where their products come from. As a seller, this makes it easier to build a relationship of trust, based on transparency. This trust is the foundation for greater customer satisfaction, which in turn increases customer loyalty.

Good news for e-merchants in the marketplace, who can then make trust rhyme with growth: a 5% increase in the loyalty rate can lead to an 85% increase in profits, according to a Harvard Business Review study.

3. E-commerce highlights

Selling your products on a marketplace means taking advantage of a number of highlights, which increase traffic and sales. Infact, marketplaces organize sales events according tothe seasonality of their sales: sales, Black Friday, Christmas, Mother's Day, Valentine's Day... What's good for e-tailers at these key moments? Promotional efforts are managed by the marketplaces!

To make sure you don't miss any key dates, and to optimize your online sales strategy... Discover our 2024 e-commerce highlights guide .

4. Ongoing adaptation and monitoring

When you choose to sell on a marketplace, you benefit from total flexibility. You can quickly add new offers, enhance your bestsellers and adapt to market trends. And if a product performs less well? You can remove it in just a few clicks.

You're the captain of the ship. You navigate, you make the decisions... But you're not the only master on board! If you need advice or support to improve the quality of the service you offer your customers, some platforms like Rakuten put a dedicated team at your disposal.

At Rakuten, your store is monitored by an e-commerce consultant, who is on hand to share advice and help you boost your sales over the long term .

5. Healthy competition between sellers

On a digital marketplace, third-party sellers set their own prices. This enables dynamic updating of offers, in line with market variations. The result? This flexibility ensures constant competitiveness and rapid adaptation to changes in demand.

In order not to hinder this healthy competitiveness between the players on its platform, Rakuten has a bias: unlike other marketplaces, we don't sell our own products. By choosing a marketplace like Rakuten, you choose to sell freely... without competing with our platform, which hosts your e-shop. Our efforts are dedicated to showcasing your products, to guarantee your success.

Dropshipping and marketplaces... How can they complement each other?

Are dropshippers really the enemy of marketplace e-tailers? At Rakuten, we believe it's possible to bring together the best of both worlds. That'swhy, unlike many marketplaces, we allow our sellers to practice dropshipping, under certain conditions .

The main condition is the existence of a legal entity. This is essential to enable third-party sellers to benefit from the advantages of our marketplace, and to build maximum trust, especially with our 13 million loyal buyers.

So, whether you're a professional dropshipper or not, you now know which lever to use to launch your e-shop: a marketplace like Rakuten. By opting for a 2.0 marketplace, youbenefitfromincreased visibility, optimized offermanagementanda relationship of trust with customers .

With Rakuten Fulfillment Network, you can even outsource your logistics. So, are you ready to enjoy rapid, sustainable growth online? You're just one click away from all these benefits:

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by Haro Valentin

What is lead time? Definition and best practices

Lead time. Does this term mean anything to you? It's one of the most important e-commerce KPIs to master. Especially today: the commercial landscape is changing by the day, with players becoming faster, more responsive and more agile.

Lead time is the time elapsed between two key actions, such as customer purchase and delivery of goods. To maintain your place in the market, and in the hearts of your customers, mastering your lead time is essential. So, would you like to improve your sales strategy? Enhance your performance and logistics?

Follow our guide to discover, calculate and optimize your lead time.

What is Lead Time?

Lead time is a key concept in e-commerce logistics. We mainly talk about sales lead time. The definition is simple: it's the time spent between placing an order and delivery to the end customer. In other words, it corresponds to the actual time between the moment a web surfer clicks on "Buy" and the moment he gets the product in his hands.

In addition to sales lead time, there are other types of lead time, such as :

• Purchase lead time : this process takes into account the entire customer search, calculating the time elapsed between the search for a product and its final reception.
• Production lead time : this is the time spent between the start of product manufacturing and the moment when the product is ready for delivery .
• Procurement lead time : this refers to the time needed to procure goods for sale (choice of suppliers, negotiation, ordering, delivery of stock to the company, etc.) .

All these types of lead time are often associated with the notion of "cycle time". Cycle time is part of lead time: it corresponds to the time needed to complete a specific task, project or process, from start to finish.

In this article, we'll focus on sales lead time, which is the most closely followed in e-commerce... And the most important, to improve performance and stimulate growth.

How do you calculate lead time?

