Revenue Growth Strategy for an e-commerce firm

A XYZ e-commerce firm is growing rapidly in India. It is facing distinct competition from other e-commerce companies. The distinct advantage it has are as follows:

Advantages of the XYZ e-commerce company

  1. Profits earned by selling volumes keeping margins
  2. Buy in Bulks at discounted price, Sell in Volumes
  3. Uses the CoD Model or the Cash on Delivery Model
  4. Greater discounts availed from the web-site
  5. Free home delivery to the customer

In order to scale its operations and find the next growth area for revenue, here are some of the points that can be kept in mind:

The Next Step Strategy for XYZ

  1. Best Customer Award at the Annual Meeting – By Revenue and By Volume for the top 5 contenders. This is to create a cult for XYZ, a new breed who talks and runs about XYZ.
  2. XYZ Magazine for Loyal Customers involving CSR, stories on how XYZ changed lives, customer satisfaction stories. This is a story in the long run that XYZ would inspire more consumers to get a value in the company.
  3. Band of Customers – Silver gets 2.5% off on any deal, Gold for 5%, Platinum for 7.5% on any deal for an annual charge, which are calculated.
  4. Bargaining Power from the Suppliers, rather I should say a long term relationship from the customers.
  5. Warehouse for the most sold non-perishable items, which means that sales are projected and non-perishable goods are kept in the warehouse.
  6. Cash back offer within 14 days for faulty items, instead of 7 or 10 days.
  7. Return Policy of 28 days even after use for non-liking the item, instead of 30 days.
  8. While surfing, use psychological variables to indicate new items, depending on the age, sex, geography, and income.
  9. Collect data to insist on buying items through the capture of IP address.
  10. Reward Points for every Purchase
  11. Delivery at your door steps- for lesser items, lesser time of delivery, and that is what the customer really wants
  12. Use the front page for the best-selling commodity, and the link to the next one as the next best seller goods.
  13. Localize ads – Star Jhalsha vs. Sony TV Vs. Sun TV in the urban areas will require a different approach, and localizing of the advertisements.
  14. Special offers as tags while visiting the site, based on the seasonal variations especially perishable items.
  15. Special site for NRIs to bring or purchase gifts to home – another revenue generation scheme, which will reap benefits for an e-commerce company.
  16. Feedback from the customers on the item sold to keep a check on quality, pricing, response time and other suggestions via a short note of thanks.
  17. Bundling of products, like an offer of body lotion with face wash to keep the awe of coming to the e-commerce web-site more and often.
  18. Word of Mouth – If a buyer refers another buyer, the original buyer gets reward points as bonus.


  1. A simple note of thanks along with the feedback form to the buyer from XYZ, especially targeting children.
  2. Replacement as a part of operations for XYZ by scheduling time and date for making the replacement after being called from the call centre.
  3. Establish new channel for revenues like books for children in Tier-I and Tier-II markets.

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