Planning on starting a eCommerce business? Continue reading this article to learn what is required to create a successful eCommerce business.
To create a successful drop shipping business, one must conduct extensive research prior to launching a website or product line.
You must be able to find trends, niches, and gaps in the market, and the only way to do that is to carefully analyze the marketplace.
You want to narrow down your niche and find a demand for a really specific, cheap, and light product.
It takes time to find a product that you can buy wholesale and sell for a profit.
But once you manage to find a product that has potential, the next step is to create a platform where you can sell that product. It’s best to create a well-thought out plan before you start ordering the products.
There are also several factors that you need to consider when starting a eCommerce business.
Starting a eCommerce Business: Think Value
You need to put in place a plan to add the greatest value possible for your customers.
In other words, ideally the product should benefit them in some way and it should be made from the highest quality materials.
You want to make it as easy as possible for someone to order a product from you.
For example, maintain product quality, provide excellent customer support, add warranties, offer free shipping, etc.
There are many ways you can make the ordering process a walk in the park, and customers will appreciate it.
The dropshipping sector has increased greatly over the last decade.
The drop shipping industry is highly competitive.
You need to learn how to stand out in the crowd and make sure you offer the best customer solutions.
One of the best ways to do that is by providing your customers with detailed information.
As a new drop-shipper, it’s best not to worry about price-gauging or price-wars, as the major companies have a much larger budget than you.
They’ll be able to buy a lot more products and distribute them a lot better.
Though that might seem discouraging, it also provides you with an opportunity to provide better customer service.
Most large companies have horrible customer service!
Digital Marketing – Make More Online Sales
When setting up any business you need to be an expert at all areas to fully know how your business works and how to improve it.
When starting a eCommerce business, it can feel overwhelming because you are in control of every aspect of the business. You’ll often feel like you don’t have the necessary skills or experience for all the new tasks.
Relax, though it can be tough, it can also be a lot of fun, and you’ll learn as you go!
Remember – Baby steps!
To avoid issues, I suggest that you refrain from ordering too many products; that’s a common mistake new eCommerce businesses make.
I Did, 6K on 6K iPhone 5 Cases..
My first order was brilliant. Just $1,400 for inventory and delivery. I drop shipped using Amazon and they lost my order.
Made out with 100% sales!
Point is.. Order small amounts.
Wait until you run out of stock, or at least confirm that there is demand for the product before you order more.
Amazon Seller Tip: To test products, I would create an Amazon ad based on the product I wanted to import, and see what the response was like. If I got orders, I would either be able to drop ship the product.
If I had to import 50 unites, I would write the customer a personal note explaining a delay or cancel the order.
Point is, test your products. Another good reason to look into Terapeak. This is direct sales data from eBay and Amazon on what’s hot.
Learning how to market online can vastly improve your sales, and it’s a skill that is quite valuable, a skill that will always be in demand.
Though there are many different ways to market online (advertisements, , sponsored posts, pay-per-click, etc), you won’t be able to know which method is bringing in results unless you track every aspect of your business.
If you are serious about starting a eCommerce business, learn how to split-test pages and advertisements to find the ones that deliver the best results.
A system like Aweber (for email marketing) tracks this information and makes it simple to decide which pages convert best.
Once you find the sweet-spot, the sales will keep on coming in, and you’ll have a successful business in no-time.
Specialize: Get Your Niche Down
As I mentioned earlier, it’s best to find a specific product that is in high-demand.
Luckily, there are quite a few tools that will help you narrow down a product.
There’s one tool that I use quite often called Terapeak.
Click this link to read our review of Terapeak – I found them ver beneficial, highly recommended.
They helped me identify hot products and sell them on Amazon or eBay.
Here’s a Few Other Cool Resources for eCommerce Entrepreneurs..
Click here to learn how to set up ads on eBay (Same for Amazon).
Learning how to read sales data is extremely important to your success in the drop-shipping business.
Most people will make the mistake of assuming their products will generate more revenue, and in most cases, the opposite is more likely to occur.
Don’t over-estimate your potential revenue!
Remember, there are always fees to worry about, and make sure you factor in those fees before you create an estimate of sales.
Offer Outstanding Customer Service:
Starting a eCommerce business should be done on the foundation of outstanding customer service.
It should be the number one priority of any business.
Fortunately, most large companies have poor customer service, and that’s where you can make your business different.
Though you might not think it’s important, customer service can be responsible for most of your reoccurring sales.
The vast majority of business revenue comes from repeat customers. If someone likes your product and customer service, they’ll be more likely to recommend your business to a friend.
And that form of marketing is much more powerful than advertisements.
So you need to make sure that you hire staff that are not only friendly but also highly-trained and professional.
Remember, bad publicity can severely damage sales, and most people will write negative reviews about your business if you fail to provide them with an excellent experience.
Some reviews even lead companies to shutdown completely!
Focus on creating an outstanding customer service and your sales will continue to increase long into the future.