Home

Author: Suzette Ferretti

Home » Archives for Suzette Ferretti
Open post

Why Organic Growth May Be They Key To Scaling Your Business

What is Organic Growth?

Organic growth strategies focus on changing how your company makes sales, i.e., changes to your operations that result in a natural (organic) increase in revenue. This can be brought about through attracting new customers, retaining more of your existing customer base, or increasing overall sales.

Organic growth relies wholly on your business’s own internal resources: your business utilizes its own in-house processes as a means for increasing sales. This type of growth uses the resources already present within the business without spending or borrowing extra capital to scale the company. This can be achieved through a variety of methods. For example: improving services, expanding product lines, or opening the company up to new markets.

Successful organic growth strategies increase cash flow for the business and streamline production for faster, more efficient output. Organic growth is essential for building a strong foundation for your company.

Organic Growth vs Paid Marketing

Online retail is not so different from having a physical storefront when it comes to advertising. Conventional strategies for digital marketing include search engine ranking, pay-per-click ads or social media marketing campaigns. However, organic growth solidifies the status of a business in its market by laying down a foundation of solid brand values. Organic growth strategies should be your priority to show your customer base you’re here to stay.

Quick sales vs Repeating Customers

While a paid ad can give you a more immediate result by persuading customers to purchase your product or sign up for your service, organic strategies encourage potential customers to spend more time on your website and social media channels. While they may not immediately click the “buy now” button, they’ll develop a more educated point of view about your brand and what your company can do for them in the long-term. Educated customers are likelier to become repeat customers. This is just one example of how organic growth can provide a greater return on investment than traditional advertisements.

Ad-boost vs organic metrics

Boosting search-engine rank organically is another strategy that has advantages over paid marketing. Ranking high on sites like Google is essential to edging out your competitors. Potential customers are much more likely to click on the first results a search engine returns. Paying to boost your ad rank will give you quicker results, as it is a direct transaction. However, paid advertising can only take you so far. Google ad ranking specifically tells its users that bids are only one factor in determining where an ad is positioned in its search results. Implementing organic growth strategies, such as search engine optimization (SEO) will help you to meet the criteria that boost your page beyond what you can achieve through bids, ensuring that you become a potential customer’s top choice instead of fading into the sea of search engine results.

Benefits of Organic Growth

  • Builds a solid foundation: Organic growth builds a strong foundation based on loyal customers and a well-established brand identity. Focusing on the core elements of the business allows companies to create a stable platform for future growth and expansion.
  • Enhances credibility and trust: Customers often perceive organically grown businesses as more credible and trustworthy. This is because these companies have taken the time to build a reputation for quality and excellence, which creates a sense of reliability for potential customers.
  • Improves customer retention: Organic growth strategies prioritize long-term customer relationships rather than short-term sales. This customer-centric approach encourages repeat purchases and brand loyalty, which ultimately leads to a more sustainable business model.
  • Increases profitability: By focusing on organic growth, e-commerce businesses can optimize their operations, reduce costs, and increase profit margins. Over time, these improvements translate into a more profitable and scalable business model.
  • Encourages innovation and adaptability: Organic growth strategies encourage e-commerce businesses to continually adapt and innovate in response to changing market conditions. This mindset promotes resilience and flexibility, which are essential for long-term success in the dynamic e-commerce landscape.

