In the 21st century, Startup is a commonly used word. From a student to every corporate guy, they all are living in a mental space of starting a startup and becoming a billionaire. Because of high popularity and more market scope, people are turning every small business idea into a startup. According to GEM national report, every year, there are more than 100 million startups coming into the market. But what matters the most here is, among that 100 million startups, there are 90% of the startups which cannot do well in the market and fail. Of course, reasons can be so many. But one of the most highlighted reasons for failure is choosing the wrong ‘type’ of the startup. According to Techcrunch, an E-commerce startup is more likely to get successful rather than Enterprise SaaS startup and small-to-medium business SaaS.
In this blog, I will explain why E-commerce startup is more likely to be successful? What are the top E-commerce startups? and Why do you need an E-commerce app for your business?
Why E-commerce startup is more successful?
The Internet offers amazing activities to be done right from your comfort zone. But what people love most on the web is shopping. In 1994, Jeff Benoz understood the possible market scope of E-commerce business and started one of the first few E-commerce companies named Amazon. During the initial days, the company struggled a lot. Later, as the popularity of the internet increased, Amazon attracted more and more buyers. As time passed, more and more E-commerce companies were launched in the market. According to a survey done in the year of 2017, there are around 245000 E-commerce companies for people to shop everything right from electronic gadgets to daily needs. In the USA only, E-commerce companies did a booming sale of $394 Billion in 2016. Now think, how broad the market is for these much of companies to fit in? Apart from the market, We will see each of the factors which are making E-commerce business so successful.
1. Avoid Risky Innovation
“The more you try, the more you fail.”, is a saying that goes for the startup market. Meaning of that saying is if you try to come up with so unique idea then there are greater chances that you are going to fail. Because with so many startups, the market becomes more fragile and less flexible. Any innovation which is complex for the user to understand has the chances of getting rejected at the user's end. E-commerce startups which have become so popular today have followed a single structure which is very easy for the user to use. As an E-commerce company, you just need to list the products of your company on the website or on the E-commerce app for your users to allow them to browse and select the items of their choice. During the initial phase, try to avoid bringing in risky innovations. The only thing you need to be concerned about the most is the category of items that you decide to sell online.
2. Best in class Business Model
Unlike any other startup business, the business model of E-commerce startup is something which is making it the most successful type of startup. Being an E-commerce company, it does have a lot of business model options to create revenue. Business models like B2B, B2C, C2C, and C2B are best in the class business models. Additionally, an E-commerce business is so functionally defined, that an E-commerce startup company can use more than 1 business models at the same time. In fact, most of the E-commerce companies are using it. Taking an example of one of the biggest E-commerce company named wish, which follows the main two business model B2C and C2C to generate more revenue.
3. More public Awareness
As we discussed earlier, people are familiar and well-acquainted with the concept of E-commerce. Data coming out from official US government report depicted that 53% of global internet users did online shopping worth $1 billion in the year 2016., and according to DDB worldwide, 40% of US males said that they would prefer to buy everything online. So, in order to make your startup stand out, you need to go online and reach your target audience. You will automatically start making money if the buyer likes your online listed product and its price.
4. Light, feature packed and low-priced E-commerce app development opportunities
Having a mobile app for every sort of business has become a priority nowadays. And because of the innovations and new technologies, building a mobile app is an easy task. There are a lot of mobile app development companies available who can help you to build a light, fast responsive, features packed and low priced E-commerce app. Apart from this, there is a parcel of marketing tool out there -over 3,500 types of it, to help your business to get visibility on the Internet.
Top E-commerce startup success story
» Initial Impression:
Bonobos is one of the most popular startups in America. It is giving an E-commerce solution to those people who want to buy men’s suits, trousers, denim, shirts, shorts, swimwear, outerwear, and accessories online. Bonobos company was founded in 2007 by two students of Stanford Business School student named Andy Dunn and Brian Spaly.
» History of Bonobos and its funding details
After completing education, one of its founder Andy got a job offer. But instead of accepting that job, Andy decided to start a business. Andy invited Spaly, who was selling new pants in a car trunk. They started selling pants to people. During the first few months of their business, they sold around 500 pairs of pants. Soon, they started raising money for their business from their older classmates and raised $750K at a first shot. After one year of offline selling, they decided to make it huge on the platform So, they started a website. It was a hit. They generated$100000 revenue in the first year. Over the year, it became more popular and in June 2009, it again raised $3 million from angel investors. After just six months of the funding, it again raised $4 million. In December 2010, its total funding reached $24 Million. Soon, they opened a retail shop and launched an e-commerce application for their business. In June 2017, Walmart acquired Bonobos for $310 million.[caption id="attachment_17029" align="aligncenter" width="640"]
2. Warby Parker
» Initial impression
Warby Parker is the New York-based online retailers, selling prescriptions glasses and sunglasses. They are selling most of their product through the website, but they also get a great number of buyers from the mobile application and offline stores.
» History of Warby Parker and its funding details
Warby Parker was founded in 2010 by four former students of the University of Pennsylvania. The official corporate name of the Warby Parker is JAND inc. Warby Parker is their trading name. The first fund they got was from the university itself and the amount was $2500. In May 2011 they raised proper funding which was amounted to $2.5 million. Slowly, because of the good business policies, the company saw a great magnification. In September 2011, they raised $12.5 Million and in fall 2012, they raised $37 Million. As of in April 2015, the market value of the Warby Parker is $2.5 billion.[caption id="attachment_17032" align="aligncenter" width="640"]
» Business model
Most sell of the company is coming through the web. So they want to give an experience like offline shopping while users are shopping online. They introduced “home-try-program” which lets the user to choose five frames and the user can try those five frames for five days at their home. They have also implemented a 3D view option in their application and website which lets the user try hundreds of frames virtually. After knowing the success story of a few E-commerce giants, if you are triggered to join the e-commerce business too? If yes, you must go for having your own e-commerce app.
Why you need an E-commerce app for your business?
1. User’s Demand
If you think from the user’s point of view, having an e-commerce app has many benefits. you will find out what are the benefits user will get if he shops from the app. A mobile app is very handy and it is very easy to use. While offline shopping needs a lot of time and efforts, mobile apps offer the shopping experience just at your customer's fingertips. In fact, 78 % of users have claimed that they would like to use a mobile app over the web and offline shopping.
2. User Interface
A user spends too much time on the shopping platform. Like the physical shop, you must keep your online shop clean too. So, clean and easy UI is the key to more business through online. But the good news is, we are living in the era of mobile app development where with the use of different API’s, creating a smooth, simple and feature packed application become a piece of cake. Mobile app development companies like Coruscate solution are expert in developing more user-friendly apps which don’t disappoint the users and get you excellent reviews.
3. User’s loyalty
As an owner of the retail shop, you need your users to be loyal to your shop. To gain your user's loyalty, you offer them with various schemes. But in order to keep the user updated with the new offers and schemes, you need a smart app through which you can notify your users regarding the offers coming up.
4. Analysis tool
By using E-commerce mobile app solution for your business, you will get to know statistic of your business at a single click. E-commerce mobile app development includes some of the very useful analysis tools. By using them, you can know how your business is working and what are the steps you need to take to maintain the business process.
E-commerce app development cost and why to choose Coruscate solution for your next E-commerce mobile app development project?
Cost of E-commerce development depends upon the features that you want to add in the app. You can connect with us to discuss the features that you wish to add in your app. Our business analyst along with a member of the research team will answer your queries and suggest some unique features to add while building your e-commerce application. For a free demo, please get in touch by filling the contact us form.