Abstract
With many e-commerce players emerging in web market buyers are looking for a cheaper price or offer on same or similar product. In brick and mortar world buyer may travel to another shop, another market or even to another area which could be near or far in search of cheaper price or some offer before making a purchase. In web world it is a matter of few clicks only to reach next shop and search for desire product. Original e-shop losses the opportunity of prospective buyer easily to other e-shop. This paper describes a method on how success can be achieved in retaining a prospective buyer for an e-commerce store.
The Problem
Buyer tends go for a cheaper price or offer on same or similar product. This human nature of buyer is present in both worlds of shopping offline and online. In brick and mortar stores buyer either bargains or goes to other shop(s) for purchasing same of similar product if his/her bargain is not successful at the first place. In some cases buyer even takes the pain of going to distant brick-mortar shop. If this is compared to web shops it is much easier for a buyer to switch between e-shops just by few clicks of mouse. Buyer here doesn’t have a reason to stay on the e-shop as there is no one to give him/her a better price or offer. He doesn’t have an option to bargain. As a result he moves to other e-shops in want of better prices and some offers.
By understanding this human nature for shopping and retain prospective buyers it is necessary for e-shops to implement an interactive system which would offer some discounts and better prices. In current web stores there is customer support available which gets activated or comes into picture only when buyer places a call for support for technical help, searching product or placing an order. There is not dedicated and active support for prices and offers. In absence of this a buyer goes to other e-shops.
Some attempts have been made earlier to retain user by notifying him/her. When user close a product page without adding product to cart or after adding product to cart but without buying, portals used to email about product page visited, notifying about pending items in cart, showing a popup message (when user clicks on closing the browser window) or by calling after some time. User generally ignored those messages or notifications and portals were not able to capture the opportunity.
Understanding Product’s Design
In most e-commerce websites product page has product details, price, stock availability, listing of similar products, variants information and a highlighted add to cart or buy button. Product buying process can be summarized as:
Product buying Steps
Option to bargain is not present in e-commerce portals. Adding a bargain button would give prospective buyers to interact and negotiate.
Product buying steps with Bargain
Types of Bargains
- Seller Bargain – Buyer picks up a product seller (in case multiple sellers are present). Buyer negotiates price with seller.
- Product Bargain – Buyer gives a negotiating price. Multiple sellers act on it and respond with bargained price. If buyer accepts a price then he can make a purchase.
- Inter-market Bargain – An api or 3rd party (portal) provides bargaining among various sellers on different e-commerce portals
Bargain Implementation Interaction modes
- Manual – Sellers/customer support executives respond to negotiation in real time in a controlled manner with chat messages
- Automatic – Sellers provides a minimum selling price to backend system and negotiation logic (% reduction in selling price upto seller minimum selling price) is applied with which buyer interacts by inputting buying price numbers
Bargain Process
- Before Payment: Buyer initiates bargaining. Buyer and seller (customer care executive) negotiates. Offered price from Seller can be accepted by Buyer during process or later. Offered price would be valid till a certain time. Can be used in manual or automatic mode. Can be implemented in Seller Bargain.
- After Payment: Make full payment, then bargain (more users would buy as compared to Before Payment process). Buyer set a minimum purchase price (bargain price point) before payment. Buyer makes the payment. Bargain process is initiated. If negotiation price reaches bargain price point (set by buyer) or below then purchase is mandatory and order is confirmed. If bargain price point is not reached then buyer has an option for refund. If bargain price point is too low seller can reject before initiating the process. Can be used in manual or automatic mode. Seller sends offer price to buyer, if offered price is accepted by buyer then additional payment amount made is refunded.
Bargain Implementation Methods
- Limited time period bargain
o Bargain hour (1 hour a day or few hours a day)
o Bargain Day (a day in a week)
- Anytime Bargain – Can be implemented in Automatic bargain mode
How the Product Solves the Problem
Why bargain should be present?
Bargain is done in offline world at most of the small shops where the board with ‘Fixed Price’ is not present and in some cases where even the board is present. Same concept of bargaining will give web buyer a satisfaction of price. There are 2 primary reasons due to which bargain should be introduced to the web world. Inter market and intra market pricing.