The formula for calculating sales lead time is :

Lead Time = Delivery date - Order date

The result is the number of days from receipt of the order to delivery to the customer. We recommend thatyoucalculate lead times for procurement, order processing and delivery for all products sold on your e-shop, based on order and delivery history .

Then move on to analysis. The shorter the lead time, the faster you can satisfy your customers. Today, speed of delivery is a major criterion when buying online. For 88% of French buyers, it's even as important as the product itself! (Source: Uber Direct and Ipsos study, 2023).

 

Finally, don't limit yourself to analyzing your lead time by product. Calculate and compare your different average lead times throughout the year, especially during key e-commerce periods. The results obtained in relation tosales seasonality will help you identify areas for improvement, to speed up your processes .

Why track and reduce lead time?

Your mission? Sell the right products, to the right people, and deliver them under the right conditions. In as little time as possible. Infact ,French consumers are prepared to wait an average of 5 days maximum to enjoy their purchases (source: SendCloud study, 2023).

By calculating and tracking lead time, you can :

• Improve customer satisfaction: it's the sinews of war. The faster a customer is delivered, the more likely they are to be satisfied. And the more likely you are to win their loyalty, making it easier for them to buy again! A short lead time is a guarantee of trust and reassurance.
• Strengthen your competitive edge: knowing your lead time means you can adapt your marketing strategy to promote the agility so dear to customers' hearts. For example, highlighting a maximum 3-day delivery time is a major advantage in setting yourself apart from competitors who deliver in 4 or 5 days. Eliminating intermediate steps that lengthen delivery times is the key to offering reasonable lead times that appeal to customers.
• Refine your demand forecast: the more you know about your demand, the more easily and accurately you can estimate it. Calculating lead time enables companies to draw up better logistical forecasts. This is a real asset for enjoying a more predictable cash flow, reducing your costs and improving your financial performance.

 

• Reduce your stock levels : a short lead time means you need to stock fewer products. Conversely, the longer the lead time, the greater the stock of stored products. Calculating and optimizing this KPI is therefore essential to improve your inventory management...And reduce your storage costs.
  
  

Factors influencing Lead Time

While reducing lead time is becoming a priority for many e-tailers, it's not a task that can be achieved by snapping a few fingers. Despite the good will of professionals, certain factors influence lead time. Knowing what they are means you can act more effectively when they arise, or anticipate them. These include

• Human error: miscommunication with a supplier, lack of training for an employee, forgetting a key piece of information... All these human errors are common. The solution is not to eliminate the human element from your sales cycle, and automate everything... But to support it as best you can, to limit errors.
• Geographical location: where is your company located? Where are your suppliers? Your warehouse? Your customers? By locating all these stakeholders, you can identify whether or not your supply and delivery chain is too complex. The further away these different locations are, the more your lead time will be impacted!
• Natural events: floods, earthquakes, storms, etc. are difficult to prevent and have a negative impact on lead time. To cope with them, we advise you to diversify your manufacturers, strengthen your inventory systems and anticipate potential action plans.
• Seasonality of sales : certain periods such as sales, vacations, Christmas or Valentine's Day can increase demand for products to be produced and delivered, and thus impact lead time. Anticipating which days are working days and public holidays also makes all the difference, so that customers can be satisfied.

You now know how and why to calculate your lead time. You also know the criteria that can increase or decrease your lead time. Now it's time for an action plan: here's how to optimize your lead time, and boost your company's performance.

How to optimize your lead time?

Here are 3 techniques to reduce your lead time, and thus contribute to the growth of your e-commerce business:

1. Use technology as an ally

As we said earlier, removing people from your processes is not the solution. On the contrary, combining people and technology is a winning strategy for improving your processes!

Specialized logistics software will help you to better manage unforeseen events, track inventory in real time and centralize all information concerning your supply chain. A demand forecasting tool is particularly useful, to anticipate variations in orders and adjust production accordingly .

You can also opt for a Warehouse Management System (WMS) to optimize logistics flows, manage inventory and monitor processes. Then, for transport management, a Transport Management System (TMS) helps optimize this part of the logistics chain, to improve transport conditions and reduce delivery times .

