Monday, January 16, 2017

Everything You Need to Know About Selling on Cdiscount

Michael, who is very popular on the Euro-China e-commerce scene, shared his useful tips on VAT at the Payoneer Forum on July 3. This article is a treasure trove of information about Cdiscount, a French E-commerce leader, whose official cooperation platform is Payoneer. We hope you find it useful.

What kind of platform is Cdiscount?

Cdiscount was founded in 1998 and by 2011 it became one of the French E-commerce leading platforms. Cdiscount is affiliated with the Casino Group, which owns retail chain stores in France, and provides over 18 500 parcel pickup points for Cdiscount’s consumers in France.
Cdiscount started off as an entirely self-supporting platform. In 2011, they introduced their own third-party platform called Cdiscount Marketplace. For the general cross-border e-commerce businesses ‘being on Cdiscount’ means having a presence on its Marketplace

How big is Cdiscount? What kind of products are sold?

Here are some at-a-glance statistics about Cdiscount in France (as of 2016 Q2 financial results):
  • €2.74 billion annual turnover in 2015, share of the Marketplace in the Cdiscount’s GMV: 27.5%
  • 11 million unique visitors per month
  • 40 product categories
  • 9500 professional and active sellers
All in all, Cdiscount is the second largest e-commerce website in France, and maintains a strong momentum of growth.
Cdiscount is category driven and includes almost all categories:
  • Appliances, household items and furniture
  • Computers, photography equipment and electronics
  • DVD, books and music
  • Food, wine and alcohol
  • Clothing, cosmetics, baby products and accessories
  • Musical instruments and pet products

Why have a presence on Cdiscount?

France’s e-commerce market ranks amongst the top three in Europe. Cdiscount has been a leader in the field of e-commerce for many years.
During the past two years, Cdiscount employed a policy of recruiting foreign sellers, helping international manufacturers to integrate their market resources. Cdiscount strongly encourages cross-border e-commerce as part of its business growth strategy.

Who are Cdiscount’s customers?

Over the years, Cdiscount has been known for low prices and high quality items, and usually attracts price-sensitive consumers.
Buyers can place orders through the Group portal, and there are over 18,500 pickup points all over France. This method is very convenient for buyers and helps them save on shipping costs.

How can you become a Cdiscount seller?

Cdiscount reserves the right to accept or reject any seller. Each individual application remains confidential. The account will be activated once registration as a professional seller is complete.
Cdiscount requires that sellers provide email customer service in French; sellers can use a third party for this. Please note that phone support in French is not mandatory.
For return issues, sellers need a return address in France, or may send pre-paid shipping labels to pay the international return expenses.

Details about the Cdiscount sales process

1. Listings

Seller interfaces can be accessed either on the web or through the API. The simplicity of the listing process has a lot to do with whether your products exist in Cdiscount’s directory or not.
For products already in the directory, sellers need to set the prices, conditions and current stock level. After an amount of stock is added, it will appear in Cdiscount website. Several technical options allows the sellers to manage product prices and offers to consumers.

Check out these holiday selling tips from Cdiscount >>


For products not yet in the directory, sellers can send documents via email, Cdiscount back office or Cdiscount API. In both cases, Cdiscount will integrate the product information.
In any case, sellers are responsible for the accuracy of the product file as it appears on the website, whether the products were already in the directory or not, and whether it is automatically matched with pre-existing products or single created.

2. Fees

Sellers incur a monthly fee of €39, and then 5%-20% platform usage charges, depending on the category of products. This fee is charged based on the total amount of the transactions, including shipping costs. A minimum fee of 0.50€ excluding tax will be charged if the commission total is lower than 0.50€ excluding tax.
Examples and fee charges are as follows:
cdiscount fees table
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3. Processing

The seller will receive an email when the order is generated. This order must be processed within 2 days, and the seller must confirm that the goods are in stock. The order amount will be deducted from the buyer’s account.

4. Payment Collection

Cdiscount settles payment three times a month, according to marketplace general conditions. Sellers need an account number for receiving payments.