Strategies for Promoting Organic Growth in E-Commerce

  • Optimize website design and user experience: A well-designed, user-friendly website is crucial for attracting and retaining customers in the e-commerce space. Ensure that your website is easy to navigate, visually appealing, and mobile-responsive to create a seamless shopping experience for your customers.
  • Focus on customer service excellence: Outstanding customer service is a critical component of organic growth in e-commerce. By providing exceptional support and addressing customer concerns promptly, you can foster trust, build long-term relationships, and encourage repeat purchases.
  • Develop a strong content marketing strategy: Content marketing is a powerful tool for driving organic growth in e-commerce. By creating valuable, relevant, and engaging content, you can attract potential customers, establish your brand as an authority in your niche, and boost customer retention.
  • Utilize search engine optimization (SEO): Optimizing your e-commerce website for search engines is essential for increasing visibility and driving organic traffic. Implement SEO best practices, including keyword research, on-page optimization, and link building, to improve your site's ranking on search engine results pages (SERPs).
  • Leverage social media marketing: Social media platforms offer a cost-effective way to engage with your target audience, build brand awareness, and drive organic growth. Develop a robust social media strategy that aligns with your brand identity and focuses on creating meaningful connections with your customers.
  • Encourage customer reviews and testimonials: Positive customer reviews and testimonials are powerful drivers of organic growth for e-commerce businesses. Encourage your customers to leave reviews on your website, social media channels, and third-party review sites to boost your brand's credibility and trustworthiness.

Final Thoughts

Organic growth plays a pivotal role in the long-term success and sustainability of e-commerce businesses. By focusing on building a solid foundation, enhancing credibility and trust, improving customer retention, increasing profitability, and fostering innovation and adaptability, companies can thrive in the competitive online marketplace.

To promote organic growth, e-commerce businesses should prioritize optimizing their website design and user experience, delivering exceptional customer service, developing a strong content marketing strategy, utilizing search engine optimization, leveraging social media marketing, and encouraging customer reviews and testimonials.

By implementing these strategies, e-commerce businesses can effectively drive organic growth, strengthen their brand identity, and achieve lasting success in the ever-evolving digital landscape. Ultimately, organic growth is not just a desirable approach for e-commerce businesses; it is a necessity for thriving in today's competitive online environment.

Nicky Minh

CTO and co-founder

Open post
vc e-commerce trends in 2023

Top e-Commerce VC Trends in 2023

The e-commerce industry has experienced explosive growth in recent years. Naturally, this growth has attracted the attention of venture capital firms, which have been eager to invest in e-commerce startups that show strong potential for success.

Securing funding from venture capital firms can be a challenging process for e-commerce startups, but with the right approach and preparation it is possible to secure the investment your business needs to grow and succeed. Below we look at some of the key trends driving e-commerce investment and characteristics of e-commerce companies that can attract investors.

Direct-to-Consumer (DTC) Brands

DTC or D2C brands are companies that sell their products directly to consumers without relying on traditional retail establishments. They do so either through their own websites or other online platforms. While D2C models have been around since the 90s, the democratization of brand promotion through social media marketing, pay-per-click ads (PPC ads), and other promotional channels has led to a dramatic rise in popularity over the last 10 years. As a result, venture capital firms have been investing heavily in brands that follow this model.

The main strength of D2C brands is their unique ability to build strong relationships with customers. Because D2C businesses interact directly with them, these companies can easily gather valuable data on customer behavior and preferences. This data can then be used to inform product development and marketing strategies, giving D2C brands a competitive edge in the marketplace.

Subscription-based Business Models

This model requires customers to pay a recurring fee in exchange for access to a product or service. This model has been particularly successful in the e-commerce sector, with companies like Dollar Shave Club and Blue Apron becoming household names. Venture capital firms have been eager to invest in subscription-based e-commerce companies, with many firms focusing on companies that offer unique or differentiated products or services.

The appeal of subscription-based models lies in recurring revenue streams. This type of revenue provides a more predictable and stable source of income compared to traditional e-commerce models.

International Expansion

Many e-commerce companies have achieved success in their home markets, but have struggled to expand into new markets overseas. Venture capital firms have been willing to invest in companies with strong potential for international growth, particularly in emerging markets such as Asia and Latin America.

The potential for e-commerce companies to tap into new markets allows them to diversify their revenue streams and mitigate risk, making these types of companies an appealing investment opportunity for venture capitalists.

Omnichannel Retail

Omnichannel retail involves a seamless integration of online and offline shopping experiences, allowing customers to shop in-store, online, or through a combination of both. Many e-commerce companies have been successful in integrating omnichannel strategies into their business models, and venture capital firms have been eager to invest in companies that are able to effectively leverage this trend.

