PART 1 OF 7 – Starting your eCommerce Store:
Did you know that almost 70% of eCommerce traffic is from smartphones and this number is rising as we speak? Therefore it makes financial sense to find winning products to sell to the billions of mobile users, and for this, you need an online presence. In this article, we discuss basic website monetization strategies for your e-commerce business.
Starting your eCommerce Store: A business in buying and selling of goods. The goods can be either physical products or digital like sales of ebooks, songs, and digital art.
You can distinguish your business model by selling goods you produce, and this is straightforward or like many sellers, prefer to sell products of others, without taking the risk of production and owning inventory. Just follow a drop-shipping model. You sell products from manufacturers and suppliers, and they take care of shipping once order placed through your website. Essential to deal with reliable manufacturers to avoid the inconvenience of returns and getting negative reviews from buyers.
You can have an e-commerce store dealing with businesses only as B2B examples distributors, wholesalers, and suppliers or marketing to consumer model (B2C) selling direct to customers on the net.
Three critical matters you need to concentrate on for a successful e-commerce business:
1- An effective marketing strategy to produce traffic to your site.
2- You need a product that people want to buy. Essential to start with a great product not difficult to sell and build your brand around it.
3- A credible online store that makes it easy to take payments.
I think, most entrepreneurs will be able to find with ease the right product to sell. Also, many entrepreneurs do build great e-commerce sites, easy to navigate and safe for making transactions. Where they struggle is producing enough traffic to make the sales.
Without traffic, you can’t make sales, and without sales, you don’t have a business. Only a handful of people can create traffic from social media followers, direct to an online store and turn people into interested buyers. In real life, most businesses rely on paid traffic.
Sadly, there are not enough full articles online explaining in detail, how to make optimum use of paid traffic. I guess the main reason is: there is no one secret formula applicable to all businesses and if one does manage to find something profitable why should they share their findings.
A businesses owner will need to use the method of trial and error to come up with a suitable formula to make profitable sales, then scaling up using the same winning formula.
Example: let’s say you have a product that cost $20 to produce or buy from a supplier. Also, assume the cost of selling the product is $8 using paid advertising and keeping things simple without considering other associated costs; selling this product for a price above $28 is a reasonable proposition.
Say you sell the product for $30 you will enjoy $2 profit. Once you know this simple, profitable formula all you need is to scale up. Repeat as many times as you can 1000, 100,000, why not more, after all, there is a massive supply of paid traffic, to earn you x multiple of your $2 profit.
In real life, you will face other costs associated with selling online consider the following:
- Damaged goods during shipping,
- Cost of returns,
- Buyers will not receive the product for whatever reason (fraud),
- Transaction costs related to online payments,
- Cost of creating professional ads,
- Storage costs,
- Packaging and handling,
- Software and other paid tools,
- Everything else.
You need to keep all your costs down to compete because no matter what product you sell, there are undoubtedly many competitors out there selling the same or alternative products. Only those business owners who control their costs stay in business.
Finding products to sell you can search on sites like Aliexpress for low quantity or Alibaba for large orders by dealing directly with the manufacturer. Another way to find products to sell is you can ask to act as a reseller for artisans. Your best choices searching for artisans and handmade products on sites like Etsy or Amazon Handmade. You need to make sure the sellers can provide you quantities suitable for your marketing plan.
Alternatively, you can collect multiple items from different artisans say leather wallets from one artisan and leather bags from another. When you combine the various leather products under one store, you will be a specialist seller of different leather products. Once known for selling excellent leather goods, buyers will find you.
Finally, creating an e-commerce website with the ability to take payments has never been easier, you can use sites like Weebly or Wix. They offer easy to use website drag and drop builders. They also offer all the tools you need to make an e-commerce site with ease. Another alternative you can decide to create a beautiful website with content management system like WordPress.