E-commerce has been growing considerably in Brazil in recent years. However, while it grows, it also may bring some risks for unprepared entrepreneurs. The success of an e-commerce depends on the knowledge the company has about the different areas that make up its operation.
Before starting this activity, it is essential to consider the initial costs, payback time, structuring, among other points. The lack of preparation of managers leads many virtual enterprises to bankruptcy. To prevent this from happening, many companies are investing in the so-called Full Commerce. In this article, we will explain the concept and what advantages it offers.
What is Full Commerce?
Online retail has been driving the Brazilian economy, but the lack of knowledge regarding the maintenance of the company makes most of them cease to exist in the first year of operation. So that this does not happen, many managers are adopting the Full Commerce model to help their operations in the virtual environment. The system has been around for a few years and is already widely used in the United States and Europe, maybe better know as Fulfillment.
Full commerce is the management model in which the entrepreneur outsources planning, consulting, logistics fulfillment, ERP management, means of payment, customer support, invoicing among other functions of his business. This method offers the possibility of having a holistic view of the enterprise, improving decision-making capacity.
From these tools, it is possible to direct the company towards more positive scenarios. It also helps to align the enterprise’s communication with the needs of its public. Implementing full commerce contributes to reducing costs and increasing sales.
The term Full Commerce in Brazil mainly refers to digital businesses selling online.
You must also be aware that certain segments of Full Commerce will only be possible for a Brazilian company, such as the management of imports, logistics and invoicing, which can only be done via a local entity. Brazil restricting the possibility for foreign companies to set up local stock and directly invoice consumers remotely.
if you want to build a local presence, you will need to open a subsidiary or work with a local Importer of Record partner. For more information on this subject, follow this link: How an international company may set-up a local stock in Brazil?
Full Commerce Outsourcing Models
Outsourcing, in this case, must be done by a company specializing in Full Commerce. Learn about existing outsourcing models.
Modular solutions: in this type of outsourcing, the contracted company will provide services for specific areas of the enterprise like Digital Marketing, Logistics Fulfillment, Payroll and Invoicing, Customers support, Import and Logistics management..
Integrated solutions: this is when the contracted company offers more than one service to the contracting company.
The tip is for the manager to survey the current situation of his business to understand which of the two models is more relevant. There are some examples of areas that can be outsourced. Outsourcing can be with regard to entrepreneurship, the company now has help to create its business plan.
Advantages of the Full Commerce model
As mentioned above, the Full Commerce model makes it possible to have a broader view of the enterprise landscape. However, its advantages for virtual stores go further, check it out below.
1 – Efficient monitoring
The adoption of the Full Commerce method is characterized by allowing a more efficient monitoring of the business. The data generated by outsourced management contributes to arriving at more relevant solutions. With access to this data, it is possible to direct management towards continuous improvement. Certainly, monitoring is one of the great advantages of Full Commerce for virtual stores.
2 – Stimulus for problem solving
The focused management that Full Commerce provides encourages problem solving. Virtual enterprises need practical solutions to different issues so that they can keep operating. Some of these issues may go unnoticed if there is no professional management.
Only from the identification of bottlenecks is it possible to search for solutions that contribute to the company’s growth. A management without market experience can lead the enterprise to bankruptcy.
3 – Agility of operations
Consumers are increasingly demanding when it comes to the speed of online purchase and delivery processes. Companies that are recognized for taking too long to complete the delivery lose competitiveness. There is a certain anxiety in people who buy online to have in hand what they have purchased.
The option for Full Commerce helps to streamline a series of operations, especially in the logistics area. A loss factor for many first-time virtual entrepreneurs is inexperience with certain steps in the process. More than having a beautiful look and products in the online shop window, it is necessary to work with agility and transparency.
4 – Creating a competitive edge
The more efficient and well-organized a virtual store is, the more competitive it becomes in the market. Think about how many people your e-commerce fails to impact because it doesn’t have a well-structured work system. With the Full Commerce team focused on management issues, you can get busy thinking about the best solutions for your business.
5 – Increase in sales
Good management results in increased sales, allowing your e-commerce to grow sustainably. Some companies face problems in expanding their reach because they do not have an efficient management of different areas that make up the business. Marketing optimizations, an attractive layout, SEO, visual identity, among other points contribute to boosting your sales.
6 – Cost reduction
The lack of knowledge or correct management tools, in addition to the way certain tasks are performed, can increase the costs of various operations. Companies specializing in Full Commerce focus especially on these issues to reduce costs. Thus, with reduced operating costs, the virtual store becomes potentially more profitable.
7 – More professionalism
As the focus of Full Commerce companies is the management of virtual stores, it is natural that they perform tasks with more professionalism. Technical knowledge makes a lot of difference to organize and structure the operations of an online store. This type of business needs to work in an orderly manner as it needs to meet varied demands of customers. Opting for Full Commerce management assistance will help position your company on a professional level, leaving behind amateurism.
If you like our tips and to know all about Full Commerce and how does it work in Brazil, contact us!