Logistics service provider: definition, advantages and selection criteria

 

And what about freight forwarders?

A freight forwarder acts as an intermediary between shippers and transportation services like air freight, sea freight, road, or rail. The role of a freight forwarder is to arrange the transportation of goods from one destination to another efficiently and cost-effectively. Their main difference with an LSP is that their service is limited to transportation, whereas an LSP adds other additional services such as customer service, parcel returns and storage.

The advantages of using a logistics service provider

Improved customer experience

Too long delivery times, charges too high, parcels never received or in poor condition... The delivery stage can cause numerous problems that can damage your customers' experience. There's a risk that you'll lose your customer for good. Worse, they can complain about it to others, giving you a bad reputation. Indeed, up to 30% or more of customers may leave a negative review or complain online after a bad delivery experience.

It's therefore vital to offer satisfactory delivery solutions to avoid seeing your image deteriorate. And competitive delivery can even become a lever for differentiation, by offering fast turnaround times and efficient tracking!

Reduce your logistics costs

Contrary to what you might think, outsourcing your logistics often means making savings in this area!

In fact, it reduces your investment needs: you avoid buying or leasing your own storage space and transport vehicles. Logistics service providers also have their own network of partners from whom they benefit from preferential rates, which you as a customer can take advantage of.

Greater flexibility

Throughout the year, your logistics needs evolve: sales, high and low seasons, Black Friday... And from year to year, your needs are bound to grow (or so we hope!) A service provider will be able to adapt and support you as your business and logistics needs evolve, allowing you to scale up or down depending on the period.

Benefit from their advanced technology

LSPs are in the logistics business for a long time and they often use advanced technology and software to the benefit of the businesses they work with. Their solutions enable you to monitor data on your stock levels in real time, as well as the progress of your orders and deliveries, helping you to optimize your logistics, improve your operations and processes and reduce cost.

Save considerable time

When you're just starting out, you can still manage your own order dispatch. But once you've reached a certain level of activity, it becomes more and more time-consuming. Not to mention the questions and returns from your customers to deal with, and your right to go on vacation without wondering who will be sending out the orders!

Outsourcing your logistics means you can focus on your core business: product development, marketing and sales, while ensuring that the logistics aspect is handled by experts in the field.

 

 

The advantages of using a logistics service provider for your customers

Outsourcing your logistics also helps you offer your customers a better experience. Here are just a few of the benefits for them:

Better order tracking

Parcel tracking is an important component of the delivery experience, and one that many buyers expect. A client appreciate being able to track the progress of their delivery. This service is generally provided by LSPs, reassuring your customers.

Better management of customer returns

Returns for refunds or exchanges are increasingly common in e-commerce, and present a new challenge for sellers. An LSP can help you manage these reverse logistics to maintain high customer satisfaction while remaining profitable on the business side.

Quality after-sales service

In the event of delivery problems or questions, your customers can turn to your service providers, who deploy a dedicated team to answer them. Their response time will certainly be faster than if you handled it yourself, and your customers will be all the happier for it.

Faster and more affordable delivery

On top of it, the savings you make on your billing with an LSP will enable you to offer more affordable and therefore more attractive delivery services, while at the same time providing a more efficient and therefore faster service.

Self-shipping vs. working with a logistic service provider

Although shipping your own orders is convenient and easy at the start of your e-commerce adventure, this task can quickly become time-consuming and a source of expenditure that's hard to control.

Indeed, managing your own logistics means internalizing the costs of storage, transport, insurance and truck fuel. Over and above the costs, it's also a considerable investment in terms of time. Processing new orders, packing your products, shipping your parcels... all these tasks take time away from your core business.

By working with a logistics provider, you benefit from reduced costs thanks to its network of partners, and you free up precious time!

How to choose the right logistics provider?

Before calling on a partner for your e-logistics, it's important to determine your needs carefully.

Stock management and merchandise storage, order preparation, parcel dispatch, customer service in the event of product returns... Drawing up precise specifications for the tasks you wish to entrust to a third-party company is a good way to get a clearer picture. And to find the logistics service provider who can meet all your needs.

Let's take a look at the different criteria to explore.

Services offered

We're here to assess whether the level of service offered by the service provider is up to scratch your expectations and those of your customers.

• Shipping methods : what are your customers' preferences? Your logistics service provider may offer a range of services, such as express delivery or shipment in point relais. The more shipping options he offers, the more convenient it will be for your customers.
• Delivery times: Make sure the service provider can meet the delivery times you promise your customers. For example, with Rakuten Fulfillment Network, 99.8% of orders placed before 2pm are delivered within 24 hours.
• Shipment traceability: Make sure that the service provider offers real-time tracking tools so that you can monitor the status of your stocks and orders, and so that your customers can track the shipment of their products.

This may also include other criteria such as international delivery capabilities and insurance in case of damaged or lost packages.

You also need to think about any criteria related to the practicality of storing your products. These may include :

• Storage capacity: Evaluate the provider's storage capacity in relation to your current and future needs. Make sure they can handle your growing inventory.
• Warehouse locations: The logistics provider's geographical proximity to your customers can influence shipping costs and delivery times. A central warehouse location can be advantageous for reaching a large number of customers quickly.
• Inventory management: Make sure the logistics provider is able to monitor your stock levels in real time, and notify you when they are close to zero, to avoid stock-outs.

Buyer experience

What care is taken to ensure your customers' experience when using this service provider?

• After-sales service: Does the service provider offer an after-sales service to deal with any logistical problems encountered by your customers? Such a service frees you from a time-consuming aspect of logistics.
• Customer returns management: Understand how the service provider handles product returns and exchanges. For example, Rakuten Fulfillment Network facilitates the management of your customer returns, including tracking and receipt of returns, product inspection and restocking.

Seller experience

Finally, will this service be convenient to use on your end? Here are a few criteria to help you decide.

• Customer service: The quality of customer service is crucial. Make sure the provider is responsive, can resolve your problems quickly and offers good customer support.
• Scalability: Look for a provider who can adapt to your changing needs. They must be able to handle peaks in demand during busy periods.
• Integration with your ecommerce platform: Make sure the service provider can easily integrate with your online sales system and/or your various marketplaces for smooth communication of orders.
• Minimum volume: If you're just starting out in e-commerce, check that the service provider accepts order volumes your company's size.
• Experience in the ecommerce sector: Make sure the logistics provider has experience in dealing with the specific specific needs of e-commerce companies. They should understand the speed, flexibility and handling of seasonal peaks.
• Costs and pricing structure : Compare the rates and charges of different LSPs. Make sure you understand the billing structure, including hidden costs (if any), such as inactive storage charges or return fees. For example, with Rakuten Fulfillment Network you benefit from a simple pricing structure with no hidden costs.

Choosing the right logistics provider is crucial to the success of a company's supply chain. Between full-service, specialized, integrated or technology-based providers, each type offers specific benefits tailored to different business needs and objectives. Taking the time to choose the right partner, who understands your objectives and is committed to achieving them, is an investment that can significantly improve your company's efficiency, responsiveness and competitiveness.

 

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by Haro Valentin

How to improve your e-commerce supply chain?

E-commerce has never been in better health: in 2023 alone, sales in the sector will total 159.9 billion euros. That's +10.5% on 2022 (Source: Fevad, 2023).

But while everything seems to be on track, there are others indicators that raise questions. With this rapid growth, how can you successfully manage the surge in product output, transportation, and final delivery to customers?

This is the challenge facing the supply chain, which must now reinvent itself. In this article, discover the definition, challenges and strategies for optimizing the supply chain, for all the e-tailers of today... and tomorrow.

What is the supply chain?

Supply chain: a simple definition

The supply chain covers all stages from the purchase of raw materials, through product production and transport, to final delivery to the customer.

This strategy is of the utmost importance: by controlling and optimizing each stage, an e-tailer can ensure optimal production, sale and delivery. Supply chain management has a direct impact on customer satisfaction. But that's not all! It also helps to improve the company's profitability, to gain market share through strong differentiation... And to aim for better, more sustainable growth.

But before they can achieve these benefits, e-tailers face a challenge: the supply chain must weave a complete network around a product, integrating different players who feed into each link. Throughout this process, there are various flows. Let's talk about them.

Supply chain flows

Supply chain management is divided into 4 flows:

• The physical flow: this corresponds to the logistics chain, encompassing the supply, transport and storage of goods. This flow refers to the movement of products within the company. Good management of physical flows means getting the right products to the right place, at the right time, in the right quantities... and, above all, in the right condition.
• Information flow: this is the data (or Big Data) that drives the physical flow. All the information concerned relates to sales history, strategies and resources deployed by the company, performance indicators, etc. All this information responds to the what (processes), the where (country, warehouse, IT system), the how (resources and conditions) and the when (product life cycle).
• Financial flows: these are all transactions carried out both externally (with partners, suppliers or subcontractors) and internally, within the company. These flows may be denominated in several currencies.
• Administrative flow: this concerns all documents circulating between the parties involved in the supply chain. These include documents linked to the processing and control of orders or payments, management reports, etc., as well as all administrative documents which may have an impact on inventory management, cash flow or product marketing.

All these flows are called “real and digital” and are associated with movements of goods, services, documents or financial data. Both internally and externally. The objective is to ensure good coordination and management of all these flows, to ensure the logistical success of the company.

The actors of the supply chain

As we have seen, the supply chain consists of a set of links. To optimize each of its links, dozens of actors are mobilized and collaborate together, through the different flows.

Producers, suppliers, charterers, logisticians, transporters, etc. All these players are essential to ensure the supply chain… Until the end customer!

The various players in Supply Chain Management are mainly grouped into 4 categories:

• The actors of manufacturing and production 
• Stakeholders in storage and inventory management
• Transport players 
• Internal actors (accounting, HR, marketing, etc.)

In a market increasingly concerned with the environment, all these actors have a major challenge: reconcile impeccable e-commerce logistics, and economic, environmental and social commitment. Let’s talk about it!

The Challenges of the Supply Chain

All distribution companies, including e-commerce sites, are facing new supply chain challenges. These challenges include:

Integrate sustainability and social responsibility throughout the process

Faced with the current climate, economic and social challenges, many companies are rethinking their supply chain. The solutions envisaged? Choose ethical suppliers (who meet CSR standards), use sustainable materials, optimize transportation to reduce greenhouse gas emissions… Or identify waste management processes. 

By promoting the circular economy, environmental sustainability or a more social logistics approach, companies enjoy many benefits. Both in terms of brand image and the acquisition of new responsible customers. In addition, an optimized supply chain can help reduce costs over time… Another important challenge for businesses!

Coping with rising logistics costs

Since the Covid-19 crisis, companies' supply chains worldwide have been heavily impacted. Since the recovery in “demand” on the customer side and the reopening of borders, improvements are notable… But some challenges remain. Especially in the context of inflation and economic crisis. The increase in logistics costs is particularly pointed out.

Let us take the example of transportation costs. Shipping is estimated to have increased by 547% from the seasonal average of the past 5 years, for a container travelling from Shanghai to Rotterdam! (Source: China Ministry of Transport, 2021).

Tackling the Logistics Labour Shortage

In recent years, many companies have been “out of reach”. Suppliers, transporters, deliverers, etc. The supply chain is slowing down. Companies experiencing this labour shortage are also taking the risk of disappointing their customers, with more expensive products and slower delivery.

To meet today’s supply chain challenges, finding the right partners is a strength. So, if you are still looking for yours, for your online store... Rakuten is at your side! We offer our marketplace sellers fast, reliable and economical e-commerce logistics. To let them focus on what they do best: sell.

Rakuten Fulfillment Network allows you to reduce your logistics costs. You get a flat rate regardless of the sales channel. And we take charge of every step of your e-commerce logistics: packing orders, customer returns, storage of your products…

Your customers are satisfied, your schedule is relieved. Our customers save 25% on average on their logistics costs! 
Discover Rakuten Fulfillment Network

How to optimize your supply chain? 5 winning strategies

1- Align logistics strategy with business strategy

The starting point for an optimized process? A well-defined strategy from the outset. Always begin with the company's overall objectives to determine the direction you need to take. Once established, your logistics strategy should align with your commercial strategy. So, what are your products? How do you plan to market them? Through which channels and to which target customers?

Answering these questions will help you create a coherent supply chain that matches your business reality.

For example, if you plan to sell products made in France, produced in very limited quantities by your production chain... Consider a pre-order system through your online store, available for a limited time. This approach allows you to anticipate every link in the chain, from creation to final delivery to the customer.

2- Choosing the right technologies

Without the right tools, how can you get good visibility on all your flows? Today, technology is indispensable and inseparable from a good logistics strategy. So, to optimize your supply chain, make sure you use the right tools.

Among these tools, a Warehouse Management System (WMS) allows you to optimize logistics flows, manage your inventory and successfully monitor all your processes. Then, for transport management, a Transport Management System (TMS) is particularly useful. It automates and optimizes this part of the supply chain, in order to promote transport conditions.

Finally, whatever the solutions chosen, here is our advice: favor a centralized computer space, to avoid multiplying spreadsheets and chains of emails sent to logisticians. This is what we offer to sellers in our marketplace, with Rakuten Fulfillment Network, to manage all their logistics in a few clicks!