Whichever solution you choose, always opt for a centralized IT space, to avoid multiple spreadsheets and chains of e-mails sent to logisticians. This is what we offer our marketplace sellers , with Rakuten Fulfillment Network. It's a practical way to manage all your logistics in just a few clicks... while entrusting us with packaging, order dispatch and much more besides:

 

 

2. Maintaining good relations with suppliers

 

When we think of "lead time", we think first and foremost of delivery to consumers. But before that, don't forget that this indicator also takes into account other logistics components, such as production and the delivery of goods by suppliers. Without these stages in the sales cycle, there can be no final delivery, and no customer satisfaction and loyalty!

Since suppliers are an integral part of your overall lead time, take care of your relationships. Good communication and collaboration reduce the risk of inefficiencies. Trust, transparency and exchange also improve the transmission of information, flexibility and fluidity of operations .

3.Reduce contact points

Yes, the quality of the relationship with your service providers counts. Unlikethe quantity and multiplication of logistics service providers! To reduce your lead time, it's in your interest to reduce your points of contact. Rather than going through 5 different contacts, each responsible for a different link in the supply chain... Have you considered using a 4PL provider?

 

 

A 4PL (Fourth Party Logistics) providerisan intermediary in charge of a company's entire logistics. Its aim is to manage and optimize the entire supply chain. It acts as a single point of contact for all logistics issues, managing all links in the chain (carriers, warehouses, after-sales service, etc.) and all stages (storage, preparation, dispatch, customer returns).

Thisiswhat we offer with RakutenFulfillmentNetwork. Our turnkey solution, with no hidden costs, takes care of every stage of your e-logistics. Your customers are satisfied, your schedule is relieved. And you can (finally) concentrate on what you do best: selling.

With Rakuten Fulfillment Network, you benefit not only from improved lead time, but also from :

• 25% more time for your business
• 25% average savings on logistics costs
• 99.8% of orders placed before 2 p.m. are delivered within 24 hours, to ensure customer satisfaction

Ready to join the 12,000 professional sellers on our marketplace and offer your products to our 13 million regular buyers? To set up your own e-shop and place your trust in a reliable logistics partner, click here:

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by Haro Valentin

D2C logistics: definition, challenges and optimization keys

160 billion euros will be spent online by 2023, according to FEVAD. E-commerce continues to boom, with one key model on the rise: direct-to-consumer (D2C) sales. The principle? Sell products or services directly to consumers, without intermediaries.

However, the growth of this model brings with it a number of challenges, particularly when it comes to logistics. How can we improve inventory management? How to optimize the supply chain? How can we maintain a high level of customer experience and satisfaction?

Find out all the answers in this article. D2C logistics will soon hold no secrets for you!

1. What is the D2C model?

Sézane, Le Slip Français, Gemmyo... You've probably heard of these successful brands. What makes them special? A business model based on direct-to-consumer. In fact,these companies rely to a large extent ona strategy of direct sales to consumers, without going through intermediaries .

Visual source

This modern form of commerce is becoming increasingly common in sectors such as the automotive industry. Tesla, for example, concentrates on selling its vehicles directly, without going through dealer networks. Thermomix and Tupperware also made their name through direct sales, this time to the home. Finally, many mattress brands such as Emma, Tediber and Casper have also relied on D2C to develop their business. In short: D2C is a multi-sector model.

There's no longer any need to rely on distributors, wholesalers, supermarkets and hypermarkets... Direct-to-consumer allows for a more personalized, direct relationship with buyers.

It is also a guarantee of flexibility, and often profitability, thanks to higher margins. For a behind-the-scenes look at this business model, see our article: D2C: advantages, challenges and keys to success in direct sales.

2. D2C logistics

Logistics: an essential link in the chain of success!

80% of consumers are expected to make at least one purchase via a D2C brand in the next 5 years. But to guarantee a quality experience, here's the key success factor: logistics (or fulfillment).

In e-commerce, logistics refers to the entire process of storing, managing, shipping and delivering a company's products. Theaim of logistics is tosuccessfully manage the entire physical flow of products to the end consumer .All these links in the logistics chain have a direct impact on the user experience. Where fast delivery makes for greater customer satisfaction, a delay in delivery or a packaging problem can be a major turn-off..

This is one of the key success factors for D2C brands: successful logistics. And to achieve this, companies have several solutions. They can choose to manage all logistics in-house, or outsource all or part of it. In both cases, the challenges are numerous..

