7 Blunders You May Make When Creating an E-Commerce Store And How You Can Prevent it!
Having an e-commerce store can present you with many possibilities, some good, some bad. Below are some common mistakes novel entrepreneurs make.
A lot of you are new to the world of e-commerce and have little to no knowledge of how to effectively run your business online. However, this article will highlight some of the common mistakes that novel business owners have made that can negatively affect your business.
1. Not Educating Yourself
I know some of you are excited about starting a new business and all the possibilities that come from it. You may have a million ideas that you are dying to try and you may even try to create them, however, without doing the proper research first then you can be setting yourself up for failure. It is important to do market research to see which designs or products that your target market will buy. If you don’t do this then you will just be creating products that won’t sell.
Rather than trying to create all of your ideas for products, it is advised for you to focus on creating just one product with different designs.
Before creating and putting out a product line, you need to research what products will sell on the market, talk to professionals in your field and also evaluate your competition so you can create a unique selling proposition that will make you stand out from your competitors.
2. Being too Independent
Another mistake people tend to make with their new e-commerce business is trying to do everything themselves. It is important to know all the ins and outs of your own business, however, trying to do everything yourself will cause you to be burned out.
Instead it is recommended for you to get competent persons to fill certain positions so that your business will run sufficiently. Neglecting certain areas such as customer service will negatively affect your business. Just remember that no man is an island and if you operate as such you and your business will go under water.
3. Not Concentrating on Building Your Business
One of the best things about running your own business is your ideas come to fruition. Sometimes you can be caught up with the fun, creative part of developing your business and end up neglecting the economical or promotional aspects of it.
It is important to take the time to focus on other aspects that are essential in growing and making your business successful. For example, you need to also pay attention to how many sales you are generating on a daily or weekly basis. The tactics you use to generate sales need to be extremely strong and sharp in the world of ecommerce as it can be a very cutthroat place.
One sales tactic is by advertising your business through sending emails to potential buyers. However, if you do this it is advised that you segment your emails to persons you believe would be interested in these products. That way your response rate would increase while not spamming people unnecessarily.
4. Choose the Best E-commerce Platform to Sell Your Goods
Some platforms are better suited for your business than others. While some persons may do well with a relationship with Ebay, they could generate even more sales by having a partnership with Aliexpress or Amazon. Some platforms are just better suited for certain niches. For example selling products or services like car insurance on Amazon would not work as persons would not think to look for that and it would be the wrong target audience that you would be marketing it to.
5. Choose the Right Name For the Brand
You need to be cautious about what your brand is and what the name should be. You should write down exactly what you want to sell and then consider names that are appropriate and relevant to what you are trying to sell and essentially make a business out of. However, you have to be very careful about what you are naming your business as things may change a few years later and you may widen your product catalogue to other items that are not representative of your brand. For example, if you sell luxury jewelry items and call your store “Jewelry Hut” but then start selling other items like luxury clothes then you may need to change the name and do a rebranding of the business.
6. Lack of Interaction with Customers
It is important that after your customers are done making purchases that you follow up with them, this helps to build rapport between the business owner and the client. It also shows the client that you genuinely care about them. Some of the ways to reach out to customers is that you can add their contact to your e-commerce site and talk to them through it. This also will help with providing feedback from the customers with areas or products that are doing well versus those that aren’t.
7. Set the Right Price for Your Products
Finally, not paying attention to your cash flow and how much money you should be making can be a huge blunder when starting up your new e-commerce business. Not pricing the items or services at the right price will in turn affect you negatively.
You need to make sure that you are setting your products at the right price as this is important to make sure the running of your business is efficient. You need to know if any returns were made, the cost of shipping, taxes on the products and all overhead costs. You need to do your checks and balances as you can easily lose money if you are not paying attention to your finances.
It doesn’t matter if you have been in this business for years or if you are just starting, the industry never stays the same for long. So you should always try to educate yourself on any changes that may happen such as the algorithm of the Search Engine Optimization (SEO) changing or the fees for the online platforms. Either way, E-commerce is here to stay and you should know the ins and outs of it if you want to successfully benefit from running your business online.