Evaly has become the largest online and mobile commerce company in Bangladesh in just a few month and

barely
anyone expected it to be so successful. Evaly have gathered the brightest minds of Bangladesh and given them the
platform to perform to their fullest extent. Evaly has done with 'minimum viable product (MVP) methodology where
efforts were high. It means is a product with enough features to attract early-adopter customers and validate a product
idea early in the product development cycle.

Business model of Evaly

Mainly, Evaly business focused on Business to Consumer. But they have a newly launched ecommerce startup says it has
developed a logistics business model that can solve the problem effectively and efficiently. Evaly main target is to buy
products in bulk quantity. This saves a considerable amount of money to the seller. In inventory management, each
showroom requires a large inventory to display, which no longer carries value at the end of a period. In addition, to
maintain the stock, a large amount of working capital has to be left behind, in the language of finance, the disadvantage
of which is much greater. Besides, there are many costs like showroom maintenance hassle, staff salary, marketing etc.
For that reason they have loss of the revenue. It will be about like 30% of the product price. Evaly is doing business right
here. Suppose they assured a brand that they would sell their entire year in thirty days. In return they will have to give
those 30% business running hardship discount, plus 10% more from the profit. It's a good deal for both parties. This is
exactly what Evaly deals with brands.

Evaly develop unique business model. The communication starts while the customer visits the website or apps and
order. Generally, they are offering a lot of discounts and "cash-back" as an offer, but as much as these are customer
friendly offers. After order they have select payment option. They can select online payment or COD (Recently
introduced and Selective product). After payment confirmation Evaly inform the seller or industry about the product to
prepare it until the no of orders fulfill because there is a contract with Evaly and seller or supplier. So, the process is
taking long time. After seller or supplier feedback, Evaly collect the product and bring it to their warehouse and then
they pack it by their packing unit and then deliver by their logistic system. Even, at the begging time, they have no
warehouse. Now they invent the Evaly Express. Evaly will allow commuters to deliver goods picking them up from the
designated station. These commuters will be verified members of Evaly. For each delivery, they will get a commission.
Evaly will establish booths near the bus and train station to make pick and drop easier and commuters can pick goods
from these stations. The mechanism is more like how ride-hailing operates now. Once there is a delivery order, Evaly will
send it to its Evaly Xpress platform and the nearest member commuter will confirm and pick up the product and deliver
it to the destination. Using the model, Evaly says it will ensure same city delivery within 3 hours and intercity delivery
within 8-24 hours depending on the distance. This should improve the customer experience significantly. If delivery is
not successful, then Evaly will give the voucher to customer which was customer paid before. After successful delivery
done, the customer will get the cash-back offer it was more than 150%. The customer can use this voucher at the
specific period of time. In the future, the customer can use this voucher to buy new product to adjust some additional
money.

As far as, they mainly concentration for customer valuation which means they try to increase the customers and give the
discount and cash-back offer and prefer a better price. Price is how best of the retail companies across the world
attracts customers and retains them. They have realized that price remains a key factor in attracting users to
ecommerce. Hence, they have made a real push to offer the best price possible in the market to customers. It is
important to mention that low price does not mean lower quality. Lower price simply means that they build efficiency in
their system so that they could reduce operational cost and then pass on the savings to customers. (Future Startup).

Evaly’s Strategies for Generate Revenue (Source of Income): Evaly earns profits by major aspect is the primary revenue
which is come from commission. They sale supplier’s products and they get certain amount of commission for each sale.
Sometimes they sell company’s products to earn profit as supply oriented market place by the contract. The second
source of revenue comes from customers for value-added services which is Evaly Express as unique delivery logistic
service. Moreover, they get profit to play as Venture Company. It means that they try to sale the product of new infant
company or supplier. Even though, they earn money from advertising fees at their website. Sometimes, they are utilizing
their money from Evaly Wallet (E-Wallet) to operate their business and invest in new sources of fund but it is possible
when it is unsuccessful to deliver the product. Those looser customers order new products. After several months, they
will get their product by Evaly.

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 The diagram business model of Evaly

Figure of Diagram
CUSTOMER
Capable to buy Kinds Evaly confirms the order through message Payment Procedure Product transaction
or Phone Call to the customers. Cards: VISA, Masters Card,
of Goods & Products.
Perceive to get Cash- American Express, DBBL NEXUS Information transaction
back and Discount offer Mobile Banking: Bkash,
Money transaction
in Specific products. Order to Evaly Website Rocket, SureCash, , Upay,
Net Banking Evaly Revenue Transaction
Online Payment: I-Pay
Customer use this Cash On Delivery (Recently
Get Introduced).
Voucher to buy
Cash- Transfer to new product and
back the Wallet. adjust additional
money . After Confirming
Payment , they are
Cash-back processing the order
Get a Cash-back (more
than 150%)offer to E-wallet
buy new product and The Voucher is saved in
In return Evaly gave a
E-Wallet and customer
voucher to the
can use a specific
Customer.
period of time.
When they are
Successful Informing the
unsuccessful to delivery
Delivery seller to get
product to customer and
the orders
the amount turn into
Un Successful Voucher.
Delivery The Seller
Evaly use this wallet money to They confirm the
operate and invest to their company wholesalers or
Delivery through when customer don’t order product
companies about the no
Evaly Express of orders through
The whole delivery process message
systems works in-house
logistics by Evaly Express. Transferring
the product Get the
 It will allow commuters to Warehousing Commission
deliver goods picking them up
Receive the product via Bank or
from the designated station.
from seller bring it Evaly Cash
These commuters will be
warehouse until the no.
verified members of Evaly. Give
of order doesn't fulfill
commission to commuter per
and depending the
delivery and earn profit .
matter of time.
They also work with third-
party delivery. partners. Getting the Commission as
per contract
Packaging by Evaly To transmit Sell organizations products and they
Packaging get certain amount of commission for
before delivery the product
each sale and sometimes they sell
In Evaly warehouse packaging
company’s products to earn profit as
the ordered product and
supply oriented market place by the
confirm to the customers.
contract.