3- Listen to customer needs

If the last stage of the supply chain concerns the delivery of an order to the end customer… This end customer should not be your last priority! Whether you are an e-commerce or marketplace seller, placing the customer at the center of your business is crucial. Always listen to their feedback to optimize your entire logistics process.

For example, are your customers satisfied with the delivery time? And its conditions? Their feedback is invaluable, to improve the customer experience… And the different links in the supply chain. It is also considered that 98% of online customers remain loyal to an e-commerce site after a positive delivery experience (source: IFOP study, 2021). To preserve this loyalty, stay tuned for feedback from all your customers.

4- Demonstrate adaptability and responsiveness

In addition to listening to customers, listening to the market is essential to improve its SCM (supply chain management) strategy. What is the current situation? How are your partners evolving? And what strategies are your competitors adopting? To optimize its continuous supply chain, market monitoring must also be continuous.

In addition, certain qualities are required: adaptability, flexibility, responsiveness… Indeed, unforeseen events are frequent and can delay the flow of goods. Your supply chain must be able to adapt in all circumstances. Either by anticipating potential production and delivery delays, or by having a plan B available.

5- Monitoring performance indicators (KPIs) 

Finally, to optimize the supply chain from end to end, here is our last tip: follow the most important key performance indicators (KPIs). Measuring these KPIs will allow you to measure the effectiveness of your logistics, and identify the main points of friction. As well as what works best.

Among the key performance indicators to measure for your e-commerce site are the following:

• The turnover rate of merchandise stocks 
• The ratio forecast to actual sales
• The time of replenishment
• The percentage of complete orders
• The rate of return of products
• The cost per unit delivered 
• “On Time Delivery” (OTD)

To help our marketplace sellers track all this data, we provide them with a centralized dashboard. The Merchant Dashboard is a complete tool for managing sales and ads, as well as tracking your performance on Rakuten.

Regular monitoring of this dashboard makes it possible to improve the e-shop’s performance… But also its supply chain. To aim for more growth, more sustainably.

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by Haro Valentin

What legal status should you choose for your e-commerce business?

This article is about the French market and French Jewish laws. They are not applicable in other countries.

More than ever, e-commerce is seductive. The sector's figures are promising: in 2023, e-commerce sites recorded over 573 million transactions, representing annual growth of 5.2% (source: Fevad, 2023). To achieve the same success, many sellers are starting to create an online sales site... And all are concerned by a crucial choice. The choice of legal status.

Without a legal status, it's impossible to operate legally. So which status should you choose? Micro-entreprise, EIRL, EURL, SASU, SARL, SAS... The choices are numerous. And the final decision influences not only the day-to-day running of the business, but also its long-term growth. Want to know more? Follow the guide!

Micro-entreprise, SASU, SAS... What are the legal forms?  

To open your own online store and become an e-commerce vendor, there are a number of different schemes available to you. In particular :

• Micro-enterprise (formerly known as auto-entrepreneur status)
• Sole proprietorship (EI, formerly known as EIRL)
• Single-member companies (SASU or EURL)
• Multi-partner companies (SARL or SAS).

Each legal status has its advantages and disadvantages. Let's talk about them.

Micro-business

Micro-enterprise is probably the simplest (and least expensive) legal status for testing an online business. But be careful! The sales threshold is limited, as is the credibility of this system in the eyes of your partners or potential customers.

To sum up :

Micro-business
Benefits	Disadvantages
Quick and easy to set up. Streamlined accounting and tax management, 12.8% sales tax. Not subject to VAT. Access to grants and exemptions under certain conditions. Compatible with salaried activity.	Taxed on total sales, without taking actual profits into account. Sales ceiling of €188,700, limiting expansion, especially in e-commerce. No deduction of business expenses or VAT on purchases. Restrictions on association and hiring linked to sales. Less credibility with customers vs. established businesses.

Sole proprietorship (EI)

Even though the sole proprietorship has no legal personality, it is a "real" business, unlike the previous status. The classic IE makes up for some of the shortcomings of the micro-enterprise, as it allows you to increase the sales ceiling, deduct all expenses, improve your credibility...

But since 2022, business assets have been redefined under this status, merging with personal assets. This means you are less protected if you stop working! There are other criteria to take into account:

Sole proprietorship
Benefits	Disadvantages
Easy transition to sole proprietorship for growth. Creation without initial investment, easy access to entrepreneurship. More elaborate but simplified management than micro-enterprise. Liability limited to business assets since 2022. Choice of corporation tax (IS) for tax flexibility.	Higher taxation than other statuses. Income tax based on actual income, unless option for corporation tax. Self-employed status (TNS), without employee status. Limitations on partnership or association. Less credibility with investors.

Single-member companies (EURL and SASU)

To launch an e-retail business, many entrepreneurs turn to setting up a company. With a one-person company, assets are better protected, the transfer of shares is simpler and credibility is even greater with these statutes. A distinction is made between the EURL and the SASU. The EURL is a single-partner SARL, as is the SASU for the SAS.

However, with this type of legal structure, formalities and costs are more complex: drafting of bylaws, advanced accounting, publication of a legal incorporation announcement in a newspaper... Here are details of the advantages and disadvantages of these two single-member statutes:

EURL and SASU
Benefits	Disadvantages
Asset protection through limited liability. Simplified management thanks to a single partner. Enhanced image and reliability with partners. Tax flexibility, choice of tax regime. Specific social security coverage for the manager. Easy transfer of shares. Potential for development, opening up to new partners or transformation.	More cumbersome formalities: creation, management and annual filing of accounts. Increased costs: incorporation, advanced accounting, legal fees. Fiscal/social rigidity: restricted tax/social regime changes. Taxation of SASU profits: taxation even without distribution. SASU social security charges: higher than self-employed costs.

Multi-partner company: SAS

The SAS (Société par actions simplifiée - simplified joint-stock company) is a flexible and interesting legal status, particularly for launching an online sales company with several associates. This status offers great freedom of action. What's more, you no longer need to appoint a statutory auditor or set a minimum share capital.
This legal model allows you to grow while bringing in investors and protecting your assets. However, financial costs are high, and administrative management is rigorous.

SAS
Benefits	Disadvantages
Great contractual freedom for agreements and contracts. Asset protection through limited liability. Executive social security coverage equivalent to that of an employee. Corporate income tax at 25% for precise tax planning. Start-up possible without high initial capital, from as little as €1.	Demanding set-up, complex articles of association to draw up. High start-up costs, potentially > €1,000 with professional support. Significant financial charges, especially for salaried managers. Cumbersome and rigorous accounting/administrative management.

Multi-partner company: SARL

44% of e-traders choose the SARL status (source: e-Komerco study, based on over 5,000 companies). This is by far the most popular form of business for online store creators! It is particularly suitable for projects launched by several partners.

Each person's liability is limited to his or her business assets. But beware of the TNS (Travailleur Non Salarié) status, which is very rigid, with heavy social charges. Administrative formalities are also considerable. Here's an overview of the advantages and disadvantages:

SARL
Benefits	Disadvantages
No initial capital required. Limited liability. Single-member SARL possible. Regulatory security. Tax advantages. Social protection for manager. Collaborating spouse authorized. Ideal for family projects. Financial auditor not required. Company control via approval.	Restrictions on the number of partners in an LLC Conditions that may prove restrictive The social security system applicable to the majority shareholder The complexity of integrating new members into the capital Distributed profits are subject to social security charges.

So, are you ready to make your choice? When you create your e-shop on Rakuten France, you'll need to choose the status of your choice. This is essential for registering and selling your products on our marketplace. Recently, the SDE (Société de Droit Étranger) status is also available, in the "Status Selection" section. Click here to find out more and become a seller:

 

 

How much does it cost to set up an e-commerce business?

Is your e-commerce site project coming to fruition? Congratulations! Whether you choose to open your own website or join a marketplace like Rakuten, there are a few steps you need to take before you can launch. Like defining your business plan, including your projected budget. 

Indeed, the costs of setting up a business are mainly linked to the creation of the website, external purchases, logistics... The price of an e-commerce site ranges from 900 to 10,000 euros, depending on the scale of your project. The purchase of a domain name ranges from 10 to 50 euros per year. Other costs may be added, depending on your decisions, but don't forget the last one: the cost of legal status.

On average, setting up a SAS, SASU, SARL or EURL costs between 220 and 300 euros (including compulsory legal advertising and registration with the Registrar). Add at least 500 euros if you use the services of an accountant or chartered accountant.

With micro-enterprises, you don't have to pay any fees in advance. The cost of creating the status is free.

What are the registration stages?

For micro-businesses :

1. Choice of status: Check that your activity is eligible for the auto-entrepreneur scheme.
2. Declaration of commencement of activity :

• This declaration is made online on the official URSSAF website, for commercial and craft activities, or on the Chamber of Commerce and Industry (CCI) website for commercial activities, and on the Chamber of Trades and Crafts (CMA) website for craft activities.
• For liberal professions, you need to register on the URSSAF website or the auto-entrepreneurs portal.

1. Registration :

• Registration with the Registre du Commerce et des Sociétés (RCS) for traders, or with the Répertoire des Métiers (RM) for craftsmen, is automatic and free of charge.
• Self-employed professionals are registered with URSSAF.

1. Obtaining a SIRET number: A SIRET number is assigned to you after registration, and is essential for starting your business. After that, you can set up your online store... and sell your first products!

For SARL, SAS, EURL, SASU :

1. Drafting by-laws

• SARL/EURL : These bylaws must define the company's organizational rules, the partners' contributions, the distribution of profits, and decision-making procedures.
• SAS/SASU: These bylaws offer greater freedom in terms of organization and operation. However, it's best to draw up the articles of association with the help of a professional!

2. Filing of share capital

• The capital must be deposited in a blocked account opened in the company's name with a notary, a bank or the Caisse des Dépôts et Consignations.

3. Publication of a notice of incorporation

• A legal announcement of the company's incorporation must be published in a legal gazette in the département where the registered office is located.

4. Registration of articles of association

• The signed articles of association and associated deeds must be registered with the Service des Impôts des Entreprises (SIE), if contributions in kind are made or if registration duties are due.

5. Obtaining the necessary supporting documents

• Proof of registered office, non-conviction of the manager or chairman, and registration with the Registre du Commerce et des Sociétés (RCS).

6. Declaration of beneficial owners

• Individuals holding more than 25% of the capital or voting rights are required to file a declaration with the Clerk of the Commercial Court.

7. Registration with the Trade and Companies Registry (RCS)

• The registration file, including articles of association, supporting documents and completed forms (M0 for a SARL/EURL, M0' for a SAS/SASU), must be submitted to the Centre de Formalités des Entreprises (CFE) or directly to the commercial court clerk's office.

8. Obtaining a Kbis certificate

• This official document attesting to the legal existence of the company is issued by the commercial court clerk's office after registration. Then you're free to do business and sell your products online!

Examples of company types by legal status

Would you like to set up a company, but don't know which status to choose? Here are a few examples to help you decide:

Micro-entreprise (auto-entrepreneur scheme)

• Example: A professional photographer operating alone, a jewelry sales website,an e-commerce site for handmade candles... This status is ideal for sole traders who want to simplify their administrative and tax procedures as much as possible, while keeping sales within the limits of the scheme.

SARL (limited liability company)

• Example: A local bakery run by several partners. This type of company is ideal for small and medium-sized businesses that wish to benefit from liability limited to their contributions.

SAS (simplified joint-stock company)

• Example: An innovative technology start-up, such as a SaaS solution. The organizational flexibility of this status allows a free distribution of powers between shareholders.

EURL (Entreprise Unipersonnelle à Responsabilité Limitée)

• Example: A self-employed consultant. The EURL is the single-person version of the SARL, perfect for the sole trader wishing to limit personal liability.

SASU (Société par Actions Simplifiée Unipersonnelle - one-person simplified joint-stock company)

• Example: A freelance software developer. The SASU offers a one-person structure with all the advantages of the SAS, such as freedom of management and liability limited to the amount of the contribution.

Ready to create your online store?

Does the adventure of e-commerce appeal to you? You're not alone. On our Rakuten marketplace, more than 12,000 professional sellers have created their own e-shops to sell products online. The results? Our 13 million loyal buyers put their trust in them, in complete simplicity and security, on a single digital marketplace.

Would you like to launch your own e-shop? You now have all the keys you need to choose your legal status, then take the necessary administrative steps. Then join Rakuten France, to boost your sales right from the start:

 

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by Haro Valentin

Boosting e-commerce sales with promo codes: the guide

It's an essential tool for generating traffic, increasing sales and boosting growth: the promotional code. Also known as e-coupon, promotional code, discount code... This lever is a magnet for customers. It's even considered that 80% of consumers are more inclined to buy a new brand if they have access to a coupon or promo code (source: RetailMeNote annual report, 2021).

But is it really worth it for brands? Should they bank on this lever? And if so, how do you set up a coupon code on your e-commerce site? Find out all the answers from Rakuten, in this guide.

What is a promo code? Definition

Saving money is a priority for shoppers, especially in times of crisis or inflation. And to achieve this, customers rely on one tool: the promotional code (or promo code). This is an alphanumeric code communicated to potential customers, so that they can benefit from a discount when purchasing a product. The code is entered just before payment. A discount is then deducted from the customer's basket, and the final price of the products is reduced.

