If you look at the rising rate of online sales across the globe, you can begin to understand why ecommerce is so attractive to aspiring entrepreneurs,
After all, retail ecommerce sales will showcase growth of 221% globally between 2014 and 2021, peaking at a staggering $4.8 trillion at the end of this period.
Whilst the market opportunity may be huge, however, you still need to understand the mechanics of ecommerce and create a viable growth strategy if you’re going to succeed over time. Here are some steps to help you on your way:
1. Start by Researching ecommerce in the Digital Age
Every ecommerce venture should be underpinned by detailed knowledge, both of the underlying business models and the precise market in which you intend to operate.
To begin with, there isn’t a single business structure that works well for every single ecommerce venture, which means that you’ll need to identify a model that can minimise costs and optimise profits over time.
This decision will need to be taken in line with the nature of your business, as those that focus on the sale of physical products must identify cost-effective ways of sourcing products and storing inventory.
Regardless, you’ll need to take the necessary time to research your market whilst giving consideration to the fundamental principles of e-commerce.
2. Determine the Focus of your Business
Whilst product-oriented brands may well pride themselves on the range and number of products that they sell, this can often be indicative of an underlying lack of focus.
This can also be counter-productive, not least because of the cost involved with offering multiple lines of products and the challenge of marketing your brand to the relevant target audience.
So, a preferable option is to create a core niche and focus for your business, which should help to reduce operational costs and create a more informed and profitable product range for your business.
3. Develop a Viable and Cost-effective Supply Chain
If you do sell physical goods, you’ll also need to create a viable and cost-effective supply chain that can ship products from A to B.
This is far easier said than done, however, as transporting items both domestically and internationally can involve a number of moving parts and in some instances send your costs spiraling in excess of turnover.
Startup businesses and entrepreneurs should therefore consider working with established resources that can actively help to reduce costs, particularly in terms of finding affordable parcel delivery services.
The key is to also liaise with reputable couriers, who can also meet the demands of your expectations and ease the burden on your customer service representatives.