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In a digital age where people spend an increasing – and quite alarming – amount of time staring at screens, navigating the virtual space on their smart devices, the fact that online shopping has become the preferred method of purchasing goods and services for a continuously expanding number of consumers is certainly no surprise. It’s difficult for physical stores to compete with the convenience, accessibility, cost-effectiveness, and wide selection of options provided by online platforms. Between placing an online order and going to a brick-and-mortar establishment in person, the majority of customers would choose the former.
However, this doesn’t mean that while traditional stores are struggling to adapt to modern demands, online retailers have it easy – far from it. The shift towards online shopping has led to intense competition in the e-commerce industry, creating a harsh and overcrowded environment where only the strongest and most capable vendors survive.
So, what exactly does it take to thrive as an e-commerce business? While every company has a unique context and follows different paths in its development, the steps to success are more or less the same for all industry players. If you manage to master these key areas, your chances of reaching and staying at the top of your industry will increase considerably.
Know your market
The first rule when starting an e-commerce business, or any other type of business for that matter, is understanding what you’re getting yourself into. This entails familiarising yourself with the market you plan to enter and learning about the opportunities and challenges it offers. See if there is any demand for the products/services you intend to sell and get to know who your potential customers are and what they would expect from a company like yours.
It’s equally important to study your competition and be aware of the strategies they employ, as well as the trends dominating your niche and the forces that drive them. Market research is absolutely essential if you want to start off on the right foot and avoid rookie mistakes that can cost you dearly.
Set up your online store
If your investigations have shown that your idea is viable and has potential, and you still want to proceed with your plan of starting an online retail business, the next step is setting up your virtual store. Instead of renting a space or building walls and counters, you’ll have to select an e-commerce platform that will host your online store.
These platforms provide you with a wide variety of tools, features, and services so you can create an online store tailored to your needs and manage it with ease. Shopify, Wix, BigCommerce, and WooCommerce are just some of the most popular platforms available, designed to facilitate the buying and selling of online products. Choose a solution that is user-friendly, provides customisation possibilities, is reasonably priced, and ensures compatibility with other programs and applications.
Stay on top of inventory
Having sound inventory management ensures your company doesn’t fall into understocking and overstocking extremes that can result in tied-up capital, obsolescence, disrupted operations, unsatisfied customers, and lost sales opportunities.
Matching stock levels to fluctuating customer demands requires a fine balancing act that can be achieved by using automated inventory management solutions, accurately forecasting future needs, having a good understanding of your supply chain, diversifying and maintaining good communication with suppliers, and conducting regular stock audits.
Ensure an efficient order fulfilment process
We live in the age of speed and instant gratification, where customers expect to have their orders picked, packed, dispatched, and promptly delivered in the shortest amount of time possible and are growing increasingly less tolerant of errors and delays. This makes fulfilment one of the most important facets of running an online store.
You have to carefully monitor every task and stage in the fulfilment process to ensure your clients receive their parcels on time and in perfect condition. This can be done by optimising your warehouse layout, embracing automation, implementing tech solutions for order tracking, or outsourcing certain coordination of logistical tasks to third parties to third-parties.
Prioritise customer experience
With so many online stores providing similar products and services, customer experience (CX) is often the one element that can make a difference and provide a competitive advantage.
If you want to keep your customers happy and returning, it’s necessary to create a smooth and pleasant shopping journey from start to finish, building an easy-to-navigate website, providing personalised recommendations, and offering excellent customer support across all channels.
Grow your business
The goal of every e-commerce business is to keep on growing and evolving. However, scaling has to be approached carefully to avoid pitfalls and ensure optimal results. When the timing is right, you can start expanding your range of products and services or tap into new markets. Resorting to third-party fulfilment services like Monta is also a good idea, as it can optimise your e-commerce logistics and free up your time so you can focus on taking your business to the next level.
Build a great digital marketing strategy
No online store can succeed without a well-crafted marketing strategy. To promote your online store and reach the eyes and hearts of your target audience, you’ll have to use a combination of marketing techniques, such as paid advertising, content marketing, email marketing, and social media marketing, to cover all your bases.
You’ll also want to include search engine optimization (SEO) in your marketing campaign so you can improve discoverability and boost your online presence.
These days, it’s easier than ever to create an online store from scratch and start selling all kinds of goods right away. However, it takes a lot more than a virtual storefront to build a successful e-commerce company. This requires in-depth knowledge of the market you’re navigating, the ability to implement effective strategies to tackle ongoing challenges and adapt to changing trends, and a touch of creativity to top it all off.
