Top Nine Asset-Light Business Models to Consider For Your Ecommerce Startup

Top Nine Asset-Light Business Models to Consider For Your Ecommerce Startup

Many new business models have taken shape in past one decade, specifically after the advent of ecommerce platforms like Magento, Shopify, YoKart that made launch of startups easier.

Presently we have plentiful options from proprietorship to partnerships to LLP (limited liability partnership), and few unconventional models such as network models, multilevel marketing, pyramid schemes and such. Among all top models of 21st century, an innovative business model- a model that gave the idea of “how to do business” and “how much investment one needs” the much-needed make over, has become a bit more popular.

The idea evolved few years ago was to keep the capital assets less in comparison to the operations. This meant the costs of investment and running the business would be less, while the revenue and profits were assumed to be proportionally on a higher scale. Let’s know how this works in real world.

How does the asset-light model work exactly?

To understand the concept of asset-light business model, you have to forget the traditional business models first.

Suppose a person wants to start a business and needs land to build an office for it. Instead of paying a hefty amount of money to purchase the land, the business owner makes an agreement with the land owner, sharing a certain percentage of profit. This is it.

Asset-light business model is also known as the capital-light business model, as it doesn’t require a lot of money to put a venture into action.

Be it the manpower, the infrastructure, R&D or even the network; instead of spending tons of money to “own” all, you pay a certain amount of capital to get things done and share the profit.

That sounds a lot like shared economy, right?

Of course it does. And that’s because shared economy is the backbone of asset light business model. How else would an entrepreneur expect to move ahead on the success path faster?

Success of a venture is measured in terms of the proportion of the investment made and the eventual returns.

Let’s take the example of Uber. Uber has offered a platform that brings a cab driver and a passenger together, and takes the cut from the revenue generated from the ride. Uber owns the platform, but it doesn’t own the cabs or the drivers. Shared economy has become the latest trend and it is expected to be on a rise for next many years.

Some Successful Ecommerce Ventures That Thrive On The Asset Light Business Model

Uber:

This is probably the most common example of an asset-light business model. Since we already mentioned how Uber works, let’s proceed to other ventures.

Airbnb:

Airbnb lets you book an accommodation using their website/app, pay as you want and you can stay at the place for a pre-decided duration. In the end, Airbnb gets a certain percentage of the amount, and all users (buyers, sellers who use this platform) constitute a marketplace. Airbnb wouldn’t have been such a success in the given short time had they planned on building or buying hotels. They are tying up with people, and enjoying the revenues.

Suggested Read: Launch a Smarter Top Hotel Search Portal – Get These Script Features

Liquid:

Formerly known as Spinlister, this interesting venture is exclusively meant for people who want to rent a bicycle.

Lyft:

Lyft is not a taxi booking service like Uber. Rather, it’s a ride sharing service. The service providers are not drivers, but regular people who just happen to have the same destination as that of the seeker. Or maybe the seeker’s destination is on the way of the car owner’s.

Yes, Lyft is a marketplace, and no, they don’t charge you anything. They do accept “donations” and that keeps Zimride, the parent company, up and running.

DogVacay:

With kennels and dog hostels charging a lot of money to keep your pampered pooch with them while you are going somewhere, DogVacay came as a sigh of relief for all the dog lovers. There are other portals like DogVacay that connect a service seeker with a provider, pay for the service. And just like DogVacay, these pet care sites takes the cut. All that without having to build a kennel or renting one.

Learn more about of pet care marketplace features.

Lending Club:

A P2P network that lets you lend money!

Borrowing money from Lending Club is cheaper than credit cards, while investors get better interest rates than their typical savings account. How do they make money? Simple, borrowers need to pay an initiation fee, while investors pay a service fee.

SideCar:

SideCar is a ride sharing startup that’s quite similar to Lyft. As for now, the app is focused on the populace of San Francisco and Seattle. And just like Lyft, they don’t charge a fee, and Drivers do accept donations.

Zaarly:

A P2P marketplace, Zaarly focusses on people selling their services through the “Store” created in the marketplace. From homemade pies to home repair, you can find all on Zaarly.

Suggested Read: Online Charter Flight Booking- Business Model & Site Features

Getaround:

Getaround is an asset light business that lets people rent/borrow a car from other people. If a car owner is going out of town, Getaround also takes their car, cleans it up, rents it to people and returns it in the same condition as they left it.

With a million dollar insurance from Berkshire Hathaway, Getaround turns out to be a safe bet for car lenders and borrowers alike.

Pros and Cons:

The primary advantage of an asset light business model is its scalability. Given the fact that the investment made on the startup and operations is less in comparison to the profit harvested.

Growth proportion and prospects are higher in the case of the asset light business model. As more partners keep adding to the network, and starting a service in a new location is as easy as a click of a button, business expansion is not difficult.

However, there is a downside to this model. If the outsourcing business fails, operations suffer a massive blow. So, it becomes necessary to do a thorough research and enough brainstorming before deciding which service provider you should opt for.

Conclusion

Any and every business model has its own set of specific pros and cons, and it is important for all the aspiring entrepreneurs to make sure they take each and every factor into account before beginning such a venture.

That being said, nobody can ignore the fact that the asset light business model is enjoying an increasing popularity. And considering its global adaptability and scalability, and the ever increasing usage of internet, we can say the flaws are easily workable.

Technology will always evolve; that’s the way it is, and that’s how it should be. Asset light business model thrives on technology, and so should you.

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Online Grocery Market Size & Analysis (Global Picture Of Online Store Sales)

Online Grocery Market Size & Analysis (Global Picture Of Online Store Sales)

Online grocery stores are heading for the fast lane- Let’s have a look at online grocery sales statistics, trends and global market.

Angela – Sam, we need to go grocery shopping.

