Are eCommerce companies making money or not?

Are eCommerce companies making money or not?

An overly expansive virtual 'toll' for the Internet that blocks consumers' and competitors' access to the e-commerce superhighway is not the right answer. Marsha Blackburn

A number of reports have been recently heard in the discussions regarding ecommerce business and ecommerce websites. The first set of report elucidated that within the Indian community the revenue and the sales growth via online channels have become pretty much better than previous years.

 

eCommerce business

On the other hand, the second set of reports stated by one the leading Indian ecommerce firms that his company would gain success within the upcoming three years. eCommerce companies head only want the customers and other ecommerce entrepreneurs realize that growth should be the prime and only aim of the ecommerce businesses. Thereby, simply they state that when the customers are pretty much eager to shop with us we cannot overlook their whims and reap over the matter of making money, this aim should be given relevance at any time later in the future when the opportunities, whims and circumstances are different.

 

Profitability

eCommerce Platforms completely are paying heed towards consumer behavior and wants overlooking the criterion of profitability of their businesses. Hence, the question here arise will they ever think of ecommerce profitability and become profitable?

 

eCommerce stores

Almost all the eCommerce stores sell the same product from the same common retailer to the same consumers and customers within the same prices. Sometimes, the ecommerce websites overlook the business basics and requirements and for the customer grasping scenario the ecommerce companies give variable discounts thus badly affecting the business insight and profitability.

 

Pricing and offer variability

eCommerce companies should take essential notice regarding these repetitive offers and one should adopt variable methodologies in terms of pricing and offers in order to take the ecommerce growth process to a new course.

 

Typical websites

A number of websites do not claim to sell all the products and hence are not all in one stores which is one main differentiation factor but there are not only few such websites but a number of such websites have been developed to sell the same product. What lacks is the market differentiation, product differentiation, pricing differentiation and niche differentiation.

“We don't believe the market can be dominated by one company in e-commerce in China - namely Alibaba. The Chinese market is very wide and deep, with a huge population.” (Zhang Jindong)

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