The 6 fundamental factors for a successful e-commerce businessApril 4th, 2018
With the fierce competition in the world of e-commerce, it is essential for old and new online retail companies to pay special attention to the following fundamental factors which will help keep them afloat, succeed and prosper in the e-commerce business:
Branding is no doubt the most important factor when it comes to e-commerce. Branding is the basis of the emotional connection you have with your audience. This connection is what attracts more customers and enables sales. You want to plan and act on an effective branding strategy in order to build and foster customer loyalty and a sense of community around your products and messages. The best way to choose the right branding and messaging strategy is to use data analytics for customer behavior.
Designing a great logo is just part of the branding strategy. You will need to make sure that your brand represents your company’s ideas and relates to your customers. You can also control the marketing messages and policies, but handling customer feedback is also crucial as it will affect customer expectations, experiences and the messages they spread to others about your company and brand.
- Business and revenue models
Pricing is essential for any business. Finding the proper balance between selling at competitive prices and still gaining a profit is the key to the success of any e-commerce business. For a successful business, you will need to implore the five basic revenue models crucial for online business, including: subscription, transaction fee, advertising, sales and affiliate revenue models to ensure that you receive reliable and continuous streams of income.
- Optimization of your product list
You will be much more successful if you are able to provide your customers with a combination of products which they need or want rather than selling them just one. By performing gap analysis of yours and your competitor’s product lines you can find the perfect product assortment to offer your customers. Use a best seller list to attract even more customers and make more sales of your most popular products or groups of products.
- Sales and promotions
Sales and promotions are the most crucial driver for sales. Offering discounts, rebates, coupons and price cuts on a regular basis will no doubt lead to a rise in traffic, larger sales volumes and will also help establish stronger customer loyalty. Always announce sales for the traditional sales periods such as Black Friday if you want to stay in the game and make more online sales.
- Better shipping and return policies
If you can ensure reliable shipping and return policies, more customers will feel safe and be willing to place online orders. If customers are sure that there will be no problems with the shipment or with the possible return of a product – they are more likely to shop from your online store. Surveys show that nearly 60% of online shoppers will add an item to their cart if the shipping is free. Even more customers would purchase your goods if the return shipping is free, easy and “no questions asked”.
- Customer retention and customer data analysis
You want to work on your customer retention strategies if you want to get your customers to return and to keep coming back for more purchases. Analyzing customer habits, interest and other customer data is essential for the future of your business as well.
Running a successful online business depends on a mix of factors, so make sure you get them right if you want to grow and increase your profits and the number of customers.