Intra market pricing is applicable to a market place where multiple sellers are selling the same product and are having different selling price. Inter market pricing is between different e-commerce websites/webpanies. Sellers on 2 different platforms have different selling price for the same product. In some cases there are chances that seller is same on different websites with different selling price for same product owning to various reasons.
In some websites which offer a market place model multiple price offered by sellers for same product is displayed. Buyer makes a decision based on seller ratings and reviews along with price being offered by sellers. Either buyer selects one of the seller based on his decision or moves to other e-commerce portal.
cannabalism
Post listing will have Bargain available button/link similar to EMI, Offer, Buy, Chat etc.buttons
Analytics tracking study user pattern before implementing. If a buyer accepts a price then it should be valid till 1 hour or 30 minutes. Along with price there would be qty. as well. Default qty. should be 1.
Conclusion
Bargain system in e-commerce platforms is not available. OBuyer visits a product page and see price, offer, discount and final price. He adds it to cart and apply promotion code if applicable. Between these 2 steps there should be another step i.e. Bargain.
- OBuyer picks a product, view details, view pricing
- OBuyer OBargains for Price
- OBuyer Purchases
Why bargain should be present?
Bargain is done in offline world at most of the small shops where the board with ‘Fixed Price’ is not present and in some cases where even the board is present. Same concept of bargaining will give Obuyer a satisfaction of price. There are 2 primary reasons due to which Obargain should be introduced to the web world. Inter market and intra market pricing.
Intra market pricing is applicable to a market place where multiple sellers are selling the same product and are having different selling price. Inter market pricing is between different e-commerce websites/webpanies. Sellers on 2 different platforms have different selling price for the same product. In some cases there are chances that seller is same on different websites with different selling price for same product owning to various reasons.
Due to this price difference obuyer would be interested in doing a bargain.
Types of Bargain Zones
- Seller Bargain – Buyer picks up a product seller (in case multiple sellers are present). Buyer negotiates price with seller.
- Market Place Bargain – Buyer gives a price. Multiple sellers act on it and reply with bargained price. If buyer accepts a price then he can make a purchase.
- Inter-market Bargain
Bargain Ways
time based chat before purchasing. Buyer chats with Seller. Both give a price and once the price is reached and other party accepts then user has to purchase.
after purchasing (more users would buy)
make full payment, then bargain. Set a min. price as bargain price before purchase. if bargain reaches this or below then purchase is mandatory. if bargain price point not reached then buyer has option for refund. If bargain price point is too low seller can reject before initiating chat session. Seller sends offer price to buyer..if buyer accepts then pending amount is refunded.
How OBargain can be done?
What to keep in mind?
Post listing will have Bargain available button/link similar to EMI, Offer, Buy, Chat etc.buttons
Analytics tracking study user pattern before implementing. If a buyer accepts a price then it should be valid till 1 hour or 30 minutes. Along with price there would be qty. as well. Default qty. should be 1.
Bargain would help sellers and product manufacturers in keeping a good price for product. Marketplace should keep track on Window Shopping behaviour of buyer. If buyer is often engaged in bargaining but doesn’t buy a product then sellers should be notified this will save time of sellers.
limited period bargain
1 hour a day
whole day
anytime
- Terminology
- OBuyer – Online Buyer
- OSeller – Online Seller
- OShops – Online Seller Shops on E-commerce platforms
- Webpany – Web Company, E-commerce Platform, Website
- OBargain – Online Bargain
Points
As user has no need to travel to another shop or market in some near or distant area…it is just about few clicks here and there.
How can this be done is by calling by, emailing, showing popup.
Here’s a fairly standard outline for a technical white paper:
- Abstract — A one-paragraph description of what the paper is about. Do not state the conclusion here; simply tell the reader what the purpose of the paper is. Customers frequently read only the abstract and conclusion of white papers, so provide material that gives them a good reason to read the details.
- The Problem — Two-to-three paragraphs covering the problem and a little background. Be straightforward and succinct. Avoid obfuscatory language, or what one white paper author calls “hidden assumptions.”
- Understanding The Product’s Design — How the product works in general. While this is not the place to describe how the product solves the problem, the section is oriented so that the reader will be able to understand the product’s application to the problem. This and the following section are the meat of the white paper.
- How the Product Solves the Problem — How the application of the product solves the problem. Provide evidence of how the product solves the problem, and why it is the best solution available.
- Conclusion — A one-paragraph summary of why the product is the best solution to the problem.