The Secret to Growing an Ecommerce Business in 2024 | She Talks Business

Introduction

In this episode of She Talks Business, host Kir engages in a fascinating conversation with Nida Sidiki, the General Manager of Ecommerce at Alaram, a renowned clothing brand. Nida shares her extensive journey in the ecommerce space and provides valuable insights into the dynamics of running an online business.

The Growth of Ecommerce Post-COVID

The discussion begins with the noticeable shift observed in online shopping behaviors, particularly in Pakistan, as a result of the COVID-19 pandemic. Nida explains that while ecommerce was already gaining traction, the pandemic acted as a catalyst, propelling ecommerce catapulting from mere 5% sales contribution to an impressive 30-35% in some sectors. As brick-and-mortar shops closed their doors, people turned to ecommerce for their shopping needs, often engaging in "boredom shopping." However, brands struggled to keep up with the sudden surge in demand, which led to many challenges, including order cancellations and logistical hurdles.

Understanding the Unique Pakistani Consumer

Nida highlights the importance of understanding consumer behavior, emphasizing that many Pakistani online shoppers prefer a pictorial interface rather than navigating through sidebar menus. This insight has driven design decisions in ecommerce platforms to create a seamless shopping experience. Visual appeal plays a crucial role, especially when targeting female audiences who prioritize engaging and accessible online experiences.

Streamlining Operations and Customer Experience

With her experience at TCS and Bonanza Satrangi, Nida has acquired critical skills in vendor management and operational efficiency. As the GM of ecommerce, she oversees the end-to-end business process—from order placement to dispatch—ensuring that performance targets are met continuously. By improving operational efficiencies, such as ensuring same-day delivery where possible and optimizing customer service, Alaram has achieved a commendable returns and cancellations rate of under 10%.

The Role of Technology in Ecommerce Metrics

Nida addresses the growing significance of digital transformation in ecommerce. She explains that digital transformation extends beyond simple tech adoption; it requires a holistic approach that connects various systems, from customer experience platforms to inventory management solutions. Alaram is continuously adapting to new technologies to enhance the overall customer journey while ensuring that the backend operations run smoothly.

Creating a Personalized Shopping Experience

In discussing personalization, Nida notes that recommendations powered by AI can significantly enhance user engagement. While the ecommerce landscape in Pakistan is rapidly evolving, providing a personalized shopping experience that resonates with consumers' preferences remains vital. Understanding the balance between showcasing products broadly and offering tailored recommendations is key to capturing the local market.

The Importance of Team Dynamics and Innovation

Nida emphasizes that her team's alignment and shared vision is crucial for success in the fast-paced ecommerce environment. Continuous learning and knowledge sharing play an essential role in fostering a culture of innovation, allowing team members to contribute ideas and strategies that keep the brand competitive.

Evolving Strategies for Marketing

Nida provides insights into the effectiveness of influencer marketing. While influencers can increase visibility and brand awareness, she stresses the importance of clear objectives. Measuring ROI can be challenging, as influencer campaigns often prioritize reach and engagement over direct sales, requiring brands to have realistic expectations in this area.

Conclusion

As brands adapt to an increasingly digital marketplace, the insights shared by Nida Sidiki provide a valuable guide for anyone looking to succeed in the ecommerce sector. Companies that prioritize understanding their consumers, streamline operations, and leverage technology while maintaining a strong team dynamic are well-positioned to thrive in 2024 and beyond.

Keywords

Ecommerce, Nida Sidiki, Alaram, COVID-19 impact, digital transformation, consumer behavior, operational efficiency, customer experience, AI recommendations, influencer marketing, team dynamics, personalization, online shopping.

FAQ

1. What impact did COVID-19 have on ecommerce in Pakistan?
COVID-19 significantly accelerated ecommerce growth in Pakistan, with sales contributions increasing from 5% to 30-35% as consumers turned to online shopping during lockdowns.

2. How does Alaram ensure a low cancellation and return rate?
Alaram achieves an under 10% return and cancellation rate by optimizing their customer service team and ensuring prompt dispatch of orders, ideally on the same day.

3. Why is technology important in ecommerce?
Technology is essential for connecting various systems within ecommerce—from inventory management to customer experience—allowing for smoother operations and enhanced user experiences.

4. What role do influencers play in ecommerce marketing?
While influencers can enhance brand visibility, their effectiveness varies, and brands should focus on awareness and engagement rather than direct sales in influencer collaborations.

5. How can a new brand effectively enter the ecommerce space?
New brands should establish a legitimate website, implement efficient digital marketing strategies, and ensure robust operational processes with a reliable 3PL for order fulfillment.