If you’ve decided to step into the e-commerce world, you couldn’t have chosen a better timing. The past year has changed everything about the way people spend money and, more than ever, people shop online as much as they can while avoiding unnecessary trips to traditional stores as much as possible.
In other words, the level of opportunity in e-commerce is enormous. Getting started, however, is much harder than you might realize.
Getting online traffic and generating sales are two of the hardest things you’ll do with computers and if you’ve started thinking about those things, chances are you’ve gone too. far from yourself. Before you consider starting an ecommerce website, you need to know the answers to these four questions.
What is your niche?
Your niche – the types of products you plan to sell, in other words – is the first thing you need to decide before launching an ecommerce site. The world has an online store that sells almost every kind of product in the sun and you won’t unseat Amazon from its power position unless you have multi-billion dollar banking assets. Even Amazon started out as something less ambitious – an online bookstore! – than what it eventually became.
When you choose a niche for your website, remember that the wider your niche, the larger your potential customer base will be. However, it’s easier to build rankings and generate traffic when your website has a narrow niche. For example, consider these four e-commerce website niches, listed in order from wide to narrow.
- Pet tools
- Furniture for dogs
- Prefabricated stables for large breeds
Where will you get your product?
The next thing you need to know before entering the ecommerce industry is where you will receive your products. One of the best things to have in ecommerce is your product – something people can’t buy anywhere else. However, building your own product requires resources you may not already have. That’s true for most new online entrepreneurs, so they’ll often get their feet wet as a reseller.
When people want to start as a reseller, they often go to China. There, you’ll find no shortage of bulk factories of everything you can imagine and ship those products around the world – canned and ready for resale – at unbelievably low prices. . However, before choosing a product and ordering 100 pieces, you might want to check out popular online markets like Amazon and find out how many other people are selling the same product. You can see that the market is so saturated that you have trouble making a profit – and you don’t want a huge investment tied to inventory that you can’t sell.
Sometimes people start using e-commerce drop shipper. The drop shipper is an order fulfillment center that already has products in stock and ready to ship. When you make a sale, your website sends information regarding the shipper who will then package the order and ship with your company’s address on the return label. Working with an individual shipper requires a much lower initial investment, but a single shipment will reduce your profits.
How will your competitors benefit?
When you think you’ve decided on the ideal niche and have found the perfect source for your product, you’re not ready to sell until you’ve researched your competitors carefully. Even if you manufacture and sell your own products, you will run into competition unless you try to think of something that hasn’t been done before – and even then, you may be building builds on existing product concepts.
Just as great as your idea of a prefabricated barn for large breeds, it would be difficult to gain any traction with that venture if there were already dozens of other companies selling similar stables and all have been in business for many years. If you really have a better product – and you have enough money for a serious marketing – then maybe you can create a space for yourself in that industry. If not, you should go back to the drawing board and come up with an idea that is not related to such intense competition.
How will you differentiate your business from your competitors?
Differentiation is one of the most important factors that make people choose one product or seller over another. As mentioned above, you will have competition no matter what type of product you decide to sell – so before considering buying inventory and launching your website, you need to have a solid answer for The question of why should people buy from you instead of going elsewhere.
Don’t forget that, for most product categories, “elsewhere” also includes Amazon, where everything is sold. Millions of people make most of their online purchases from Amazon because it’s easy. In addition, Amazon’s prices are usually quite fair and Amazon returns items easily. Some companies like Vape juice Let’s get over that problem entirely by selling products that aren’t available on Amazon, so that’s an option.
Another option is to offer your product on Amazon’s marketplace and give people a reason to go directly to your website if they want to buy in the future. For example, some companies do that by including coupons when shipping Amazon Marketplace purchases.
In the end, remember that being different is not just a matter of giving people a reason to buy from you – it’s also a matter of giving people a reason to buy what you’re selling. For example, if you only resell products bought in bulk from Chinese factories, there are already plenty of companies doing the same thing. A custom box with your logo on it can go a long way in giving your product a perceived value higher than what’s available.