04 August, 2021

Six of the Biggest Challenges E-commerce Platforms Face



31 January 2021, Dubai, UAE: With one third of the global population who partake in online shopping, businesses planning to provide online shopping services should be mindful of the many factors and challenges of running an e-commerce business. Below, we have a look at six of the biggest challenges which e-commerce platforms face.

Maya Hamad, founder of Emoteyes, says: “With more businesses going online, it’s imperative that businesses take the time to understand not only their existing customer behaviours but to also understand why some customers still choose to not shop online”. 

  1. 1. Trust

Many customers often find it challenging to find a site which they can trust. In addition to deciding whether to trust that the products sold is indeed what they want, customers often have a hard time disclosing their personal information on the internet, such as their address for shipping and their banking details. According to an article published by Plytix, 75% of online shoppers will only provide their personal information to a site which they trust (Plytix, 2020). Many fear the risk of being scammed by unfamiliar sites. To build trust, e-commerce retailers should make sure that they are transparent with their information, a refund policy is in place, and that there are contact details available. 

  1. 2. Competition 

With an ample amount of online stores to choose from, e-commerce retailers are in constant competition with each other.

With an average conversion rate of only 3% (Business News daily, 2019), online stores need to make sure that their products are different and more affordable from the rest. E-commerce companies also compete in their website design, as online shoppers seek sites which are user friendly. A study on online shoppers showed that 17% of them abandon their shopping cart if the checkout process is too long or complicated, while close to 50% do so if the prices are too high (Media Post, 2018). 

  1. 3. Social proof (also known as reviews)

E-commerce platforms need to keep up their reviews and ratings in order to get more customers. Just like word of mouth, people doing online shopping check the reviews and ratings of a product or online store before making a purchase. 

Statistics show that on average, people read close to 10 reviews before making a purchase, and are more trusting of the business if the reviews were made within the last two weeks (Media Post, 2018). With social proof, consumers feel a lot more comfortable with purchasing from your online store knowing that others have had a pleasant experience with your services/products. 

  1. 4. Globalization and Localization 

E-commerce platforms need to cater for consumers from all over the world. 

In an article released by Plytix, statistics show that with 60% of consumers doing cross border shopping, e-commerce platforms should include features which allow consumers to shop in their local currency and language. With that being said, e-commerce businesses should know that over 70% of consumers prefer to do their online shopping in their native language, while 90% prefer to shop in their local currency (Plytix, 2020). 

  1. 5. Payment Methods

While some prefer cash-on-delivery, there are others who prefer to do payments with their digital wallets such as PayPal. To avoid an abandoned shopping cart and the loss of a potential loyal customer, e-commerce businesses should offer a variety of payment methods to cater for the preferences of different consumers. 

  1. 6. E-commerce Fraud

E-commerce platforms should take the necessary steps to avoid revenue losses or legal issues from fake accounts. In 2020 alone, e-commerce businesses experienced an increase in fraud attacks with more people moving to online shopping as a result of the pandemic. Within the first half of 2020, results show that there has been over a billion fraud attacks resulting in a revenue loss of over $140 million (Security Magazine, 2020).

To stay ahead in the e-commerce world, businesses should meet the expectations of online shoppers as much as they do with their consumers face to face. In addition to increasing conversion rates and meeting the shopping needs of their consumers, e-commerce retailers are in constant competition with who has more to cater their website visitors. 


دراسة عن مستخدمين منصات التواصل الاجتماعي: هل تستفيد الشركات منها؟ 

 

في جميع أنحاء العالم، هناك 4.66 مليار ناشط يستخدم الإنترنت منهم 3.78 مليار يستخدمون وسائل التواصل الاجتماعية (Statista، 2021). في الواقع, 40% من مستخدمي الإنترنت يستخدمون حسابات وسائل التواصل الاجتماعية لأغراض العمل (Backlinko, 2021).

 

وفي تعليقها على الموضوع قالت مايا حمد المؤسسة لشركة ايموتايز: إن العثور على النظام الأساسي عبر الإنترنت الذي يقضي جمهورك المستهدف معظم وقتهم فيه هو تماما مثل العثور على الموقع المناسب لفتح نشاطك التجاريفنحن نلتقي بهم أينما كانوا. نختار المنطقة التي يقضي فيها عملاؤنا المستهدفون معظم وقت فراغهم. يتوجب علينا البحث وتحديد المنصات المتوفرة على الشبكة.

