Neil Parker is Managing Director of DriveDen, an online automotive accessory retailer. After he established the business on eBay it has grown into its own online store, which sells quality auto parts directly to their customers. Here he shares his top four tips for successfully launching an entrepreneurial career online.
1. Mighty oaks grow from small acorns
If you’re thinking of starting an online business, you may be puzzled about where you should begin. One thing that you should keep in mind is that it’s perfectly okay to start small. There doesn’t need to be a massive idea or a high level of risk when you start your own online business. Starting slowly, especially if you don’t have a lot of experience, is probably the best way to begin.
If you are looking to establish a retail enterprise, consider trading on an established online marketplace like eBay or Amazon to start. Yes, they will charge you a listing fee and a percentage of your sales, but they will also give you a safe environment to launch your idea and instant access to a large potential market, as well as support when you need it.
I started DriveDen on eBay, so I know from experience that it is a great place to begin your entrepreneurial adventure. It gave me the ideal platform to make a profit early on — you can start to think about starting your own website when you are more established. There are over 17 million visitors to the UK version of eBay every month, so it really is a market opportunity you can’t pass up.
2. Establish your brand with a website
Once you have reached the point where you are doing a good level of trade with a few repeat customers, you can begin to think about spreading your wings and launching your own website. Take the time and do some research into how you are going to go about creating the site and how much it will cost. Don’t commit to something until you are sure that your business can sustain this new venture.
When you are ready to go ahead, you need to start thinking about how you will promote your brand. A cheap-looking website is guaranteed to put many potential customers off as it diminishes trust. Invest in a clean looking site with a logical layout so browsers won’t get confused or lost. Put some effort into making sure your content is well optimised to maximise traffic from search engines, as this will be the main way people will find your site. Some expertise is required to do this correctly, but there are plenty of professionals out there who can help.
3. Do business in multiple markets
That being said, when your new site is up and running, you don’t need to turn your back on the sales you get from places like eBay and Amazon. Sure, sales through your own website don’t come with a fee, but the sheer number of customers who find your products through these sites will probably dwarf those from your own site. Even big retailers like Argos and Halfords trade on eBay, so it definitely isn’t something you should turn your back on.
From my own experience, I would recommend that you invest in a solid multi-channel management software to help you handle the orders from each marketplace. This type of software will allow you to effectively manage inventory, listings, and warehouse operation, which will help you avoid understocking or overstocking on certain items. This software really is a valuable piece of kit, as it means you don’t need staff constantly monitoring stock levels, and your customers will have access to the latest stock information for their order.
4. Concentrate on delivering a high-quality service
When you are wrapped up in the operation of a busy online retail operation, it’s easy to lose sight of the things that contribute to establishing a successful brand. People who could potentially become repeat customers aren’t just shopping for the cheapest product out there, they’re on the lookout for a retailer that they can trust. Keeping up a good level of customer service, offering a great shopping experience, and selling quality products are each as important as being the cheapest on the market.
Looking at a retail giant like Amazon, you can see that, yes, sometimes they have the cheapest price on the market, but the real reason that people always return is because they offer such a brilliant all-round service to their customers, which has established a monumental level of brand trust.
In the early days, when you are a sole trader on eBay or anywhere else, don’t get sucked into a price war with other vendors as there will always be someone willing to go lower. Instead, focus on delivering a high-quality service early on — this will soon become part of your business DNA and help you to lay the foundations for a successful future.
If you follow these pointers and take them on board for your own online business venture, you will already have a huge head start in your entrepreneurial career.
