5 Keys To The Success Of Your Online Store
Have you decided to create an online store? E-commerce is growing so it is a great idea, but before starting, note these five keys to success:
Internet retail sales in the US will grow 10% a year through 2015 as shoppers spend more time online. There are great perks to e-commerce see this article. (link) By 2018, US online market sales will reach an estimated $492bn. This currently stands at $304bn. 72% are more likely to buy from a brand they follow on social media. E-commerce will represent 10% of all sales by 2017. You want to be a part of this growing retail market!
The perfect platform for men to shop has been created and the in turn the whole dynamic of marketing has changed. No longer are woman driving shopping trends. This said, who is buying what? The most common purchase is for clothing but there are quite big gaps in purchases if you look at ages and genders. Men buy more electronics while woman opt for the usual clothing and accessories.
Your basic age groups are 18-36 (who take the lead in mobile and tablet purchasing) and 37-48 (who go for the more traditional desktop or laptop). The top 4 Categories for online purchasing are:
Digital Electronics – TV’s, Computers and parts etc.
Accessories – Handbags, Shoes, Jewelry etc.
Personal Electronics – Phones, Laptops, Tablets etc.
Household Electronics – Toasters, Blenders, Kettles etc.
Food sales remain bottom of the list for online purchasing, so beware if you were thinking of going that route.
It is very important to know what the competition is doing and how they are doing it before you start. Consult clients and even do some shopping from the competition because they might be leaving a gap in the market and not realize it.
We know that eliminating the middleman works. Think producers of oranges and vegetables that sell directly to consumers. Selling online can eliminate that pesky 10-50% of monetary loss by eliminating the middleman. Online stores have the ability to eliminate links in the distribution chain. So you can literally take in all your profits. Another formula for success is shopping for subscription, an old business model used by newspapers and magazines and taken to the Internet to sell products that must be purchased periodically, such as hosiery, condoms, razors or dog food.
With or without shipments
Online shoppers are more likely to chose the cheapest option when it comes to shipping. Including shipping makes the process a bit more tricky for you though, you have to up the prices of your stock to eliminate the risk of falling into the red.
Having shipping rates might make your consumer pool smaller, but overall is safer for your finances. You also have to decide whether you are going worldwide or just local.