For customers, the coupon is an incentive to buy. For marketplace and e-commerce sellers, it's a sales driver. Today, 90% of consumers admit to actively using promotional codes. And its power is such that 46% of consumers abandon their online shopping baskets if a promotional code doesn't work.

To satisfy their customers, brands therefore have every interest in regularly proposing offers and promotions of this type... While ensuring the reliability of the codes proposed, to limit purchasing friction and basket abandonment.

 

The advantages of e-commerce promo codes

Have you launched your online sales site? Congratulations! Now you're looking to attract, convert and retain more customers? Here's a solution: deploy your promo code strategy. There are many advantages to these discounts, such as...

• Quick and easy to use: you don't need a 5-year degree in IT to create a promotional code for your e-commerce site. In just a few clicks, you can generate your promotional codes, and distribute them across your various channels (social networks, newsletter, website homepage, etc.).
• Greater visibility: promo codes are useful for promoting your brand, raising awareness of your products and developing your reputation. Especially in the competitive world of e-commerce. So think about specific coupon codes at different times of the year!
• More customers, more growth: discounts are a real acquisition lever. Ideal for attracting new buyers, seduced by a personalized, momentary offer. This type of marketing and sales action increases your market share, sales and company growth.
• Boost purchases: consumers are keen on bargains, promotions and discounts. By offering them a discount code, you can encourage them to complete their purchases, and even increase their average basket.
• Increased loyalty: a small promo code, for big long-term impact. That's the mission of this lever. By using them, you strengthen customer loyalty, which will keep them coming back to your e-commerce site. Especially if the experience is personalized!

Request contact Rakuten Coupons

How do I set up promo codes?

Before setting up a promotional offer, it's important to choose the right form. There are many different types of promotional code. The best-known are :

• Single-use promo code: can only be used by a single customer, once, before a deadline set by the brand. This type of coupon code is frequently used to build loyalty among existing customers, in a personalized way.
• The multiple-use coupon code: this type of discount is valid for all Internet users, whether or not they are existing customers. Distributed omnichannel, it is mainly used to attract new buyers, to boost brand growth.
• Limited-time flash code: this type of code, open to all, is often used during a flash sale. It can be deployed only on certain products (to clear stock or, on the contrary, to facilitate a product launch) or on the entire catalog.
• Fixed discount codes: these differ from percentage discount codes. In practice, these codes offer the same discount on the final price... but they are presented differently to buyers. It's up to you to choose the most convincing marketing argument!
• The free delivery code: as we all know, free delivery is an essential selling point. According to a Sendcloud study (2023), the presence of shipping costs is even a reason for cart abandonment for 62% of e-buyers. For reasons of profitability, it's not always possible to offer free shipping all year round... So, have you thought about a momentary offer?

Promotional codes may take different forms, but their purpose remains the same: to create a sense of urgency and privilege among buyers, inviting them to buy. And in so doing, increase your online store's sales.

 

 

And if you're a Rakuten seller (or want to become one), creating a coupon is easy, so you can reap the rewards faster. We offer Rakuten Coupons, a type of discount coupon valid only on your ads. These personalized coupons give you instant visibility on our platform... and more customers, among our 13 million loyal buyers.

Find out more about Rakuten coupons

Promo code: FAQ

How to make money with coupon codes?

And above all, is it a profitable strategy? Unsurprisingly, it's an expensive investment. Offering a discount to a customer is never free. So, before setting up such an operation on your online store, you need to measure its rate of return.

Here's how to estimate the rate of return:

Profitability = (Income Generated by Coupons - Cost of Goods Sold - Total Cost of Transaction)

Let's take the example of an online store:

• Discount offered: €10 per coupon.
• Number of coupons distributed: 1,000.
• Estimated rate of coupon use: 10% (100 uses).
• Average production cost per item sold: €30.
• Average selling price per item: €60.
• Cost of distributing offers: €500 (e-mails, online advertising, social network posts, SEO, etc.).

Total cost of operation: Cost of coupons used + Cost of distribution =
(100 * 10 €) + 500 € = 1500 €.

1. Coupon revenue: (Average selling price - Discount per coupon) * Number of coupons used = (€60 - €10) * 100 = €5000.
2. Cost of goods sold (COGS): Average production cost * Number of coupons used = €30 * 100 = €3000.
3. Gross profit generated : Income generated by coupons - COGS = €5000 - €3000 = €2000.
4. Net impact on profit : Gross profit - Total cost of operation = €2000 - €1500 = €500.

 Cette opération de coupon génère ainsi un profit net de 500 €. 

This coupon operation generates a net profit of €500.

To simplify the calculation, you can also use this table. It allows you to measure the profit according to the number of coupon codes, if they offer a 10% discount:

Number of coupons distributed	Estimated utilization rate	coupons used	Discount per coupon € discount	Total cost of reductions €	Coupon income € generated	Net profit €
1000	10	100	10	1000	5000	500
2000	12	240	10	2400	12000	2400
3000	15	450	10	4500	22500	4500
4000	17	680	10	6800	34000	6800
5000	20	1000	10	10000	50000	10000

When should promotional codes be used?

Discounts can be implemented at different times of the year, depending on the seasonality of sales. But that's not all! Here are all the main times of year when brands can create and distribute promotional codes:

• Commercial events: New Year's Eve, Christmas, Black Friday, Valentine's Day, summer and winter sales, back-to-school... Take advantage of the main commercial holidays, as well as the discount periods that consumers find most attractive.
• Unsold stock: do you have products to sell off, for example at the end of the season? Deploying promotional offers is an ideal solution. Don't underestimate the power of coupon codes to help you sell off stock!
• Launching new products: a new range or collection? To make shopping easier, think of low prices... Accessible thanks to the use of a promo code.
• Off-peak periods: between sales and various commercial holidays... The aim of an e-commerce site is to maintain the interest of its audience. And to keep up sales, to aim for growth and maintain profitability. Now you know what strategy to adopt.
• Collaborations and partnerships: this is an increasingly popular way to expand your target audience and raise your profile. During an operation with another brand (or an influencer), the distribution of a promotional code is an excellent way of increasing sales... while offering a discount on the amount ordered.
• Cart abandonment: as you know, shoppers are increasingly inclined to abandon a purchase in the absence of a promo code. To combat cart abandonment, you can offer a surprise discount by e-mail, if an order is saved but not validated. The buyer will then be invited to return to your website to complete the purchase. Win-win!

To maintain your credibility, here's our advice: adapt your distribution rhythm to avoid overuse. The promotional strategy must remain occasional, to create an effect of scarcity and urgency to buy.

How do you communicate and distribute promotional codes?

It's not enough to create a coupon code to increase sales in an online store. It's even more important to share this information with prospects and existing customers! To achieve this, you need a promotion and communication strategy. Here are the different levers you can rely on:

• Emailing and newsletters
• Posts on social networks
• Partnerships with influencers (influencer marketing)
• Search engine optimization (SEO) and search engine advertising (SEA)
• Publication on bargain sites (such as Dealabs)

To create the right communication on these different channels, here's our advice: emphasize a number (the amount of the promotion or percentage discount) and the end date of the operation. This is because the human brain attaches more importance to information containing numbers, and motivation to buy is increased tenfold when a proposed advantage is temporary.

Discover Rakuten Coupons

Would you like to increase your sales, win over new buyers and retain your existing customers? At Rakuten, that's what we want you to do too. To turn this wish into reality, we offer the 12,000 product sellers on our marketplace a lever: Rakuten Coupons.

Ces codes de réduction sont personnalisés et valables sur vos annonces, pour vous permettre de gagner en visibilité sur notre marketplace.  En effet, les annonces qui bénéficient de Rakuten Coupons sont automatiquement placées aux emplacements stratégiques de Rakuten, sur les fiches produits et sur la page Rakuten Deals.

These discount codes are personalized and valid on your ads, to help you gain visibility on our marketplace. Ads that benefit from Rakuten Coupons are automatically placed in strategic Rakuten locations, on product pages and on the Rakuten Deals page. 

You're free to decide on the minimum purchase amount for the customer to benefit from a discount code. And you can control your budget, by defining a maximum amount not to be exceeded, which will mark the end of the campaign. At the same time, to help you spread the word about these promotional offers, our marketing teams take care of communicating the information via various acquisition channels, such as our newsletters.

So, are you ready to touch the hearts of your customers... with Rakuten Coupons? Create your own e-shop on our marketplace to sell your products, and launch your promotional strategy with us:

 

 

 

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by Haro Valentin

Flash sales: a growth driver for e-commerce ?

In e-commerce, flash sales are one of the most widely used marketing tools for generating maximum sales over a limited period of time.

This promotional sale can take many forms, and offers many advantages. But is it a solution to be deployed at all costs? And what are the best practices for a successful flash sale?

In this article, Rakuten France answers all your questions. Definition, advantages, disadvantages, advice... We'll help you prepare for your next flash sale.

What is a flash sale?

Flash sales: definition

A flash sale is a promotional operation that offers a substantial discount on the products on sale. And for a (very) limited time.

The regulations governing flash sales are much more flexible than those governing sales. Few prohibitions are imposed in e-retail. So, if you want to launch a flash sale, you can :

• Organize as many flash sales as you like, throughout the year.
• Choose the limited duration of your choice, as long as it's clearly stated: 3h, 12h, 24h...
• Use the promotional offer of your choice (up to 80%). This reduction must be applied to the lowest price displayed in the 30 days preceding the start of the promotion.

As with sales, sales at a loss are prohibited during flash sales. As an e-tailer, you are also obliged to supply customers with the items concerned throughout the operation. Watch out for stock-outs, the enemy of flash sales !

The different types of flash sales

Thinking about your next sales and marketing operation? Flash sales are an attractive and beneficial initiative (for customers and retailers alike), which can take a number of different forms:

• Flash sales on specific products : are some products about to expire ? Do you have a stock of items to sell off? Targeted flash sales are an option, to boost sales of specific products.
• Flash sales limited by promotional coupon : to encourage your customers to buy as quickly as possible, create promotional coupons limited in time and quantity. Buyers will feel a sense of urgency and scarcity, and will be more likely to use your offer.
• Flash sales on the entire catalog : for a very limited time, have you thought of offering your entire stock of products at a discount? This is the ideal way to generate sales during periods of low sales activity.

Whatever the type of flash sale, the advantages are numerous. But beware of the risks for your online store !

 

Why organize (or not) a flash sale?

 The advantages

Flash sales are very popular with customers and e-tailers alike. There are many reasons for this:

• Sense of urgency and scarcity : limited duration, limited stocks, exceptional offers... There are many psychological biases influencing consumers. In particular, they create a sense of urgency and scarcity, inviting consumers to make up their minds (very) quickly, without taking the time to compare or the risk of abandoning their shopping baskets. A godsend for retailers !
• Increased traffic : during the flash sale period, visits to e-commerce sites rise sharply. The result? Maximum visibility, new buyers, cross-selling and up-selling for the company.
• A boost to brand awareness : if flash sales are accompanied by marketing and communication initiatives, you're sure to reach a new audience... and gain brand recognition. Perfect for your brand image!
• Improved sales : if the operation is well executed, growth will be stimulated. The volume of sales over a short period contributes to increased turnover. A good return on investment (ROI) !
• Retaining existing customers : your favorite customers like to save money. So they keep an eye on your sales offers, and are bound to be seduced by a flash sale. It's the ideal opportunity to encourage repeat purchases and long-term customer commitment. What's more, exceptional discounts encourage customer satisfaction: a winning combination!
• Stock rotation : thanks to this type of operation, you can sell off less popular products to make more room in your inventory. Flash sales improve and facilitate inventory management.

 

 The downside

Although flash sales are an opportunity for e-retailers, they also represent certain risks. To preserve your financial health and guarantee a memorable customer experience..:

• Lower margins : be careful not to turn flash sales into a threat to your profitability. With excessive discounting, you run the risk of sacrificing your sales margin, which is the key KPI for success in e-commerce.
• Brand image damage : some consumers may feel pressured by flash sales. The result? They turn away from the brand, resulting in lower customer engagement. For other customers, flash discounts are synonymous with poor product quality. This perception is detrimental to the brand's image !
• More volatile customers : flash sales often generate a peak in sales. But these buyers are much more volatile than normal. Do you have an action plan for building customer loyalty? How will you keep in touch with them? To limit the risk of "one-shot" customers, anticipate the "after flash sale".
• Activity overload : when sales increase over a short period of time, so do the orders you need to anticipate. Do you have the resources to handle such a peak in orders? And guarantee on-time delivery to satisfy your customers? Your e-commerce logistics must be a priority. Have you considered outsourcing to Rakuten.

 

 

8 best practices for successful flash sales

 

1. Set a clear objective

Why do you want to organize a flash sale on your e-commerce site? If the answer to this question isn't clear, skip it. A SMART objective is necessary to ensure the success of such an operation.

The sales objective must be specific, measurable, achievable, realistic and temporally defined.

A case in point? Your mattress e-shop launches a brand-new product: a bed base. The objective is to make the product known to as many people as possible (minimum 5,000 unique visits) and generate 300 sales through a 24-hour flash sale.

As an e-tailer, you may also be motivated by the need to clear stock of an item quickly, to increase orders according to the seasonality of sales, to attract a new type of customer... It's up to you to choose your objective.

