The B2B e-commerce landscape in 2021 has been rife with increased competition and a high demand for digital transformation, posing several challenges for businesses and pushing them to invest in advanced technologies to survive and grow. The focus is shifting towards digital operations, fraud prevention, data security and the implementation of AI and automation.
Notably, e-commerce startups are grappling with the issue of maintaining affordability amidst budget constraints and competition. Ismael Belkhayat, CEO of Chari, acknowledges the financial challenges faced by startups, emphasizing the importance of cost control and effective budgeting.
Addressing growth concerns and budget constraints involves multiple strategies including digitizing operations, managing wholesale margins, investing in efficient logistics, and implementing cost-effective employee training programs. The use of advanced technology to streamline processes and promote efficiency is particularly significant.
OmniRetail, a company founded in 2019, provides an impressive example of overcoming these challenges. They managed to secure profit margins through strategic partnerships, rebates, and incentives and reports a gross margin of 9% and a net contribution of 5%. Also, they hold strong relationships with more than 65 brand partners which contribute significantly to their profit margins.
OmniRetail offers a variety of platforms, each serving a unique purpose. OmniBiz bridges distributors and retailers, digitizing supply chains. OmniPay provides payment services to retailers and distributors. OmniAnalytics analyzes business performance data, and OmniConnect integrates all the platforms together.
OmniPro, launched by OmniRetail, is a professional service ensuring clients get the necessary support to navigate the retail and distribution environment effectively. There is also OmniEdu, an online platform that offers tutorials and webinars to help users understand and use OmniRetail’s suite of platforms.
Crediting success to their role in the value chain, OmniRetail’s CEO, Rustagi, asserts that integrating distributors into their platform and using tools like OmniPay has significantly impacted their value chain margin. Simultaneously, their relationships with manufacturers, elimination of middleman costs, and offering competitive prices have further boosted their profitability.
Rustagi believes the company’s strength lies in their technology-market synergy. The integration of distributors into an efficient platform offers a seamless experience for all key players in their value chain. Seeing a bright future, Rustagi believes OmniRetail’s strategy to build a robust ecosystem around retail supply marks a significant milestone in their journey to success.
