The strategic partnership is a powerful way to take advantage of Asia’s growing E-Commerce opportunity.
It’s time to grab a piece of the e-commerce pie in Asia Pacific. This is not surprising, given the growth projections. According to estimates, the e-commerce industry in Asia will reach US$4.2 trillion by 2024 and US$6.76 billion by 2029. This represents a 10% compound annual growth.1
It is much easier to say than do for companies that want to take advantage of this upsurge in demand from consumers. As a means to achieve success, partnerships are becoming increasingly crucial. Terence Yong is the Group Head of Global Transaction Services, DBS. He said that partnerships can help ecommerce businesses in sales, marketing and customer acquisition.
He explained that management could leverage relationships already in place with strategic and financial partners to boost ecommerce.
Smarter marketing for greater reach
By working with banks, a business can reach more customers.
You could offer a customer a discount if they use the credit card of the bank partner. These promotional activities are as targeted or as wide-ranging as the company desires.
It is also possible to direct warm leads towards an ecommerce site. If a company that sells white goods wants to reach consumers directly online, they could partner with a bank. The company could work with the bank’s home loan customers to generate warm leads. These new homeowners will likely be looking for offers on home appliances.
Typically, the results are win-win. The e-commerce site acquires new customers while the bank is able offer more value beyond the traditional banking services to their own clients.
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These partnerships may go beyond simple promotions and integrate more comprehensive strategies that will boost both parties’ activity. Companies can, for example, develop an online subscription platform with the bank that allows customers to pay monthly fixed amounts to receive certain products or services. This could give the customer certain benefits, like early upgrade, depending on what product they are using.
This type of marketing approach has proven to be successful, particularly in an environment where there are so many different messages. “To do that, we have to forge partnerships,” said Gaurav Julka, Head of Appliance-as-a-Service for Electrolux in APAC and MEA.
DBS Marketplace provides a good example. Julka said, “We have our products available online for DBS customers looking to access home renovation loans and other DBS services. They can do so by visiting the Marketplace page.
The promise of e-commerce: Fulfilling it
Customers receiving their purchases as quickly as possible is also essential to a successful online experience. It is important for businesses to be able to deliver the products to the correct person and handle any returns.
Third-party logistics firms (3PLs) that specialize in e-commerce fulfillment end-to-end are the best partners to make. They can manage inventory and warehousing for businesses, as well as taxes, customs duties and refunds.
The large amount of data generated by e-commerce fulfillment can be used to generate insights for businesses. Businesses can use metrics to help them make better business decisions. These include inventory in real time, order volume, delivery speed, and the ratio of purchases versus refunds.
“This data can be used to improve the terms of financing for companies,” said Yong.
The granularity and precision of e-commerce information, as well as its real-time aspect, gives lenders an accurate picture that is more comprehensive than what traditional merchants are able to provide. Yong continued, “This could also extend to a source of alternative credit for online retailers,” where e-commerce platform partners with banks can offer data-driven financing to their merchants. JD Logistics has achieved this by partnering with DBS in order to finance Hong Kong-based SMEs for their cross-border ecommerce import business.
Map your path to e-commerce Success
The growth of e-commerce is also dependent on the banking industry’s expertise. This can be crucial for companies that are selling online or who want to enter overseas markets.
Newcomers in e-commerce may receive queries from clients across the globe. The ability to accept payments in multiple currencies is essential, and they will also need to pay suppliers and merchants who may be located in foreign countries.
The same companies will also need to ensure that they have access to inventory through e-commerce platforms providers in order for them sell a pool of products, either on an exclusive basis or as part of general resale.
Similar challenges face companies that want to expand their online presence. They may need more capacity in their case to cope with an increase and complexity of order or payment volume.
“These requirements make it necessary for companies to work with a partner who has extensive experience in a particular region to overcome any potential obstacles that could arise around currency and payment regulations,” stated Yong.
This approach can help a company grow faster. Wee Hou Kooh is the Head of Commercial at Ninja Van. The ability to tap into partners’ existing expertise, and leverage the latest technologies and innovations without having to develop them ourselves is a major benefit of forming partnerships.
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Banking with the Right Partners
In the end, aspiring leaders in e-commerce cannot undervalue how much success will depend on mutually-beneficial banking partnerships, be it through customer acquisition and retention, data-driven insights that fuel expansion or transactions.
E-commerce has many facets. “We have worked with many businesses on a range of different areas to help them achieve their growth goals,” said Yong.
DBS provides a way for businesses of all sizes with an ambition to grow through ecommerce. DBS has worked with many businesses to develop solutions that range from optimising payment acceptance to cultivating warm leads for business growth to using e-commerce information to finance future needs. Working with a partner bank who has the expertise to ensure success in e-commerce can help you make smarter business decisions.
Read more in DBS’ whitepaper on “Accelerating Growth in the Age of E-Commerce” Here is a link to the article)
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