5. Customer service and post-sales

As mentioned before, Cdiscount requires that sellers provide French-speaking customer service staff in order to engage with customers via email.
Items that aren’t received: Cdiscount recommends that sellers communicate with the shipping company and provide a tracking number, and arrange a refund or redelivery for customers as soon as possible.
Defective or damaged items: customers generally demand paid returns and a refund or exchange of the defective goods.
Other reasons for returns: customers are entitled by Law to return goods within 14 business days of delivery in France. Sellers must refund the items within 10 days.
Claims for counterfeits: the sale of fake products and religious or political products is prohibited on Cdiscount.
In cases of disputes between the buyer and the seller, Cdiscount provides a mediation and arbitration process.

6. Seller performance

Paying attention to customers’ satisfaction is one of the Cdiscount main priorities and is performed through sellers performance monitoring. An abundance of complaints against a seller will result in a suspended or blocked account.

7. Delivery methods

Cdiscount own warehouses provides Cdiscount Fulfilment (“Shipped by Cdiscount”) and shipping services.
Consumers can become a member of Cdiscount loyalty program “Cdiscount à Volonté and enjoy free shipping on all purchases at a price of €19 a year. Cdiscount provides the following options for buyers:
  • Home delivery
There are three type of home delivery services: standard, tracked and signature-verified.
For products priced below €40, customers can select any of the three options. If the price is between €40 and €10,000, customers must choose either Tracked or Signature-verified options. If the price is over €10,000, only Signature-verified delivery can be selected.
Sellers can choose not to provide standard mail (complaints from customers about missing shipments are common, unfortunately), but they have to provide other choices. For a product priced below €40, if the seller does not specify a delivery method, standard mail will be selected by default. The system will automatically calculate a discount for multiple products belonging to the same seller. Shipping cost is charged based on a single product, and then the discount for delivery cost is applied.
  • Self pickup from the seller’s store
If you have a storefront, buyers may collect their goods at your store, but they must do so within 6 hours from the time of order. This applies to products marked for immediate collection and this option involves no shipping costs on the buyer’s side.
  • Pickup at collection points
The supported networks for collection points are Relais Colis, Mondial Relay and So Colissimo. If this service is selected by the buyer, the order will be delivered to the specified secured collection point (only applicable if the seller has made this service available).

8. Cdiscount Fulfilment and Cdiscount à Volonté

Cdiscount’s own courier is Cdiscount Fulfilment, whose business is warehousing and dropshipping. It provides shipping services for Cdiscount and other platforms.  It is a great way for sellers to boost their sales and improve customer experience. The service is described on this link.
Cdiscount has a customer loyalty program, which is called Cdiscount à Volonté. The annual fee for this service is €19. There is a minimum of €25 per purchase to qualify for free shipping (similarly to Amazon Prime’s $25 minimum). This service has been running for almost two years and is growing rapidly. It is expected to become more and more popular as time goes on.

How can you become a successful seller on Cdiscount?


Cdiscount’s forte is mainly 3C products, fashion products and
discount has put a serious emphasis on the recruitment of household item sellers.
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How Affiliate Marketers Fared During the 2016 Holiday Shopping Season

Affiliate marketers enjoyed a prosperous sales extravaganza from Thanksgiving Day through Cyber Monday of 2016. For instance, OneClickRetail reports that third-party sellers on Amazon experienced strong year over year growth of 40%.



This, of course, was to be expected considering the significant uptick in the number of retailers using affiliate marketers as an additional distribution channel for their products. Iamwire.com reports: “The market for Affiliate Marketing is booming. It has become mainstream in the last couple of years as more and more retailers are using the channel for customer acquisition … E-commerce firms have also variously claimed that between 12% and 20% of their total business comes from affiliate marketers and that it works better than ATL advertising for them. Consumers are too warming up to the idea of discount coupons and cash back when they shop online.”
Overall for the weekend beginning on Thanksgiving and ending on Cyber Monday, third-party sellers accounted for 78 percent of the promotions on Amazon, which goes a long way toward explaining the 40 percent growth in third-party sales achieved in 2016.

