You have decided to throw your hat in the ring and open your own e-commerce business. While there is still ample room for growth in the industry, more companies than ever before are online. Competition can be fierce. However, with these eight proven strategies, you can grow and sustain a successful business over time.
1. Know Your Audience
Many tout the advice of knowing your core audience to succeed in business. The Small Business Administration estimates there are 33.3 million small businesses in the United States. Over 70% have some type of online presence. While not all those companies are business to consumer or your direct competitors, people still have to wade through the noise, find your site and walk through the sales funnel.
Your job is to know who your audience is and how to pull them in the second they first hear about your brand. Survey your current customers, collect demographic data and pay attention to who your competitors target.
2. Study Market Trends
No matter what you sell, trends will change what people want. In a tight economy, people may shift their buying habits toward essential items and avoid luxury. If you sell non-essential items, you may need help finding new customers.
Think through how you can make what you offer something your customers cannot refuse. During the pandemic, for example, many distilleries shifted production to making crucial hand sanitizer for first responders and the general public.
Think through the pain points of your audience. How might you better fulfill what they need to save time and money, or live a happy and safe life?
3. Save for a Rainy Day
At the start of a business, funds may come in rather quickly. However, as sales settle into a rhythm and you start to grow, you might fight yourself in a money crunch. Many e-commerce businesses fail due to a lack of cash flow.
Imagine a scenario where you get a massive order from a big-box retailer or a corporation wanting to buy employee gifts. The problem arrives when they want 30-day net payment options.
You have to buy the products and pay for shipping. However, you might not receive payment for 30 days. Rapid growth stunts many businesses that cannot keep up. Having some savings on hand to combat these growing pains can get you over the hump and move your company forward.
Another issue can be when business falls off during slow seasons or because the market is saturated. You can do a couple of things to combat this. First, save money to cover employee salaries and keep the lights on until things pick up. Second, offer something consumable.
If you sell personalized gifts, for example, come up with a new product that people use and need replacements for. The small sales of ongoing subscription-type products keep money flowing into your accounts.
4. Offer Free Shipping
Like it or not, you are competing with big-box online retailers such as Walmart, Amazon and Target. These companies offer free shipping with a membership or certain size order. If you want to keep up, you have to figure out the tipping point where you can afford to offer free shipping.
Offering free shipping increases conversion rates and helps you meet consumer expectations. You must understand your profit margins so you can adjust product pricing to cover fees. Some consumers may still upgrade to expedited shipping, but you can offer complimentary three- to five-day transport for orders over a set amount.
5. Optimize for All Screen Sizes
Today’s customers access your website from a variety of devices. They might start on the computer, reading reviews and collecting data. Then, they switch to their cell phone after you email them an offer and complete the purchase on a mobile device.
If you want to remain successful as an e-commerce company, you must make shopping accessible from all screen sizes. The experience a customer has on their laptop should be the same one they have on their smartphone.
At the same time, you need to make shopping as simple as possible. One-click checkout using Facebook or Google logins can help convert shoppers into buyers.
Collect their phone number, and send an SMS message they can reply to and buy from all in one location. Email them and let them know if they order now, they will get a discount. Inform them of new product arrivals on social media.
The more places and times a consumer sees your brand name, the more likely they are to remember you. You are competing with a lot of internet noise, so find unique ways to stand out.
6. Ramp Up Marketing
Your marketing efforts can make or break your business. Start locally and with those you know. Ask everyone in your family and on your friend list to share your new startup with those they know. Social media is a simple way to post an offer and tag those you know, asking them to share.
Do be careful about being spammy, though. Facebook might see your post as abusive of their policies if you tag hundreds of people a day. You can typically mention family and friends on your post at the rate of about 100 a day without issues. Ask them to comment, share and like your posts to get it in front of more eyes.
Look for local marketing opportunities that will not cost you much money. Is there a local high school newspaper you can advertise in? You will support your community while getting the word out about your business.
7. Automate Everything
With the recent popularity of artificial intelligence (AI), it is easier than ever before for smaller brands to automate repetitive tasks. You will save time and staffing costs, and give your customers a seamless experience that keeps them returning for more.
Globally, the AI market is around $142.3 billion in 2023. You can use models such as ChatGPT and Bard to automate online conversations with leads, track inventory, and even seek out the best marketing methods for your brand.
Look at what takes you the most time to complete and find ways to simplify your business model. You can always bring the human touch back in as you grow. As a new entrepreneur, though, you may be wearing many hats. AI can free you up to focus on more creative tasks.
8. Start a Loyalty Program
One way to grow your business consistently is to add a loyalty program. Customers who frequently buy from you gain points they can spend in your store or use for a future discount of their choice.
Reward loyal patrons for referring others to you, too. Give them a gift, money to spend, or points when they send someone new your way and that person makes a purchase.
Word-of-mouth is one of the most powerful ways to grow your venture quickly. Tap into the beauty of referral marketing and watch your brand thrive.
Be Determined
Every business has ups and downs. You will see times when cash flows in rapidly and you are on top of the world. Occasions will also occur when no one seems to remember your store is online and you have very few sales. Learn to ride the roller coaster by pushing the cart up the hill and enjoying the zoom back down.
Determination will ensure you succeed no matter what the economy is doing or if competitors steal some of your customers. Stay dedicated, push through and make smart decisions, and you will profit in the end.
Eleanor is editor of Designerly Magazine. Eleanor was the creative director and occasional blog writer at a prominent digital marketing agency before becoming her own boss in 2018. She lives in Philadelphia with her husband and dog, Bear.
