The Ecommerce industry is a volatile one, subject to change based on transcending technological innovation.
In the early days, there were few complications. You could sell practically anything, with very little competition influencing your ability to make money.
Today things are much different. For one, we have Amazon, a monopoly that’s made it even more difficult for smaller companies to thrive.
But that doesn’t mean you can’t be successful, especially if you target a specific niche and focus on delivering value and assurance to your demographic. This is boosted by a preference for safety when selling online.
There will be challenges along the way, but your ability to overcome these hurdles will define the character of your business. Understanding specific problems before they arise means you’ll be ready if they rear their ugly heads, or otherwise implement preventative measures to stop them surfacing altogether.
So what are some of the biggest challenges faced by eCommerce companies?
Finding the Right Products to Sell
With shopping platforms like Shopify being at the forefront of the eCommerce world, anyone can launch their own store within a matter of days.
You can sell just about anything you like, without hesitation. Many of the previous barriers to entry which once prevented aspiring entrepreneurs from thriving are no longer there.
Sellers from all around the world can reach paying customers easily, especially with fulfillment services offered by Amazon and other companies. Also, product sourcing is a doddle with websites like Aliexpress enabling you to obtain goods within a few clicks.
With so much to choose from and so much competition to consider, sourcing unique products to sell is a challenge, to say the least. Uncovering a unique niche and selling a product which caters to their requirements is advisable unless, of course, you can manufacture your own!
Attracting the Right Customer
Consumer preferences have changed dramatically over the past ten years. People search for products via Amazon, ask for recommendations on social media, and use smartphones to evaluate product reviews.
What’s most important is you can establish a target demographic and understand how to appeal to their exact requirements. Once you identify the needs of your audience, you can more effectively target pain points that need addressing.
If you can provide a solution to a common problem you’ll be halfway there.
People consume and communicate in new and exciting ways. You should discover the how, why and what of their shopping approach, before catering your business operations to their expectations.
Capturing Quality Needs
The rate in which leads are converted to paying customers is fairly low, usually sitting somewhere from 1% – 3%. Most businesses spend significant money trying to drive traffic to websites. However, it’s a lot of work for not much reward.
To optimize your marketing efforts you must invest in generating leads. However, capturing quality needs is a necessity.
To avoid capturing sub-par leads you should focus on building an email subscriber list. This is a key to long term success, where you can communicate your message and prosper with tools like Facebook Custom Audiences.
Craft the right message to the right audience and you’ll more successfully nurture leads into repeat customers.
Generating Targeted Traffic
Digital marketing is an advancing field. You can no longer rely on a single channel to drive traffic to your store, meaning it’s important to diversify your approach.
As a seller, you must leverage various techniques to generate targeted traffic, including email, social, display ads,
For example, if you create a blog that addresses questions posed by your target demographic, you’ll naturally receive traffic plus rank higher in SERPs.
Profitable Long Term Growth?
The most difficult achievement of all is to establish profitable long-term growth. This is the gold standard for any company, an overarching objective central to success.
Increasing sales is great for short term success, but what ultimately defines the success of your company is profitability.
Generating profit means looking at areas you can cut costs without compromising quality while improving business efficiency. Deliver maximum value to customers and you’ll be positioned for long-term success.