2. Estimate profitability

No flash sale without calculations. It's as simple as that: before launching a flash sale, think about your achievable margins, your potential profit and your profitability. Preserving your ROI is a priority!

You need to find the right balance between offering customers an attractive product... and making a fair profit for your e-commerce site. After all, selling at a loss is unthinkable.

On average, the sales margin for an e-commerce site starts at 30%. Have you calculated yours?

3. Choosing the right time

As its name suggests, a flash sale can't last several days. And even less several weeks, unlike a summer or winter sale. The optimum duration for a flash sale is between 3 and 24 hours. Beyond 72 hours, you lose the desired effect.

The more limited the sale, the more important the timing. According to an Experian article, flash sales communicated by e-mail after 3 p.m. perform better than those scheduled for the morning or lunchtime. In France, evenings (after 8 p.m.) and Wednesdays are the most popular times for online purchases. Conversion rates are higher on weekdays than at weekends.

Finally, the French are increasingly adept at m-commerce. From their smartphones, they buy mainly in the afternoon, between 3pm and 7pm (source: OpinionWay study, 2021). Keep this in mind when organizing your next flash sale !

4. Define a communication plan

To get to the heart of your target, a communication plan is essential. It helps you define the channels, the back-planning and the messages, to promote the flash sale. Our advice?

• Know your target, so you can choose the best channels : e-mail, sms, posts or ads on social networks, Google Shopping ads... Communicate wherever your audience is (and if possible, omnichannel, to multiply your chances of being seen). On average, 56% of companies have a higher click-through rate on their flash sales e-mails (compared with other types of e-mail), according to Experian.
• Optimize your copywriting to create powerful messages : to avoid creating false expectations, carefully prepare your communication. Be clear and precise about the items on sale, their quantity, the duration of the flash sale and the return policy.
• Plan a realistic timetable to maximize marketing impact : communicating the day before the flash sale? Not a good idea. The sooner you share your offer, the more people will be interested. Start communicating several days (or even weeks) before the offer, as well as on the big day.

5. Choose the right target

Wanting to target everyone is the best way to reach no one. So what's your priority during this promotional sale?

For example, if you want to acquire new customers, there's no need to address your entire existing customer file. Instead, advertise on social networks (like Facebook and Instagram) or Google, to reach a new audience. And do it using keywords associated with your products on sale... Or using your competitors' audiences!

When using such a targeting system, be sure to remove the segment of your customers who have already purchased your item when it was at full price. Imagine their disappointment and dissatisfaction if they came across an ad offering a massive discount they hadn't taken advantage of...

On the other hand, your flash sale can be a loyalty-building tool. In this case, remember to target only existing customers (by e-mail, adverts, SMS, etc.). Reward these customers for their loyalty, with an exceptional offer... And reinforce their commitment to you.

6. Check inventory

Stock management is an essential step in ensuring the success of your flash sale. Before you even start advertising, make sure you have the right quantity of items for sale in stock. By doing so, you protect yourself from stock-outs, which penalize your customers and your business.

To ensure optimal tracking and logistics, here's a solution: use a service like Rakuten Fulfillment Network. With just a few clicks, you can control your entire e-commerce logistics. A real-time view of your inventory is a considerable advantage, enabling you to anticipate demand and avoid stock-outs.

 

7. Anticipate logistics

Before the flash sale, it's essential to anticipate stock management. Then, as soon as the operation begins... It's just as important to take care of logistics: packaging items, dispatching orders, delivering parcels, after-sales service, etc. Have you anticipated all these key stages, which will guarantee a memorable customer experience?

To avoid turning logistics into a headache, take advantage of a turnkey service like Rakuten Fulfillment Network. You outsource the logistics of your e-shop, while reducing your costs (25% savings on average). Meanwhile, you can concentrate on your core business: selling.

8. Prioritize quality over quantity

Better one flash sale every 3 months, than 3 flash sales every week. In e-commerce, quantity quickly becomes the enemy of quality ! In fact, if you organize too many promotional offers, you'll only be able to count on your customers at those times. The result? More customers the rest of the year.

The risk of becoming dependent on promotions to attract customers is real. So, chi va piano, va sano: don't hold too many flash sales... But organize them properly, so you can benefit from the results over the long term.

 

It's possible to create a flash sale on Rakuten !

Would you like to benefit from a community of 12 million responsive buyers ? Create your e-shop on our Rakuten marketplace, and benefit from all our advantages: online traffic, increased acquisition, turnkey logistics tools... Not to mention the possibility (and freedom) of organizing your own flash sales, to boost your growth.

Once your products are online on our marketplace, nothing could be simpler:

• Contact your E-Commerce Consultant to present your idea for a flash sale (on your entire e-shop, or just a selection of products).
• Your E-Commerce Consultant will create a Rakuten Coupons campaign and activate it on your ads. These coupons are limited in time and quantity. They are automatically placed in strategic Rakuten locations, such as the Rakuten Deals page and on product sheets.
• You will then receive an e-mail summarizing the operation : click on "Validate Operation".
• You can then promote this flash sale via our Rakuten Ads offer or via our e-mailing channels (sponsored newsletter).
• Then enjoy the results.

Flash sales now hold no secrets for you. Definition, advantages, best practices... Now you know why and how to create your own flash sale. Why not launch your next one on Rakuten?

12,000 professional sellers trust us and are active on the marketplace. Join them and organize your own promotional operations to boost your sales and visibility:

 

 

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by Haro Valentin

Free delivery: How can you offer free shipping and still be profitable ?

In 2024, you're looking for more growth. Increased sales on your e-shop. And greater customer loyalty. An excellent program! But have you thought about the action plan you need to put in place to achieve these objectives while preserving your profitability?

Here's an idea to consider: free delivery. For customers, free delivery is a key factor in making a purchase. For companies, it's also a winning strategy, synonymous with conversion. But beware. Free delivery is never really "free". So how do you cover shipping costs and stay profitable? Follow the guide !

Free shipping: why offer free shipping ?

1.  Meeting customer expectations

 You know the old adage: the customer is king. Among the main expectations of connected consumers, the final price is a key issue. When placing an order on an e-commerce site, if delivery costs are too high... many abandon their shopping baskets. According to a Sendcloud study (2023), the presence of shipping costs is a reason for cart abandonment for 62% of e-buyers.

Visual source : Étude Sendcloud, 2023

The presence of delivery charges is even the main reason for shopping cart abandonment. Today, according to the Baymard Institute (2023), this abandonment rate is close to 70%! The best way to limit the loss of customers is to listen to their desires. Shipping is at the top of the list: 66% of American consumers expect free shipping on all their online purchases (PR Newswire, 2021). In France, according to Sendblue, 35% of French buyers expect free delivery on orders of €150 or more.

And do you know what your customers' expectations are? When creating your business plan, take into account the study of your target... To offer the best possible customer experience, including free shipping, under certain conditions to be defined.

2. Build customer loyalty

A satisfied customer is more likely to remain loyal. So offering them shipping costs will make the experience more pleasant... It lays the foundations for a lasting relationship based on trust, which will make them want to buy again from your e-commerce site or marketplace.

After all, delivery is a crucial element in the customer relationship. It even simplifies the purchasing decision. When it's time to validate their shopping cart, Internet users don't have to worry about additional costs. Less friction at the point of purchase means a greater chance of returning later!

By building customer loyalty (especially through free delivery), you also increase your profitability. Loyalty is a lever for growth: according to a Harvard Business Review study, a 5% increase in the loyalty rate can lead to an 85% increase in profits. Interesting, isn't it?

3. Align yourself with the competition

Your shipping strategy is directly influenced by your customers' expectations. And these expectations are often conditioned by other players in the market. For example, if a customer has always been accustomed to ordering beauty products with free delivery and no minimum purchase, you run the risk of creating strong purchasing friction if you decide to impose a minimum average basket in this sector.

This is why alignment with the competition is a decisive action. When defining your pricing strategy, analyze other companies in the market. Then choose the positioning that enables you to meet customer expectations, without damaging your brand image and conversion rate.

4. Increase the average shopping basket

The average shopping basket today is €68, compared with €62 in the first quarter of 2022 (source: Fevad, 2023). The good news is that, despite the current economic climate, this figure is on the rise. But to continue increasing the average basket, the best strategy is to offer customers free delivery.

The statistics bear this out: 58% of online shoppers add extra items to their basket to benefit from free delivery (source: Invesp infographic, 2023). So, is the solution to set a minimum threshold, to encourage shoppers to spend more to qualify for free delivery?

Suspense: discover the best ways to reconcile free delivery, customer satisfaction and profitability in the rest of this article.

How to calculate shipping costs ?

To calculate the shipping costs to be applied, the simplest formula is as follows :

This cost varies (sometimes significantly) according to the customer's geographical area. To optimize your calculations, you can therefore segment your shipping costs according to the zones to be delivered.

Then, to find out whether offering free shipping is a profitable strategy, we invite you to calculate a minimum threshold, above which you can offer free shipping. Here's the calculation to follow:

Shipping cost = average basket + average product cost - shipping cost

So, for example, if your average basket is 30 euros, the average cost of a product is 10 euros and the cost of shipping is 5 euros, the minimum order amount to qualify for free shipping is :

30 + 10 - 5 = 35 euros

Below €35, the sales margin would not be sufficiently attractive.

12 ways to offer delivery to customers

1. Unconditional free shipping

If your sales margins allow it, it's ideal : offer customers free delivery, with no minimum purchase ! With this strategy, you combine the best of both worlds. Satisfied customers and preserved profitability.

But beware: before opting for this method, you need to define and monitor certain performance indicators. Take the time to discover the key KPIs for maximizing your success.

2. Free delivery over a minimum purchase amount

This method is the most common in the world of e-commerce. The principle? Define the minimum purchase amount that allows you to offer free delivery, while remaining profitable.

By following the calculation above, you'll know the minimum amount that will allow you to amortize these costs. As a reminder, you need to know :

• Total costs per shipment
• Average basket per order
• Average sales margin per order

You can also look at the competition to find the right price.

3. Livraison gratuite à partir d’un nombre d’articles

Cette méthode ressemble à la précédente. Sauf que cette fois, la gratuité des frais de livraison n’est pas conditionnée à la valeur du panier d’achats, mais à la quantité de produits dans ce panier. 

Pour appliquer ce système, veillez à connaître la valeur moyenne par commande (VMC). Pour que cette méthode soit rentable, on recommande en moyenne de fixer un montant 10 % à 15 % supérieur à votre VMC… À vous ensuite de convertir cette valeur en nombre de produits ! 

Exemple ? Si votre VMC est d’au moins 20 €, et que vos produits coûtent en moyenne 5 €, vous pouvez offrir la livraison gratuite à partir de 5 produits achetés. Les paniers moyens seront d’environ 23 € en moyenne (soit 15 % de plus que la VMC). 

3. Free delivery on a certain number of items or more

This method is similar to the previous one. Except that this time, free delivery is not conditional on the value of the shopping basket, but on the quantity of products in the basket.

To apply this system, make sure you know the average value per order (AVO). For this method to be profitable, we recommend on average that you set an amount 10% to 15% higher than your AVO... It's then up to you to convert this value into a number of products!

For example? If your AVO is at least €20, and your products cost an average of €5, you can offer free delivery on purchases of 5 or more products. Average baskets will be around €23 (i.e. 15% more than the AVO).

4. Free delivery to selected locations

Another option for offering delivery to customers? Free shipping according to geographic zone ! For example, you may decide to offer free delivery only in France. Or in the Paris region.

This method is advantageous for companies wishing to establish themselves locally, and develop a customer base in a specific geographical area.

5. Free delivery with click and collect

More than a third of shoppers (34%) say they would choose click-and-collect delivery. This is 10% more than in 2022. (source: Retail Economics report (2022). At Rakuten, we're also seeing this craze: the number of "pickup" orders has risen from 27% in 2019 to 45% in 2023 !

By offering free click-and-collect pickup, you're not only meeting the expectations of modern consumers... but you're also putting all the chances on your side, to stimulate in-store growth. 70% of people who pick up parcels in-store make impulse purchases once they're there (Global Data, 2022).

If you're a Rakuten seller, this option is easy to set up: you can offer click and collect free of charge for all your stores by activating the Rakuten Instore option.

 

6. Free delivery on selected products only

To optimize your costs, why not offer free delivery on selected products only ?

For example, on lightweight, low-volume products, shipping costs are marginal... So offer them! Another example? On certain products, your sales margin is likely to be high. To attract buyers, you can also decide to offer free delivery.

Finally, this marketing strategy can be deployed during seasonal sales peaks. Do you have a clothing and accessories e-commerce site? Offer free delivery in summer, for purchases of swimwear or beach accessories!

7. Free delivery on certain days only

Some days are more profitable than others: that's what sales seasonality is all about. For example, do your sales explode during sales, Black Friday or just before Christmas ? Take advantage of these key moments to acquire new customers or build customer loyalty, thanks to free delivery.

It's also a great way to stand out from the competition. And if you can't offer free shipping during the busiest periods, adopt the opposite strategy: offer free shipping during the slowest periods of the year, to clear your product stocks.

8. Offer free shipping only to VIP customers

Free delivery is a powerful loyalty-building lever. In many loyalty programs, it's one of the most convincing arguments. Customers who benefit from this privilege are immediately more committed!

