Ecommerce offers fantastic revenue opportunities, the ability to be open 24/7 and traditionally fewer overheads when compared to bricks and mortar retailing. Yet, despite the fact that more than 12 million Australian consumers shop online — and we are experiencing year-over-year double-digit growth in online shopping — a huge number of ecommerce businesses are struggling to be profitable, or in many cases, survive.
If you own an ecommerce store or are planning on building one, here are 10 crucial items to be aware of that will have a significant impact on the success or failure of your business.
Here are some reasons why most ecom store Fails
1. Focusing On Promoting Store instead of Single Product Funnel
Business is hard and complicated. Imagine an amateur brain surgeon doing multiple surgeries at one time. It would be a disaster! The same holds true for building a new business. Sure someone’s life isn’t on the line, but the life of your business likely is.
Have you ever been to a restaurant, where you see so many meals and you are confused about what to eat? That’s how your customers get confused when they visit your new store and they are seeing different products from different categories.
The truth is that New stores don’t convert.
It’s really not so hard to see why Product funnels convert better than entire stores. With single product funnels, there’s only 1 focus: TO SELL THAT PRODUCT!
On the funnel, there are zero distractions.
Once your customer land on the page, there’s only 1 action to take and that is: Buy The Product or BUY THE PRODUCT!!! Nothing else.
2. Sending Traffic directly to the product page.
99.99% of eCom store owners make this same mistake of sending traffic directly to the product page.
Now, let me quickly ask you a question
How would you feel if a marketer sends you a short email about a product and sends you a link that takes you directly to the checkout page to insert your credit card?
The truth is “Story Sells”
And As a newbie in ecom, don’t focus on sending traffic directly to the product page. Instead, send your traffic to a viral blog story… Yes, send all your traffic to a viral story.
Here’s how it works.
==> Send traffic to viral Story
==> Add a link to the Product Sales page
==> Add a call to action button that leads to the checkout page of that particular product.
3. Ignoring Email Marketing
Returning Customers Spend 67% More Than New Customers (stats from Business.com). Most Ecom marketers don’t do any email marketing because of the time and effort it takes to learn copywriting and write professional sales-generating emails.
Email marketing is a crucial part of ecom business. It’s one of the best and most often used ways to increase conversions, communicate with potential customers, engage them and build bonds with them. It works both for e-commerce and brick and mortar business. And it has an amazing ROI rate too! Not convinced?
Here are some stats:
==> Consumers who purchase products through email spend 138% more than those that don’t receive email offers.
==> 80% of retail professionals indicate that email marketing is their greatest driver of customer retention (the next closest channel? Social media, identified by just 44% of those same professionals).
==> For every $1 spent on email marketing $44 is made in return, according to a study by Campaign Monitor.
4. Selling The Wrong Products
One of the main reasons ecom owners fail is because they sell the wrong product. If you’re selling a product no one wants, then you’re in a tough position from the beginning. This is the biggest decision of all when starting an online store.
What should you sell? Even if there are many other websites selling the product (like a name brand shoe), there is still a place for you if you market your website correctly and have a value proposition. Make sure online users want to buy the products you’re selling!
5. Pricing Is Way Off
We’ve all heard the stories and seen the websites making millions and they look very amateur. Although though their look isn’t good, these people succeed when offering the best prices. Of course, these sites would do even better if they had better design and a solid marketing strategy, but the idea is low prices will attract customers.
This is the case in the retail market outside of the web, but even more important on the web when the next store is only a click away. Be sure you’ve researched your competitors and that your prices are competitive.
6. Hooking up with the Wrong Supplier
eCom business hovers around one word; TRUST. You could have all the Hot-selling products but without Trust, nobody will patronize your Store. Trust comes from shipping purchased product at the promised time – no issues!
If you got a shady supplier, this will be very difficult to achieve and you will get a lot of refunds with negative Reviews.
NOTE: These are just a few of them, and in my later post, I’ll be sharing some Proven Strategies you can use to ROCK eCom.