Logistics challenges for D2C brands

The objectives of direct-to-consumer logistics are to :

• Predict and anticipate customer demand

• Manage product supply and storage

• Process orders

• Control delivery costs and lead times

• Track parcels
• Handle after-sales service and any customer returns

Faced with these objectives, the main challenges for D2C retailers are to minimize logistics costs and components. In particular, storage, transport and product availability. The question to ask is: as an e-retailer, are you capable of managing all logistics on your own? Or would you rather concentrate on what drives you most: selling?

Indeed, D2C sales are not incompatible with the creation of logistics partnerships! Quite the contrary, in fact. To meet the challenge of developing their direct sales business, many e-tailers rely on logistics partners like RakutenFulfillment Network.

3. Supply chain: how is flow management organized?

Logistics and supply chain are often confused. Let's remember the difference: logistics is part of the supply chain process. Where logistics is concerned with the movement and maintenance of products (in and out of the company), the supply chain is the strategy that coordinates and manages the entire supply process .

The supply chain is a means of linking all the players in the supply cycle, from production to delivery. In addition to coordinating producers, logisticians, carriers, etc., the supply chain is divided into 4 major flows:

• Physical flow: supply, transport and storage of goods.
• The information flow: all the data (or Big Data) that drives the physical flow.
• Financial flow: all transactions carried out both externally (with partners, suppliers or subcontractors) and internally, within the company .
• Administrative flow : all documents circulating between supply chain stakeholders.
  

To better understand the role of these flows and optimize them for optimal logistics management, take a look at our dedicated guide: how to improve your e-commerce supply chain?

4. How to optimize your D2C logistics strategy?

Measure and monitor current performance indicators

Do you know whether your e-commerce strategy (and therefore your current logistics) is contributing to customer satisfaction? Are they complaining about late deliveries or making complaints?

To optimize your logistics process, the first step is to observe your customers' needs, measure their current satisfaction and your results. Key KPIs to track include :

• NPS

• CSAT

• Sales figures

• Sales margin

• On-time delivery (OTD)

• Product return rate

• Inventory turnover rate
• Cost per unit delivered

And all the indicators can be found here: the 11 key KPIs for maximizing your e-commerce success .

In addition to quantified KPIs, take an interest in your customers' qualitative feedback. What are their satisfaction or dissatisfaction criteria? Product packaging, delivery time, place of manufacture, delivery method... All these elements are linked to your logistics, and can be optimized according to the feedback received by your customer service or shared in online reviews.

This regular monitoring enables you to measure

oosing the shared logistics option

the impact of your e-commerce strategy, from a financial and customer point of view. Depending on the figures and customer feedback, you'll probably have to rethink the evolution of your logistics.

Here's an example of logistics optimization: pooling. Pooling logistics enables you to optimize the supply chain, from receipt of goods to delivery to the end consumer. Examples of pooled logistics include the sharing of storage warehouses between several companies, or the pooling of delivery vehicles.

This form of logistics is on the increase because it meets retailers' expectations, particularly in terms of cost reduction. Smaller, urban logistics centers are also emerging. Practical, to bring products closer to customers and meet environmental constraints.

Opt for outsourced logistics

D2C places customer proximity at the heart of its business model. To maintain this proximity over the long term, it's essential to take care of customers, listen to them, offer the best products... But it's difficult to be on all fronts when you're an e-tailer. That'swhy outsourced logistics is booming: it enables brands to concentrate on selling their products and their customers. While logistics service providers take care of all or part of the logistics .

There are different types of logistics provider:

So, have you thought about outsourcing your product storage and transport, with a 2PL (Second Party Logistic) partner? Or entrusting transport, storage, order picking and strategic optimization to a 4PL provider?

There are many advantages tousing one of these forms of outsourced e-commerce logistics:

• Lower costs : savings are passed on not only in structural costs, but also in staff recruitment. By reducing internal logistics costs, you improve your profitability. An important point, at a time when almost 12% of e-tailers are unprofitable due to logistics costs linked to distribution, in particular! (Logistics Bureau)
• Saving time : outsourcing your logistics gives you the time to concentrate on your core business. So you can develop your product, marketing and sales strategy without pressure.
• Greater customer satisfaction : entrusting your logistics to experts also means benefiting from their know-how. This reduces the risk of problems linked to product loss or delivery errors. A partner like Rakuten Fulfillment Network can even help you reduce your delivery times: when you know that delivery times are the second leading cause of shopping cart abandonment on e-commerce sites, according to Sendcloud (2023)... It's a good idea to do everything you can to convert your customers, then build their loyalty over the long term!