Sam – I have Clippers game coming up and I need to watch it. Can we go tomorrow?

Angela – No, you just watch it later. We had decided to go grocery shopping in the afternoon, which we are going to do.

Sam – Ok, as you say..!!

Sam and Angela go to a local grocery store. They spend the whole afternoon buying groceries, while Sam misses his Clippers game. They come back home all exhausted.

In the near future

Angela – Sam, we need to go grocery shopping.

Sam – I have a Clippers game coming up and I need to watch it. You just go to xyz.com and order the groceries from there.

Angela – Sure, sounds ok.!!

By the time the Clippers game end, the groceries are delivered at the doorstep of Sam and Angela’s home. They did not have to go out, spend the whole afternoon at a local grocery store and peruse over ten aisles of products. They were able to utilize that time in other activities, without worrying about grocery shopping.

The change is currently underway as consumers have started to adopt online grocery shopping. With much of our daily lives moving to the internet, online grocery shopping is being touted as the next big arena for entrepreneurs. The online grocery store sales statistics also showcase the same future.

As of now, it is one of the few sectors which are seeing volcanic growth. There are already murmurs and figures are backing the talks that online grocery sector will achieve better growth than any other ecommerce sector.

Suggested Read – Must have features in an online grocery store

Many brick and mortar grocery stores are already eyeing launch of online outlet in order to avoid redundancy in the near future.

Where does the market stand as of today

Amazon is undoubtedly the reigning king of ecommerce. There does not seem to be anyone else who knows online selling better than Amazon. So when it enters into a new arena, one should get an idea that the sector has huge potential. This is the feeling that everyone started to get when Amazon started offering online grocery shopping.

If we look at online grocery market analysis, in last year, online purchases of fresh groceries and consumer packaged goods enjoyed a 36% year-over-year growth spurt. This tremendous growth has shattered all the projections and expectation, triggering a race among entrepreneurs looking to launch their own online grocery store.

As this booming industry is growing at a rapid pace, it is all about the first respondents who would be able to grab the larger piece of the revenue.

Online shopping has matured enough and consumers have become accustomed to buying things online. This has removed the hurdles faced by other ecommerce sectors in past where they had to first earn the trust of consumers. The best part of online grocery shopping is that consumers can easily select delivery slots preferred by them. This results in timely delivery of products as per the requirement of the consumers.

Suggested Read – Online Grocery business essentials for 2018

What is the future of online grocery shopping

grocery store market analysis

There are several reports that suggest that online grocery in the US alone could grow five folds over the next decade, where consumers are expected to spend upwards of $100 billion. This figure is massive and the same is being observed all across the globe.

While currently only 14% American households are buying groceries online, in the next year, this figure could jump up to 70 percent. This makes the current period as the best time to launch a fully-fledged online grocery store.

The online grocery store market analysis state that by the end of 2018, nearly 20 million new consumers will adopt online grocery shopping. Out of them, 85% would be willing to use at-home delivery while the rest would go for in-store pickup. Amazon  Go is one such example of the latter where people just walk-in and pick up the product they want without worrying about standing in the queue for payment. Walmart is also working on a similar pattern, where people just order their products online and go to large towers present in their stores and pick up their orders, totally avoiding the queue.

Retailers providing a formidable website experience and convenience to consumers in delivering the grocery will have to put little or no effort in expanding their user base. Already numerous online grocery stores have received funding amounting to millions of dollar from VCs. Most of them are doubling down on this sector with an aim to capture the bulk of the market

 Conclusion

The bottom line? In the next few years, you will see less of people in the offline stores as most of the shopping will be done online. As we bring better delivery methods like the use of drones and robust logistics, online grocery shopping will become a walk in the park. For those who missed out of encashing when the ecommerce saw an immense boom a few years ago, online grocery shopping is presenting the same opportunity now. The tide is perfect for anyone to start their own online venture by using a ready-to-launch solution.

Make Your Travel Booking Website Ready for High Season with These Features

We all know that travel companies plan their year around the high season. Every travel activity search & booking company maintains a calendar that marks which time of the year will bring them the maximum number of bookings, based on the market they serve.

This is the time to unleash all the resources and device all the tactics to attract the maximum number of travelers and reach some big revenue milestones. This is the time to ensure profitability & increase it leaps & bounds.

But to ensure all that, as an online travel activity booking startup, you need to ensure that your website is packed with certain features that not only help you attract traffic during the peak seasons, but also bring the capabilities to handle & process a huge amount of bookings.

Below are the features you need to ensure in your travel booking marketplace for high profitability during the peak season.

Robust Booking Management

When you are in the middle of a busy season, it seems impossible to stay updated with everything. It almost becomes a nightmare to manage bookings and traffic on your website. Usually, all this requires a lot of man power, efforts and time.

A better way to cope with that is to have a robust booking system embedded in your marketplace, which can easily manage multiple bookings, queries, and payments. Whether you are having your travel booking marketplace built from the scratch or using a ready-made script (which is actually a better approach), ensure that the booking management tool has following capabilities:

  • Concurrent users handling– The system should be able to easily handle multiple concurrent users, as during the peak season there will naturally be a lot of traffic on the website. Make sure it is built using the latest technology and doesn’t crash or slow down due to heavy traffic.
  • Error tolerant– Online users often tend to make spelling & other mistakes. Your website should be error tolerant &understand the requirements to process the query quickly for customers.Processing orders quickly will also help in relieving the website from unnecessary load.
  • Easy & quick– For the user, the entire checkout process of the website should be intuitive. Shopping cart abandonment is a huge challenge in ecommerce retail. Your travel booking marketplace will face the same issue if the booking process is not easy enough.

Social Media Integration

Social media is no longer just a social networking platform; it has also become a powerful marketing tool. Integrating your Travel booking website with social media helps in acquiring new customers, increasing the revenue and retaining the existing customers.