Omnichannel retail provides a more comprehensive and convenient shopping experience for customers, which can encourage customer loyalty and increase sales.

What investors look for

Current trends in e-commerce and the strengths of successful e-commerce models can be useful signposts for guiding your own business. However, when seeking funding from venture capitalists, it is also important to keep in mind the specific factors investors look for beyond those trends. Indicators that a business is worth investing in include:

  • Strong and consistent growth: This can be achieved through a variety of methods: expanding the company's product line, entering new markets, or increasing marketing efforts. It's important for e-commerce startups to have a clear and well-defined growth strategy that demonstrates their ability to drive revenue and scale their business.
  • A strong team behind your startup: Investors want to see a team that is knowledgeable, experienced, and passionate about their business and its products or services. A strong team can be a key differentiator for e-commerce startups and can help to reassure investors that the company is well-positioned for success.
  • Market potential and the competitive landscape: E-commerce companies that operate in markets with significant growth potential and relatively low competition are naturally more attractive to investors. It's important for e-commerce startups to conduct thorough market research and to have a clear understanding of their competitive advantage to stand out to potential investors.

The e-commerce industry is an exciting and rapidly evolving sector that has received significant investment from venture capital firms. Key trends driving this investment include the rise of D2C brands, the popularity of subscription models, the focus on international expansion, and the potential of omnichannel retail. Understanding these trends and positioning your businesses to capitalize on them, can give your e-commerce startup a further advantage in securing investment.

Securing funding from venture capital firms can be a challenging process for e-commerce startups, but with the right approach and preparation, success is possible. Startups with a strong growth strategy, a talented team, and a thorough understanding of their competition and their market increase their chances of attracting investment and realizing their full potential.

E-commerce startups can also qualify for a loan through Jen-fi. At Jen-fi we specialize in providing loans to e-commerce businesses that are focused on growth and marketing. If you are an e-commerce company consider applying with us and taking your business to the next level.

Nicky Minh

CTO and co-founder

Open post

Startups: This is How to Negotiate a Series A Deal

Negotiating a series A funding round can be a challenging and complex process for startup founders. If negotiated successfully, a series A round can provide you with the financial support and resources needed to take your company to the next level, but it's important to approach these negotiations with care and attention to detail. This article will provide an overview of the series A negotiation process and offer some tips to help you through it.

Before beginning the negotiation process, you will want to prepare yourself by taking the following steps:

  • Have a clear understanding of your company's value proposition and the progress you have made to date. This will help you make informed decisions and negotiate from a position of strength.
  • Determine your financial needs and the resources you will need to achieve your business goals.
  • Seek the advice of experienced professionals, such as lawyers and financial advisors, to help guide you through the process.

Understanding your value proposition

Valuation of your company will serve as an important foundation for your series A negotiations. This can be a complex process, and it's important to approach it with a realistic and informed perspective. There are several methods that can be used to determine the value of a company, including the discounted cash flow method, the comparable company method, and the venture capital method. It's important to consider the size of the market, the potential for growth, and the competitive landscape when determining the value of your company. When performing your valuation you will also want to take into account the current stage of your company and the progress you have made to date. All the above should be taken into consideration alongside the terms of the funding round and the terms of the equity being offered.

Determining your business needs

Determining the terms of the funding round is paramount to this process. This includes the amount of funding being sought, the percentage of equity being offered, the vesting schedule for founders and employees, and the terms of the convertible debt being offered. It's important to carefully consider these terms and how to negotiate them in a way favorable to your company and its long-term success. For example, a high valuation and a low percentage of equity offered may seem attractive at first, but it could also dilute the ownership and control of the company. On the other hand, a lower valuation and a higher percentage of equity offered may provide more ownership and control for the founders, but it may also result in a smaller amount of funding.

Keep in mind that one of the challenges in series A negotiations is balancing the need for funding with the need to retain control and ownership of the company. It's important to find a balance that allows you to secure the necessary funding while also protecting the interests of the company and its founders. This may involve negotiating for certain terms or provisions, such as protective provisions or board observer rights, that help to safeguard the interests of the founders and the company.