Mobile Shapes the Sales Numbers for Affiliate Marketers

Mobile devices played a huge part in racking up overall sales for affiliate marketers during the holidays. AvantLink, an affiliate marketing network for over 500 retailers, reports that on Black Friday, 31.6 percent of all sales running through its network originated on mobile devices. On Cyber Monday, 28.4 percent of sales going through the AvantLink network were completed on mobile devices.
With affiliate marketers becoming more and more proficient at mobile marketing, the numbers of mobile users making purchases through affiliates is likely to continue to trend upward in the coming year.

New Customer Acquisition and Average Order Value Inch Upward

In addition to mobile devices taking a larger role, affiliate marketers also experienced a rise in the percentage of new customers this holiday season. Of all the transactions handled by AvantLink on Black Friday, 45.7% represented a consumer’s first affiliate purchase. This number is statistically significant, as last year’s new customer percentage was only 40.6%.
Also encouraging is the fact that the average order value increased for at least part of this holiday season. While the average order value in 2015 on Black Friday was $141.61, 2016 Black Friday numbers stand at $152.86 per order. The same did not occur on Cyber Monday, however, as the average order value for that day decreased by 7.7 percent from last year’s figures.
Click rates increased across the board, which may be attributed to a growing comfort level with mobile shopping, a willingness on the part of consumers to do online research before purchasing a product either online or in-store, and the huge push of affiliate marketing promotions during the holiday weekend.

The Takeaway

All in all, affiliate marketers fared well this holiday season. However, 2017 may prove to be an even better year for affiliate marketers who take note of lessons the season teaches. What lessons?
Affiliate marketing success comes from having a strong mobile marketing strategy, running the right promotions at the right times, and working to retain the new customers acquired over the recent holiday by building a strong relationship all year long.

As you employ these strategies in 2017, don’t forget to ensure smooth payment processing for your mobile consumers. Check out Payoneer’s global payment solutions for affiliate marketers today!
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E-commerce in Asia: Why Small Sellers Stand More Than a Chance to Succeed

Opportunities for Small E-commerce Providers

China consumers account for about 50 percent of the $1 trillion global e-commerce business in 2016. This numbers speaks to the huge acceptance of Chinese buyers of an open marketplace where small and large companies around the world compete for their business.
Perhaps the most glaring stat supporting the impact of small providers is that 59 percent of 900 online merchants Payoneer researched in China make $76,000 or less in annual revenue (see graphic below).


The Amazon Influence

Amazon, which generates over 1 billion monthly purchases through its online marketplace, has also done a lot to improve the competitive landscape in Asia for small e-commerce companies around the world. Small Asian providers can ship directly to consumers in China other parts of Asia through Amazon, enabling them to maintain competitive cost structures by eliminating third-party distributors.
Similarly, providers from around the world can conduct e-commerce sales and direct distribution activities with Asian consumers. It is much more difficult for companies with brick-and-mortar operations to create visibility for their products in the Asian marketplace in a cost-effective way.

How to Succeed as a Small Provider in Asia

The most obvious key to success in Asia as a small e-commerce provider is to participate in large online marketplaces. These online platforms enable the most effective operational exchanges between Asian consumers and global providers who want their business. This low-cost marketplace venue levels the playing field regardless of provider size.
Another competitive factor for small providers is establishing differentiation relative to local providers. Asian consumers turn to the web when they can’t get the right products at the right prices from local merchants. Therefore, you need to research local industry offerings and figure out how to optimize your value on both quality and price factors.
Research into logistics and marketing opportunities and challenges is necessary as well. Understanding the cultural factors that influence marketing effectiveness and ensuring a strong customer experience are critical in global e-commerce. In some cases, you might need local vendor partners to provide services that are difficult or time-consuming to provide from your home market. Identifying the right partners takes time and involves risk.

Conclusions


Over 2 billion people will shop online by 2019, according to eMarketer. Chinese and Asian consumers are expected to represent a large contingent of these buyers, as they already do. The evidence for small-business opportunity is clear. It is up to eSellers to optimize strategies to take advantage.

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6 Tips for Hiring a Management Company for Your Vacation Rental

You do not have to own a vacation rental home for very long before you become aware of the significant time and energy it takes to maintain a vacation rental business properly. If you have time to manage it properly on your own, that is great. If not, however, you may be trying to decide if hiring a management company to handle your rental is a good idea.