مع وجود أكثر من 50 ٪ من سكان العالم على منصات التواصل الاجتماعي المختلفة، من غير المؤكد أن استخدام وسائل التواصل الاجتماعي لعملك سيضمن وصول جمهور أوسع. دعونا نغوص في إحصاءات أربعة من المنصات الأكثر شعبية على الانترنت يجب أن يكون تسويق عملك عليها

  1. 1. يوتيوب

بعد جوجل، يوتيوب وقد تم تصنيفه الثاني عالميا وهو الأكثر زيارة في الموقع مع أكثر من 2 مليار مستخدم في جميع أنحاء العالم في عام 2021 (Oberlo, 2021).

أجريت دراسة على أكثر من 2000 مستخدم أظهرت أن 70% منهم يشترون من العلامة التجارية بعد رؤيتها على موقع يوتيوب (Hoot suite, 2021). ومن المهم أيضا أن نلاحظ أن المنبر هو مترجم في أكثر من 100 دولة، مما يسمح للمستخدمين الوصول إلى محتوى يوتيوب في 80 لغة مختلفة (يوتيوب، 2021).

  1. 2. انستاغرام

الموقع السادس الأكثر زيارة هو موقع انستاغرام لديه مجموعة من 500 مليون شخص في العالم يستطيعون الوصول إلى التطبيق بشكل يومي (Backlinko, 2021). مع هذا العدد الكبير من المستخدمين الناشطين يوميا، هل تحصل الشركات على الرؤية التي تأمل فيها؟ الجواب هو نعم.

وتظهر الإحصاءات أن:

  • 200 مليون مستخدم يزور مرة واحدة على الأقل الملف الشخصي للأعمال اليومية (انستغرام للأعمال التجارية، 2021).
  • 80% من المستخدمين يستخدمون التطبيق للبحث عن مختلف المنتجات والخدمات (انستغرام للأعمال التجارية، 2021).
  • 90% من المستخدمين يتابعون الأعمال على انستغرام (انستغرام للأعمال التجارية، 2021).
  • 50% هي أكثر اهتماما في العلامة التجارية بعد رؤية الإعلان على انستغرام (Hoot suite, 2021).
  1. 3. فيسبوك

حاليا ثالث أكثر المواقع زيارة ويشكلون 60% من الشبكات الاجتماعية للسكان، يبقى فيسبوك المنصة الرائدة بين وسائل التواصل الاجتماعية (eMarketer، عام 2020). وفقا لفيسبوك بلغ متوسط الإحصاءات من بيان صحفي على الموقع 1.84 مليار مستخدم ناشط يوميا بحلول نهاية عام 2020. وأظهرت إحدى الدراسات أن منطقة الشرق الأوسط وأفريقيا لا تزال الأسرع نموا في المنطقة باستخدام الموقع (eMarketer).

مع صعود #Support Local، شهد فيسبوك أيضا زيادة في عمليات البحث عن الشركات المحلية في عام 2020 (فيسبوك للأعمال التجارية، 2021) وهي أخبار جيدة للعديد من الشركات المبتدئةوعلاوة على ذلك، ان متوسط المشاهدة للإعلانات على فيسبوك شهريا هو 12 اعلانا.   (Hoot suite, 2021).

  1. 4. تويتر

على الرغم من أن تويتر ينظر إليه على أنه التطبيق الأكثر توسعا عندما يتعلق الأمر بالمواضيع الشائعة وآخر الأخبار، إلا أن العديد من المستخدمين يجدون ان هذا التطبيق مفيد لممارسة الأعمال التجاريةتظهر الإحصائيات أن 85% من الشركات الصغيرة والمتوسطة تستخدم هذا التطبيق لخدمة عملاءها (تويتر للأعمال التجارية، 2021).

