With the trend of digitization, numerous startups are surfacing in the market every day. But, only a few them actually flourish and make their value.
There is a lot of competition in the market, and it is not at all easy to be the lead in the market. But, you need to understand what’s working for your business and what’s not. You need to learn from your failures at all those points when things weren’t working out for your business.
Here are the most common mistakes that turn out to be the reason for the downfall of ecommerce businesses.
Choosing the Ecommerce Platform that doesn’t Work
When you go fishing you make the numerous attempts to find out the fishes in the pool. Same is the case with ecommerce platforms, you must opt for one which already has the customer base or the tools that can help you in flourishing the customer base.
When starting an eCommerce shop, you put a lot of effort into creating it. That’s why it would be better if you analyze and compare before choosing the right ecommerce platform.
Let’s say you have started selling on Amazon. The customer base of crores can be the reason to choose the platform. The choice of platform changes from business to business, but you can always check and communicate with other businesses to decide the platform for your business.
Half of your worries get solved when you choose the adequate ecommerce platform. When they have a team to actively support your business, you save on customer support, developer, affordable business plan and even on the external market services. With integrated and developed ecommerce platform you can better take care of your business.
Inadequate Market Research
Whether you are a designer, manufacturer, or service provider, market research is a must for every business. Don’t jump into the ecommerce race, just by a thought of selling, you may regret later. Else you’re going to take a lot of time to figure out what’s best for your business.
You might have started your shop for selling certain products that you design, but you need to assure if there is a trend for the same in the market. Probably you like those products, but the estimation of people like it in the market helps you evaluate the inventory stock you gonna need.
Never underestimate the power of market research, rather spend time with the industry experts doing business in the same niche. You can perform industry analysis and the competitor analysis using the sites like Semrush; to study the business tactics your competitors are following to flourish. This will give you the right direction to explore and expand your business.
Fever of Being a Growth Hacker
If you haven’t heard the term “Growth Hacker” by now, sooner you will listen to it or better experience it. When you are getting started with the ecommerce idea, you are new to the business to learn a lot of things. We know you want to see your business name everywhere, just like those viral videos and memes on social media. But, don’t take it that easy.
It’s better to understand one platform and continue its journey when you feel the stability then only move to the other one. Don’t opt for trying everything at a single go. It will be very tough for you to manage your business and probably you gonna lose your customers in the first place.
Business growth is always bound to come with customer satisfaction, don’t take it as yet another challenge and spend a lot of money on it. Invest wisely and move slow yet in a steady manner to take your business ahead.
Don’t be the Follower of the Herd Mentality
Every business has certain industry standards that you must follow. We totally agree with it, but, don’t take some trends as the standards.
There is a huge difference between the two. When you jump into the business, you follow some of your business competitors. That’s fair enough. But, don’t start following them blindly. Avoid following the herd mentality, this can bring disastrous consequences to your business.
How?
If you are still trying to figure it out, let’s consider this scenario. We’re sure you have heard of the Amazon boycott moment. Yes, that’s the same moment that started on Twitter on 15-16 May of this year.
If you are unaware of it, the event is actually to boycott amazon in India because of certain sellers were selling the products that are compromising with the religious values. The products were the images of Hindu deities in the washrooms or in staircases.
Now, those businesses started following this trend faced a huge loss. With the trend of following the trend, this can be the risk to your business also. That’s why it would be better if you think once before going ahead with the trends.
Under-Pricing your Products
The way you price your products matters a lot. Though pricing the products isn’t an art, but when jumping in the ecommerce race, pricing is an intimidating task.
Normally you price your products like in wholesale and bulk rates. If talking about the handmade products, you count on the raw material, labor charges, and extra expenditures. But, for online business you need to count on the taxes levied, custom duties (for international parcels) and commission rates of the ecommerce platform you are selling upon.
Complicated Checkout Interface
In ecommerce, customers can’t interact with you all the time and if you ask for a lot of information, it can be frustrating for the customer. There are huge chances that your customer may leave you at the last stage of the sale funnel.
That is a lot of risks to ask for!
So, keep your product checkout process easier and interactive. Eliminate the website obstacles, if any. Don’t use some quirky language, rather prefer the standard communication patterns. Show the invoice breakup to tell your customer about every penny they are paying and ask them firmly for their mail address.
Thank your customer, once you are done with the checkout, and mail the invoice to their registered email address.
Leaving your Brand Aside
You had a thought of dealing with certain products, you have uploaded them and you are making the sales. That’s good, but not enough for your business growth!
Not managing brand identity is the huge mistake that businesses make. In the initiation of your business, we’re sure you won’t get a lot of time for making the brand identity. But, you can always try some external tools or choose the ecommerce platform that enables you to streamline your business communication as a brand.
Even when there is a certain range of products that you are known for, but your value as a business is more than that. You are selling under some brand name and you need to manage your brand identity. For understanding the business standard, the business Bible can help you. Before diving deeper into brand management, you can first go for an amazing logo and a tagline for your brand. Opt for logo image in your business communication mails and can use the same in your business cards and brochures.
Try to avoid these blunders, but, don’t be afraid to try! Enjoy your business drive and take it further.