Determining the Need

Before choosing a management company, it is wise to consider whether one is actually needed. Take a moment to consider what your vacation rental property currently requires of you in terms of time spent and duties performed.
For instance, if handling bookings and accounting matters take very little time and the bulk of your time is taken on physically maintaining the property, you might consider simply hiring a cleaning service to handle routine turn-day cleaning chores.
The advantage to this, of course, is that a cleaning service will likely charge much less than a full-service management company. On the other hand, all you get with a cleaning service is… well, cleaning. If you need more than simply some help cleaning your property, a management company might be the way to go.

How to Find the Right Management Company

If you are planning to turn over the reins for your vacation rental property to a professional management company, you want to ensure that you put your property and your guests into the right hands. To that end, here are some things to look for in a good management company:
1) Comparison-shop for commission rates and contract terms.
You may be able to eliminate some management companies from the mix based on their commission fees alone. Typical commissions can be anywhere from 30 to 50 percent of the nightly rental fee for a full-service management company. If you can afford 30% and the management company under consideration charges 50%, it is a safe bet that is not the right company for you.
Management companies usually ask for a contract term of 6 to 12 months. Before signing a contract, check to see if there is a way to terminate the contract for non-performance of specified duties.
2) Check out the management company’s online presence.
If you are looking for a full-service management company, the company will be handling the marketing of your property as well as maintenance. You can learn a lot about a management company by its online presence. Considering that your future guests will be perusing the management company’s website, be sure that the message the company is sending is the one you want your guests to receive.
Regarding this, Homeaway advises: “Since the Internet is the number one place where vacationers look for properties to rent, you will want a property manager who focuses on building their Internet presence. To start, look to see where the company comes up in the search results by putting in the name of your town and various search terms. If you see the particular company’s name come up again and again, that’s certainly a company you want to investigate.”
While you are on the management company’s website, be sure that the site is mobile-friendly and that guests will have no trouble completing an online booking at the site.
3) Ask for a comprehensive list of services included in the management fees.
Avoid any unpleasant surprises by nailing down exactly what services are covered by management fees. Ask specific questions such as:
  • Will someone in the company be doing walkthroughs of the property when guests check out?
  • What types of maintenance and repairs will the management company handle, and on what schedule?
  • Will the management company handle all guest requests, or will you need to be personally involved?
  • What type of marketing of your properties will the management company handle?
  • What policies does the management company have in place to provide protection for your property?
  • What type of communication should you expect from the management company, and with what frequency will you receive reports from the company?
4) Check out the management company’s customer-facing staff.
No doubt you want your guests to feel welcomed and at home in your vacation rental. Ensure that the management company you choose has a well-trained, courteous customer service staff. Visit the office, chat with the front-facing staff, and get a feel for the way guests will be greeted on check-in.
Confirm that the management company has staff on hand to handle both reservations and other guest needs around the clock.
5) Look for flexibility and preparedness in your management company.
During the interview with your property management company, ask how the company handles inevitable glitches that can occur with vacation rentals such as accidental double bookings, emergency repairs resulting from guest error, or guest evacuation policies in the event of weather emergencies or other natural disasters.
If a management company has clear policies in place to handle emergency situations, it is easier for you to entrust your vacation rental to the company and rest easy, knowing that your interests are being protected.
6) Check out any third-party listing sites the management company uses to market your property.
A good management company that specializes in vacation rentals will likely be using some form of channel management software to coordinate property listings on sites like Airbnb, Homeaway, and Booking.com. Ask the company which sites they plan to use to list your properties and ascertain how those listings will affect the fees you pay to the management company.

The Takeaway

Owning a vacation rental can be a lucrative and satisfying experience. If you find that you need a management company to help you handle your vacation rental like a business, be sure to ask the right questions and explore all your options before signing a contract.
Whether you are handling your own vacation rental or partnering with a management company to get the job done, Payoneer has payment processing solutions to help you send and receive payments globally. Check out Payoneer solutions for rental hosts today!
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Freelancers: New Year, New Rate


It’s that time again; the time when you break out a shiny new calendar, look back at the year that is winding down, and ask yourself the freelancer’s perennial question, “Should I raise my rates this year?”