5. Rakuten Fulfillment Network: an asset for D2C

For the past ten years, Rakuten has been helping brands capture the hearts of their customers through a D2C approach. Companies like Emma, SEB and Kusmi Tea rely on our marketplace to speak directly to their buyers... And to our 13 million regular buyers.

In addition to the marketplace, Rakuten offers a whole range of services, such as the Rakuten Fulfillment Network. The principle is simple: you entrust us with your logistics. We manage it for you. And you benefit from the results, such as an average saving of 25% on your logistics costs!

Rakuten Fulfillment Network takes care of the storage, packaging and shipping of your products: you choose, our logistics service is flexible and scalable to your needs. You can, of course, controlalllogistics remotely, and keep a real-time eye on your inventory from a centralized location .

Thanks to this logistics partnership, your customers also benefit from quality service. 99.8% of orders placed before 2 p.m. are delivered within 24 hours, to the delight of your busiest customers!

You've got it: with Rakuten Fulfillment Network, you don't have to worryaboutstock-outs, packaging or shipping. Our network of warehouses and logistics partners is there for your products. We manage the logistics of your e-shop for you, and you benefit from a real competitive advantage over other D2C brands.

In addition to standing out from competitors and satisfying customers, some brands that choose Rakuten Fulfillment Network even multiply their sales by 10! Let's find out more.

6. D2C logistics: the case of Dreame

Dreame is a Chinese company specializing in high-end household appliances. As the company seeks to conquer the French market, it faces a major logistical challenge: delivery times .

Before placing its trust in Rakuten Fulfillment Network, Dreame's delivery times were between 7 and 10 days .Yet, according to McKinsey, 44% of buyers say they don't want to wait more than two days to receive an order! To speed up and simplify its entire logistics process, Dreame joined the Rakuten Fulfillment Network.

Results:

• 5x faster delivery: from 10 to 2 days, from China to France!
• A 10-fold increase in sales: thanks to more attractive delivery times, French customers are more likely to buy, which considerably boosts the company's sales.
• 200-fold increase in visibility: by selling on our marketplace, Dreame has access to over 13 million connected customers. This increases visibility, credibility and brand awareness.

Would you like to take advantage of a turnkey logistics service for your D2C business? Follow in Dreame's footsteps, and turn your e-commerce dreams into reality:

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by Haro Valentin

D2C: advantages, challenges and keys to success in direct sales

It's a model that appeals to consumers and brands alike: Direct-to-Consumer (D2C). Booming in recent years, this business model is simple. It enables a company to sell its products or services directly to consumers, without any intermediaries.

By 2022 ,57% of multinational companies had invested heavily in this strategy. As for buyers , 80% are expected to make at least one purchase via a D2C brand in the next 5 years. The revolution is underway, especially in the world of e-commerce. But what are the keys to the success of this Direct-to-Consumer model? All the answers from Rakuten are in this article.

I. Differences between B2C, B2B and D2C

The Direct-to-consumer model breaks the codes of traditional commerce. What makes it special? Itenables brands to sell their products directly to consumers, without the need for distributors, wholesalers or supermarkets. More commonly referred to as D2C... not to be confused with other acronyms, such as B2B and B2C.

B2C refers to the direct sale of products or services from a company to an "individual" consumer. Nike, Le Slip Français or Zara are "Business to Consumer" brands.

Conversely, B2B corresponds to transactions between companies. We speak of "Business to Business". For example, Salesforce is a B2B company, selling its software to other companies.

II. What are the advantages of the D2C model?

By choosing the Direct-to-Consumer model, brands establish a direct relationship with their customers. There are no intermediaries to disrupt the buying experience, which not only promotes proximity, but also personalization of the relationship .

Data collection is also direct, enabling the company to get to know its customers better, so as to offer them offers as personalized as the relationship itself. The company can easily demonstrate continuous improvement, and innovate to rapidly improve customer experience and satisfaction .Total control!

What's more,a D2C business has great flexibility: it's free to set its own prices, regardless of the margins of certain intermediaries. This flexibility has an impact on the company's profitability, since it can achieve a higher margin on its products.Stock-outs are also less frequent. Finally, a D2C company can also accelerate the time-to-market of its products, and grow faster..

If the D2C strategy is effectively executed. But this model isn't magic: there are many challenges to overcome!

