We are living through an unprecedented period of growth for online retail, which can make it surprising that so many e-commerce businesses close quickly after launch. But as the old saying goes, fail to prepare, and you prepare to fail!
eCommerce has been increasing steadily for years and this trend is unlikely to reverse, as consumers have become even more comfortable with the advantages of buying online. Unfortunately, this is no guarantee of success for new or even existing e-commerce businesses. However, if you are aware of the pitfalls that bring down ecommerce retailers, you will be in a better position to succeed – This is why we have pulled together the top 7 things you need to know about startups to give you a launch pad to excel as an online retailer…
No. 1 – Not aligning pricing with costs
You must manage the expectations of your clients. CaHidden fees significantly influence cart abandonment. Don’t wait until the last minute to hide any additional fees; it’s vital to ensure your customers see what they get. Make sure to include a shipping calculation widget in your store; they are widely available for free or at a little cost. Without a trustworthy shipping partner, your product will not reach the buyer on time or in excellent condition, which is essential when you sell products online.
No. 2 – No clear return policy
A lack of an accessible and understandable return policy will make your company appear unreliable. Anyone who does not know the return policy or where to discover it cannot be expected to buy from you or anyone else. Make sure it is prominently displayed next to each product on your website, and if a customer decides to purchase from you, include it in the email that contains their receipt. Having one will also be helpful if you are dealing with individuals who enjoy purchasing products for a brief period of time before returning them and requesting a full refund. If customers try to return a product in a window outside your return policy, you will be protected if they take legal action against you if you have made it clear to them where the return policy is and have it emailed to them.
No. 3 – Poor financial skills
We all know that having money is a prerequisite for starting any kind of business. To finance your firm, you must have enough cash flow. You must have it, or your business will vanish overnight. Make sure not to overspend on any aspect of your online store, from marketing to the amount of software required to keep things running effectively. It is preferable to underspend, make mistakes, and have money to correct them than to overpay and have none at all. When it comes to inventory, if you overorder, it will take a while for your products to sell. What’s worse, if your supplier takes a long time to fulfill orders, it will take much longer.
No. 4 – Having a mediocre marketing strategy
Your web marketing plan needs to be strengthened. Your strategy should incorporate earned, owned, and paid media as well as practical and pertinent content. Consider your audience. They, who? What are they looking for from your brand? What platforms do they use for social media? The answers to these queries will help you create your marketing strategy. At some point, paid media will require investment from even the smallest firms. When compared to other forms of paid advertising, social media ads are a terrific way to increase traffic to your online store. Keep in mind that the foundation of a flourishing online business is social advertising.
No. 5 – Working in a saturated niche
You don’t want to enter a market where everyone is very generic and trying to sell the same things. Selling dog treats won’t get you very far. But you might have a better chance if you specialise in organic, gluten-free dog snacks. The general consensus is that you shouldn’t enter a niche by choosing a commonplace item that everyone online is trying to sell. If you want to succeed, you must have the ability to go deeper into a field.
No. 6 – Not seeing the bigger picture
Some people give up quickly when they encounter obstacles to their plans. This is also typical in the world of online shopping. Even though you may have done all the required research and competitor analysis, you can still be tempted to close your business and quit up if your selected product doesn’t sell as well as you had hoped. It’s crucial to keep in mind that e-commerce success is not always assured, and there could be a number of factors at play if your product isn’t doing as well as you’d like. So, before giving up, you should test out a minimum of 3-5 goods. If you give up after just one product, you won’t know what would have been possible, but you will learn from your prior failures.
No. 7 – Focussing on the minutia
You need a quality website, professional business cards, and a memorable brand name for any type of business, not simply online sales. However, these parts won’t support your company over the long haul. You must also have a strong backend because it is what will keep your firm running. Keep in mind that it is your clients who will ensure the longevity of your company when planning how they will engage with your website and what they will experience as a result. Your website must provide the features necessary to operate more effectively.
As you can see, effective planning, strong marketing plans, and processes that support outstanding customer service are essential for an online retailer to survive. Working with the right partners is one of the ways to fulfill your commitments and satisfy modern consumers while freeing up time to concentrate on other issues related to business expansion and moving to the next level. You know your stuff, you have a wonderful product, you’re proud of it, you did your homework on the marketplace, so go ahead and crush the competition.