According to a survey by Social Media Times in the year 2016, 52% of users stated that pictures of friends on social media inspired them to make travel plans. During the peak season, it can be a great asset in attracting customers to your travel booking marketplace. Here are the key features to ensure associated with social media integration:

  • Get more visibility– When you integrate your website with social media, you implicitly implement a practical and faster way to promote your services. Being highly active on social media during peak season will help you gather more and more customers.
  • Attract social media followers– People don’t want to fill long forms to able to book a travel. Social media integration also allows visitors to log in to the website through their social profiles, which speedup the entire process of booking travel.
  • Easy sharing tour recommendations– Most importantly, social media integration allows customers to share packages/tour plans with other travel buddies. During the peak season, this is all the more important, so that most customers come to your website only to book, not to browse around or explore your offerings.

Activity Host Management

During the high season, the travel booking marketplace owner needs to maintain a continuous communication with the activity hosts/vendors. The more the number of hosts, the more the business a travel activity booking marketplace gets. However, it also makes the job more difficult for the web admin as he has to overlook bookings of hundreds or even thousands of vendors at once.

Therefore, it is of utmost importance that your travel booking website is packed with certain features that allow admin to manage different aspects of the marketplace in respect to the hosts.

  • Commission rate setting– Throughout the year, you can have a standard commission rate for all vendors. But during the peak seasons, you need to come up with innovative ideas to encourage activity hosts to bring in more business. You can strategically set a threshold number of bookings beyond which commission rate decreases.
  • Discount setting– Discounts are one way to encourage customers to book through your website and not through your competitors. And during the high season, discounts play the role of catalyst to increase sales. Since the owner alone cannot decide the discount on the entire inventory, hosts should be given the authority to manage discounts on their offerings.

Smart Cataloging

As mentioned before, every travel company maintains a calendar that also list popular destinations & activities during the high season. The website owner needs to make sure these popular destinations are easy to find. That’s where Smart cataloging feature comes into picture. Through this, the admin gets to make necessary changes to the website to make those popular destinations & activities easily accessible. Here are some particulars about this feature:

  • Highlight popular locations/ travel activities – The platform you choose to set up your online travel booking website should allow you to update the activity categories in website navigation, featured destinations/activities on the homepage, and other areas where customer might be looking at to find activities.
  • Recommendation– Once a customer has shown interest in a specific location or activity, the website should have the functionality to recommend them similar or related activities. These activities must be in accordance with the choice of destination and should include additional benefits. For example, if a person is looking for historical tours in Paris, you can recommend them to book a food tour around the same time.

Related Read: Go mobile-first to make your mark in the saturating online travel industry

Content Management & Marketing

Peak seasons are high times when you need to make regular updates on your website. Sometimes offers get updated; sometimes tickets for a featured event are sold out; and so on. It is essential that customers get informed about these updates in real time. For that, your website needs features that allow the admin to make necessary website changes easily and convey the updates to registered users. Here are the features your marketplace needs to ensure these capabilities:

  • Content Management System– Make sure the platform you have selected is integrated with a powerful and intuitive CMS that allows website owners to easily update the content and images on the website without the help of a programmer.
  • Blog– Most travelers look for travel activities on search engines, and that’s why blog is essential for your travel booking marketplace. Besides helping you attract the traffic during the high season, a blog can also be used to make important announcements.
  • SMS integration– It is very important for travel booking websites to stay connected with their user base. Email & in-app notification are some ways to keep customers updated about latest discounts & deals. But since your customers might be travelling to far-flung areas with poor internet reach, it is good to have SMS module integrated with your marketplace that allows you to broadcast details through text messages.

Conclusion

As mentioned before, peak seasons are the best times for a travel booking business to materialize its revenue goals. Customers are ready to make the bookings and you have them listed – but if your website fails to perform, it would be a shame.

By ensuring that your travel activity booking marketplace has above listed features and capabilities, you can eliminate any chances of failure and boost all the chances of increasing revenue.

YoYumm, The Food Ordering System Gets New Design & Features- V2 Launched

YoYumm, The Food Ordering System Gets New Design & Features- V2 Launched

For food ordering businesses that trust us to launch their food delivery startups, we have come up with Version 2.0 of YoYumm. The food delivery system is now sturdier and more pleasing from user and conversion point of view.

The enhanced version packs a more powerful punch. With a complete design overhaul and more functional features up its sleeve, YoYumm is set to build your online food ordering portal high on UX and functionality.

Suggested Read: Features to Make Your Online Food Ordering and Delivery Website Succeed

Meeting the latest design standards and setting a new benchmark in aesthetics, YoYumm V2 now boasts of some of the most innovative and business centric features that are essential for a food ordering website to meet user expectations. Let’s know further what YoYumm V2 includes.

1. Recent Orders: Show the recent items and restaurants that people ordered in recent past. Help them make a decision.

2. Re-Orders: Help customers reorder the same thing again, whenever they want.

3. Multicart Functionality: Let them choose as many restaurants as they want, as many dishes as they like, without having to abandon the cart.

4. Affiliate Module: More revenue generation opportunities for the admin.

5. Token Amount: This features works as a security element to keep admin’s commission safe.

6. Preorder /Pre booking Functionality: Customers will be now able to pre-book their order for a scheduled day, max 5 days in advance.

YoYumm V2

We are so excited; we just can’t help but insist you to check out the latest demo right away! Click here and see for yourself. Stop reading, start exploring.

5 Statistical Graphs Every Online Travel Booking Business Must Be Aware of

5 Statistical Graphs Every Online Travel Booking Business Must Be Aware of

There have been numerous reports that state that online travel bookings will continue to grow at a rate of 10% YOY till 2020. For any business sector, this is an impressive growth rate and indicates heaps of opportunities.