III. Challenges of the D2C Model

In the retail sector, and especially in e-retail, the D2C model poses a number of challenges. Whether you're a new Direct-to-Consumer brand, or a company already on the market that wants to move towards this approach.

Let's take the example of a brand that wants to launch its own online store, selling directly to consumers. The work involved is colossal: investing in the right technological platform, recruiting a team, building and maintaining the entire brand image, guaranteeing quality customer service... This is not an approach to be taken lightly!

In today's saturated digital space, developing a visibility strategy can be perilous. And costly. How do you stand out from the competition? How can you attract new buyers with a sound marketing and communications strategy, without incurring extra costs?

And then there's the question of logistics. Will you be able to manage the ordering, stock management and delivery system? Quite often, brands prefer to rely on a logistics solution, such as Rakuten Fulfillment Network, to manage this part of their business.

A logistics service of this kind cuts costs, offers responsive customer support, and takes care of packing, shipping and tracking orders and stock. Perfect for focusing on what a D2C brand does best: selling.

IV. Key success strategies for D2C companies

• Creating a targeted marketing strategy

The Direct-to-Consumer approach requires you to know your customers inside out. Once you've created your marketing persona, you'll be able to develop a targeted marketing strategy .

It's an essential step if you want to get to the heart of your customers! And this is where the most successful D2C stores stand out. They avoid mass marketing, in favor of personalized campaigns. They also createengaged communities on social networks, with consumers who share the same values .

Within these communities, the most loyal customers often become ambassadors. They are the ones who take over the brand's marketing actions, thanks to word-of-mouth and the creation of UGC (User Generated Content).

One of the key success factors for D2C companies is therefore the power of their marketing, and the commitment of their community, particularly online .

• Delivering a flawless user experience

Consumers have too often been disappointed by brands that don't respect their commitments... Like delivery time. 57% of online shoppers consider delivery time to be an important criterion in their purchasing decision (source: Fevad). So, where brands with a D2C model stand out is when they honor an irreproachable customer journey. From A to Z.

Indeed, successful Direct-to-Consumer brands tick all these boxes:

• An e-commerce site with a simple, fluid customer journey
• A responsive design, on computer, mobile and tablet
• A reliable payment system
• Personalization throughout the purchasing process
• Impeccable customer service

This last point is essential, to contribute to the e-reputation of online stores. 55% of consumers are ready to recommend a company if its customer support is exceptional, according to Zendesk .

• Develop a data-centric approach

46% of D2C brands rely on consumer data to personalize the customer experience and improve the buying journey, according to Stirista (2021). Companies that favor direct sales have understood: better customer knowledge is a key success factor!

As long as information gathering is carried out in compliance with RGPD rules, brands have every interest in becoming "Data Centric". Data linked to purchasing behavior and preferences allow us to better understand our customers... And anticipate their needs.

Indeed, successful D2C brands no longer hesitate to develop a predictive approach, to improve the shopping experience. Predictive analysis also helps toanticipate demand, and thusimprove inventory management and the supply chain. A real winning bet, to minimize risk and maximize profitability.

V. What does the future hold for the D2C model?

Direct-to-consumer commerce is often heralded as the future of e-commerce. The DNVB and ONVBbrands are contributing to the growth of this ecosystem, combining a 100% digital and 100% direct presence . On a larger scale, 80% of brands (who are not necessarily D2C) believe that this model has an impact on their business, according to a study by Club CMO and Epsilon-Conversant. The conclusion is clear: Direct-to-Consumer is a golden opportunity, but also seen as a threat, for more traditional players.

In the post-Covid era, this trend towards D2C commerce has increased in particular. And with the rise of e-retail and increasingly connected consumers, forecasts seem rather optimistic: this model should continue to develop... Under certain conditions.

First of all,ignoring technology will no longer be an option. Equipping yourself with the latest technologies, to deliver a unified omnichannel experience, will become a necessity. What's more, the D2C model should evolve towards a more open form: tomorrow, the idea will no longer be to refuse all intermediaries... But rather toaccept intermediaries who take growth to another level, without compromising the direct relationship between brand and buyer.

This isprecisely what the 12,000 professional sellers, who offer their products to 13 million buyers, can find on our Rakuten platform. Thanks to the Rakuten Fulfillment Network, brands can benefit from improved D2C logistics... while maintaining a quality relationship with their buyers.

