In the early days of the internet, simply starting an online store was a big deal. Your product being online automatically gave you an advantage over the competition, since very few companies had an online store.
To this day, many people still have this conception of the internet. Just place a product online and potential customers will line up to buy it. The problem with this is that today almost all major stores are online.
As a result, the competition is intense and putting a product online will not guarantee that it will sell. This however does not mean that a small company can't make it online. Here are 5 steps to help you build a successful online store.
Can you compete based on price and still make a profit? If you could, you likely can skip many of the other steps. The problem is that for many small companies, this just isn't possible. So, the question is… can you compete when you don't have the cheapest prices? The answer is yes! There is a large market out there for companies that can provide a good quality experience for a higher price. Keep in mind that you will still need to be aware of how much products similar to yours are being sold for online. Select your products carefully as it will be easier to sell products that are 30% more rather than ones you have to sell for 400% more just to make a profit.
Having an abundance of products can allow customers to find exactly what they need, but it's important to understand how to implement this strategy. Big companies often have a large selection at a lower cost. This requires buying thousands of items in bulk, then spending a lot of money on advertising to sell them. It's often better for a smaller company to have a larger selection of a niche product as it can provide a good selection at a lower price.
To determine the quantity you can have, first determine how much time is needed to provide a good customer experience for 1 product. Each product should have a well-written and clear description, specs, and return/refund information if applicable. You need to have plenty of clear pictures from different angles even if you have to take them yourself or have a professional do it. You should also put each product in a category where it's clear and easy to find. The goal should be that your potential customers are left with no questions or doubts after viewing your product. This will also cut down on returns.
One thing you will learn about analytics is that it's not always an endless upward climb. Depending on your company and what items you are selling, your sales may be concentrated during certain periods of the year, such as the holidays or seasons. Furthermore, there may be a spike in sales when you are advertising. One mistake many business owners make is doing too many things at once and not know what's working and what's not. It's important to have the context of your stats. This will allow you to make future decisions for your company.
Making Adjustments When Needed
In addition to collecting data from analytics, it’s also important to collect data from your company as a whole. You may have 20 products and notice that most of your sales come from only 3 of them or that your target audience is not what you expected. Spending more time promoting a higher selling product or targeting a higher buying audience can drastically improve your profit margin. Collecting data along the way and making adjustments (or the failure to) is what makes or breaks a lot of businesses.
Mater Website Planners
Growing an online store can be a difficult and time-consuming process. There may also be a lot of trial and error as you learn the best solutions to implement. It helps to have a professional web development and marketing company that has a great reputation and the expertise to get you from point A to point B. Master Website Planners has more than a decade of experience in growing companies online. Contact Master Website Planners today to help turn your dream of an online store into reality! (239) 495-9999