Preparing for potential investors

Once you’ve determined the value of your company and the terms with which you want to secure funding, this information needs to be prepared for potential investors. Due diligence is critically important at this point in the process. Your company will be subject to a thorough review by potential investors that will cover your company's financials, operations, and management team. It's important to be transparent and cooperative during this process, as it can help to build trust and establish a strong foundation for the investment relationship. Expect to provide detailed financial statements, business plans, and other documents to the investor for review. Also prepare yourself so that you’re ready to answer any questions potential investors may have regarding your business and ready to provide any additional information as needed.

As you prepare yourself for negotiations remember to:

  • Approach negotiations with a strong and well-informed position: have a thorough understanding of your company's management team, financial performance, and business model.
  • Be transparent and cooperative during this process: doing so can help you build trust and establish a strong foundation for the investment relationship.
  • Have the appropriate information prepared and be prepared to answer follow up questions: this may involve providing detailed financial statements, business plans, and other documents to the investor for review. It's also important to be prepared to answer questions and provide additional information as needed.

Series A negotiations can be a complex and challenging process, but they are also an important step in the growth and development of a startup. By approaching these negotiations with a clear understanding of your company's value proposition and financial needs, and by negotiating for terms that are favorable to your company's long-term success, you can secure the funding you need to take your business to the next level.

Nicky Minh

CTO and co-founder

Absolute Beginner’s Guide to Lazada

Open post
Lazada Logo

The Absolute Beginner's Guide to Lazada in 2023

Are you looking to tap into Singapore's e-commerce market by selling on Lazada, the largest online shopping and selling destination in the country? Look no further! We'll go over everything you need to know to get started and start making sales on Lazada.

Step 1: Create your Lazada seller account

The first step to selling on Lazada is to sign up as a seller on its platform. You can do this by visiting the Lazada Seller Center. On this page you'll notice the navigation bar provides you with three options: Local Seller, Lazmall Seller, and LazGlobal Seller. It's important to read through the different types of accounts and choose one that matches your business type as closely as possible. If you want to sell using a LazGlobal Seller account, we recommend having an Alipay account set up in advance as Lazada will request an Alipay with a minimum balance of 3000 RBM for margin payment.

Before you sign up, familiarize yourself with Lazada's seller policies and terms of service. These outline the rules and guidelines you need to follow as a seller on their platform, including: the types of products you can sell, how to handle returns and refunds, and how to resolve disputes. By understanding these policies upfront, you can ensure that your account is compliant with Lazada and prevent any complications that would arise from failing to meet Lazada terms and conditions.

Step 2: List your products

Now it's time to start adding your products to the Lazada platform. You will do this using Lazada's Seller Center. Lazada recommends adding a minimum of ten products before you begin making sales through their platform. You'll need to provide detailed information about each product. This includes photos, descriptions, pricing, and shipping information. High-quality photos are especially important, as they will be the first thing potential customers see when they come across your products. Make sure to include as much detail as possible in the product descriptions to help customers make informed decisions. The better information your customers have, the more confident they feel about their purchases. Having informed and confident customers results in increased sales, diminished customer queries (which prolong the sales process), and reduced returns of items purchased due to unclear product descriptions.

When listing your products, it's important to choose the right categories and subcategories to ensure that your products are easy to find. You should also consider what keywords to use in your titles and descriptions to improve your products' visibility when customers search Lazada. The Seller Center will provide you with a content score that can assist you in this process. This score is calculated based on four key areas: mandatory attributes, key product information, photos, and the number of words used in your product description.

Lazada provides a general content score that takes into consideration all products in your inventory. Your general content score can be accessed under the performance section of your Seller Center's homepage. A content score can also be viewed at the individual product level, giving you a more granular understanding of your inventory. This score is found by navigating to the products page, selecting 'manage products', and then finally clicking 'edit details'. According to Lazada's data, improving your content score can help you improve sales! Remember to pay attention to the four key areas Lazada uses to calculate your score when using this tool.

You should also consider offering different variations of your products, such as different sizes or colors, to give customers more options.