VI. Examples of successful D2C brands

There are many success stories in the D2C world. They cover a wide range of sectors. Ready-to-wear brands includeSézane and Le Slip Français. In bedding ,Tediber. In eyewear ,Jimmy Fairly. Or Miliboo, for furniture. Some brands, such as Bergamotte, are even breaking new ground in the very traditional world of florists .

All these brands rely on digital channels (website and social networks) to make themselves known... and recognized. Most are also banking on a recurring revenue stream, thanks to subscription sales.

At the same time, other success stories are emerging in D2C, from larger, more traditional players. This is particularly true of certain sports brands, which are making the transition to this more direct model.

For example, by positioning itself more on the direct sales market, Nike multiplied its D2C sales by 6.6 between 2010 ($2.5 billion) and 2021 ($16.4 billion). This represents just under 40% of its overall revenue stream. Which means that 60% is still generated by relying on key partners (physical or online resellers). And that reminds us of another success story..

Image source: Inside, 2023.

VII. Rakuten and Direct-to-Consumer

For decades, Rakuten has been helping brands capture the hearts of their customers through a D2C approach. Brands such as Kusmi Tea, Emma and Proline have chosen our marketplace to address their customers directly.

What motivated their choice: the possibility of creating a real sales and communication channel within our marketplace. Indeed, every Rakuten seller can create a personalized e-shop, to control their brand image, improve the customer experience and highlight their best offers.

In this way, brands create their own highlights on Rakuten. This is the case for Groupe SEB, which has created the 7 jours imbattables: a week dedicated to products from the Rowenta, Moulinex and Tefal brands, promoted to our 13 million recurring buyers.

Joining forces with a partner like Rakuten enables us to meet the major challenges of D2C, thanks to an already large and loyal audience and ready-to-use communication channels.

Rakuten: a key partner for your D2C strategy

Today, marketplaces play a central role in business growth. by2022, 67% of e-commerce sales will have been made on marketplaces, making them a significant sales channel, especially for D2C brands .

For example, by becoming a seller on our Rakuten marketplace, an e-commerce player can reach 13 million regular buyers. And unlike most marketplaces, we don't sell products: all our efforts are focused on your success, directly with your customers!

In addition, Rakuten offers a whole range of services, from e-commerce logistics with Rakuten Fulfillment Network (the leading marketplace for 4PL logistics) to drive-to-store. You give your products the visibility they deserve, and we take care of the rest. Packaging, shipping, order tracking... Your customers are satisfied, and your schedule is relieved. 99.8% of orders placed before 2pm are even delivered within 24 hours, to delight your most hurried customers!

Click here to open an online store and sell your products directly on Rakuten:

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by Haro Valentin

Shipping method: Which one to choose for ecommerce in 2024?

As well as keeping delivery times to a minimum, attracting the largest possible number of consumers means carefully choosing the shipping method best suited to your business and the expectations of Internet users. Discover our tips to help you find your way around, win over a growing number of buyers and, better still, quickly win their loyalty.

Shipping method: definition

In ecommerce, shipping method refers to the method chosen to transport products from the seller to the buyer, once the purchase has been made.

There are many different shipping methods, including home delivery, drop-off or by appointment, and the choice of shipping method is an important factor in ensuring an effective conversion rate for your online store.

Why is it important to choose the right shipping method?

The shipping experience plays a major role in acquiring and retaining new customers.

For example, 35% of online shoppers cancel their purchase if the advertised delivery time is too long. You need to be able to offer a shipping method that's adapted to your most urgent customers.

Also, for 85% of online shoppers, it only takes one bad shipping experience to dissuade them from ordering from a vendor again. That's why you need to offer shipping options that suit the different preferences of your buyers.

This is true whatever your business, whether you're an ecommerce pure-player or a brick-and-mortar business with an online operation.

The 6 different types of shipping methods

With so many options to choose from, it's hard to find your way around? Here are the main shipping methods for your online business:

Home delivery

Preferred by 85% of online shoppers according to the FEVAD/Médiamétrie barometer, home shipping is more topical than ever with the explosion in telecommuting since the health crisis.

With no need to travel, you can receive your parcel directly at home, saving you a considerable amount of time and making this type of shipping the most popular.

Relay point shipping

The 2nd most popular shipping method for online shoppers, relay point is particularly popular with working people who want to pick up their purchases close to their office or home as soon as they have the time.

