E-commerce business enables you to build an actual asset. It allows control from the visibility of your product to the delivery. Hence, it has great potential for generating large revenues. Further, with platforms like Shopify, you can create your own site for business with ease. However, there are few common blunders that many entrepreneurs make which result in near bankrupts.
Most of the people start an e-commerce store without much experience. In that case, if you are the smartest person on your board, it would eventually make things difficult with a lot of competition in the same platform. E-commerce is a risky business, so trying to learn by trial and error or iterations would be fatal. Hence, the recommended e-commerce solution to this problem is hiring smart and experienced people. It is highly recommended to attend seminars and lectures by the industry giants. Further, think about asking guidance from friends who operate in similar businesses.
It is the most important aspect of the e-commerce process. The big players like Amazon, who promises delivery within a day, makes it difficult for newcomers. They have big and established networks, which makes them work in the way they actually do. However, budding entrepreneurs cannot possibly do the, despite the expectations of the customers. Consequently, a late delivery would build a bad reputation for your company not just with your customers but also among their neighbors and colleagues. How do you tackle this?
In the initial stages of your start-up, it is advisable to deliver the goods with the help of a third party logistics company. Avoid inaccurate information and entertaining customers with unkeepable promises. In addition, offer discounts for late deliveries. Besides, use a customized ERP system to keep in track with the vendors, deliveries and other important factors that would help you to make decisions.
It is ideal to offer discounts during the initial stages of the business. However, providing very steep offers would affect your revenue. As a result, when you suddenly hike the prices to compensate it, you may lose customers. Hence, try persuading the customers with reasonable offers.
Lack Of Focus
Generally, new businesses tend to concentrate on only one aspect of it such as visibility, conversion or repetition. Concentrating only on the visibility of your store would not help you convert leads. Similarly, focussing only on coaxing the customers to trade will not make them repeatedly buy from your store. Therefore, it is mandatory to focus on all three things to have a flourishing business.