There is a constant increase in the number of people buying things online. Digital sales are seen to expand rapidly, with a 23.7% growth rate forecast. According to statistics,
ecommerce will now account for 8.7% of the overall retail spending worldwide.
The improving statistics are due to an increase in middle class and internet penetration in developing nations. For entrepreneurs, this is the perfect opportunity to start their
ecommerce business. But while doing so, an entrepreneur has to keep the essentials of starting an
ecommerce business in mind.
Choose an Easy to use
Out of many reasons, a person opts to shop through an
ecommerce store because of convenience and experience. By ignoring any one of the two, you deprive experience hungry buyers. Designing a good experience is a critical process and plays an important role to improve the efficiency and conversion rate.
There can be a lot of complications while building an
ecommerce website. To save yourself from the time-consuming process and avoid common pit-falls, consider choosing an
ecommerce platform. Depending on your business plan, budget and scale of operations, you can choose an
ecommerce platform like YoKart. Other examples include CS-Cart & Magento.
Know your Competitors and Customers
Now that you have given a thought to the
ecommerce website, the next step involves knowing your competitors and customers. While doing so, you can start by conducting a keyword based search on Google or any other search engine.
For example, suppose you want to start an
ecommerce business in New York and want to sell luxury designer clothing for women. Then you can start by searching "Luxury clothing for women in New Yorkâ€ and
so, will help you build strategies to face competitors head on.
For the next phase, you can
analyse their product reviews and social media followers to see what people are saying about their service/product. This will help you gather the requirements of local audience and forecast product demand as well.
Must read: How to Connect with Vendors for Your Multivendor Ecommerce
Starting small is essential for an
ecommerce start-up to survive in a world dominated by major players like Amazon and eBay. Localization is one of those key factors that can make or break an
One great example of this is the toy powerhouse â€“ Mattel. In its initial days, the launch of Barbie in China was unsuccessful. A lot of research went in studying local audience to
analyse where the company went wrong.
Offer the right price
After you know your customers and competitors, itâ€™s time that you start offering products on your
ecommerce website at prices tuned for your target audience. To offer a competitive price, you have to overcome various operational and other costs to gain market share.
Before finalizing the pricing strategy, consider the different costs, demand & supply, competitorâ€™s pricing, the tax environment, etc. Furthermore, a lot depends on the payment method you will use on an
For example, in certain developing nations, cash on delivery is the primary mode of payment, whereas, in developed nations, credit cards and debit cards are accepted.