Packages are generally stored for 14 days, giving the buyer plenty of time to collect them. It's also a more economical option for retailers, as it reduces the need for carriers to travel, eliminating the last-mile stage.

Express delivery (or same-day delivery)

In addition to the purchase price, one of the greatest expectations of e-consumers is the shipping time of their orders. The longer the shipping time, the lower your chances of converting.

Express delivery, either to your home or to a relay point, is an excellent way of attracting a majority of Internet users, who are anxious to receive their product within 2 working days, or even the same day.

Standard delivery

Less expensive than the express version, standard delivery is more time-consuming in terms of order reception, but generally more economical for buyers who are in less of a hurry to receive their parcel.

There's no obligation on the part of the retailer to deliver within 48 hours, or even several weeks (although we wouldn't recommend waiting that long!)

Delivery by appointment

This alternative meets consumers' ever-growing need for efficiency and adaptability on the part of online businesses. With delivery by appointment, the buyer decides the date, time and place of receipt of his order. Professional logistics are essential here.

In-store collection (click and collect)

Although not strictly speaking a shipping method, click & collect is becoming increasingly popular with online shoppers, as it offers a number of advantages. If you have a collection point in your physical store or directly in your warehouse, don't hesitate to offer this alternative, which is free for both parties.

At Rakuten, all sellers on our marketplace can activate the click and collect option free of charge, whether you have one or three million points of sale!

It's important to always give consumers a choice, not just offer them standard delivery or delivery to a relay point. The right balance would be to offer the option of home delivery or relay point delivery, as well as trying to reduce delivery times as much as possible to meet the urgency of certain online purchases.

Shipping methods: criteria to consider

To maximize customer loyalty and budgeting, you need to take the following factors into account:

Cost : the aim here is to offer consumers the lowest possible shipping charges, while making the most of each shipment to ensure optimum sales. The cost of a shipping method will generally vary according to the weight and size of the product (a bulky product will cost you more to ship than a USB flash drive), the number of shipments according to your sales, the insurance taken out on the product and the speed of delivery.

Speed: as we've said, in most cases, a loyal customer is a buyer who, among other things, receives his parcels quickly, very quickly

Reliability: Whether your company takes care of the transport of orders itself, or you use a transport professional such as UPS or Mondial Relay, respect for products and delivery times is not to be taken lightly.

Flexibility: Adapting to consumer demands doesn't have to cost you money. So, for example, in the case of a delivery by appointment that is not honored by the buyer, don't hesitate to drop off the order at the nearest partner relay point to save yourself a second visit.

Ecological impact: Scrutinized with interest by the younger generation, ecology is playing an increasingly important role in purchasing habits in France. Fewer journeys, less carbon impact from transporters... These are all new factors to take into account, which can, if properly managed, save you money and win you new customers.

Depending on your business and your clientele, some of these criteria may be more important than others. So it's vital to evaluate them carefully, so you can choose the shipping methods that best suit both your needs and those of your customers.

Our tips for attractive shipping options

Give your customers a choice

Don't settle for just one shipping method! Every consumer has their own habits, and it's important that your sales strategy takes this into account, whatever your sector.

Offer at least one option for express delivery and standard delivery, and at least one option for home delivery and relay point delivery.

Offer different price ranges

As with the shipping options, it's important that this choice is also reflected in the possible prices. An express home delivery will cost more than a standard delivery, while a point relais is generally the most advantageous because it's less costly on the seller's side (as it's a mode that limits carrier travel).

What about free shipping?

Offering free shipping is always a great way to stand out from the crowd and boost your online store's conversion rate. And it's perfectly possible to offer this option without breaking the bank, by opting for free delivery above a certain purchase amount or number of items, or limited to certain destinations such as mainland France. In-store collection is also a simple way of offering free delivery.

We give you all our advice on the subject in this article on free shipping.

Outsourcing your ecommerce logistics: the most efficient way to find your way around?

Whether it's a question of significantly improving inventory management, cutting logistics costs as far as possible, or getting the most out of reverse logistics, outsourcing is a highly advantageous option for many online businesses. Provided you choose the right e-logistics provider..

With Rakuten Fulfillment Network, you can rely on a major player in French ecommerce to support you on a daily basis. Whether you're setting up your online store, warehousing your goods or handling deliveries and customer returns, our turnkey services can be tailored to meet your every need. All at a clear price, with no hidden charges. For more information or to request a quote, click here!

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by Haro Valentin