If you’re selling to e-commerce and retail companies, it’s fairly easy to gauge the market size by reading all reports. There are about 1.3 million e-commerce companies just in North America. The list of big players in this field is easy to come across. But, what about the not-so-big players out there? Only 13% of the e-commerce companies make $1M+ from web sales. The rest 87% are the not-so-big companies. Any seller looking to sell to e-commerce companies but aren’t looking at this massive chunk are missing out on a great opportunity. We have already written about how companies can qualify e-commerce sales leads before. We’ve decided to take a deep dive into this.
Here’s how you should qualify your e-commerce sales leads if you’re a fulfillment company.
1. Use online traffic to calculate shipping volume
An e-commerce company’s online traffic along with other values can be used to calculate its shipping volume. Here’s how:
– Multiply the online traffic with the conversion rate of the e-commerce company.
Online traffic can be gauged from sites like Siteworthtraffic. Conversion rate benchmarks are released quarterly by Monetate. This gives you the number of buyers.
– Multiply the above value with the average SKU price to get the online revenue.
– Average basket size = Total units sold ÷ number of invoices.
– Online revenue ÷ Average basket size = total number of shipments.
The above calculation is based on the assumption that each order is shipped out as 1 shipment. However, that’s rarely the case.
2. Who handles their returns?
It’s pretty simple to identify if an e-commerce company has a return policy in place. If the return policy on their website still has the retailer’s address and not an outsourced fulfillment partner, then there is an opportunity for one.
3. Do they ship cross-border?
There are 2 methods to find out if an e-commerce company ships cross-border. An easy way is to go through their shipping policies page. The “We ship internationally” or “We don’t ship outside US/Canada” usually answers your question.
Another method is to go through their bill of lading data. There are providers out there with access to this information. But for scoring one lead, this requires a lot of effort.
4. Do they have a shipping API integration?
Has the e-commerce company partnered with a shipping carrier? This question can be answered by deducing which APIs they have integrated into their website. There are easily 50+ ways of doing this. But, not a single method is scalable.
The above 4 methods help you qualify your e-commerce sales leads better. But, each method requires a considerable amount of time, data or manpower or a combination of those. PipeCandy does all these and more.
We also build data-science models to predict which technology a prospect is in need of. Get a custom data-science model for your company. Talk to us