Hundreds of thousands of new eCommerce businesses are started yearly, but the majority fail in less than one year. Although starting an online business can be very rewarding, it can also be risky if you don’t research and develop a solid plan before launching your new business venture. Here we will help you create an effective plan to help make your eCommerce business exceptionally successful and profitable from the onset so that you will succeed and not fail.
Know Your Customers
The first and most crucial step when starting an eCommerce business is knowing your customers. What are their needs, what are they looking for, and what are the problems they want to be solved? Understanding the customer is key to crafting a successful business strategy that will resonate with them and make your product or service stand out from the competition.
You can use various tools and methods to understand better your target market. These include surveys, focus groups, workshops, interviews, and more. Once you have a sense of who your customers are, it’s time to analyze their habits.
Ask questions like; how often do they shop online? What types of products do they purchase, and in what amounts? Where do they prefer to shop online – on Poshmark or Mercari? How much are they willing to spend on a particular item? Do they like free shipping or not so much?
The answers to these questions will give you a clear idea of where your strengths lie as well as any weaknesses you need to address.
Always Have a Plan
You need to have a plan for your business to succeed. It doesn’t matter if you’re just starting out or if you’ve been in the game for years, there’s always room for improvement, and you can never be too prepared. Being proactive will help you stay on top of any issues before they spiral out of control and give you time to get ahead of them when they do happen.
Don’t hesitate to bring an expert into the fold. Sometimes, it takes a professional with industry knowledge and experience to come in and provide clarity where you don’t see it. Also, try as much as possible to get customer and stakeholder feedback. Sometimes, it’s easy for our biases to seep into our work, so ensure you get feedback from others.
Know Your Business Model
This advice is tailored toward those who are just starting an e-commerce store and have no idea how to get started. One of the first things you should do when building your business is figuring out your niche. This will help you determine what products or services you want to offer, your target audience, and how to market yourself.
It’s important to create a plan before you start investing money in advertising, stock, packaging, and other supplies because these decisions could cost a lot of money if not done right.
Use Data to Make Decisions
Data can help you decide when you’re unsure what to do next with your business. If you don’t have data, use surveys and questionnaires to gather customer feedback and provide them with a great product or service they’ll love. Your customer’s opinions are more important than your own opinions, so it is always a good idea to consider their opinions before making any major decisions.
Create an Excellent Customer Experience
If you want to create an exceptional customer experience that keeps your customers coming back for more, you need to pay attention to several aspects of your business – including shipping and returns policies, how quickly orders are shipped out and resolved, and even how easy it is to contact you with questions or concerns.
Customers will have their own expectations on all these points (based on your marketing materials), so make sure you exceed them by offering convenience and simplicity in return for repeat orders and referrals.
Brand Awareness is Important
Brand awareness is important to any business’s success, especially in an e-commerce setting where people can’t touch or see your products before they buy them. The best way to increase brand awareness is to create a strong social media presence and establish your company as a reliable source of information in your industry.
You also need a website that features detailed descriptions of your products and good-quality pictures, so potential buyers know exactly what they’re getting when they purchase from you.
You can use various tools and methods to understand better your target market and the rules you should follow to reach it. These include surveys, focus groups, workshops, interviews, guides such as a major pricing strategies overview, and more.
Quality Content is Key
The most important factor in determining your eCommerce success is the quality of content that you have on your site and social media pages. Quality content will help you to generate more traffic and lead to more sales, which will, in turn, allow you to grow your business faster than without it.
However, quantity can be just as important as quality when it comes to generating sales. If you are running a promotional campaign, for example, you need many articles about the promotion so people can see them quickly and easily when they search for something related to your product or service.
The idea is not to overwhelm potential customers with too much information but enough so that those who are interested find what they’re looking for. A balance must be struck between making sure potential customers get what they need and providing enough information for those who want to know more.
Get Your Pricing Right
The first and most important thing you need to do when starting an online store is to get your pricing right. For every $100 of product, you should be making at least $15 for the company to break even, not including labor and other expenses.
This means that if your product costs more than that amount to produce, you’ll have to charge more for it to stay profitable. However, don’t make this price too high because customers won’t buy it. You want them to think they’re getting a great deal.
Use SEO and Paid Ads Correctly
Investing in search engine optimization (SEO) is a cost-effective way to boost organic traffic and increase revenue without having to rely on paid ads. So how exactly do you go about doing it? Using keyword research to identify profitable keywords, then optimizing your site so that it ranks higher for those keywords in search results is one way of achieving success through SEO.
It’s not easy to create an eCommerce business and make it successful, but it’s possible with the right plan of attack. Start by picking a specific niche that you’re passionate about and work on that first. After you get your feet wet, branch out into different areas of interest to continue building your success story. Be diligent in implementing every strategy you can think of for success.