But the big question is, “Where exactly do these opportunities exist?”

A business idea has a potential only when you know where the opportunities lie in that particular sector. And to figure that out, you need to study the market at a deeper level to know when, where, & how the customer wants to use your offered services.

To help an online travel booking startup answer these questions, here in this post, we will analyze 5 statistical graphs related to travel industry and draw insights to find out where exactly the opportunities exist in the online travel booking sector.

Graph 1: Online Travel Sales Share by Region (2014-2020)

Travel Sales Graph

If we talk about the number of online travel sales & revenue generated by them, studies suggest a steady growth worldwide. But if we consider the Asia Pacific region only (primarily India, China, & South-east Asia), the growth will be explosive; as clearly depicted in the graph above.

The reason behind this exponential growth is the rapidly growing internet penetration in the region. In North America & Western Europe, internet penetration already sits close to 90%, while in most Asian countries, it is around or less than 50%.

As internet penetration in this region continues to grow and a huge untapped market of online ticket bookers will come to the forefront; making it a goldmine for online booking marketplaces.

Expert Tip: The services that work for North American & European people may not necessarily work for the Asian audience (and for customers of other regions for that matter). So, it is important that you consider making certain changes in the business model (pricing, service offered, etc.) as per the local market.

Suggested Read: Essentials of building an Online Travel Activity Booking Marketplace

Graph 2: Mobile Travel Booking Share in the US (2016-2021)

Mobile booking share graph

In past few years, mobile has gradually acquired a good portion of desktop/laptop market in every online sector; and online travel booking industry is no exception. We are increasingly relying on our smartphones & tablets for different online chores, and the graph above is a reflection of this observation.

Though the stats are only of the US, it is safe to assume that growth of mobile share in online travel bookings is similar in other markets, if not more. On a more-informed note, in emerging markets like India & China, where internet penetration is primarily driven by mobile internet, the mobile share growth rate would definitely be greater.

In developed markets like North America & Western Europe, mobile travel bookings offer the next growth opportunity for the existing & new players.

Expert Tip: Besides knowing the facts about mobile’s growth, you also need to understand the customer behavior associated with it. Different studies suggest that mobile booking behavior is inclined towards the last minute (same/next day) booking. Also, when considering cross-devices purchases mobile is mostly used as the discovery device.

Graph 3: Operating System Market Share

operating system market share graph

As much as it is important to know the mobile-desktop demographic of your target market, you must also be aware of which operating system most of your target audience might be using.

Even if you are set on a mobile-first approach, you can’t be assured of success until you know out which mobile operating system you need to focus on – Android or iOS. Most startups overlook this factor; consequently, end up allocating their resources poorly. And the result is often a total failure like what happened with this travel booking startup.

This graph gives you the head start on deciding which platform you should focus on the most, depending upon your target market. Also, notice that mobile (Android/iOS) isn’t the most used platform in many markets.

Expert Tip: As mentioned, the graph is just to give you a head-start & to make you pay attention to this crucial factor. To capitalize on it, you need to further research your target market to decide how much you should focus on the desktop, mobile, Android, iOS, Windows, and so on; so that you can allocate your resources smartly to maximize your reach & profit.

Recommended read: Things Entrepreneurs Ought to Know before Planning a Travel Based Startup

Graph 4: Marketing Channels Used by Travel Activity Providers

marketing channel graph

We need not repeat the fact that without online marketing, there will be no existence for your travel activity booking startup. And to ensure that your online marketing campaign works, it is crucial that you know the marketing channels relevant to your business.

With that in mind, the graph above provides a bird’s eye view on which marketing channels are mostly used by travel activity providers.

As an online travel booking marketplace, you will be processing bookings for travel activity providers; so the graph is all the more useful for you. Not only would it assist with better customer targeting, but will also help in connecting with direct activity/service providers.

Expert Tip: In past couple of years, Instagram has proven to be an effective marketing channel for travel businesses. The social media platform is relatively new & marketers have just begun to explore it (which is why its graph is lower than that of Facebook, Google ads, Twitter, etc., which are already being used for a decade). So, it is advised for all travel businesses to make use of Instagram as much as any other popular marketing channel.

Suggested Read: Essentials of Instagram Marketing

Graph 5: Popular Travel Activities

Popular travel activity graph

To become the favorite travel activity booking platform among travelers, you need to connect with them on a more granular level. For that, you need to learn which travel related activities they prefer to experience the most.

The graph above shows a comprehensive list of popular activities among the US customers of different age groups; Millennials & mature travelers, to be specific.

Such studies give very clear insights on which activities you should focus on the most when deciding the order and placement of activity categories on your website (navigation, home page, etc.) or in online promotion.So, it is imperative that you analyze the travel activity dynamics of your target market to bring in more and more business.

Expert Tip: Travel activity preferences differ not just by geography, but by seasons. A popular high season activity may not get as many bookings during the off season. Keep that aspect of the market in check as well when you strategize your online marketing campaigns or simply updates on your website.

Related Read: How to Manage Your Travel Activity Booking Marketplace during High Season

Conclusion

Having access to data such as mentioned in the graphs above is necessary to draw the insights crucial for business growth. It helps in understanding the needs & expectations of the end customer, helps in identifying how the existing service system can be made more efficient, as well as in figuring out what new innovative solutions can be brought into to enhance the customer experience further.

Now that you have access to some of this data through this post, it is up to you how you leverage it to take your travel activity business to new heights.

And if you have any questions or doubts about using this data to your advantage, write to us through the comment section below. We will get back to you with the solution.

