Fashion Ecommerce Value Chain

Fashion Ecommerce

Before the Covid-19 pandemic, digital and ecommerce already represented the most important driver of growth for fashion and luxury brands. The pandemia has than accelerated the growth rate of fashion e-commerce which is now a vital revenue driver for fashion companies.

With the pandemia fashion e-commerce has accelerated its growth rate and at the end of 2020 it’s ahead of 5 to 10 years vs pre-pandemia forecast.

In this post we explore how to set up an effective e-commerce in a fashion brand, covering the following topics:

  1. Commercial offer
  2. Ecommerce platform
  3. Ecommerce logistcs
  4. Traffic generation
  5. Ecommerce Customer Service
  6. Web Analytics
  7. Ecommerce team organization

1) Commercial offer

The first thing we need to create a successful fashion ecommerce is define a commercial offer that is relevant to our target customer and it’s competitive on the market in terms of price and assortment. 

The commercial offer for ecommerce is similar to an offline fashion business, but with some differences, and it is made of a

  • selection of products 
  • selling price
  • promotional activities 
  • conditions of sales such as shipping options and return policy.

We will see how the selection of products and the services offered are key factors in positioning the online channel and also are competitive factors that can determine the success of the ecommerce.

2) E-commerce platform

The second requirement is to set up an ecommerce website, which can be made by using one of the many content management and ecommerce platforms available on the market. Some of them are easy to use and can be set up in a short time while other e-commerce solutions require more customisation and may require the help of a software development agency, generally called system integrator. We will go into details of these steps also later on in the course. See our article on ecommerce platforms

3) E-commerce Logistics

Next you need a logistics solution, i.e. a warehouse where to stock the products, and personnel to handle the orders, Pick & Pack. The logistics also includes the shipping solutions and the agreements with the carriers that will deliver the orders.

4) Traffic generation

Then you need traffic to the website, i.e. people visiting your website interested in buying your products.Finally you will need to analyse the usage data and make decisions based on the metrics and KPIs that we are going to describe in detail later on in the course.

5) Ecommerce Customer service

E-commerce allows customers to complete an order in a self sufficient manner, however the online customer often need to interact with qualified personnel who is able to answer their specific questions about products before buying or conditions of return and other information after purchase

6) Web analytics

In order to track performance vs targets, week on week, year on year and so on, you need a web analytics system. One of the most frequently used is Google Analytics, a free tool that allows companies to track all the necessary data and measure performance of ecommerce, website and digital marketing.

7) Ecommerce Team organization

Last but not least, in order to manage and coordinate effectively all the above activities and processes, fashion companies need an internal team with at least an e-commerce manager, but depending on the size of the online business there maybe a manager position for each of the area or even more people in managerial positions responsible for single areas or e-commerce processes.

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