The following is a guest blog post:
Putting together an eCommerce store can be one of the wisest investments you’ll make. With a model of low-risk, significant reward, setting up and managing a store is a pretty painless process and one that you should consider for some side money. That’s why we’re offering a few helpful tips on how to invest your money into an eCommerce store, check them out below:
It Starts With The Brand
One of the most important components of your eCommerce investment is putting your money into a solid brand. Not only is this going to be the identity that others associate with your business, but it’s also the core aspect of why people will gravitate towards your store. Although often overlooked as a secondary luxury, branding is a necessity to the success of a lot of stores, which is why you should sit down and ask yourself what type of brand you’re after and why.
No matter if you’re looking into starting your own eCommerce store or have prospects you want to buy into, one of the first steps is examining what this brand represents on a practical level, as well as what its core mission is. For example, as noted by LucidPress, color increases brand recognition by 80 percent, which is why when we look at something like Patagonia’s brand, the rich colors of the mountain outline combined with a smooth typeface bodes well for the outdoor company. Try to focus on details like that in examining which brand to invest in, with the biggest determining factor is how you feel in your gut.
Give Yourself A Smart Model
Another important factor of putting your money into an eCommerce store is what the model of that business is going to be. While there are plenty of different online shops of all shapes and sizes, the biggest determining factor is how efficient they are with their revenue. According to Entrepreneur, it’s estimated that businesses lose on average 20 to 30 percent of potential revenue due to inefficiencies, which can tank a company pretty quick if you’re not careful. However, that’s why you should take a step back and map out a bird’s eye view of the situation before putting your money in.
A solid suggestion is to learn how to drop ship; it is one of the most effective methodologies for ecommerce. If you’re not familiar, drop shipping is essentially when a good is shipped directly to the consumer by the supplier rather than being held as inventory by the store. This helps reduce overhead significantly as there’s no need for a minimum order or renting space to hold inventory. The biggest thing to be mindful of with this strategy is to make your pricing competitive to the rest of your industry because although your suppliers will most likely want a larger cut, you’ll also have the opportunity to put more money towards marketing.
Put Your Money Into Efficient Marketing
A big part of successful eCommerce selling is to have an effective marketing scheme that holds a significant ROI. As we often look at digital marketing to be a relatively cost-effective method, you also need to be careful about what you’re putting in versus the return you see. However, that’s why diversifying your efforts and studying the results is the most ideal to determine what’s worth the investment.
To begin, take a look at all the digital channels your brand is currently producing for, as well as what potential ones you’re lagging on. For example, while some people view email as outdated, it actually can produce on average a $38 return for every dollar spent, as noted by Constant Contact. Furthermore, run A/B tests on the types of color schemes and copy for email and social media that you feel resonate with the brand, starting to gauge the specifics on the audience you’re pursuing. As marketing can take some trial and error, the name of the game here is to find that sweet spot between how much you’re spending versus the number of closed sales afterward.
Keep Your Efforts Consistent
Finally, to ensure that your investment is worth your while, it’s crucial to keep your efforts consistent to give this project a fair shake. Not only will it be the best way to spread the word about your store, but to increase profits as well; according to Inc, a consistent brand presentation can generate 23 percent more revenue than those that don’t. And while this might sound obvious, you’d be surprised the number of stores that simply put up their cleats after the first go-round, which is where you can excel past.
Create a system of auditing your store’s performance at least weekly, holding certain metrics accountable such as the number of views/traffic, revenue, and even secondary items like mentions on social media. Try to determine over time which verticals are going to be most useful for increasing sales, as well as how they correlate to industry/market trends. Remember, investing in a successful eCommerce store isn’t an overnight task, but with the right development and dedication, you’ll be generating consistent revenue in no time.
What’s your experience been like investing in eCommerce stores? Comment with your insights below!