The Freelancer’s Conundrum

When you are trying to establish your freelance business and attract new clients, you may fall into the trap of charging less than what your services are actually worth in an attempt to get a toehold in your niche. While that is understandable, it can be a recipe for freelance disaster. Seth Godin observes:
“Someone else is always willing to go a penny lower than you are, and to compete, your choices get ever more limited. The problem with the race to the bottom is that you might win. Even worse, you might come in second.”
Undervaluing your work affects your bottom line badly and creates a huge source of stress. Freelancers Union points out:
“Most people do better work when they feel that they’re properly compensated. In fact, research says feeling underpaid is the leading cause of work stress! You may actually do better work because you raised your rates.”
Fortunately, if you originally undervalued your worth to clients, that does not mean that you have to keep doing so. Rates are, after all, not set in stone.
Your inner naysayer might be whispering, “If I raise my rates, I will lose clients.” This is by far the most common misconception about increasing rates that freelancers hold. The reality is that your clients do not exist in a bubble. By and large, they understand that in the natural course of events, rates go up for services rendered over time. If they do not understand this, perhaps it is a good thing to lose their patronage.

Why the New Year is Perfect for New Rates

Like many things in life, changing your rates successfully requires good timing. The New Year is a perfect time to raise your rates. Why?
  • The New Year is a natural time to rethink all your business goals and objectives, including remuneration.
  • Clients are more likely to accept changes in rates at the beginning of the year, as it is also the beginning of the fiscal year for many of them.
  • Every year that passes, you increase your experience and skill level as a freelancer, which should be reflected in your pricing model.
  • Clients with whom you have built a relationship for more than a calendar year are likely to continue using your services even if you raise your rates modestly.

How to Set Your Freelance Rates Appropriately

Once you decide to raise your rates, you can rely on several factors to help you to price your services appropriately. The first thing to remember is that pricing is fluid. For freelancers, the going rate for a project is determined by multiple factors such as skill level required, experience, value to the client, geographic location, and more.
Do not neglect to also factor in the rate of inflation in your area. Freelancers who forget about inflation find their profit margins dwindling year over year. At some point, working for the same rates over time leads to significant financial loss.
The Guardian reports: “The Association of Independent Professionals and the Self-Employed (IPSE) recommends taking your equivalent earnings as an employee and adding a third, which accounts for the added costs that arise as a freelancer.”
The Freelancers Union gives the following guidelines to help you set your rates:
  • Even if you do not plan to charge an hourly rate per se, determine how much time it actually takes you to complete a project on average. For your own purposes, set an hourly rate that you will use as a baseline when giving clients a project rate. In general, you can determine a ballpark hourly rate by adding annual profit, annual expenses, and annual salary, then dividing by billable hours.
  • Account for any supplies and other expenses, including overhead, that will be incurred in the completion of the project.
  • Build in a specific target profit range for each project.

Do Not Skimp on Researching Rates

When researching what the market will bear in the way of freelance rates, here are the items to consider:
Industry benchmarks: You can find information about going rates in your industry by examining government statistics. For instance, if you are an American freelancer, the US Bureau of Labor Statistics provides salary information for many industries.
Other good resources include professional and industry associations and networking sites, which often have discussion boards where members freely communicate their rates. Some associations may even offer an annual salary survey to members, which can be an invaluable source of information.
Other professional freelancers: While some freelancers may be reluctant to share their rates openly, you can likely find others who are willing to discuss rates with you privately, particularly if they are not direct competitors.
Research the client: The more you understand your client, the easier it will be to charge appropriately for your work. For instance, if you are aware your client is on a shoestring budget, you might consider giving that client a slight discount at first if their business model is strong and likely to see substantial growth soon.
Other Online Research: You may also be able to find a wealth of information about common rates for freelancers in different industries by doing a little more online sleuthing. For instance, check out this infographic for freelance writers based on Contently’s freelance rates database. For editors, this resource may prove to be helpful.
Regardless of the type of work you do, this infographic from CreativeLife.com is a valuable tool to help you determine a reasonable rate for your services.

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Wednesday, January 4, 2017

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