In addition to basic product information, you need to provide your inventory levels and lead times. This helps customers know whether the product is in stock and how long it will take for them to receive their order. You will be prompted to provide the address of your warehouse when setting up your Seller Center. Lazada will use this address to help you calculate these logistics as well as shipping cost.

Step 3: Set up payment and shipping options

In order to start making sales, you'll need to set up payment and shipping options for your products. One of Lazada's many strengths is that it offers a variety of payment options, including credit card, bank transfer, and cash on delivery. You'll also need to decide how you'll handle shipping and delivery of your products. Will you offer free shipping, or will you charge a fee? Will you use a third-party logistics provider, or will you handle shipping in-house? It's important to consider these factors when setting up your payment and shipping options so that your customers receive a smooth and seamless shopping experience.

You should also consider offering different shipping options, such as standard and expedited shipping, to give customers more flexibility. It's a good idea to clearly communicate your shipping policies, delivery times, and restrictions to avoid misunderstandings or disappointment.

Step 4: Promote your products

Once your products are listed on Lazada, it's important to promote them to potential customers. You can do this by utilizing Lazada's marketing tools, such as sponsored ads and promotional banners. These tools allow you to target specific demographics and interests and can be an effective way to reach a wider audience. You can also use social media and other online channels to promote your products and drive traffic to your Lazada listings.

In addition to paid advertising, there are many other ways to promote your products on Lazada. One effective strategy is to offer discounts or promotions to incentivize customers to make a purchase. You can also participate in Lazada's sales and event campaigns, such as the annual 11.11 Shopping Festival, to take advantage of increased traffic and sales opportunities.

Free shipping is another option to consider when weighing your options for incentivizing customers. Offering free shipping can increase traffic to your store as this is one of the criteria that customers can use to search Lazada. Another benefit of free shipping is that customers won’t be discouraged by an additional shipping fee calculated at checkout. As a result, once a customer has an item in their cart, they’re more likely to complete the purchase.

Step 5: Monitor and optimize your listings

To maximize your sales on Lazada, it's important to continuously monitor and optimize your listings. This may involve adjusting your prices, updating product descriptions, or adding new products to your catalog. By staying up-to-date and responsive to customer needs, you'll be able to increase your sales and grow your business on the platform. You can also use Lazada's analytics and reporting tools to track your performance and identify areas for improvement.

It's essential to keep an eye on your competition and see what they are offering, as well as monitoring trends in your market. By staying on top of these factors, you can keep your products competitive and attractive to customers. Customer feedback and reviews are another way to find out what changes you can make to improve the customer experience.

Key Points to Remember When Using Lazada:

  • Take the time to set up your seller account and product listings carefully, as this will help you establish trust with potential customers and increase your chances of making sales.
  • Utilize Lazada's marketing tools and utilize other online channels to promote your products and drive traffic to your listings.
  • Monitor and optimize your listings on an ongoing basis to ensure that you are meeting the needs of your customers and maximizing your sales potential.

Selling on Lazada can be a lucrative and rewarding opportunity for businesses of all sizes. By following the steps outlined in this guide, you can set up a successful seller account and start making sales on the platform. And with a little bit of effort and the right strategies in place, you can build a successful business on Lazada and tap into the growing e-commerce market in Singapore. Good luck!

Nicky Minh

CTO and co-founder

How To Obtain A Small Business Loan Through PayPal

Open post

PayPal allows you to have a smooth transaction process by letting you hook up your bank account directly to your PayPal and be an asset for most bank needs, local or international. It continues to innovate with valuable features for effortless business management.

You may be currently be using PayPal for many of your business transactions, but did you know you can also get a small business loan just for having an active business account as well?

How is a PayPal loan different from traditional bank loans?

PayPal loans and PayPal Working Capital have an ample range of $5,000 to $500,000 and have an easy application process compared to most traditional bank loans.

With bank loans, extensive documentation, including financial statements or legal documents, is typically necessary before you even get the process started. It can also take days or even weeks between submitting an application and receiving a notice of a reward.