List of Activities for Entrepreneurs Who Want to Start a Tour and Travel Website

List of Activities for Entrepreneurs Who Want to Start a Tour and Travel Website

Every destination has different story behind it that drives travelers to visit that place. As more and more people have started to travel on a regular basis, most of these travel destinations are jam packed with tourists. To avoid the last minute hassle, travelers prefer to make bookings beforehand to enjoy a smooth vacation.

Revenues from online travel booking have grown by over 73% in the last 5 years. Almost 40% of all tour and activity bookings are being made online, out of which, 60% of leisure and 41% of business travelers make their own travel arrangements, generally via the Internet.

Travelers now plan vacations that not only includes sight-seeing but include some type of activities which adds an extra spice to the destination.

Food & Delicacies Tours

Different people have different reasons to visit a particular destination. Some people have a quest to travel to different places to try their authentic food and wine. Every country has a different cuisine which is prepared with the perfect spice and ingredients from which it originally belongs.

There are numerous food and wine events where people travel to from all across the globe. What these travellers do not want is the event to be full. this is why most of such travellers book these activities beforehand. Connecting the traveler with the host to make the arrangements of the travelers before the actual event is highly probable. Booking through a travel activity website gives the assurance to the traveler regarding their plan when they arrive at the destination.

A food tour can include activities such as

  • A tour to various local restaurants which serve the best cuisine
  • Wine tasting sessions
  • Workshop to learn how to make local dishes

Cultural Tours

It is believed, culture has a way of defining every country and person in the world. Culture provides the places we visit and the people we meet the extra spice that makes them worth remembering.

Every destination has a different culture which is worth understanding. Getting accustomed to the culture of a certain place interests a lot of people. It will be a highly profitable business for entrepreneurs who have a keen interest as well as knowledge of the culture of a certain place.

Culture Tour can include activities such as

  • Visits to local temples and places
  • Workshop to learn different dances of the state
  • Walking tour different local villages and understanding their customs
  • Attending festivals or art exhibitions
  • Tour to local museum with a guide who knows everything about the city

Suggested Read: 5 Statistical Graphs Every Online Travel Booking Business Must Be Aware of

Nature and Wildlife Tours

People living in the cities often tend to feel separated from the nature as if living in a concrete jungle.  This is why many people prefer to go on a vacation where they feel close to serenity and tranquility. People feel they are away from nature which is why after some time they wish to go for a vacation where they could connect themselves with nature.  Nature tours must provide tourists exclusive experience where people can forget the hustle and bustle of the city and connect themselves directly with nature.

Nature tours can include activities such as:-

  • Jeep tours to Jungles
  • Hike and Trekking Tour
  • Trips to National park and natural reserve

Historical Tours

The ancient human civilization goes back to 3200 BC and there are a lot of things and places which hold great importance. History lovers and people who have been planning to know more about where they actually come from, would want to visit these places and accumulate more information about these places from the locals and experts.

There is a shortage of people who have the knowledge and the skills to show around historical monuments. For the entrepreneur this is a great opportunity as conducting historical tours will attract numerous tourists to a particular destination.

Activities in the historical tour: –

  • Educational tour to museum
  • Visit historical monuments
  • Old town trolley Tours
  • Learning about the history of a place by classes

Adventure Tours

It is believed that going on an adventurous travel raises the tolerance for uncertainty. As a person places himself in a situation where things do not always go as it is planned, people gain the patience and strength to face uncertainties in life. A destination which includes an adventurous activity drives the people as it teaches to live life on the edge.

Adventure activities have been attracting several tourists who want to have an adrenaline rush. Entrepreneurs needs to acknowledge that people travel from all over the world to be able to checklist one adventure activity. For an entrepreneur, there is a huge potential as they can connect with activity enthusiast all over the world.

Adventure tours can include: –

  • Ground activities
  • Underwater activities
  • Above water activities
  • Air sports activities

Conclusion

There are lots of options available out there and it depends on you if you just want to attract those tourists who are already visiting the destination to your activity or attract people from all over the world to visit a particular destination to be able to participate in your activity. Keep in mind the target market and plan your travel tour and activity website accordingly. The above-mentioned points will give you a clearer idea as to which activity can be included in your travel activity website.

How to Close Leads Generated From Cold Email Pitches and Advertising

How to Close Leads Generated From Cold Email Pitches and Advertising

A marketing campaign is developed with some objective, it could be leads, sales, brand awareness, or something else. Even though the objectives are different from each other, all marketing campaigns ultimately have one important goal: profit.

When it comes to closing leads that come through advertising or cold email pitches, the process of selling differs. It differs compared to the sales funnels prepared for leads which were generated organically.

After all, there’s a big diversity in the ways your leads react to your value proposition. Therefore, knowing how to sharpen your process of closing cold leads and turning them into loyal customers is going to get your business far.

Just in case you needed it, we’ve prepared some insightful strategies to help you improve the conversion rates of your cold leads:

Understand the Leads’ Nature

Even though your advertising efforts may bring a lot of traffic to your website/email list, your campaign might still fail miserably because of one thing. Most marketers fail to understand their leads’ nature. If you want to be a relevant entity in your consumers’ lives, you got to stay on top of their needs. A business that provides consistent value to its prospects is going to thrive no matter what.

However, in order to be relevant to your target audience, you must understand it first. Here’s how:

  • Keep track of every blog/website/platform that you’re acquiring leads from. Use analytics.
  • Carefully study and understand a platform’s audience by reading its content, reading opinions about it, reading user’s comments on posts, etc.
  • Build a short survey asking relevant questions such as: “How did you arrive here?” “What’s your biggest interest” “What are your biggest problems regarding X?”. This way, you can learn more about each cold lead.
  • Pay close attention to your leads actions by leveraging analytics software for both your website and your email list.

