The world of e-commerce is one of the most profitable industries to be involved in, however the huge rewards on offer have led to immense competition. A quick Google search for online stores reveals hundreds of stores selling the same thing. A little inside knowledge coupled with careful planning and dedication is all you really need to be successful.
The best part of eCommerce is the small capital required to get started compared to the potential unlimited turnover. An initial investment of $10,000 can result in an annual turnover of $1,000,000+ in just 3 years. This may seem like a difficult task, however, this guide offers some useful tips that will help you achieve this goal.
Web-page design
You need an attractive website to be profitable. The competitive nature of eCommerce means your website needs to stand out. All successful online stores have professional looking and functional websites. They have spent years and mountains of money perfecting their sites, so take the time to review the best online stores and incorporate their best features into your site.
Creating a professional website for less than $10,000
A premium web development and graphic design company will charge around $40,000 for a fully functional and professional site. You can get the same quality for less than $10,000 if you follow these steps.
1. Find a local university that has IT courses and put a notice on their bulletin boards looking for people who have completed their studies. Postgraduate students have all the required technical skills and are charged a third of the going rate with major companies.
2. Use an existing open source shopping cart platform like Magento, so most of the work will already be done.
3. Spend time researching and designing the site’s features yourself. Have a clear vision of what you want, you’ll save thousands doing it yourself instead of paying your designer for it.
Planning and preparation
One of the keys to success is planning and preparing before launch. Every minute detail of the business must be recognized and a course of action taken. Everything from handling inquiries, sales processing to organizing returns needs to be planned down to the finest detail.
Strong relationships with suppliers.
Once you join a distributor, make an effort to meet with them face-to-face or at least spend time talking to their sales rep about their vision for your business. If you have a good relationship with your distributor, they will actively help you succeed and achieve your goals. You can then request special prices that will give you a competitive advantage in the marketplace.
usual customers
As soon as a steady churn begins to develop, your focus should turn to your customer base. The following tactics are a good starting point for keeping your customers coming back.
o Weekly newsletters with discount coupons and special offers
o Automatic emails sent 1 and 2 months after an order reminding the customer of its existence
o Referral programs that offer store credit to those who refer friends to your store.
If you follow these tips and have a solid marketing campaign, you can turn an initial investment of less than $10,000 into an annual turnover of $1,000,000 in just 3 years.