eCommerce is lucrative, but how often do we come across successful eCommerce businesses? Studies show that only 10% of eCommerce businesses succeed.
There is a reason why 90% of eCommerce businesses fail. The answer is simple, they do not put the required effort to study the market, the competitors, and whether or not their product is feasible for not.
But hey, it’s not to scare you. There are other 10% of businesses who make profits exponentially. You can study them well to learn the success tips, however, if you study those which fail you can learn even a lot more, I bet.
Whether you have already begun your online organization, business, or eCommerce store, you must already know what is the key to success. However, if you are just thinking of starting your business this year, we have got a list of the key things that you should keep in mind when starting your eCommerce business.
Shall we begin?
- Evaluate the Feasibility of Your New Business Concept
Market research is the key! Before you could launch your product or service, it’s great to take time to do the market research, so that you don’t have to worry about the success of your product.
So how do you know whether your product has a market or not? Study competitors, and your business rivals. There are a lot of ways to do so. You can conduct focus group discussions or have online surveys so that you can better understand if your product solves customers' problems.
Another great way is to reach out to different industry associations who often have first-hand research-ready which can tell you more about the feasibility of the product.
Evaluate the feasibility of the product by:
- Studying your competitors
- Digging deeper into numbers, because they never lie
- Determining your price
- Create a Business Strategy
No business is successful without any strategy. It’s not something that you can create in just a matter of days or weeks maybe. A great business strategy takes months and even years. Remember, Amazon just did not come out in a year.
Although, the kind of business strategy depends upon the nature of your business, here are some of the many steps that you should incorporate into it. When creating a business strategy, also work on a business problem statement and gather problems that your business might face in the future. It will give you a heads-up of the issues that you might be facing in the future.
Include the following things when creating a business strategy:
- Have a true vision for your business. It’s going to be the driving force behind your success
- Competitive advantage is going to bring success
- Know your target, monthly, and early
- Remember, consistency will bring in systematic growth
- Have a long term plan
- Be inclusive
- Pick a Name that’s Memorable
Aliexpress – short, easy to remember, and easy to spell. That’s how you should choose a name for the eCommerce store.
A great start to this is organizing and reviewing different names and asking yourself if it would interest your target audience. Research all the brands/eCommerce businesses in the same category, it will give you an idea of how you should pick a name. Ask your friends and family for suggestions. Sometimes the great ideas are born over a cup of tea, you know!
“Pro-tip: Make sure you choose a name for your corporation that’s unique and that’s available in the market. Do some research to find out there is no existing business with the same name as yours. You can also do a search on the internet and check all the social media platforms where your business name is unique.”
If you intend to operate in a specific state, make sure there is no existing business with a similar name otherwise you will not be able to get it registered in the specific state.
- Stay Organized
To establish the finest brand possible, you'll need to maintain every area of your business structure!
From choosing a product, launching, marketing, shipping, to handling returns everything must be organized. If you're selling something, make sure you have a system in place for getting orders ready to ship.
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Teamwork is the key to a business. Design communication plan templates and hand them over to the teams that will help them stay organized. You can create a collaborative environment and help teams complete tasks without missing out on any important stages.
Your web presence is the key if you have an eCommerce business. Make sure you incorporate all the marketing starters to make the best out of it. After all, all your audience hangs out online. Create content regularly, optimize it only that you will be able to engage your audience.
- Study Your Competitors Well
Just mentioned earlier, studying the existing competitors in the market is crucial. Find out a list of the competitors and the products or services they sell. Study everything from their target market to marketing strategies, shipping costs, sales tactics, pricing, etc.
You can study their history which will give you a great idea about how much time does it take you to actually start making a profit, and how soon you scale it.
No, we don't ask to copy all the strategies, but it will give you an idea of how you can have a competitive advantage over them. Ask yourself what feature/strategy would give your target audience to choose your product/service over your competitors, and if you are able to get that answers it’s a win-win situation.
Pay attention to how they stay consistent throughout, the content strategies, marketing starters, and video production strategies they use. You may convert a Youtube video to Mp3 for Video production. Study their social media strategy and paid campaigns as well. Be Aware of All Legal Matters
You'll need to file all necessary business-formation forms and other documentation, just like a brick-and-mortar firm, to guarantee that your new venture has a solid legal basis. It includes the following:
- Getting your company registered with the necessary government agencies
- Addressing all of the required permissions and licenses
- Completing all federal and state tax obligations, such as obtaining state and federal tax identification numbers
Because these standards differ by state and the kind of your business, it's critical to do your research to ensure you fulfill any applicable laws. To provide you're on the correct route, it's always a good idea to contact an attorney who has expertise with business launches in your field.
Every one would love to have a successful eCommerce business, but only those who put effort can reap the benefits. So, it is essential to take time to do your search and work on the above key points to save your efforts, time and ultimately scale a profitable business in the long run.
So do you want to be among 10% or 90% of eCommerce businesses?