Creating A Space In The Ecosystem Of Ecommerce
Business had faced a touch year in almost every virtual sector and hope of turnarounds for many come in the form of the reports from November 30 or Cyber Monday as it is commonly known. The increase percentage over last year from ecommerce sites showed an initial of 19.6 percent increase. Last year had been the first for online sales having an exorbitant turnaround for the Monday after Thanksgiving reduced. Holiday sales have been 10 percent on online and the smart e-retailer should make use of different ways to capitalize on this part of the market that shows a steady incline.
The best thing about selling online is that almost anyone can start a business on the Net with a marginal amount than the regular businesses involving a higher quotient. It is no wonder that many call the Internet as the great equalizer for this reason. E-tailing has become the most sought after form of self-employment these days; as many are looking for way to earn a livelihood in these recession driven times. There is hindrance to entry with the continuous stream of new competitors; business could be tough and for small business owners and upcoming Net-preneurs the only thing to bear in mind is to specialize in your business.
The different kinds of E-Commerce
New sites often fail since business owners do not understand how to use strategy in stocking up on the inventory. There are four kinds of business on the e-commerce landscapes. The big online stores are the ones that stand first; the businesses everyone are aware off. The next and third to fall in place are the type of businesses that do not perform the way they actually should. The latter two are the in the category of being modern stores but pretty easily compared with the old fashioned general store of yesteryears. Otherwise, we have sites that are completely focused on selling on top notch products and branded items; something that is good to look at but hard to purchase. The final type of a small business e-commerce website is between the second and the third and is likely the one to succeed in a twisted market. An e-retailer who plans the online store has to make sure that the focus is there but not miniscule and should know the risks of doing it otherwise. Any store that has a general nature is one among the many that we tend to find easily; one cannot make any difference in competition. To make matters worse; it is sometimes hard to stock products and match competitive prices for the quantities that are huge. On the other hand there are sites that have a very thin focus and an equally sized audience; these sites run the risk of becoming extinct if the customer changes his preference or if another new product eradicates the demand completely.
If the above are not enough to give you the boost of specialization for your business; here are a few well-thought off product line up.
Having an online store that has a sufficient range of limited products, having the same nature or usage (example: Bed and bath Linen: Blankets, Bedspreads, Towels and Bathrobes) could be procured from few vendors who are dedicated. This will help you save on expenditure where you could negotiate products at better rates and get the benefit of similar economics that large stores get.
B.Market Research made easy:
Before you decide on selling online; make a complete study of the product that you plan to sell. Get to know every detail about them, your competitors who market the same product, the price range they offer and the type of preferences a consumer has. With every selective product you sell; the time you spend learning about the market will multiply. If you have a focused and smaller amount of products; it could help you learn the competition easily and make you stay on the peak or even as a forerunner of blooming trends.
The other plus of specialization is an increase in customer loyalty. A customer may pick up bed Linen from you for the Holiday season however, if on a second return if she finds you selling mousse and pudding; she might wonder if you are the right store to do business with. If the same customer wants Bath Linen to match the Bed Linen that she so fondly loves; specialization makes it easier to get you the continued business.
If you are thinking of selling online or starting an online store; bear in mind to have your focus thin. Keeping in mind all the points above; it is advised to start out on a low scale with the items in your product line up being less expensive. So if you love to sell Linen make sure you start off by first selling hand towels, pillow covers and bath towels before you venture out into selling high end products.
By starting out as a small store you can ensure that the risk percentage is not too high and it could give you ample time to build your customer base, the marketing lists and the knowledge of the industry all the while you are upgrading your products and getting the deliveries and shipments to fall into place.
After you have made a proper profit and feel confident of your operations of e-commerce business; reinvest the profit into the Bed and Bath Linen to show your privileged customers that you have something exciting to offer them as well.