How to Build a Profitable E-commerce Business
When you come up with a great eCommerce idea, it’s exciting to see enthusiasm spread via social media and successful crowdfunding. But when it comes to generating revenue online, your fanbase will only take you so far. In his article, “5 Tips for Growing an E-commerce Business,” startup advisor Murray Newlands says, “There’s a lot of money to be made in eCommerce, but only if you’re doing it right.”
How to Build a Profitable E-commerce Business:
1. Be frugal and selective with your advertising campaign
Test every campaign with a limited budget before doing a full-scale launch. If you’re not careful, you can run up a large tab quickly while you’re still figuring out what kind of ads perform best.
2. Discount intelligently
According to Frias Kittanah, CEO of One Mall Group, “Deep discounts are a warning sign of a brand’s desperation.” Offer discounts sparingly and in such a way that customers think they’re getting a rare and unusual bargain. The purpose of a discount is not to attract bargain hunters but to reward regular customers and entice them to buy.
3. Use email
Findings from McKinsey & Company suggest, “E-mail remains a significantly more effective way to acquire customers than social media–nearly 40 times that of Facebook and Twitter combined.” Focus your efforts on an effective email campaign that establishes and maintains a direct link with your customers.
4. Make your first product good
Build consumer confidence in your brand before launching follow-up products. Be sure to maintain the same high quality with each new offering.
5. Customer satisfaction
Make customer satisfaction a priority. Negative customer reviews put a damper on would-be sales. On the other hand, solid testimonials demonstrate customer loyalty and encourage new customers to buy.
To read the original article in its entirety, please visit Inc.com.