مع 190 مليون مستخدم ناشط يوميا (تويتر، 2021)، هذه الأرقام تثبت أن تويتر يمكن أن يستخدم أكثر من مجرد معرفة ما هو الجديد:

  • إعلانات تويتر تصل إلى 5.8% من سكان العالم (هوتسوت، 2020).
  • الربع الثالث من عام 2020 أظهرت زيادة بنسبة 30% في عدد المستخدمين الذين يتعاملون مع الإعلانات على تويتر (Twitter, 2020).
  • 40% من المستخدمين في القيام عمليات الشراء بعد الاطلاع على تويتر (التسويق الرقمي في معهد (2019).
  • المستخدمين من عرض الإعلانات 26% من الوقت الذي يقضونه على تويتر.

 

ماذا تعني هذه الإحصاءات للشركات؟ مع الشبكات الاجتماعية، بالإمكان ان يزيد الوعي بأعمال التجارية على نطاق عالمي. عند التخطيط لاستراتيجية التسويق الرقمي، يجب على الشركات أن تضع في اعتبارها أن بعض البلدان تصل إلى منصات وسائل التواصل الاجتماعي المختلفة أكثر من غيرها. إن معرفة مكان الجماهير المستهدفة (أي المنطقة والمنصات) ستجعل الوصول إليها مهمة بسيطة للعديد من الشركات.


29 July, 2021

Tech Mahindra Q1’22 Revenues up 14.6% Q1’22 Profit after tax up 42.

 HIC-TechM

Pune – July 29th, 2021: Tech Mahindra Ltd., a specialist in digital transformation, consulting and business re-engineering services today announced the audited consolidat ed financial results for its quarter ended June 30, 2021.

 

Financial highlights for the quarter (USD)

  • Revenue at USD 1383.6 mn; up 4.1% QoQ and 14.6% YoY
    • Revenue growth at 3.9% QoQ in constant currency terms
  • EBITDA at USD 254.3 mn; down 4.4% QoQ, up 47.5% YoY
    • Margins at 18.4%; down 160bps QoQ
  • Profit after tax (PAT) at USD 183.2 mn; up 24.1% QoQ and 42.2% YoY
  • Free cash flow at $ 172.4 mn, conversion to PAT at 94.1%

Financial highlights for the quarter (₹)

  • Revenue at ₹ 10,198 crores; up 4.8% QoQ and 12.0% YoY
  • EBITDA at ₹ 1,876 crores; down 3.7% QoQ, up 44.3% YoY
  • PAT at ₹ 1,353 crores; up 25.1% QoQ and 39.2% YoY

Other Highlights

  • Total headcount at 126,263, up 5209 QoQ
  • Cash and Cash Equivalent at USD 1818.2 mn as of June 30, 2021

 

 

 

CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said,

 

We have witnessed an all rounded performance this quarter with growth across our key markets and industry sectors. We continue to see strong traction in large deal wins as we are helping our customers in integrated digital transformation. Our focus on key technology pillars wrapped around experience-led approach with TechM Nxt.Now will help us to capitalize on the strong demand momentum.

Milind Kulkarni, Chief Financial Officer, Tech Mahindra, said,

 

We continue to build on our profitability journey and have reported highest ever quarterly Revenue and Profit After Tax this quarter. Delivery Excellence will be a cornerstone in improving our operational and financial metrics, as we look to capitalize on the incremental digital spends over the course of the year.

 

 
 

 

 

 

 

Key Wins

  • Tech Mahindra has won a deal with a leading UK telecom company for end to end customer experience for both consumer and enterprise businesses.
  • Tech Mahindra has been engaged by one of the largest private healthcare systems in US as a managed service partner for technology transformation.
  • Won a strategic digital assurance deal with an American technology company.
  • Tech Mahindra has been chosen by a Tier 1 US Telco in the data and analytics space for data platform modernization and cloud migration.
  • Tech Mahindra has been chosen by Tier 1 automotive equipment supplier for managed security services and greenfield service desk implementation.
  • Engaged by world's Largest Public Funded Healthcare Program for establishing and managing contact centre operations for COVID vaccination programs.
  • Tech Mahindra has been chosen by an Australian government division as a digital transformation partner.


 

  • Tech Mahindra has won a deal with one of the largest railroad company in North America for strategic IT modernization leveraging the digital and analytics expertise.
  • Tech Mahindra has been selected by an Asia Pacific energy company for end to end transformation including infrastructure, cloud, cybersecurity services.
  • Tech Mahindra has been engaged by a large bank in Africa for core banking transformation.

