Victor Iezuitov, CEO of Nexway: We believe there will be more and more adoption of subscription in any industry and vertical, be it for physical or digital goods
Could you give to our readership a brief introduction of Nexway? What type of merchants do you serve and what is your core offering?
Nexway is a technology and services company for online commerce. As a merchant of record, we run end-to-end payment operations. By connecting their online store to our ecommerce and payment platform, merchants can start to sell in 140 countries in a matter of days. Our clients are midsize to large software, retail and services company from all over the world, such as Fnac-Darty, Avast, Eset, BitDefender, and many more.
At Nexway, we are our clients’ business partners. We share the same objectives of high conversion and retention. That’s why our business model is based on a percentage of the revenue generated.
How do you help online businesses scale, grow, and thrive in today’s global sales marketplace?
Our service not only enables our clients to sell in any local market, but it also removes the headache of orchestrating and running day-to-day operations. Our clients can focus on their product and go-to-market, and leave the last mile of ecommerce to us.
We can deal with the payment processing, fraud prevention, chargeback management, invoicing, local sales tax and VAT settlement, fund and FX management, and customer support in 12 languages. With our platform, merchants can personalise their shopping cart, manage their products and pricing, run subscriptions, automate email notifications, and much more.
For merchants facing the complexity and associated workload of managing payment operations, it’s a great comfort to have us act as an extension of their teams to run the whole process. That’s what we mean when we say ‘Our team. Your success’.
What are the key growth markets for merchants selling digital goods?
Selling online is a natural go-to-market for digital goods merchants, and with no borders.
The other growth driver is about business models, adopting a recurring pricing scheme, bringing predictability in the revenue stream, building a users base which can be leveraged for additional products. It also matches customers’ needs of usage vs. possession.
What advice would you give to online businesses that want to sell (successfully) within these markets? What are the main challenges that they need to consider?
It is crucial to know the local market trends: what payment methods customers like, localising all the content, answering the customers’ requests in their language.
It’s also an operational challenge, as this requires teams to daily manage payments and risk, fulfilment, and customer care, to make sure you comply with local regulations. The advice I would give is to examine whether you want to take care of this in-house or what parts of the business operations you are better off outsourcing.
What makes Nexway stand out from competitors?
We’ve been a pioneer in headless commerce – we strongly believe in the benefits of having a modular technology that’s easy to integrate with the existing IT systems: CMS, CRM, ERP etc. Our Monetize platform is based on microservices that can be leveraged through APIs. The real business benefit that our clients enjoy is time-to-market: whenever something changes on the website, or on the back-end, and it does happen every day, that’s the nature of commerce. It doesn’t impact a whole block of features, just the concerned granular microservice. This brings agility in IT.
Another reason why our clients appreciate Nexway lies in our high performance on subscriptions: our retention rate overall is above 76%. This is very reassuring also for merchants who are transitioning to subscription, as it’s so difficult to master all levers when you just got started. We get so well with retention because we apply data intelligence into all we do: payment routing, fraud detection, product recommendations etc. We have both the technology and the teams to leverage machine learning and it produces great results.
What do you think will happen in the subscription economy over the next 12 months and beyond?
We believe there will be more and more adoption of subscription in any industry and vertical, be it for physical or digital goods. It means there will be a lot of experimenting and fine-tuning, which require advanced features in the pricing structure, and data analysis which is key to improve performance.
About Victor Iezuitov
About Nexway
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