Different between the traditional business model like Agora's business model and Evaly business model
Traditional business refers to the practice of selling products and services within a single industry and in some cases,
within a specific geographical area. Agora is generally digital traditional business. They have maintained own supply
chain management and the customer have to go to the market, look at the variety of products, and choose the
required stuff and the purchasing them by paying the specified amount. Agora encompasses all those activities that
facilitate exchange. Two kinds of activities are included in commerce such as trade and auxiliaries to trade. The term
trade refers to the buying and selling of goods and services for cash or kind and auxiliaries to trade. It is simplify the
exchange of goods and services, from manufacturer to the final consumer. When the goods are produced, it does not
reach to the customer directly rather it has to pass from various activities, which are included under commerce. Its main
function is to satisfy the wants of consumers by making goods available to them, at the right time and place. In today’s
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scenario there is no need to elaborate E-commerce business. We all are well aware about e-commerce and online
shopping using e-commerce websites. World Trade Organization (WTO)’s Definition “All commercial transactions
involving the transfer of information, products, services or payments performed through telecommunication
networks, using electronic means. It comprises indirect e-commerce (electronic ordering of tangibles) and direct
ecommerce (online delivery of intangibles).” E-commerce business like Evaly is the strategy of selling products online
through web rooms on some special price, offer price, and discounts. Generally, people are moving from offline business
to online business due to wide use of smart-phones, laptop and desktop. In today’s world, e-commerce has become a
necessity not an option. The consumer browses the catalog of products featured on the site and selects items to
purchase. The selected items are placed in electronic equivalent of a shopping cart & provide a bill and ship to address
for purchase and delivery. We discusses some of the major difference between Agora and Evaly-

Customer Valuation -In traditional business like Agora, the interaction between the business and the consumer is a
“face-to-face”. As against this, there is indirect customer interaction, in the case of e-commerce, because it may be
possible that the customer is miles away from where they place an order for the purchase of goods which is “screen-to-
face”. Since there is no personal touch in e-business, companies need to have intimate relationship with customers to
win over their loyalty. The basic concept here is very simple - first a non-customer has to be converted into a customer
by making an irresistible offer. In the early days of Bangladesh, Agora like departmental store has thus created
customers through discounts as point. On the other hand, Evaly in order to attract a lot of new customers in a short
period of time and show huge business growth, the product that is being offered at a discount is not a must have.

Risk Factor: There is finance term the more you take risk the more you return. I think that the customer buy from Evaly
for a better price. Payment for transactions can be done by paying credit card or mobile banking. Evaly has Long time
delivery process rather than Agora. In Agora customer can easily buy the product without any hesitation. So, they took
Evaly is more risky as compared to Agora. Online business requires initial investment for designing a website and
promotion. Evaly investments are large and there is no guarantee of return. People generally fear to give credit card
information and late delivery system. Lack of physical presence in markets and customer cannot properly judge the
product to buy from Evaly rather than Agora. Agora is comparatively less as there is personal interaction between the
buyer and them. Now Evaly faced a huge no of problem for long time delivery services.

Geographical accessibility Agora, it may be easy to expand the size of the market from regional to national level.
Business organizations have to incur a lot of expenses on investment to enter international market. In Evaly, it is easy to
expand the size of the market from regional to international level.

Revenue Contrast Evaly is very cost effective when compared to Agora. In Agora, cost has to be incurred for the role of
middlemen to sell the company’s product. The cost incurred on middlemen is eliminated in Evaly as there is a direct link
between the business and the customer. The total overhead cost and operating cost required to run e-business is
comparatively less, compared to Agora. Even, the tax and other tariffs are higher in Agora. That’s why Evaly will have
chance to swiftly grow rate like as Amazon and Alibaba.

Business Segmentation Agora is concerned with the supply side. They think that fulfill of customer needs of product.
Product demand is the necessary to increase the sales in that business. On the other side, the resource focus of Evaly is
the demand side. Evaly has been going the complete opposite of this conventional practice since the beginning.
Enthusiastic customers pay in advance in the hope of additional discounts or cash-back. . Customer retention is very
important for any successful business model. Evaluation can take this advantage even if it goes beyond the conventional
belief to create huge demand through Value Innovation so that they focus the no of customer.

From the above discussion, it is quite clear that both the methods have their pros and cons. Evaly is just like the
traditional business to be sustainable on the long run. Evaly must bring some major strategic changes that are perfectly
legal, ethical and customer friendly. The e-commerce industry in Bangladesh is barely out of the closet. This immense
potential industry is now much more important due to Corona crisis before it fully matures. So we all have to come
forward progressively with the support of everyone involved in this industry, correcting the mistakes, praising the good
deeds and moving the overall economy forward.

Reference: Future Startup. (n.d.). The Rise Of Evaly: An Interview with Mohammad Rassel, CEO, Evaly. Retrieved from
futurestartup.com: https://futurestartup.com/2019/09/10/the-rise-of-evaly-an-interview-with-mohammad-rassel-ceo-
evaly/
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