Ecommerce is booming right now!
Ecommerce sales in the United States are expected to increase from $374.3 to $476.5 billion by 2024, which is a 39% increase. More than 90% of consumers said that they have increased their online shopping habits due to COVID-19.
You’re not the only one wondering how to get your hands on a piece of the e-commerce cake.
You don’t have to be an expert in eCommerce to make your business successful and profitable.
What is Ecommerce?
Officially, eCommerce refers to electronic commerce.
Ecommerce can also be described as the selling or buying of any item online.
Ecommerce encompasses everything you need to sell or buy online, including physical goods such as T-shirts, pie tins, and hermit crab houses, but also services like online courses and consulting.
Ecommerce Models
There are many eCommerce options, including:
- Making and selling This is exactly what it sounds like. By creating your products and then selling them through your store, you own the brand and product.
- Working with a Manufacturer Do you have a great idea, but don’t know how to make it? This is the right model for you. You can work with a supplier to create the product that you want, and then sell it through your online store.
- Wholesaling/warehousing Curate and buy great products, store the inventory, and sell the goods through your online store for profit. Although you have complete control over the products that you sell, you must purchase them in advance.
- Dropshipping This allows your store to act as a middleman between the supplier and the consumer. You can sell products from many suppliers without having to purchase products in advance or stock lots of inventory. The supplier will handle fulfillment and shipping once an order has been placed.
- White/Private Labeling is where an e-commerce store purchases premade products and then applies its private label to the product to make it part of its brand. This is great for shops that are specialized in one product and want to add related products.
Whatever revenue model you choose, the key to making money online is sourcing goods at a lower price than what they are being sold for.
Although it sounds easy, healthy profit margins can be difficult to achieve when additional costs are added. You will probably be paying to host your online store or you can use a site such as Etsy to sell your products, Etsy will take quite substantial fees on every product sold.
Yet, it’s possible. Ecommerce is alive and well, and it won’t stop growing.
You can make money if you invest in the right channels with the right content and the right e-commerce strategies. In no time you will be making money.
How does E-commerce make money?
How can eCommerce make money? These are just a few of the many ways e-commerce businesses can make money.
Marketing is one of the most important things to do for an online business! If no one knows your e-commerce store exists and no one sees your products then how can you sell any products?
Once you have customers that have signed up to email updates from your business this allows you to communicate one-to-one with people, rather than to a wide audience (like Facebook ads or YouTube influencers). You can control the creative and the end-to-end experience (what emails they get and when).
Your website is your digital shopfront. Your website is how customers shop for your products and a great-looking intuitive website creates an impression. They have a positive impression of your brand.
Multichannel marketing is a great way to sell products wherever your customers are spending their time. This includes SMS, emails, and social media such as Facebook.
According to Shopify marketing can increase revenue by an average of 38% with one channel, 120% for two channels, and $190% for three.
These numbers show that e-commerce merchants can make a lot of money by using multiple channels to promote their products.
People place personal communication with companies as a top priority. 91% more consumers will shop with brands who recognize, remember and offer relevant offers and recommendations.
Businesses that communicate with customers via highly personal methods of communication offer exactly what online shoppers want: truly one-to-one communication with a company.
Start an Ecommerce Business
How to start a successful eCommerce business?
Choose the product you want to sell.
Do you want to sell physical goods such as baseball caps, cribbage boards, or coffee mugs? or are you interested in selling digital goods such as software and ebooks?
Ecommerce novices can find it difficult to decide what products to sell. Here are some tips to help narrow down the field.
- Find a gap in the market and fill it. Many successful e-commerce brands were created because they recognized a market need and developed a product to fill it. Black-owned businesses are a great example of inspiration.
- Selling timeless items is a great idea. Sweatshirts, household necessities, and inflatable toys make great gifts.
- Avoid items with expiration dates. These electronics and books from college courses that you thought you would sell are obsolete and out of date by the time you’re done reading this sentence.
- There is a season for everything. Products that are specific to one season, such as bunny-shaped “Hoppy Spring!” throw pillows, or beach-themed garden figurines will be only available during a certain time of the year. It might be a good idea to stop selling seasonal products to keep the cash flowing year-round.
Select your audience. Are you a camping enthusiast? Are you looking to improve your education?
Before your e-commerce company is up and running, narrowing down your audience can have a significant impact on your marketing and selling strategies.
Learn about your competition. You can learn a lot from your competition about what they are selling and how they market their products. This will help you decide the best way to stand out.
How to do a competitor analysis
Choose an eCommerce platform. After you have decided what to sell, and to who it should be sold, it is time to choose an e-commerce platform.
The best e-commerce platforms cater to customers. Keep it simple and include product images. Make it easy for customers to reach you by making the content engaging and concise.
Shopify is an excellent platform that allows you to sell anywhere. You can shop online through your eCommerce store or social media and online marketplaces.
You can even build and customize an e-commerce store using simple templates and interfaces.
There are many other platforms available, such as WordPress, etc. Make sure you research which platform best suits your needs.
Do you want to set up your store yourself or have you hired a developer?
Choose an eCommerce market platform. This platform will allow you to collect, organize and put to good use the customer data that your e-commerce platform has.
You can connect your e-commerce store with your eCommerce marketing platform to see all of your customers and create personalized marketing strategies based on their real-life actions.
Conclusion
It can be nerve-wracking to get your e-commerce website up and running, especially from a financial perspective but if you follow these tips you will succeed:
- Fill a gap in the market.
- Make a business plan before you spend any money on your business.
- Once your store is set up online, marketing will become the most important thing for your business! Marketing will be the only way you can reach new customers online and secure sales.
- Make sure your online business can use the best e-commerce marketing strategies to collect valuable customer information and personalize communication. This is important in keeping existing customers buying your products after their initial purchase.
Ecommerce isn’t slowing down, so now is the best time to start your own business.
It takes only a desire for sales, some good e-commerce strategies, and the ability to invest in the right channels.