Better efficiencies to drive 80% yoy growth for ecommerce

FDI in e-commerce is absolutely necessary to help the industry grow by a potential 80 percent every year. We know that.

But the big trend for this year will be commerce companies trimming the flab- operating costs. Myntra has taken the lead and gone mobile.

Parent Flipkart also plans to do the same and will be mobile-only by end of the year. But they've made their intent clear by acquiring Bangalore-based global mobile network AdIQuity for an undisclosed amount; a mobile ad network enabling app developers and mobile publishers earn revenue from their mobile inventory.

In April, they then acquired Appiterate. Flipkart has been persistently looking to improve and expand its mobile app capabilities to cater to the shifting preferences on its user base. Appiterate’s technology helps validate whether a new design or change to an element on a webpage improves the conversion rate (sales).

Appiterate has helped leading e-commerce firms combine the power of mobile apps and big data to allow them to do one-on-one targeting of users though push notifications and in-app messages, it said.

Going mobile only may today seem like a huge risk. The uninstallation ratio for any ecommerce app is 90% in india. Which means after watching a tv add or referral we do install the apps, but soon delete the apps from mobile too.

On the positive side, to be sure, but India is poised to become the world’s 2nd biggest smartphone market and the mobile screen is actually the first computer screen for most Indians, so it does seem like they know what they’re doing. There seems to be another angle here, as analytics on mobile apps are more developed, allowing for better user behaviour tracking.

By Ashish Jhalani, commerce mentor & business efficiency specialist eTailing India