Introduce Yourself & Your Unique Value Proposition

Put yourself in your lead’s shoes. You’ve just signed up for a newsletter that promises to teach you some important lessons. What do you want to see next? In most cases, you want to see the benefits of the offer. Unconsciously, you’ll assess whether this trade-off (money vs product) is really worth it. Your leads will encounter barriers to purchase, and your job is to immediately eliminate or minimize them.

Considering that your leads aren’t familiar with your offer, you should non-intrusively introduce yourself by stating how you’ve reached their email inbox (in case they don’t remember). You should restate the reason for their sign-up, and follow up with the most important element of your attention-grabbing process: unique value proposition.

In case you’re not familiar with the term, check it out here and come back. The moment you spark the curiosity and interest of a potential customer can be the moment of making yourself remarkable. Therefore, you should clearly state the unique benefits that your offers promise. Have them clearly understand why you’ve “contacted” them, and give them ways to get out (unsubscribe button).

Offer Something Valuable Right from the Start

Give something first and expect nothing. Follow this golden rule, and you’ll win at the game called business. Cold leads that have now started to consume your content have high expectations. Their list is already overwhelmed with dozens of other offers.

Therefore, your prospects might develop a “resistance” towards irrelevant stuff. They don’t want to waste time, so if there’s nothing in for them, they’re gone. Whenever a content stands out from the crowd, it is going to be remarked. Therefore, you should focus on improving your creative voice too.
Remember that this is the point where you can draw most of the attention. When you offer something really valuable to your prospect, they’re likely to read your name again. Only now they’re aware of your existence, and that’s only because you’ve proven to be helpful.

Make Prospects Familiar with Your Products and Services

Once you’ve earned your potential client’s trust, it’s time to make a move and introduce your products and services. See it this way; every time you’re bringing up something that asks for a prospect’s money, it is best that the prospect is already familiar with your brand’s name and value proposition. Otherwise, you’re just going to be irrelevant because they’ll perceive your offer as an intrusive marketing scheme.

However, if you take the entire process step-by-step, you are gradually building trust and strengthening your connection with the prospect. They observe that you respect them, so they are most likely to pay that respect back.

When you introduce your products, always be sure to have impeccable sales pages. A well-made email marketing campaign is effective; however, if your sales page is not, you’re wasting many potential sales.

Offer Discounts and Benefits

Another way of capturing the attention of your recent leads, introduce your products by offering direct discounts for those who buy “right now”. So you’re basically motivating them to take their cards out of their wallet and make an instant purchase for a – let’s say – 30% discount.

Moreover, you have the possibility of offering certain benefits to loyal customers. An exclusive, a 5-minutes Skype talk, or maybe a face to face interaction! Implement several incentives in your sales funnel and see how the interest for your brand grows.

Suggested Read: 5 Conversion Rate Optimization Hacks You Probably Didn’t Know About

Nurture that Relationship to Make It Last

Here’s something very important to note and remember: convincing cold leads that your brand is worthy of their attention is not enough. An efficient marketing strategy ends when the prospect goes through all stages. For example, when a lead becomes a “first-time buyer”, the process is not really over.

That first-time buyer should be placed in a “safe spot” in your email database. Keep them satisfied by offering valuable content on a consistent basis. Along with the content, add new products (even affiliated ones if not yours) to the sales funnel. One person can buy you 10 products if you nurture a lead well!

Conclusion

Closing leads could be considered an art and a skill as well. The more you interact with leads, the more you’ll understand how the game works. What do great marketers do? They sell to people they barely know, spark desires and dreams, and successfully close the deal once a vibe of trust gets established. Follow our strategies, implement them well, and ultimately witness more success!

Online Reviews Can Impact The Conversion Rate Of Your Online Store & Website

Online Reviews Can Impact The Conversion Rate Of Your Online Store & Website

The good thing about having an eCommerce business is you can have tons of visits to your site—no matter the time or location. The bad thing about it is that turning those visits into actual sales can be much more difficult than doing so in a physical store. This is where conversion rate optimization plays a key role for your business.

The conversion rate is calculated by dividing the total number of conversions/total number of visits. The definition of conversion may vary from web page to web page, but, ultimately, it is what you want users to do when they land on your page. It can be a download, a sign in, a subscription. But if we are talking about eCommerce, normally, what you’ll want them to do is buy. The bottom line is you should be able to keep track of this number because what cannot be measured, cannot be managed.

Conversion rate requires periodic maintenance, always trying to find the new way to improve too, eventually—and hopefully sooner rather than later—, optimize your marketing efforts. So, if your conversion rate is stocked, that’s a red light telling you should do something differently.

When these numbers are not as expected, you’ll probably find marketers and business leaders doing pirouettes and trying some crazy ideas to try to increase their conversion rate. Maybe resizing some buttons or adjusting the headers on your web page will remediate the situation temporarily, but it will be like putting a patch on a flat tire.

Suggested Read: Colors & Conversions of a Website have a Deep Connection

Before making any changes to your page, ask yourself this simple—but critical—question: Is your online reputation trustworthy?

Asking an Internet user for their personal and bank information requires an important amount of trust. To do this, you must be credible and reliable. Your brand and product should be trustworthy. People may want what you sell, but if they can’t trust you, they won’t buy from you.

And when your clients want to know if they can trust your business or not, you know who they are turning to? Online reviews.

That’s right. User reviews are changing the way businesses are done.  Here are some interesting stats you should know about that:

  • 72% of internet users say they trust online reviews just as much as they would trust a relative or friend’s opinion.
  • 61% of users say they’ve read online reviews before buying a product
  • 63% of consumers are more likely to make a purchase from a site which has user reviews
  • 50 or more reviews per product can mean 4.6% increase in conversion rates

So, how can you increase your conversion rate and get those sales your business so badly wants? Take good care of what your online reviews say. They can eliminate the doubts potential customers may have about your product or service, which—if you learn how to swing it—can strengthen your business’ reputation online.

