Due to the assumption that creating your online store is an easy thing to do, many young entrepreneurs make irreparable mistakes. These mistakes can hurt your profitability and turn a promising project into a fiasco.
This article will highlight 7 mistakes that can hamper your sales (and how to avoid them) in order to create a prosperous e-commerce business.
1. Neglecting Market Research
Launching your e-commerce business without thorough market research puts you at significant risk of failing, as you will have had started your business without ample preparation, adequate anticipation, and planning.
Therefore, if you embark on an e-commerce journey without having first estimated the sales potential (size of the market and demand), there is a good chance that your business will lag behind.
The 4 classic cases of when your e-commerce business is likely to fail are:
- There is not enough demand for your product (your market is too small to generate enough sales per day to make a living.),
- Competition is too strong, visibility is very difficult and advertising is out of reach,
- You are not offering unique products, selling the same products as everyone else means that will have a low return on investment,
- Margins are not sufficient to cover acquisition, operating, and salary costs.
If you feel like you are stuck in one of these four cases, it will be very difficult for you to survive more than a year… and thus end up losing all of your initial investment.
For this reason, it is essential to carry out a market study before launching, via
- A mini promotion campaign via Facebook Ads, Google Adwords… to test the market with a sales page featuring some major products, in order to check clicks and conversions.
- A funding request via Kickstarter.com (if you are launching 1 new product or a new range of products).
2. You try to sell to all types of customers
Determining the type of customers you want to attract is an essential step in building a business that works whether for a store, a large-scale product, or your e-commerce store.
Setting a specific target should be the first thing you do before you embark on your adventure, it will help you define your product, target your market research, and set up a website in the image of the buyer’s social status and age group.
Besides, this reflection on your targeted audience will allow you to clarify your idea, and make it easier for you to seduce them.
3. You neglect emotions
If your website looks very similar to all the other e-commerce websites in your sector, you are exposing yourself to the risk of failure.
The more you try to seduce a target, the more you will have to precisely match the emotional range of the targeted audience.
These emotions can be:
- Empathy: your customer is fully recognized in your concept, your products,
- Safety: you will have to meticulously explain how the products work, give advice, provide a rich products’ description,
- The image: Provide your customers with the image that the products they are buying hold a significant value (of course the projected value should not be fake and should match the product’s actual value and quality).