The fact that there’s no more doubt that eCommerce is the future of wholesale makes the competition in this sector fiercer than ever. If you want to get an edge you’re gonna need a planned approach, and every planning leaves room for mistakes.
Fallibility in eCommerce is not just a matter of appearances, but it can lead to a concrete loss in revenue. This simple fact seems hard to understand because the way we think – we are positive that everyone will buy from us if we have something valuable to sell.
Having an online storefront provides you with the ability to sell, but only careful planning can actually lead to sales. If you want your revenue to increase you need to stay clear from these 7 mistakes that will do just the opposite.
1. You Want to Grow Without The Proper Foundation
It’s completely understandable that every eCommerce business owner wants to grow as quickly as possible. But many of them fail to understand that growth is closely connected to the very first step – choosing a platform. Spreading across numerous channels is like adding floors on your business home – without the proper foundation, everything will collapse right on your revenue.
Choosing the right platform can be a burdening task – you’re checking every popular one for scalability, add-ons, pricing, out-of-the-box features, ease of use, etc. But since you’re already going through that painstaking process, you just need to consider your needs further in the future, since that is where the growth lies. A growth-friendly online marketplace platform is the one that has both – the power and flexibility, meaning it has to pack far more capabilities, modules, and features. If you want it to scale with your business, you need to be certain about functionalities your storefront will require.
2. You’re Acting Like a Dog Off The Leash
If you’re a dog owner you know that, as soon as they’re off the leash, they want to sniff (and probably eat) everything. While it’s natural for animals to follow their instincts, that kind of behavior in the E-commerce world can cost you everything. Once you’ve taken care of the above-mentioned mistake the roads will be open, which can lead you right into the other – spreading across every channel you sniff out. Paying the price for the Amazon just because it’s a leading giant is a sure way to lose money. Some retailers will probably be too big for you in the beginning. This means that you need to look at the channels from a variety of angles and determine your priorities.
3. You’re Barking Up The Wrong Tree
You also need to pinpoint the audience on every channel that seems right. Understanding your customers is mandatory since it is the only way to obtain the insight into what are they looking for and how they’re making their purchases. Amazon partnership is not a bad thing, but maybe your business is better suited for niche platforms. For example, local handmade goods definitely belong on Etsy. Marketing the wrong audience is one of the most common mistakes that can turn all of your marketing efforts into dust. That’s why you should always conduct a research that will result in the creation of buyer personas. Only after this, you’ll be able to tailor your product descriptions and marketing messages in a way that is relevant.
4. You’re Playing a Good Samaritan
There is no doubt that pricing is one of the most important components of online retail. Your pricing strategy can help you stand out of the crowd and achieve a profitable growth, but only if done right. One of the most common mistakes is underpricing your products. Maybe you think you can afford lower prices but after the first conversation with your accountant, you’ll realize you’ve been actually losing money instead of generating it when you take taxes into account. There are platform costs, shipping and return costs, listing, marketing, and production fees, that should all be taken into an account. The fact is that you could lose a lot of money in eCommerce not even knowing it if you don’t know your numbers. Instead of playing a Good Samaritan, you should stand out by setting up ‛package deals’, not rounding up your prices, watching their font size and syllables.
5. Your Baptism Has Been Careless
Although starting an eCommerce business is not a religious rite, the name-giving part requires careful reconsideration. The enthusiasm makes many people choose a domain name right away without thinking about product relevance or SEO. Your genius ideas may tempt you to name your company ‛Joe’s Wonders’ but that will not show people what products are you offering, nor will they have any clue who you are since you’re not a celebrity.
On the other hand, trying to define everything perfectly will decrease your chances of growth. Let’s say you want to sell canvas and framed prints in Australia and you decide to lock yourself into this specific product and geography, coming up with a name ‛Australia Fine Art’. But before you blink you could also be selling throw pillows, T-shirts, greeting cards and much more, your manufacturing facilities spread all over the world. You think a German will even think about buying a T-shirt from a company called ‛Australia Fine Arts’? Your name should anticipate the expansion and celebrate the fact that everyone on earth is your potential customer.
6. You’re Disregarding The Eye of The Beholder
You may think that eCommerce sites are just about filters, keywords, and prices, but human perception is above all visual. People tend to select and purchase a product based on the quality of its image as much as on the information and description. In their minds, the poor image quality will read as the poor product quality, so your images need to be simple and stylish, with no distractions.
Furthermore, the design is much more than looks – it is what shapes your user experience, allowing your customers to easily find what it is you’re selling, so a poorly designed storefront will have a direct negative impact on your conversion rate. Design elements are everywhere – in your post-purchase and customer support, checkout, product search, navigation – and they should all for a clear visual hierarchy. If your pages are too cluttered the navigation will suffer and visitors will come and leave without purchasing.
7. You’re Ignorant of The Material World
In spite of the fact that your business is online, you’re still attached to the material world. And the biggest link is your shipping, which is like the lifeblood of eCommerce. Its cost can kill your conversion rates, so you should seriously consider free shipping. Amazon has completely changed the shipping game, so customers have become more spoiled than ever. Don’t try to cheat your way out of this – there are many of those who have the most products in the price range of 10 bucks and ‛offer free’ shipping only for 50 bucks and up purchase – this dirty game will make you lose all your customers.
You mustn’t have just one shipping option – they need to be able to accommodate every cost and arrival preference. And don’t forget to display the shipping provider – some of them will make a delivery to the front door while others will expect customers to come and pick it up. Online shopping is all about time and comfort, and shipping plays a crucial role in it.