In 2023, 67% of customers say they are even more on the lookout for loyalty programs than before. 39% give priority to exclusive offers and free delivery... So, to meet the expectations of your most committed customers, you now know how to act.

9. Offer product returns free of shipping costs

Unlike physical stores, e-commerce doesn't allow you to see, touch or try out products. So, to encourage customers to place orders, here's a selling point: free returns.

By offering product returns, you're also offering customers maximum security. This gives them peace of mind when it comes to buying. According to a Canada Post survey, free returns are even the second most influential factor, after free delivery, when choosing an e-commerce site !

If you use Rakuten Fulfillment Network, this step is child's play. Find out how you can increase your sales with fast, reliable and cost-effective e-commerce logistics :

10. Free shipping on a future order

Here's a powerful marketing and sales argument for engaging your customers over the long term: offer free delivery on your next order.

To make the most of this advantage, don't hesitate to communicate with your current buyers by e-mail, after a purchase. Then, after a few days, send them a reminder of this special offer. To encourage them to take advantage of it, you can inform them that this offer is limited in time, with an end date in the near future.

11. Include shipping costs in the product price

What if the simplest solution... was to integrate shipping costs directly into the final product price? This strategy is winning over more and more companies in their quest for simplicity on their e-commerce sites.

But it's a double-edged sword. Beware even of its counter-productive effect... Because by integrating delivery into the sale price, the final amount may be higher than that offered by your competitors.

12. Test different approaches

One of the secrets of successful e-commerce sites? They test, improve, iterate and optimize their strategies. That's our final piece of advice.

Before finding the most cost-effective shipping system, don't rush: take the time to test different methods with your target audience. Ask your buyers what they prefer. Co-construction is the key to success !

 

Offer free shipping on Rakuten

Si vous êtes déjà vendeur sur Rakuten, activer la livraison gratuite se fait en quelques clics. Dans la section “Préférences” de votre Merchant Center, puis dans “Mes modes d’expédition”, vous pouvez choisir d’offrir les frais de port. 

Autre possibilité ? Sentez-vous libres de définir un montant minimum de commande ainsi que la zone géographique concernée. Vous pouvez aussi activer le retrait en magasin gratuit, grâce à Rakuten Instore.

If you're already a Rakuten seller, you can activate free shipping in just a few clicks. In the "Preferences" section of your Merchant Center, then in "My shipping modes", you can choose to offer free shipping.

Another option ? Feel free to define a minimum order value and the geographical zone concerned. You can also activate free in-store collection, thanks to Rakuten Instore.

When you join a marketplace like Rakuten, you get the best of both worlds: maximized profitability, on the one hand. A community of over 12 million responsive customers, on the other. What more could you want to launch an e-shop?

Develop your online business on our marketplace:

 

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by Haro Valentin

E-commerce : Essential KPIs to maximize your success

All indicators are green. This is the good news from Fevad, which published the e-commerce report for the year 2022.

The total e-commerce turnover (products and services combined) was 146.9 billion euros in 2022, an increase of 13.8% year-on-year. All e-merchants are actors in this growth. And to support it in the best way in 2023, 2024, and the following years, one step is crucial: to follow and measure its performance, thanks to essential KPIs.

In e-commerce, 11 key KPIs should be followed carefully. Do you know them? Do you know why they are important? And how does Rakuten France help you to follow them, to maximize your growth? All the answers are in this article.

What is a Key Performance Indicator (KPI)?

A Key Performance Indicator (or KPI) is a particularly important numerical data in e-commerce. It is a quantitative measure, which allows measuring the performance of your online store. By tracking different KPIs, you assess the achievement of your important objectives.

So, are you making efficient progress? Do your strategic decisions allow you to achieve significant results? What are the outcomes of your marketing and commercial actions, particularly in terms of ROI?

To answer all these questions, it is necessary to define and measure performance indicators. In e-commerce, there are several types of KPIs to follow, to measure the performance of your online sales site. Ready to discover 11 reference indicators?

The 11 different types of KPIs to measure in e-commerce

1. Turnover

This is one of the most important KPIs. Do you know your turnover (sales) generated by selling your products online? This turnover (excluding and including taxes) is calculated by adding up all the revenues generated by sales.

For regular monitoring of this indicator, calculate your turnover weekly, monthly, then annually. Group these amounts in a dashboard to track the evolution of your sales. By regularly analyzing your turnover, you carefully assess the health of your business!

2. Cost of Purchase

Before selling your products, you had to buy them (or create them). This purchase cost fluctuates throughout the year, depending on raw materials, economic context, etc. It is also referred to as the cost of goods sold. It is important to follow it, to optimize your commercialization prices and maximize your growth!

By tracking this KPI, you make the right commercial decisions to optimize your margins... And this is precisely the 3rd crucial KPI, to strengthen your performance: the commercial margin.

3. Commercial Margin

The commercial margin corresponds to the difference between your final selling price and your initial purchase cost. It's a key element of good profitability! To make a profit, it is recommended to achieve a margin of 50%.

In e-commerce, the commercial margin generally starts at 30%. The larger this margin, the more profitable your online store is. This indicator also helps you define the most appropriate selling price.

4. Number of Orders

Do you know how many online orders you have completed? Daily, weekly, monthly, yearly? This indicator is valuable: it allows you to realize the number of baskets validated and paid for by your customers, over a given period. The goal is to compare the evolution of the number of orders, depending on the seasonality of e-retail.

Note: the number of orders does not correspond to the number of products sold. Turnover also does not give the number of orders made. This separate indicator must be followed diligently, while correlating it with the number of products sold and the average basket.

5. Number of Products Sold

This KPI allows you to observe the number of items purchased on average per order placed. Indeed, your consumers may buy one product at a time, or 3, or 10... What is the trend that emerges from their e-commerce buying behaviors?

Beyond tracking this KPI per order, also think about analyzing this indicator globally (the total number of products sold over a given period).

6. Cart Abandonment Rate

The cart abandonment rate measures the percentage of customers who add one or more items to their cart without finalizing their purchase. To calculate it, it is necessary to divide the number of orders placed by the number of abandoned carts, and multiply by 100.

The average cart abandonment rate is between 60 and 70% for an e-commerce site. It's a rather common situation, which also concerns physical commerce: not all visitors who enter a store necessarily buy products.

This KPI allows you to realize the number of visits that did not result in conversion, and to identify why. Too complex purchasing or payment process, high delivery costs, difficult returns and refunds... These are the main reasons.

Source of the graph : Étude Sendcloud, 2023

 

1. Expanding Reach with Rakuten France

Rakuten France offers the opportunity to reach new customers. Over 12 million, to be exact. Indeed, our marketplace is frequented by a large consumer base ready to purchase. For you, this means a continuous flow of customers who already trust the marketplace and the e-shops on it.

By integrating this digital marketplace into your strategy, you automatically track the number of sales and conversions generated from our marketplace. Tracking these data will allow you to assess the impact of Rakuten on your overall revenue and adjust your efforts accordingly. Everything is accessible 24/7 from the dashboard of our solution.

2. Conversion Rate Analysis on Rakuten France

Each marketplace platform has its own audience and buying behavior. From our all-in-one tool, you can monitor the specific conversion rate for Rakuten France, to understand the performance of your products on our platform.

By adjusting your strategy based on these data, you can optimize your product listings and maximize your conversions on Rakuten France. And again, everything is accessible in a few clicks.

3. Inventory and Delivery Management

Integrating your e-shop on Rakuten France often involves managing your inventory and delivery processes. With Rakuten Fulfillment Network, you can reduce your logistical costs with a fixed rate, while delegating packaging, delivery, and order tracking.

However, even if you delegate, you can still closely follow the KPIs related to delivery times, returns, and the availability of your products. To strengthen your reputation and retain your customers on our marketplace, focus on maintaining a quality customer experience.

4. Integration Cost and Return on Investment (ROI)

Integrating Rakuten France may involve initial costs and ongoing fees, depending on the chosen subscription. Your mission (should you choose to accept it) is to track the cost of this integration against the benefits generated on the platform. This will give you a better visibility of your ROI.

With these indicators, you can then make informed decisions to increase visibility on the marketplace, and thus enhance your performance. For example, have you considered improving the SEO of your products, to reach more customers… And thereby generate more revenue, which will offset the cost of integrating the marketplace?

Conclusion: Marketplace or E-commerce, Which Decision to Make?

 

 

In 2020, marketplaces recorded a growth of 81%, which is twice that of e-commerce (Mirakl, 2021). Since then, the enthusiasm for digital marketplaces has continued. For e-commerce merchants integrating a marketplace, the savings in time and money are very real.

But whether your choice is to create an e-commerce store or integrate a marketplace, there's a habit you need to develop: tracking your performance indicators. On these two online sales channels, it's an essential approach. To ensure the success of your business, you now know the three letters to follow, which will help you at every stage of your development: KPI !

 

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by Haro Valentin

Black Friday 2023: E-commerce statistics to remember

Black Friday has become an unmissable shopping tradition for the French, with impressive statistics testifying to its continuing success.

Here are some key statistics to help you understand the scale of this event in France!

Black Friday statistics

• Massive consumer involvement

More than 6 out of 10 French people make purchases every year on Black Friday, demonstrating the massive commitment of consumers to this sales period.

Black Friday peak (Source : Salecycle )

 

• A significant budget

The average budget that the French spend on Black Friday is €330, a significant amount that reflects the importance of this event for shoppers. (Poulpeo)

• Significant impact in 2020

In 2020, Black Friday was marked by a peak of +127% in sales compared to the October average in France, underlining the considerable impact of this day on commerce. (Criteo)

• Preparing for the festive season

29% of the French are taking advantage of Black Friday to anticipate their Christmas shopping, using this period of discounts to prepare for the festive season. (Opinionway)

• Online shopping on the rise

During the 2022 edition of Black Friday, the rate of online purchases increased by 6% compared to the previous year, showing an upward trend in online purchases during this period. (Fox Intelligence)

• Preference for online shopping

43% of consumers prefer to shop online, an option favored for convenience and attractive offers. (Fox Intelligence)

In five years, total Black Friday sales in France jumped by 22% to 398 million euros (source: panellist Kantar Worldpanel).

Many retailers claim to generate at least 20% of their annual sales in the four weeks between Black Friday and Christmas (Source : The Balance )

• Online sales trends

Black Friday obviously has a strong impact on sales growth, even in the week leading up to the event. SaleCycle, for example, reports a 62% increase in sales between the Monday before Black Friday and Friday. The event generates strong sales opportunities, even several days in advance.

 

 

43% of consumers preferred to make their purchases online, compared with 39% in 2021, a statistic not far off the 2020 statistic (45%) against the backdrop of the health crisis. The year 2022 was also marked by an 8% increase in the average shopping basket, to 256 euros.(Source : PwC )

Worldwide, despite an already difficult economic context, online sales reached a new record, at $9.12 billion, up 2.3% year-on-year. The study reveals further encouraging signs. On Friday, November 25, 2022, the day of Black Friday, online sales jumped 221% compared with the daily average for the month of October.  (Source : Adobe Analytics.)

 

 

• Cart abandonment statistics

The average basket abandonment rate for the period from November 19 to December 3 was 79.88%, slightly lower than the usual rate of 80.68%.

 

 

Black Friday statistics for Rakuten France 

Interestingly, Rakuten is among the top five retailers in terms of sales volume for Black Friday 2022.

(Fox Intelligence). Rakuten is a digital marketplace with 12,000 professional sellers and over 12 million members. This testifies to Rakuten's appeal to consumers in search of bargains and discounts.

Compared with the average for Black Friday 2022, this day generated a x10 spike, demonstrating consumer enthusiasm. Moreover, compared to the previous year, Rakuten recorded growth of +38%.

The average shopping budget also increased by +35%, reaching €299, demonstrating the growing appeal of this sales day.

All in all, Black Friday has become a must-attend event for French consumers, with Rakuten France at the forefront in offering tempting deals and substantial savings opportunities.

The most popular promotions during Black Friday are substantial price reductions. Consumers are particularly attracted by offers, and Rakuten France, in collaboration with numerous sellers, offers a wide variety of promotions, giving shoppers a surplus of options for saving on their purchases in addition to the considerable benefits of cashback.

Black Friday at Rakuten France sees strong demand for a variety of products, including smartphones, OLED TVs, game consoles, food processors, laptops, tablets, as well as books, DVDs, video games, CDs and toys. In short, anything that could make a Christmas present.

Consumer expectations for Black Friday

The expectations of French consumers during Black Friday are clear: they want significant discounts, a wide variety of products and a smooth purchasing process. They use Black Friday to prepare for the festive season by taking advantage of the discounts on offer. Their decision criteria are as follows:

• Price: Shoppers are looking for the best deals and discounts.
• Additional promotional offers: immediate promotions and cashbacks are particularly attractive.
• Delivery times and costs: Speed and cost of delivery play a key role in the purchasing decision.
• Merchant reliability: Trust in the seller is a determining factor for consumers.

The French compare prices on several online marketplaces, consult price comparison sites and take part in bargain forums to make sure they don't miss out on the best deals.

At Rakuten, two types of promotion are particularly popular with shoppers:

• Immediate promotions: for example, €10 free for every purchase of €100 or more.
• Cashback promotions with Rakuten points: For example, 10% back into your kitty to use on Rakuten.