PayPal, however, can take as little as 5 minutes to see if you’re eligible for the appropriate funding necessary for your business. Repayment works by deducting a 5% minimum percentage of each sale, paired with a fixed fee you’re made aware of before accepting the loan. This can be pretty comforting relative to how traditional loans work, as interest can be periodic and fluctuate more than once.

Other attractive benefits of PayPal loans are the lack of a credit check and additional application, annual, early, repayment, and late fees that can rack up your balance with a bank.

Am I eligible?

PayPal Working Capital eligibility requirements are pretty straightforward. Your must-haves are as follows:

  • Have a PayPal Business or Premier account for a minimum of 90 days
  • Have a proven track record of processing at least $20,000 in annual sales through your Premier account, or $15,000 in annual sales through your Business account
  • If you already have a PayPal loan, you must repay any remaining balance from the previous loan.

On the other hand, it’s important to note that PayPal does have a list of non-eligible industries for funding. You may not qualify for a loan if you are an attorney, a school, a civic organization, an independent artist, or a financial services provider, among others.

Check out the list here to see if you make the cut.

How do I apply?

Some basic information is required when it comes time to apply for your PayPal Working Capital loan. Depending on your business, you may need to provide contact information and birth dates, and social security numbers for your business owners and management. However, rest assured PayPal will not utilize this information for a credit check.

1. Once you have gathered this information, you have two options for filling out their simple eligibility questionnaire to determine if your business is currently in good standing.

You can:

Fill it out yourself online — it only takes 5 to 10 minutes.

Or, if you’re a tad anxious about errors, you can speak with a Business Funding Expert on the phone that will guide you through the process step by step.

2. Next, PayPal will ask you for a number based on what you need where you can specify your preferred amount, in addition to the duration of the loan

3. Once approved, you will sign an electronic contract with instructions on setting up weekly payments directly from your account.

4. When that’s all squared away, Paypal will deposit your loan into your PayPal Business account, at which point you have the option to either withdraw it and deposit it into your bank account or let it stay in your PayPal account instead.

How do I apply?

Some basic information is required when it comes time to apply for your PayPal Working Capital loan. Depending on your business, you may need to provide contact information and birth dates, and social security numbers for your business owners and management. However, rest assured PayPal will not utilize this information for a credit check.

1. Once you have gathered this information, you have two options for filling out their simple eligibility questionnaire to determine if your business is currently in good standing.

You can:

Fill it out yourself online — it only takes 5 to 10 minutes.

Or, if you’re a tad anxious about errors, you can speak with a Business Funding Expert on the phone that will guide you through the process step by step.

2. Next, PayPal will ask you for a number based on what you need where you can specify your preferred amount, in addition to the duration of the loan

3. Once approved, you will sign an electronic contract with instructions on setting up weekly payments directly from your account.

4. When that’s all squared away, Paypal will deposit your loan into your PayPal Business account, at which point you have the option to either withdraw it and deposit it into your bank account or let it stay in your PayPal account instead.

Are there any downsides?

As with any loan program, PayPal loans have their downsides as well. We talked about how having a PayPal Business or Premier account is an essential requirement of the loan and that not all industries are eligible, but there’s one other con.

Notably, it’s imperative to keep in mind that consistency in payments is crucial for maintaining good standing with your loan. Falling behind with your payments can cause PayPal to place specific limits on your account, which can no doubt be detrimental to the operations of your business.

Of course, if you feel confident with the steadiness of your revenue flow, then this may be no sweat!

Supplemental Loans

Loans can help many facets of managing a small business, but they don’t always cover every single part. Every business is undoubtedly unique, but overwhelming marketing expenses can be a constant for business owners across the board.

That’s where Jenfi comes in! Like PayPal, Jenfi also offers a simple and fully online application process to see if you’re eligible for marketing and inventory funding for your company. Jenfi loans are excellent supplemental loans that have your back regarding anything related to marketing your business for optimal growth.

Apply today, and discover all the ways Jenfi can help you expand your reach!

Nicky Minh

CTO and co-founder

How fast can your business grow with growth funding?

Scroll to top