India’s direct-to-consumer (D2C) industry has gained momentum over the past few years and is forecasted to hit $100 Bn by 2025. As India's fashion industry boasts immense potential, countless startups are buzzing to become a part of this ultra-lucrative $43.2 Bn market.
Today's biggest D2C fashion brands (like Bewakoof.com, Nykaa, etc.) have forever changed how fashion is experienced and purchased. And with a revolutionary new market phenomenon - ONDC network, the sky is the limit for budding entrepreneurs.
This article explains how Indian merchants can optimise their D2C brand on ONDC network for improved sales. Also, we look at why you should sell on ONDC network using Mystore - the leading ONDC network-connected marketplace; to overcome various challenges of today’s eCommerce landscape.
Table of Contents
Why your fashion D2C brand needs to be on ONDC network
A key factor determining any eCommerce business’s success is how much visibility (a.k.a “buzz”) it generates amongst its target audience. The “quality” and “quantity” of traffic should be high for optimum sales. Therefore, most fashion D2C companies (especially startups) opt to sell on monopolistic marketplaces like Amazon and Flipkart, which often backfires.
Amazon, has the power to make or break any of its affiliated sellers. This often includes fashion brands adopting a D2C model as they directly rival Amazon’s products on both price and quality criteria.
The 2020 DTC Hype Report from Scalefast found that free/low shipping costs (43%), ease of purchase (30%), and instant returns (28%) were the primary reasons why customers chose Amazon over a D2C business. In other words, customers prioritise convenience, cost savings, and reliability when shopping online.
And that’s exactly what you can offer pan-India buyers when you sell on ONDC network. This revolutionary platform provides a new way to break away from the market monopolisation of Amazon and Flipkart.
D2C brands on ONDC network are allowed to connect directly with 95crore+ buyers across India without any barriers or intermediaries. Local startups, SMBs, and D2Cs can join the not-for-profit initiative and gain instant discoverability. Direct-to-consumer enterprises can enlist their fashion products using a compatible seller interface like the Mystore seller app – that too for a nominal transaction fee.
5 Challenges faced by fashion D2C brands that ONDC network resolves
If you’re planning to go all-in on your fashion business, then switching to the open network presents a host of exciting perks. What’s more? The democratic platform is accessible to all types of vendors. That means no matter the size, background, or requirements of your personal D2C brand, you can sell on ONDC network through a fully-compliant solution like the Mystore seller app.
Open network for Digital Commerce makes eCommerce accessible, affordable, and profitable for all direct-to-consumer vendors. Here are the five key pain points that merchants can address by migrating to the neutral, seller-friendly network:
1) Getting nationwide product visibility
It’s no rocket science - better visibility equals better conversions. Now, imagine being just one of the thousands of fashion brands selling to the same customer base on Amazon! It’s challenging for a small retailer to gain any product visibility, even locally, due to no hyperlocal advantage.
Hence, D2C brands must switch to a platform that promotes inclusivity and hyperlocal visibility. Enter ONDC network. The democratic platform helps you attract and convert more customers by eliminating the usual “barriers to traffic”. Unlike Amazon, there are no constantly fluctuating algorithms to affect your page’s discoverability. Furthermore, Mystore seller app offers in-built SEO support to help brands optimise their fashion-based D2C store.
2) Escaping excessive competition on popular platforms
Some major D2C brands have recently abandoned Amazon, citing fierce market competition and a plethora of counterfeit products for the switch. Experienced retailers can attest to the overwhelming nature of selling fashion goods through these popular platforms. Shady vendors don’t shy away from using manipulative and predatory practices to bully small players on Amazon.
Instead, D2C brands can register on ONDC network via the Mystore seller app and showcase their catalog to a country-wide audience. All merchants must abide by the open network’s search and filtration algorithm, thus avoiding preferential treatment or predatory practices.
3) Optimised value-chain services
You may have the trendiest, most eye-catching fashion catalog and still fail if your logistics are lacking. Most D2C startups fail within their first year of operation if they fail to acquire proper warehousing and logistics support. While Amazon FBA allows you to take advantage of the platform’s gigantic network, it has its downsides - primarily higher costs and limited control.
On the other hand, you can find dozens of fulfilment partners pre-integrated with the open network. Access to extensive, on-network logistics is another reason why D2C brands should sell on ONDC network. Plus, they can leverage Mystore’s multi-channel fulfillment support to fulfill orders to a number of pin codes.
4) Improving business profitability
The D2C model can be extremely rewarding, especially for a company’s bottom line. However, many newbie fashion brands fail to account for the various hidden costs that they must bear. At the end of the day, it’s up to your expertise in managing business expenses that’ll decide whether your fashion brand turns a profit.
Naturally, one way to increase your profit margins is by reducing unnecessary commissions and customer acquisition. “Lower cost of doing business” is the key mantra attached to the ONDC network project. All network participants can launch a digital presence for zero upfront costs and customer acquisition costs. Also, your D2C brand on ONDC network can leverage Mystore’s state-of-the-art functionalities at zero subscription costs.
5) Building personalised customer-vendor relationships
Research indicates that customers are more likely to make a purchase when their experience is customized according to their name, product preferences, payment method of choice, and so on. According to Deloitte, a personalized shopping experience increases the likelihood of making a sale by 80%. That’s the secret formula that all D2C stores seek - a unique, engaging shopping experience.
By migrating your entire D2C brand on ONDC network through Mystore, you can access key data points that help offer a fully personalized experience. Fashion brands can make better-informed decisions based on how buyers respond to different items and use Mystore’s integrated marketing solutions to showcase them.
Join ONDC network with Mystore Channel Integration
Registration on ONDC network is a cinch! Introducing Mystore Seller App - The only eCommerce solution you’ll ever need. Mystore can help you switch to the open network quickly and painlessly. Mystore channel integration is a great way to get your existing eCommerce platform better visibility and attract more buyers. Not only is it easy to set up, but the best part is that you won't incur any upfront costs or monthly fees.
Mystore is India's top seller-side interface for ONDC network. Tons of merchants have already connected with the open network, selling their fashion accessories to millions of potential buyers.
For newbie D2C brands on the open network, Mystore’s feature-rich dashboard offers a broad spectrum of features to elevate your selling experience. Here’s how Mystore helps you with building a successful digital presence:
- Build disruptive business solutions
- Own your D2C business domain
- Find on-network logistics services
- Leverage powerful and flexible MACH technology
- use personalised/integrated marketing tools
- Build fully responsive, mobile-compatible apps
- Build an omnichannel experience
- Seamless channel integrations
- Offer a localised/native shopping experience
Conclusion
Whether you’re considering switching to the D2C model or already using it, the ONDC network presents a golden opportunity to attract millions of buyers across India. All you have to do is find the right seller app and Mystore tops that list with its plethora of high-end, adaptable solutions.
Join the eCommerce revolution today! Upload your entire fashion catalog on the open network and make a mark in no time.