During Black Friday, shoppers can even combine these two types of promotion. For example, they can take advantage of a €10 coupon for a €100 purchase, while at the same time receiving a 10% refund in Rakuten Points to be reused on the platform.

Several other factors influence consumers' purchasing decisions during Black Friday on Rakuten France. In addition to the price and discount offered, the seller's reputation and customer reviews play a crucial role. Ease of navigation on the site, speed of delivery, and secure payment options are also important decision factors. As a result, buyers are increasingly attentive to the transparency and reliability of sellers.

5 tips for a successful Black Friday

• Think profit: Many e-tailers think about all the sales they're going to generate, but they forget that profit is even more important,
• Activate express delivery to stand out from the competition.
• Analyze and understand buyer expectations: As mentioned above, consumers have clear expectations: they want significant discounts, a wide variety of products and a smooth purchasing process...
• Invest in services that provide clear visibility, such as Rakuten ADS.
• Check that product content is constantly updated.

Want to take advantage of Black Friday? Join Rakuten

 

 

 

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by Haro Valentin

E-retail and its specific features: follow the guide!

42 million French people buy on the Internet. According to FEVAD (2023), we're on the podium: France is 2nd in Europe for online purchases, behind the UK and ahead of Germany.

For businesses, this is a golden opportunity: but before taking your first steps in sales 2.0, you need to understand this universe. E-retail, e-commerce, marketplace... What's the difference? What are the different types of e-retail? Follow the guide!

1. What is e-retail? Definition

E-retail is a specific activity: the sale of products and services online. And this in the BtoC world (Business to Consumer). A company specializing in e-retail offers products and services to individual consumers.

This is also known as e-retailing. The principle is simple: buyers purchase goods or services directly from a seller on a website.

This form of connected commerce establishes a new relationship between brands and consumers. Booming since the Covid-19 crisis and the confinements, it enables individuals to buy "ATAWAD": anytime, anywhere, any device. In other words, anytime, anywhere, on any device (computer, tablet, smartphone).

From the e-retailer's point of view, sales 2.0 also offers numerous advantages: there's no longer any need to limit oneself to fixed times, or to a restricted geographical and local area. Selling products or services from an online store is made easier. Your ability to reach new buyers is multiplied, as is your visibility... and your sales.

 

2. E-retail vs e-commerce: what are the differences?

Remember: e-retail concerns the sale of B2C products and services. It's a form of e-commerce. In fact, e-commerce (or electronic commerce) encompasses all commercial transactions carried out over the Internet. For example:

• BtoC sales (Business to Consumer)
• BtoB sales (Business to Business)
• CtoC sales (Consumer to Consumer)
• CtoB sales (Consumer to Business)

In fact, e-commerce covers a wide range of audiences and activities. These include

• The sale of retail products over the web (e-tail)
• Electronic financial services (such as online transfers and transactions)
• Online supply chain management
• Mobile commerce (mCommerce)
• Digital marketing
• Data collection systems

And much, much more!

So you see: e-commerce is a big family, and e-retail is part of it. But do you know the different types of e-retailers?

 

3. The different types of e-retailer

Among the main forms of e-retail that appeal to customers are :

A- Pure players

A pure player is an e-tailer who operates exclusively online. This type of online retailer has no physical point of sale, or place to receive customers. The business plan of these companies encompasses a single digital strategy.

The advantages are many: lower costs for companies (no store, so no rent and no sales staff), rapid website set-up, sales opportunities multiplied by digital... These advantages appeal to retail professionals: according to the CPPAP, the number of pure-players has increased by 70% in 5 years!

B- Brick and Click

Brick and Click" companies are retail professionals with both a physical and an online sales outlet. These companies offer complementary sales processes, combining traditional and digital distribution.

Also known as click and mortar. These companies generally offer in-store collection, click & collect or online booking. In other words, this complementarity offers customers greater flexibility, thanks to a phygital shopping experience. Companies benefit from greater visibility, thanks to this multi-channel distribution strategy.

C- Marketplaces

At Rakuten France, we're very familiar with this third form of e-retail: marketplaces! A marketplace is a digital marketplace that facilitates contact between buyers and sellers. Marketplaces don't sell their own products directly: they're a digital shopping mall, hosting different e-shops.

More and more merchants are choosing marketplaces to market their products: their number has risen by 31% in 2022, according to a study by Mirakl (2022). For brands, the advantages are numerous: an existing, qualified customer base, traffic already well established by the marketplace that guarantees high visibility, little investment in marketing and communication, less logistical effort, ultra-secure payments...

 

4- How do you get started in e-retail?

You've made up your mind: you want to go into e-retailing? Congratulations! To ensure a successful launch, here are 4 e-retail golden rules to follow:

• An attractive product

Unlike a traditional store, consumers can't touch, smell or hold your products. Through the screen, the senses are limited. So what's your mission? Make the product for sale attractive, even from a distance!

To start with, make sure your photos are of high quality, well-sized and representative of reality. 3D photos are a real plus. When a product page loads, 56% of Internet users look first at the photos, images and visuals presented (source: Baymard Institute).

In addition, remember to take care with the description texts on the product page, to provide clarity and precision. 86% of customers will not buy from an online store if the product page is of poor quality (source: Shotfarm Product Information Report).

To optimize all aspects of this essential sales page, here's our complete guide to creating an outstanding product sheet.

 

• A captivating e-shop

To attract buyers, an attractive product and an optimized product sheet are not enough. The entire e-commerce site (or your entire e-shop on a marketplace) must be captivating! To achieve this, take the time to choose the right e-commerce platform: Shopify, Prestashop, Wix... Or perhaps Rakuten France, to facilitate the creation of your e-shop, thanks to a marketplace strategy?

To make your online store captivating, here are a few key tips:

• Propose a simple, seamless online shopping experience.
• Enhance social proof throughout the shopping experience (average rating on home page, customer reviews on product pages, etc.).
• Plan attractive promotional offers to arouse customer interest.
• Develop a digital marketing strategy

To attract visitors to your website and convert them into buyers... Communication and digital marketing are your allies! Have you considered deploying an e-Retail Media strategy?

E-Retail Media brings together the marketing and sales activations that users encounter throughout their online journey. The retailer highlights products from its supplier brands, or its own products. But also campaigns to promote them! Activations to explore include :

• Momentary discounts, to be planned for commercial highlights. Display them on the home page of your website, with banners created for the occasion.
• A presence on social networks: to develop the visibility of your online store or distributors, and promote your products... Social networks are indispensable. Creating content on Instagram, Facebook, X, LinkedIn, Pinterest or YouTube (depending on your target customers) is essential.
• Advertising on other merchant sites: Retail Search Marketing is the term used to describe the purchase of a sponsored presence in the internal search engine results of merchant sites and other e-commerce applications. In recent years, this Retail Search Media strategy has grown by +66%! (Source: TRYGR study, 2021.)

 

• Data analysis

For long-term success, make data analysis a priority. In the first month of launch, what is the traffic on your website and product pages? Which products are the highlights, and which are not? What's the click-through rate? What about cart abandonment rates? What is the average basket value? How many products have you sold? What's your turnover?

All these questions (and more!) will help you analyze the initial impact and performance indicators following your e-retail launch. With better visibility of your ROI and these KPIs, you'll be able to implement the right actions for continuous improvement. Dedicate time every month to this data analysis.

 

5- E-retail on Rakuten France

92% of e-buyers see buying on the Internet as a way of saving time (Source: FEVAD, 2023). The good news is that e-retail also means financial savings (fewer expenses)... While reaching more buyers, on the web!

This liberating experience, full of opportunities to develop and grow serenely, is what we offer at Rakuten France. Our marketplace is an e-retail platform, serving both brands (who can sell their products directly) and retailers (who can distribute from our marketplace).

Our customers benefit too: more product references, simpler online shopping... And always a maximum of commercial offers to make the experience memorable, all year round.

Are you an e-retailer? A retailer? Whether you're a pure player, a brick & clicks company or a brand just starting out... At Rakuten France, come as you are. And benefit from a community of over 12 million buyers, ready to discover your products.

So, are you ready to create your e-shop on our marketplace, in just a few clicks?

 

 

 

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by Haro Valentin

How can you choose the best sales channels for your business?

Between the moment your product is created and the moment it reaches the hands of the end customer, different paths can be taken. These are known as sales channels, or distribution circuits. And as a retailer, the paths to choose from are increasingly numerous: physical store, e-commerce, long or short circuit, marketplace...

But which strategy is best for your business? What's the simplest, smoothest purchasing path for your customers? Follow the guide: in this article, we'll help you choose the best sales channel to boost your sales and growth.

1- What is a sales channel?

Distribution refers to the process of bringing products to the end consumer. This process relies on different possible channels: we call them sales channels. These are the means by which your offer is disseminated and made accessible to your target audience.

Today, distribution channels are increasingly numerous, especially since the rise of online sales (e-commerce). Consumers, who are increasingly connected, also appreciate unified customer paths, where they can enjoy a personalized experience... as they move from one channel to another.

For brands, this means the rise of omnichannel. But before choosing one or more distribution channels, you need to know what they are.

2- The different distribution channels

When it comes to drawing up your business plan, every company specializing in the marketing of products has to make a decision: which channel(s) to use to distribute your products?

First of all, you need to understand that there are 3 types of distribution:

• The direct channel: the product manufacturer sells directly to customers. This is a simplified circuit, with no intermediaries.
• The short circuit: the product manufacturer supplies the product to a distributor. This partner becomes an intermediary (also known as a retailer), selling to end consumers.
• The long circuit: the product manufacturer passes through various intermediaries to get the product to the end consumer. In this indirect model, central purchasing bodies often buy large volumes from the manufacturer and supply retailers, who then sell to customers.

 

At the heart of these 3 distribution circuits are different sales channels. For example:

• Physical store (retail): from the store opened by the product's creator (direct circuit) to the hypermarket (based on a long-circuit model). Stores can also be permanent or ephemeral, such as pop-up stores.
• E-commerce site: from single-product sites to multi-product sites, for selling products from a website.
• M-commerce: "mobile commerce" is a fast-growing channel for online sales from an app, phone or tablet.
• Social shopping: social networks are also becoming sales outlets in their own right. 64% of users have already bought from a social network! (Source: Accenture study, 2021). It's also possible to deploy an affiliation strategy with influencers, who become your sales representatives on their own social networks.
• Marketplace: to facilitate the sale of your products on a large digital shopping mall, with the help of an intermediary (like Rakuten France). A marketplace is an online platform that facilitates contact between buyers and sellers. This model is booming: 92% of buyers plan to use marketplaces more and more (Mirakl 2022)! For sellers, selling products on a marketplace is synonymous with visibility and performance. For example, in 2020, despite the Covid-19 crisis, e-tailers increased their sales by an average of +24% on marketplaces (Mirakl study, 2021).

3- Choosing a distribution channel: 5 levers to consider

There are several factors to consider when choosing the best sales channel. Here are 5 of them:

• Your product: what do you sell? Do you have any logistical constraints (such as a perishable product)? And what's your brand image? The answers to these questions will help you make coherent choices, to market your product as effectively as possible. This notion of consistency is essential: have you ever seen a Hermès handbag sold in a discount supermarket?
• Your objectives: what are your profitability targets? And your target positioning? Do you have any additional goals, such as CSR objectives? A good sales strategy is based on clear, precise objectives. Start with these objectives, and choose the sales channel that best meets them.
• Your target: who are your customers? What are their habits, preferences and expectations? It's vital to study your potential customers' buying habits, so you can propose a distribution channel that's right for them.
• Your competitors: Which sales channels are your competitors using? Where are they absent? For what reasons? Your priority is to penetrate the market and get noticed... while setting yourself apart from other brands!
• Your budget: what is your sales and marketing budget? These two elements are essential for implementing your sales strategy. The marketing strategy will be necessary to attract the right customers to the right place, before pushing them to buy. Some channels are less costly than others when it comes to marketing: for example, by choosing to sell your products on a marketplace, your marketing costs are reduced. You benefit from numerous integrated marketing tools, and the marketplace has a loyal base of regular visitors (handy, to limit acquisition costs too!).

As you can see, there are 5 levers to consider when choosing your sales channel. You can also opt for an omnichannel distribution strategy. This strategic choice is a profitable opportunity for companies.

On average, omnichannel customers (who buy products both online and in-store) are considered to have a 30% higher lifetime value than buyers using a single channel, according to Google.

So, for example, why not join a marketplace today, while also having a physical store (which also offers click and collect)?

4- 5 tips before launching a new sales channel

Are you narrowing down your choice of distribution channel? Are you ready to develop one or more new sales channels? Congratulations! Before deploying your sales strategy, here are the last 5 tips from our Rakuten France experts:

Offer a quality customer experience

The quality of a customer experience (whether online or in-store) has a real impact on the decision to buy. And this is true regardless of the sales channel chosen. So don't just concentrate your efforts on deploying one channel... take care of the whole experience around it!

The simpler, smoother and more personalized the experience, the more visitors will want to become customers. And to repeat the buying experience! In fact, did you know that 80% of customers admit they are more inclined to make repeat purchases from brands offering a personalized experience? (Source: Havas Commerce Global Commerce Observatory study).

