Zepo's Theory of E-commerce (what we believe)
After everything is said & done, more is said than done
No doubt, THIS decade is the decade of e-commerce in India. We have seen a decent start. Early entrants did spoil the show initially with low price and low quality product strategy with little focus on delivery. Some Chicken Little already believe that The Sky is falling. We believe otherwise. We have our own theory of e-commerce: We believe that there is two type of e-commerce that’s happening out here.
- e-commerce as a Business (Aggregators)
- e-commerce as a Channel (Brands & manufacturers)
e-commerce as a Business: The generic e-tailers who sell all kind of products & are full-fledged into e-retail. The online malls. Aggregators selling all products. These biggies are busy selling the regular stuff – mass manufactured – It is far too competitive of a market offline as well as online. e-commerce as a Business is a little bit destructive. It’s the blood bath that you see on the top – the battle between the biggies. Where the game is all about the last man standing, generating as much sales as possible & increasing valuations.
e-commerce as a Channel: This is a sustainable & sensible use of e-commerce medium, of which we don’t hear about very often. Where small brands, start-ups & designers in the physical commerce world, use the e-commerce medium as an extension to their main (offline) business. They treat the internet as good as any other channel of sales. Like Phone! These businesses sell their own products. Unique products that they make / sell. And provide the best service possible. They haven’t opened their online store to get acquired. Their motivations are different. It gives value to the consumer and gives margins to the retailer. They pay attention to details, service and array of quality products. Their motivation is not to be the next inkfruit or the next flipkart. They just want to use this medium to connect better to their customers & make it easy for them to buy their products.
So what exactly has been holding the small business back? Why are they actually not using this wonderful medium to reach you directly?
- 1. Because masses were not online till now. It’s a simple rule of business – Open your shop where your customers are. But that is changing now, drastically
- 2. For these artists, hardcore entrepreneurs -selling on internet IS actually rocket science.
- 3. Efforts involved & cost involved were two big factors that are still holding them back.
At Zepo, we have set out to simplify e-commerce for every small business / independent artists. The attempt is to reduce the efforts & cost involved as much as possible. Our dream is to see every small business having their store online & using this wonderful medium beautifully. We are here to build the power-horse of Indian e-commerce. We are going to revolutionize e-commerce in India.
We don’t say that the first type of e-commerce is going to go anywhere. Neither is any of them going to eat each other’s share. Both of them are going to co-exist. But we are just too obsessed with the more sensible path 🙂 What do you think?