 


 
 

 

  • Tech Mahindra to launch ‘Stablecoin-As-A-Service’ blockchain solution for global banks and financial institutions with Quantoz, Netherlands-based innovative Blockchain technology application incubator, specialized in building and implementing Blockchain-based solutions.
  • Tech Mahindra has joined the 1.5°C Supply Chain Leaders to reduce its greenhouse gas emissions across the full value chain.
  • Tech Mahindra and Rajasthan Royals, inaugural IPL (Indian Premier League) champions, have partnered to build on fan loyalty and fan monetization. This collaboration aims to derive three times the value from a loyal fan base using Tech Mahindra’s digital platform powered by next generation technologies.
  • Tech Mahindra has launched ServiceNow Business Unit to accelerate digital transformation for customers globally. It is focused on delivering innovative industry solutions for key verticals like Telecommunications, Media and Entertainment and Energy & Utility.
  • Tech Mahindra has announced partnership with TAC Security, the global leader of risk & vulnerability management, to enable next-generation enterprise security for customers globally.
  • Tech Mahindra foundation, the CSR (Corporate Social Responsibility) arm of Tech Mahindra announced its support to Mission Oxygen, an initiative by Democracy People Foundation, to ensure last mile delivery of oxygen supply across India. The partnership will stri ve to ensure that hospitals, nursing homes and medical care facilities, especially in tier -2 cities, get immediate access to oxygen.
  • Tech Mahindra is partnering with many of its global customers to collectively drive the COVID- 19 support movement in India.
  • Tech Mahindra has announced a partnership with the International Chess Federation for creating the Global Chess League together. The competition will be established as a first -of- its-kind “phygital” (physical and digital) league, engaging players from all levels – professional or otherwise.
  • Tech Mahindra has announced its support to #OxygenForIndia, a volunteer -run organization put together by the Center for Disease Dynamics, Economics & Policy (CDDEP), to deploy 3,000 oxygen concentrators and 40,000 oxygen cylinders to help resolve the oxygen crisis in India.


 


  • Tech Mahindra has received the Golden Peacock HR excellence award.
  • Tech Mahindra has been recognized amongst the top 10 trusted big data analytics companies in India 2021 - 2022 by TopAppDevelopmentCompanies.com.
  • Tech Mahindra has won 2 Awards at SAP Partner Summit-
    • INDIA Best GSSP Partner of the Year &
    • Best Customer Experience Partner at SAP India Partner Summit.
  • Tech Mahindra has been recognized as ‘Leader of the Year’ by CEO Today Magazine Middle East Awards 2021.
  • Tech Mahindra’s CEO, CP Gurnani has been recognized as 'Inspiring CEO 2021' by the Economic Times.
  • Tech Mahindra has been recognized among the Economic Times Iconic Brands 202.
  • Tech Mahindra has emerged as a winner of NASSCOM Engineering &Innovation Excellence Awards 2021 for Service Delivery Excellence & Next-Gen Products; for its projects on Vehicle Top Hats & Distributed Ledger DnD.

 

 

Audited consolidated financial for the first quarter ended June 30, 2021 drawn under Ind AS

 

 

 

 

P&L in INR Mn

Q1 FY22

Q4 FY21

Q1 FY21

Revenue

101,976

97,299

91,063

Cost of Services

69,682

64,497

65,105

Gross Profit

32,294

32,802

25,958

 

 

 

 

SG&A

13,530

13,321

12,953

EBITDA

18,764

19,481

13,005

 

 

 

 

Other Income

2,873

326

4,161

Interest Expense

381

417

503

Depreciation & Amortization

3,311

3,444

3,832

Impairment of Goodwill and non current assets

-

507

-

Share of profit / (loss) from associate

(2)

2

1

 

 

 

 

Profit before Tax

17,943

15,441

12,832

Provision for taxes

4,286

4,998

3,276

Minority Interest

(125)

371

167

Profit after Tax

13,532

10,814

9,723

 

 

 

 

EPS ( ₹ / share)

 

 

 

Basic

15.43

12.37

11.13

Diluted

15.32

12.26

11.07

 

     

 

 

 



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