Careful product offering and categorization

The product experience is the value perceived by the consumer when discovering a product, whether online or in-store. While the customer experience is increasingly decisive in the purchasing act, the product experience is also essential.

If you choose an offline sales channel (such as a physical boutique), are the products arranged in the right place? Are they easily accessible and well displayed?

If you choose an online sales channel (such as an e-commerce site or marketplace), have you created a memorable product page? Find out all our tips for creating an outstanding product sheet that will enhance the value of your offer.

Prioritize customer review management

88% of consumers consult customer reviews before making a purchase (Source: IFOP). And this applies across all sales channels. Peer opinion counts, and buyers rely more on their own feedback than on what brands say. So, have you thought about making the most of your customers' opinions at your various points of sale?

As well as posting reliable reviews on your e-commerce site, social networks or in-store marketing materials, think about managing them too. Who will handle and respond to customer reviews internally? On your various sales channels, the company's response is crucial: 96% of customers read companies' responses to reviews, especially when they're looking for a local business! (Source: Brightlocal)

Adopting an exclusive, selective or intensive strategy

In addition to choosing your future sales channel, think about the overall sales strategy to be deployed. Single-channel or omnichannel? Exclusive, selective or intensive distribution?

Exclusive distribution means selling your products in a single location: the brand's points of sale. Just think of our Hermès bag example...

Intensive distribution, on the other hand, is recommended for products in high demand on a regular basis. In this way, your products will be delivered to as many points of sale as possible, to multiply the points of contact.

Finally, selective distribution is preferable if your products occupy a specific market position. In this case, you need to be selective with your distributors or resellers, to avoid damaging your brand image. If you choose this strategy, using a marketplace recognized for its reliability is a good option!

Surround yourself with experts to boost growth

You can't always go faster or further on your own. Our final piece of advice? Surround yourself with the right people, and aim for the best results!

Whether it's creating your e-commerce site, choosing the members of your field sales team or putting your trust in a marketplace... After choosing the right channel, choosing the right people is essential.

At Rakuten France, using our marketplace for e-commerce sales and logistics means surrounding yourself with experts available to support you. An Account Manager is on hand to advise you over the long term.

5- How can I sell on Rakuten France as a Pro?

Would you like to boost your online sales with the number-one partner platform for retailers? Welcome to Rakuten France!

Creating your Rakuten account is easy: just fill in the form by clicking here. You'll then need to complete just 4 steps to start selling:

1- Put your products online

2- Customize your delivery options

3 Set up your e-shop

4- Activate online payment

 

So, are you ready to join the 8,500 professional sellers on our marketplace? Our 12 million customers are waiting for you:

 

 

 

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by Haro Valentin

Multi-currency payment: 10 tips for successful global expansion

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by Haro Valentin

The complete guide to creating a high-performance online store

More than 10,000 new e-commerce sites were created in 2022. That's an increase of over 5% on the previous year. And the good news is that the craze continues into 2023. In the first quarter of 2023, e-commerce grew by 20.2% compared to 2022 (Sources: FEVAD, 2023).

But even if the figures are good, there's a shadow hanging over the horizon: setting up an online store isn't something you can improvise. And without the right support, becoming an e-retailer is an obstacle course.

So where do you start when it comes to setting up an online store? Suppliers, choice of products or services, e-commerce platform, customer acquisition strategy... We explain everything from A to Z. Here's the complete guide to creating an online store that converts: let's get started!

Definition: What is online store ?

An online store (or e-commerce site) is a website where visitors can purchase products or services. The principle is the same as in a physical store, the only difference being that the customer experience and purchase take place on the Internet. And the store's opening hours: an e-commerce site is accessible 24/7!

Online stores are different from showcase sites, where it's impossible to make a purchase. The aim of a showcase site is to present a company, its products or services (like a store window).

It's also important to distinguish between a marketplace and an ecommerce site. On an e-commerce site, the seller is the only one to showcase his or her products and services. A marketplace, on the other hand, is a large digital shopping mall. Each store represents a different seller. These sellers (independents, professionals or individuals) have the opportunity to sell their products, solutions or services. Traffic and visibility are multiplied, security is reinforced and costs are much lower.

Can't decide between the two? Marketplace or e-commerce: find out which model to choose.

What business model should you choose for your online store?

Before embarking on your ecommerce adventure, the first step is to choose the right business model. What type of store do you want to create? Discover the different options available to you:

The single-product store

The concept of the single-product store is simple: you offer a single product for sale on your e-commerce site. Like a coffee machine, a cordless vacuum cleaner or a dog grooming service.

The advantages? This type of ecommerce site is quick to launch and easy to manage. The user experience is simplified: where an e-shop with a large catalog takes longer to display (and longer to navigate)... A single-product site doesn't drive customers away because of the number of products, loading time or complexity of the customer journey.

On the other hand, these online stores do have a few drawbacks. All your revenue is based on a single product. You surely know the risks of putting all your eggs in one basket...

Our advice? Think about upselling, by offering complementary products or services on your website.

The multi-product store

Unlike the single-product site, the multi-product strategy consists of offering several products for sale on an e-commerce site.

Take the example of the Miliboo website: this brand sells designer furniture and home furnishings. On its e-commerce site (or on the Rakuten marketplace), you'll find chairs, sofas, tables, rugs...

 

By creating a multi-product website, your company can offer customers a wide range of products. Perfect for satisfying everyone's tastes and desires! It's also an ideal strategy for testing different products for sale, before keeping only the best.

But beware: choice can be both an advantage and a disadvantage. Customers can find themselves lost when faced with the numerous products or services on offer online. What's more, this type of website takes longer to create and is more complex to manage. You'll have more work and effort to put in, especially when it comes to after-sales service.

Our advice? Select the e-commerce CMS best suited to your project. And if you're just starting out, leave the website creation to a professional.

The marketplace

The marketplace resembles a large 2.0 shopping mall, where different merchants can sell their products or services.

If you decide to set up a marketplace and welcome other sellers to your platform, you'll be remunerated via a percentage of sales. In some cases, you may also offer paid subscriptions for merchants to take advantage of your marketplace services.

By creating your own marketplace, you gain an advantage over the competition: you offer a larger product catalog. You improve your search engine optimization (SEO) and your visibility on the Internet, by multiplying your strike force thanks to the presence of other sellers. Storage costs are generally lower, and shipping management can be delegated.

However, you will have less control over the level of service offered by other e-tailers. You have the power to collect, but not to control. To manage all sellers, the investment will be more substantial, and the brand less high.

Our advice? Rather than creating your own marketplace... Why not keep things simple (and efficient) and join our marketplace? Rakuten is a digital marketplace with 8,500 professional sellers and over 12 million customers.

 

The subscription-based e-commerce site

Birchbox, Le Petit Ballon, Quitoque... These three companies have one thing in common: their business model! They are brands that sell products or services on a monthly subscription basis:

• Birchbox offers a subscription to receive a monthly box of beauty products
• Le Petit Ballon sells a monthly subscription to a box of wines
• Quitoque sells a weekly subscription to receive cooking baskets.

With a subscription, you can offer attractive prices thanks to large order quantities. Your income is regular and constant, leaving little room for unpleasant surprises. Last but not least, you have a longer customer life and no cash upfront.

Nevertheless, it's more difficult to diversify your offerings with subscription marketing. The redundancy of products received can affect customer satisfaction.

Our advice? Open an e-shop on your monthly subscription site. This will encourage satisfied customers to re-purchase individual products... while boosting your income by diversifying your business through multi-product sales to new target groups.

Dropshipping

Dropshipping is a constantly evolving form of e-commerce. The concept is as follows: you list a product on your website, and your supplier ships it directly to the customer. Without going through you.

As the seller, you're only responsible for marketing and selling the product on your website. The advantage? No stock to manage, no products to ship. And no product-related costs to pay in advance. A practical way to outsource your ecommerce logistics and save money!

However, dropshipping gets a bad press. The lack of control over product quality is often criticized. Delivery times are generally very long, because shipping starts abroad. Finally, consumers question the prices charged by dropshippers (often excessive) and the lack of transparency on store websites, throughout the customer journey.

Our advice? Select your suppliers with care. And be as transparent as possible when it comes to contact information and delivery times.

 

Once you've chosen the business model for your e-shop, 7 new steps await you. Soon, you'll be able to make a living as an e-tailer. But first, you need to :

 

1. Follow the administrative formalities: what legal status should you choose to set up your business? How do you protect your domain name? Follow BPIFrance's advice, so you can launch your business in full compliance.
2. Find suppliers: compare domestic and foreign suppliers. You can find them from professional directories, via a Google search or by searching for suppliers based on the NACE code of certain products.
3. Naming your store: naming your store is an essential step in making a lasting impression on your target market and representing your identity. Before making it official on all your marketing materials, test it with a restricted circle (friends, family, colleagues, etc.).
4. Choose the right e-commerce platform: Shopify, Prestashop, Wix... Or perhaps Rakuten, if you opt for a marketplace strategy?
5. Select an online payment gateway: securing your payments is essential. Choose strong authentication and reassure your buyers throughout their customer journey.
6. Organize your e-shop's logistics: who's in charge of stock management, shipping and returns? Is it you, or a service provider? Now's the time to decide.
7. Write content for your store's pages: finally, think about the marketing actions that will attract, seduce and convert. From optimized texts on product pages to the choice of photos, not forgetting (of course) a quality design for the home page... Take care of your website's content!

 

How to make your first e-commerce sales?

Is your store officially online? Congratulations!

Now that you've created your shop, it's time for an action plan: how do you attract your first online visitors? And how do you convince them to order from your store? Here's our advice on how to make your first sales.

First of all, before thinking about conversion, it's important to understand the stages in the purchasing funnel:

• Discovery
• Interest
• Consideration
• Intention
• Evaluation
• Purchase

To support web users throughout their purchasing journey, start by communicating. You'll not only facilitate discovery, but also interest and consideration for your brand. Here are a few examples of actions you can take online:

• Deploying paid acquisition channels (or paid media): if your budget allows, this strategy involves investing in paid advertising. On social networks, via Google Ads, with advertising in the specialized press, or through influencer marketing... There are many ways to do this. This type of investment can help you get started!
• Focus on content marketing (or owned media): in the long term, one of the most effective strategies is native communication. Communicate on behalf of the brand, using high-quality content to build a community and increase visibility. Here again, there are many ways to do this: creating and animating your social network accounts (Instagram, TikTok etc.), running competitions on social networks, optimizing your SEO content (blog articles, enriched product pages) to improve natural referencing...
• Encourage word-of-mouth (or earned media): your first customers will be your best ambassadors. To encourage them to promote your online store, have you thought about setting up a referral system? Or put special promotions online for the launch, to attract the first buyers, who won't hesitate to pass on the good deal to their friends and family?

 

Setting up an online store: 3 mistakes to avoid

You now have all the tools you need to create your first e-shop. But before you set out to conquer the world of e-commerce, here are a few warnings. To aim for performance, avoid these mistakes:

1- Launching without a business plan: before you launch, you need to check the viability of your business project. This is a non-negotiable step! So, have you carried out a market study? Have you analyzed the competition? Have you set your prices seriously? Have you interviewed potential customers, to better understand your target market? If you get at least one "no", it's still too early to get started.

2- Creating an e-shop that scares buyers away: it's not enough to have a good product to open a good e-shop. The company's offer is not enough. The form and content of your website are also key success factors! Is your website responsive? Have you worked out a quality design? Have all spelling mistakes been corrected? Do pages load quickly? Are there enough photos on every product page? Is the user interface simple to navigate between pages? Once you've accumulated 100% "yes" votes, you're ready to go!

3- Choosing the wrong platform: mastering computer development can be a stumbling block to creating your own online store. To avoid choosing the wrong platform, or making technical mistakes, surround yourself with experts. Or make things easier for yourself, by joining a reliable, secure and well-known marketplace to launch your e-shop.

At Rakuten, we help over 8,500 sellers sell their products or services directly on our marketplace. You don't need a BAC +5 in e-commerce, nor do you need to know how to code. Simply create your store with us.

 

 

 

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by Haro Valentin

4 winning strategies for increasing the average customer basket in e-commerce

Good news for e-tailers: over the 1st quarter of 2023, the average value of online purchases (products and services) rose by +10.1%. The average basket is now €68, compared with €62 in the first quarter of 2022 (source: Fevad, 2023).

But beware. To continue to increase the average shopping basket, every online store has a responsibility: to continue to make efforts, and to innovate with winning strategies. In the vast world of e-commerce, maximizing the average customer basket is an essential (and ongoing) quest to increase revenues.

At Rakuten, we've identified 4 strategies to help brands increase their customers' average basket size. To encourage your customers to spend more with every transaction, follow the guide: all our tips are in this article.

Definition: What is an average bassket?

The average basket is the average amount spent by a customer on a transaction. It can refer to a purchase in a physical store, as well as an order placed through a marketplace or e-commerce site.

A company's average basket therefore represents the average of all customer orders. Either overall, or broken down by sales outlet (such as an e-commerce site).

For every company, calculating the average shopping basket is of vital importance. It helps to improve profitability, understand consumer buying preferences and implement the best strategies for boosting growth.

It's easy to calculate: just take the sales figure and divide it by the number of orders. You can do this calculation to evaluate the average basket over a day, a week, a month or a year. The formula remains the same.