Quite simply, user reviews increase conversions. They come hand in hand. So, if you want to take those sales from your dreams to real life don’t forget to gather online reviews from your happy customers. It will add up to success!

Want to learn more about Online Reviews? Check out this graphic.

Why is Online Grocery Delivery Service the Next Pedestal for Entrepreneurs

Online Grocery Delivery

The primary point of concern for majority of buyers and grocery sellers is delivery. Perishable items, eatable items and everything else that revolves around groceries need to be delivered on the same day.

This is where on demand goods delivery model comes to save the day. It works on the principle of immediate and quick delivery of goods as per the time preferred by the customer. As a matter of fact, online grocery shopping, online food ordering and CPG (consumer packaged goods) depend on this delivery model to keep their operations running.

Additionally, such a delivery model relies on these sectors to thrive. And given the fact that online shopping is not a fad anymore, but a common thing now, it only depends on service providers, especially delivery service providers, to make sure things happen pretty quickly, because customers don’t like to wait.

How Does On-Demand Delivery Model Work?

In its true essence, this particular model works on the principle of picking up an item from the vendor and delivering it to the customer as per the latter’s preferred time. It’s as simple as that, and there are several ways in which this model works:

  • Suppose you are an online grocery delivery service provider, and you have tie-ups with offline grocery vendors who do not offer home delivery. You build a marketplace where you have mentioned all the local grocery vendors. The customer chooses the vendor nearest to their locality, buys the items from your website, and you deliver them to their doorstep. This option also comes in handy if the vendor they’ve chosen doesn’t deliver in their area.
  • Second alternative is that you can simply put up the grocery items on your website, from where people can choose the item needed and its quantity. You get those items from the grocery vendor and deliver it to the customers. They won’t know which vendor you got it from, but that doesn’t matter as long as they are getting their groceries on time.
  • The third option is where an offline grocery store owner decides to go online and provide ordering and delivery service too. The website owner manages all three aspects, from warehousing to logistics to delivery.
Grocery Delivery Business Model

Prominent Names in Grocery Delivery Service Model

Now that we know what this particular business model looks like, and how it works on the core, it’s time to take a look at the major players in the market.

Postmates

Postmates is inarguably the most prominent player in this industry. With their service spanning over more than 15 states in USA, Postmates enjoys a massive presence and serves a huge number of customers every hour, every day, every year.

Since its inception in May 2011, they have delivered more than a billion goods, and generated a revenue exceeding 250 million dollars. Now that’s a number!

Instacart

Instacart is another major online goods delivery service provider with a massive reach.

As of March 2017, Instacart delivered daily items to more than 1200 cities in 25 states of USA. With groceries delivered close to a worth of $3.4 Billion.

UberRUSH

Currently providing their service in New York City Area (Manhattan, Brooklyn and Queens), San Francisco and Chicago, UberRUSH is an on demand delivery service initiative by Uber, a brand that doesn’t need any introduction, unless you are living in a cave or under a rock.

While Postmates and Instacart work on a B2C model, UberRUSH works on a B2B model. Moreover, UberRUSH does not offer delivery services for restaurant orders since they have UberEATS for this purpose.

Grocery Delivery Service Infographic

Also Read: Online Grocery Market Size & Analysis (Global Picture Of Online Store Sales)

So how does this model generate revenue for the marketplace owners?

There are three ways in which this model can help the marketplace owners make money and grow their business. Please note that all these methods have their own set of advantages and conditions. So, let’s talk about the revenue generation.

Commissions

Commission is by far the oldest and the most preferred revenue model for all the marketplace owners, whether they work online or offline.

Subscription Fees

Also called membership fee, you can use this revenue model to bring in vendors who are not comfortable with the commission model by paying a fixed subscription fee, these vendors can use your service for a fixed period of time (quarterly, bi-annually, annually and so on).

Delivery Charges

While the previous two revenues are vendor driven, delivery charges, as we all know, are customer driven.

Furthermore, you can also make additional amount of money through the Digital Marketing methods, you know, like, vendor promotion on your website, banner ads, posting sponsored blogs on your website’s blog page, and selling user data to market research firms.

Key Features of an On Demand Goods Delivery Model Website

There are two stages when it comes to the features that must be included in a website based on this business model; The Front End, when the users have not logged in, and the post login stage. Let’s see what all prominent features a website have from these perspectives.

The Front End

When the end user has just landed on the homepage of the website and hasn’t logged in yet, the page they see is the default homepage of the website. From this perspective, the neutral one, here are some important features that the website owner should focus on:

Page Banner

The banner is located above the first fold portion of the homepage. A banner that states the core idea of the business is an important asset for the venture owner. This portion may seem trivial, but trust me when I say it; this is the point where it all begins.

The Section below the Banner

I like to call this section the garden, simply because this is where you can, and should, put all your favorite and attention grabbing attributes beautifully.

Suggested Read: Setting up Online Grocery Business in 2018? Here Is What You Need to Know

Post Login Features

The game changes by a great deal when a person has logged into your website. Let’s keep the website owner is perspective first, for the owner is the connecting link between the vendor and the customer to deliver the goods.

From the owner’s point of view, easy managementorder tracking and notification are the key features to focus on.

From the customer’s perspective, below are the key features that you must include in your on demand goods delivery model based venture:

Multi Store

Offering multiple stores to your customers is not only good from their point of view, but you can also enjoy varied commission rates set with each vendor. The more vendors you tie-up with, the better it is for your business.

Cart and Checkout

Needless to say, these two pages are surely the essential part of any eCommerce based venture. Make sure moving from cart to the checkout page is a breeze. The quicker they move, the quicker they buy.

Easy Navigation

Easy navigation is an integral part of great user experience. Going from point A to B should be a stroll in the park, and not a struggle through a maze. I’m sure we all understand that.

