Agam Berry is the co-founder of Quantified Commerce, an NY-based digital media agency that helps clients succeed in marketing using data-driven, analytical campaigns to deliver consistent results. Berry graduated from Punjab University in 2010 and since then has immersed himself in the world of digital marketing and tech entrepreneurship in his homeland of India.
As a thought leader in the field, Berry constantly emphasizes the need for businesses to bridge the gaps and limitations in e-Commerce, especially in India where numerous factors, such as Cash-On-Delivery (COD) limitations as well as inadequate transportation infrastructure are limiting the growth of e-commerce in the country. Here he shares three ways for bridging the e-commerce gap in India.
- Building a Fully-Vertically Integrated Business
E-commerce is the new frontier with very distinct advantages such as lower costs of operations and convenience as the main factors that drive commercial ventures forward. E-commerce paired with vertical integration can drastically cut costs even further. Quantified Commerce is the perfect example because their vertically integrated model allows them to cut costs not just on physical stores and storage facilities but also other parts of the supply chain. By owning their own transport facilities and vehicles they save even more money that they can forward to consumers without sacrificing quality. This is a win-win situation that also allows them to amp up the quality of other products and services down the road. (Learn more about vertical integration in this article from CorporateEthos.com.)
- Bridging the Gap in Logistics
Transportation has always been a major issue affecting e-commerce in India. Poor transportation infrastructure, especially in rural areas, is one of the factors limiting India’s potential as a true economic powerhouse. Issues in warehousing and costly border taxes are also making it more expensive to move goods from one point to another. In fact, India spends about 13% of its GDP on logistics, far higher than what the US or China spends. In an EconomicTimes.com article, Berry shared how Quantified Commerce aims to get around these problems by owning their own trucks. Because they already own their own factories and warehouses, going a step higher and owning their trucks completes the transport chain which can effectively lower logistics costs and makes transportation from one region to another more efficient and reliable.
- Creating Digital Native Brands
The nature of the business plays a major role in its success especially in countries like India where limitations on logistics abound. This is the reason why Quantified Commerce encourages more businesses to be digitally native to take advantage of lower costs. Best known examples of digitally native enterprises include Bonobos and Warby Parker, but digitally native operations abound online. These are usually enterprises that are created online. They market, advertise, attend to customer needs online and most of them handle their own distribution.
What makes the digitally native enterprise so cost-effective is the fact that e-commerce companies don’t spend on the expenses that brick and mortar businessess face, such as staff wages, storefront and storage rentals, and even delivery fees. Because costs of operation are lower, digital native brands are in a better position to lower prices without the need to compromise on quality. This is a big thing especially in countries like India where there is a huge segment of the population that cannot afford overpriced services. Being able to deliver quality goods at lower prices consistently can help any business get ahead of the competition. (Learn more about digitally native brands by checking out this article on TechRadar.com.)
Get More of My Insights on Business in India
Get more of Berry’s insights on the digital marketing revolution by visiting Agam-Berry.com. You can also check out QuantifiedCommerce.com if you want to learn more about vertical integration and Quantified Commerce.
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