Here's an example You have a website selling second-hand goods. If your monthly sales are €20,000 for 312 orders, your average basket is €64.10.

20,000 € / 312 orders = 64.10 €.

So each customer spends an average of €64.10 when they make a purchase on your e-commerce site. That's a good start. But how can you increase this amount, and invite buyers to spend more on your site?

 

 4 strategies for increasing the average shopping basket

The starting point for boosting the growth of your online sales business is to increase your customers' average shopping basket. And it can't be improvised. Here are 4 strategies we recommend you implement:

Personalize the customer experience

Companies that offer a better customer experience achieve revenues between 4% and 8% higher than their market (source: Bain&Company). And these figures are not insignificant: customer experience is one of the most important purchasing criteria, in the eyes of customers!

It is even estimated that 81% of consumers would be willing to pay more for a better customer experience (source: Oracle). Perfect for boosting the average shopping basket, while increasing buyer satisfaction.

To improve the customer experience, the key strategy is to personalize the e-shop. The more personalized the experience, the more the customer will feel listened to, privileged and understood. The more satisfied they are with their online experience, the more they'll be willing to spend on the products or services you offer.

To offer a personalized experience that will increase the average shopping basket, here are 3 actions to implement:

• Use data such as purchase histories: you'll then know consumers' preferences. Then you can offer them products or services that match their interests!
• Offer predictive targeting, to display a personalized home page. For example, for an international e-commerce site, predictive targeting allows you to target the language spoken by the web user, to adapt the site's content.
• Display suggestions for complementary products or services. For example: "Internet users have also bought..." with suggestions for other offers, directly on product sheets.

Overview of suggestions on a Rakuten France product sheet

Personalizing the customer experience is just as important on your e-commerce site as it is on an application or mobile version. Even if the value of orders on desktop is 91% higher than on mobile, a good customer experience must be omnichannel! (source: ContentSquare).

 

Propose bundled offers

Bundled offers correspond to discounts or promotions when a customer buys a set of products. By offering discounts, you encourage the purchase of complementary products (cross-selling). The result? The value of the average basket increases!

For this strategy to be effective, the price of the product package offered must enable the customer to make savings. Don't hesitate to show customers that if they had bought each product separately, they would have paid much more.

In turn, the customer is delighted to have saved money, while benefiting from more products, thanks to the bundled offer. This marketing technique relies on cognitive biases, such as :

• The anchoring effect: we attribute more value to a product by referring to a given starting value. If the price drops thanks to a bundled offer, we keep the higher initial price in mind, and we're delighted to save money!
• The FOMO (or Fear Of Missing Out) effect: if the bundle is only valid for a few days (or a few minutes), the buyer will be afraid of missing out on a good deal. This fear of missing out makes it easier to buy. Set up a loyalty program... Focused on the average basket.

Implementing a loyalty program... Focused on the average basket

To satisfy your customers while improving your sales (and therefore your average basket), here's another winning strategy: the loyalty program!

As you know, loyalty is a lever for growth. Loyalizing a customer can cost up to 5 times less than winning over a new one. But you still need to know how to take care of your best customers, to invite them to buy again... With a better average basket.

To achieve this, have you considered offering exclusive benefits to customers who exceed a certain purchase amount?

For example, if your average basket today is €45, here's an action plan you could put in place: offer a complementary service, a free product or a discount voucher for a future online purchase, for any order over €50.

With this method, you invite your regular customers to spend an extra €5. A great way to increase the average final shopping basket!

 

Overview of benefits for members of the Rakuten France loyalty program

 

Overview of benefits for members of the Rakuten France loyalty program

This approach is based on the same logic as the previous tip: offer to customers, to invite them to increase their average basket.

By offering free delivery above a certain amount, you encourage customers to spend more on their orders. This technique is just as effective for loyal customers as it is for new ones.

On average, 62% of e-buyers abandon their shopping baskets because shipping costs are too high (source: Sendcloud study). The absence of free shipping is therefore a major disincentive to purchase.

To avoid driving customers away, the best technique is to define a free shipping threshold. The higher the purchase amount, the less customers will want to pay shipping costs. They'll prefer to add an extra product: take advantage of this to increase your average basket!

 

Overview of benefits for members of the Rakuten France loyalty program

Top 3 reasons for shipping-related order abandonment ( Sendcloud study, 2023 ):

• 62% delivery charges are too high
• 45% delivery time is too long
• 23% I can't choose my preferred delivery method

 

How have these 4 methods been deployed at Rakuten France?

At Rakuten, our priority is to help our e-merchants grow their business. On our marketplace, we don't sell our own products. Only sellers' products are featured! So we focus all our efforts on helping you grow your business.

When you join Rakuten, you'll benefit from a host of advantages that will help you increase your average shopping basket (easily and effectively). And boost your revenues.

Here's how we apply the 4 winning strategies presented above:

• Personalized customer experience: Rakuten France collects and analyzes your buyers' data, such as purchase history and preferences. The aim? To recommend relevant products to customers. This personalization encourages Internet users to discover other products on your store. Recommendations that match interests increase the likelihood of further purchases.
• Bundled offers: from our marketplace, customers can buy a bundle of products at a reduced price, rather than an individual purchase at full price. This cross-selling approach encourages the purchase of complementary products, increasing the overall value of the basket.
• Cashback loyalty program: customers of e-tailers present on our marketplace can join Club R. This free program refunds between 5% and 35% of the purchase price throughout the year, and can be combined with all our other available promotions. Over 12 million members receive a percentage of their purchase in the form of credit or real money. Perfect for encouraging customers to spend more, because they know they'll get a financial return.
• Coupon creation and free delivery: Rakuten France enables sellers to create discount coupons, giving customers the chance to benefit from discounts on their purchases. This is complemented by the offer of free delivery above a certain purchase amount. Internet users add more items to their shopping baskets, to avoid charges.

Example of a Rakuten France discount coupon

 

By combining these different methods, Rakuten France aims to create a memorable shopping experience for customers. The quality of the experience delivered leads to an increase in the average basket: shoppers are encouraged to add more items to their basket and spend more on each transaction.

Our sellers, for their part, enjoy sustained growth on their e-shop. Would you like to join them? And benefit from a community of over 12 million buyers who are members of Club R, France's most generous loyalty program? Click here to join:

 

 

 

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by Haro Valentin

Click and Collect: the key to omnichannel commerce?

Commerce is becoming increasingly omnichannel. And that's good news. Today, consumers no longer hesitate to order a product online, then opt for in-store collection.

This is known as click and collect. And at Rakuten, adoption is massive: the number of "pickup" orders has risen from 27% in 2019 to 45% in 2023. But do you know how such a service works? What are its benefits, for buyers and sellers alike? And how can you implement it, to improve the customer experience and boost your growth?

Find out in this article.

Definition: What is Click and Collect? 

Click and collect is a service offered by companies, particularly in the retail sector. This omnichannel strategy merges online purchasing (from a website or mobile app) with in-store order collection.

This delivery method combines the best of both worlds: buy online without waiting anywhere, then collect your orders in person. It's a truly omnichannel system, which has been booming since the Covid-19 epidemic: according to a Fevad report, 21% of French people used Click and Collect for the first time during the health crisis and containment!

How does click and collect work?

Click & collect works simply, conveniently and quickly, for sellers and consumers alike. When implementing this system, here's what the user journey looks like:

• Online ordering: customers select their products online, from the product pages of an e-commerce site or marketplace. They add them to their virtual basket.
• Choice of pick-up: the customer chooses the click & collect option, rather than traditional home delivery or delivery to a relay point.
• Payment: after the e-shopping session, the buyer pays for the items online, from the website.
• Order confirmation: the store confirms the order (usually by e-mail).
• Order preparation: sales staff prepare the parcel for collection.
• Order collection: On the same day or within a short time, the customer visits the store to collect the order. They present their order confirmation (usually in the form of a QR code or order number).
• Happy ending: consumers can enjoy their products quickly, without waiting for them to be delivered.

The brand, for its part, offers a simplified shopping experience, and increases its in-store traffic. But these aren't the only benefits!

What are the advantages of click and collect?

More than a third of shoppers (34%) say they would choose click-and-collect delivery. In 2022, click-and-collect delivery attracted just 25% of consumers (source: Retail Economics report (2022)).

The massive adoption of this omnichannel service is also confirmed by retailers. Over 80% of retailers in France, Spain and Italy offer in-store pick-up services. According to Retails Economics (2022), the figure is half that in the USA and Canada.

This in-store collection system is so appealing because it has a number of positive points:

For consumers:

• Savings: delivery costs are lower for customers (or even free, as with our Rakuten marketplace).
• Speed: delivery times are reduced, with no risk of theft or loss.
• Visibility: customers have better visibility of a product's availability, so they can order it remotely without waiting.
• Flexible hours: customers can collect their purchases at the time of their choice, depending on the store's opening hours. No need to wait impatiently for a deliveryman at home!
• Environmental impact: this mode of delivery reduces the carbon footprint associated with deliveries. Orders are grouped together at a single pick-up point. In many cases, the products are already in store: logistics are not only more ecological, but also simplified.
• Control over the order: when picking up a parcel in-store, the buyer can immediately check the condition of the items, and make sure they meet expectations. In the event of a problem, it's easier to return purchases directly to the point of sale.
• Privileged contact: click & collect offers a more human and personalized shopping experience. Contact is encouraged when the order is collected. By opting for click & collect in local shops, consumers are also helping to support the local economy. For 57% of French people, supporting the activity of local merchants is important (Integral Ad Science study, 2021).
• Personal data security: this in-store collection solution limits the sharing of personal data (personal address, digicode, etc.). Perfect for reassuring wary customers.

For retailers:

• Increased in-store traffic: by deploying a pickup service, brands encourage customers to come and discover their physical store. This is known as "web to store". It's an excellent way of attracting new customers and introducing them to other products during pick-up.
• A boost for additional sales: 70% of in-store parcel collectors make impulse purchases on the spot (Global Data, 2022). Perfect for boosting retailer growth!
• Increased average basket: click&collect is often used to buy products that are heavy, bulky or difficult to manage with traditional delivery. Offering this pick-up option increases the average shopping basket: the value of products picked up in-store is on average 47% higher than the average for products bought online and delivered in the traditional way!
• Lower logistics costs: fewer basket abandonments, no delivery costs or product returns to anticipate, free point-of-sale collection... Click & collect saves you time, while generating higher margins.
• Improving the customer experience: by making purchasing simpler, faster, smoother and more flexible, click&collect boosts customer satisfaction. And loyalty. Personalized interactions between sellers and buyers also have an impact on brand image and customer preference. A real virtuous circle for business and growth.
• Inventory optimization: this "web-to-store" collection method helps stores to manage their inventories in line with actual demand. The result? Fewer risks of overstocking or out-of-stock situations.
• Adapting to new buying habits: click and collect meets the new expectations of modern customers (flexible, fast purchases), helping retailers to remain competitive in the marketplace.

As you can see, click & collect is a win-win option for customers and sales outlets alike. This sales system, already popular with 80% of the population, is easy to set up. We'll tell you how...

How to set up click and collect with Rakuten?

Rakuten is France's 1st omnichannel marketplace. We combine the best of both worlds (physical & digital), to satisfy both buyers and sellers. All thanks to a click&collect service: Rakuten Instore.

Hundreds of retailers and small businesses are taking advantage of this option. The system is simple: customers order products remotely from a seller on our marketplace, then collect them from their store or warehouse. Within two hours. Free of charge.

If you're interested in "phygitalizing" your business, it's easy: activating Rakuten Instore is just a few clicks away. You can choose to activate click&collect for your entire catalog, for a selection of products, or even for several stores. Just follow the guide:

https://www.youtube.com/watch?v=jrPY_aQaaKE&ab_channel=RakutenFrance

 

Enable click and collect on an entire catalog

1. Connect to your Merchant Dashboard.
2. Go to "Inventory" and click on "Category management".
3. Click on "All" and then on "Define shipping costs".
4. Select the "Pick-up on site" delivery method.
5. Enter your zip code and telephone number.
6. Click on "Save". The update may take 2 to 3 minutes, to activate in-store pick-up on the entire catalog.

Would you like to delegate this part? It's perfectly possible. Your E-Commerce Consultant can activate the Rakuten Instore option on your account in just a few minutes. Contact him/her by clicking here.

Activate the option manually on a selection of products

If you prefer to choose your own selection of products to pick up in-store, you can do so in just 3 clicks:

1. Go to "My Account" by clicking here.
2. Click on "All my ads" in the Inventory section.

 

 

1. Select the ad of your choice
2. Click on Modify ad.

 

 

1. Tick the box "I authorize the buyer to collect it on site".
2. Enter your zip code and telephone number.

 

How do I activate Rakuten Instore for multiple stores?

You can activate Rakuten Instore for several stores, and link them to the same account if you wish. The stores will then be recommended by geolocation to buyers.

Our teams can help you activate your click & collect and fine-tune your strategy.

Click & collect is not just a trend, but a service that makes all the difference. Your customers have already adopted this option: why shouldn't you?

At Rakuten, France's leading omnichannel marketplace, we can help you implement your web-to-store strategy, thanks to click & collect. Join our 8,500 professional sellers and 6,000 connected physical points of sale.

 

 

 

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by Haro Valentin