Multiple Payment Options

It is crucial for online delivery service provider or any ecommerce store to have multiple payments options for consumers, making it easy for them to make a purchase.

Order Tracking

People like to stay updated with their order status, at all times. Keep them posted and you’ll have more happy customers.

Information Security

Whenever your customers are sharing their information with you, they trust you with its integrity and security. You must adhere to the sensitive information such as credit card details and personal information guidelines.

And then there is one more factor, which is not a feature of the website, but an attribute that matters the most; transparency and honesty. Whenever you make a promise to your customers and/or vendors, always make sure you keep them. The world of eCommerce has cutthroat competition, and customers don’t give a second thought about moving on.

Also Read: Challenges Faced by Online Grocery Businesses & Their Solutions

Conclusion

Being a connecting link between the vendors and customers, you need to make sure the order gets delivered on time, because that’s the core of this business model. To make things more viable for your company, see how various orders can be delivered on different destination, but on the same route. The lesser the deviations, the more budget and eco-friendly your operations will be.

Why the Next Unicorn will be From the Online Food Ordering and Delivery Market!

Why the Next Unicorn will be From the Online Food Ordering and Delivery Market!

At the dawn of 21st century, after the dot-com crash, a new wave of online startups started to emerge, which would slowly change the whole perspective of how we ordered food. Spearheaded by pizza and Chinese eating joints, home delivery of food had already become popular among consumers. However, now the business of delivering restaurant meals to the home is undergoing rapid change as new online platforms race to capture markets and customers across the globe.

This market is showing immense potential and attracting considerable investments. Many predict that the next set of unicorns would come out of this sector. Let us take a closer look at how the whole market dynamics for online food ordering and delivery marketplaces are changing globally.

Food ordering vs Food delivery – Two separate entities

Food ordering and delivery service were first pioneered by pizza joints and the idea soon engulfed bulk of the food industry. As the internet has come to the forefront, a new wave of online food ordering and delivery marketplaces has come to the forefront. There are two types of platforms that have risen to fill the void of legacy systems. The first type is the “aggregators” and the second one is the “delivery providers”. Both of them allow customers to compare menus, post reviews and place orders from a multitude of restaurants conveniently.

However, there is one stark difference between the two. While the aggregators only take orders from customers and route it towards the restaurants, the delivery providers go the extra mile and deliver the order themselves.

Suggested Read: Online food ordering marketplace: What Makes It a Good Business Model to make an investment

Aggregators

Aggregators are built on the traditional model of food ordering with an addition of online ordering. While before consumers used to call and place an order, these aggregators allow consumers to place orders online. Additionally, they give choices to the consumers where they can compare menus of different restaurants. They work on an asset light model, where all they have to do is manage the online platform. Marketplaces like Foodpanda, Grubhub, and JustEat work on this business model and have received funding worth millions of dollars.

“Currently 26% of traditional food delivery orders are placed online, and this figure is expected to grow in the next few years.”

Delivery Providers

Just like the aggregators, the delivery providers also offer the service of comparing menu, rating and placing an order online. However, they also manage the delivery and logistics for the restaurants. This is helpful for high-end restaurants that do not offer delivery to their customers. Despite the additional cost of maintaining delivery services, these players generally work at margins of around 30 percent. There are global players like Deliveroo and Foodera are working on this model.

“It is expected that online food delivery market will reach $23.5 billion by 2025.”

Note from experts–  Although the margin for delivery players is lower than that of aggregators, the future opportunities for them are immense. This is because they can extend food delivery to a new group of restaurant and food outlets, which do not offer delivery on their own. Additionally, we believe that in the future the lower end of the traditional food outlet, which does provide delivery would also migrate to this model as outsourcing delivery logistics is more cost efficient. Choosing a business model for an online food ordering and the delivery marketplace purely depends upon local market dynamics. However, irrespective of the market trend, this business idea is slated to grow enormously in the coming years.

The shape of the market today

Currently, the global food ordering and delivery sector stands at $95.64 billion, which is mere 1% of the total food market. Although it has matured in many countries, there are still several demographics which are yet to open the door for this sector. This puts forth immense growth opportunities for new startups.

Food delivery market has potential for growth

Currently out of the total traditional food ordering market, 58% is offline while 42% is conducted online. This figure is slated to flip in the next couple of years. Overall this sector is growing at an annual rate of 3.7%, but interestingly online food ordering and delivery sector will grow at 15-20% during the same period.

Suggested Read: Online food ordering and delivery: business model and key features

Best Part of Online Food Delivery – Consumer Retention

At the end of the day, as an online food ordering and delivery marketplace, your main aim is to keep the user base happy. And the best part is, if you manage to pull that off, your users are unlikely to jump ship.

Studies have shown that food delivery platforms have a good track record of retaining customers on an average of 77%.

This means that if you have an early bird advantage and offer your customers a robust service, then they will seldom switch to any other provider.

Delivery platform have a track record

Some more Stats to satisfy your hunger

  • A massive 79% surge is expected in the total U.S. food home delivery market over the next five years.
  • Food ordering and delivery is speculated to grow from $43 billion in 2017 to $76 billion in 2022, 12% annually over the next five years
  • Online delivery usage was not just booming for millennials, but also for the 35-44 age group
  • The top five players in this sector have a combined valuation of $11.52 billion.

Conclusion

Like in so many other sectors, the internet and digital technology have surely shaped the overall market. A consumer who has become accustomed to online shopping is now being easily enticed into other areas where online businesses offer maximum convenience and transparency. Launching an online food ordering and the delivery marketplace is being touted as one of the top business ideas in the current market dynamics. Clearly, the market is on a definite growth path and the challenge before entrepreneurs is to just bring forth a compelling online marketplace.