Should You Start An Ecommerce Business?
Business,  Money Matters

Should You Start An Ecommerce Business?

Should You Start An Ecommerce Business?

The e-commerce strategy is more than “more sales”. It requires integrative thinking, the branch network and marketing. Let’s assume that you are a decision maker in a retail company with an already functioning branch network. Your company is starting to go online or has gained initial experience. But you are not satisfied with the results of this sales channel and would like to give it a new status in the company. And it is precisely at this point that a large part of the management switches to operational business: A new online shop is set up. And maybe it will also bring its first successes because the product descriptions have been revised and the focus has also been on SEO. But then the rapid growth suddenly stops. In most cases it turns out that an e-commerce strategy is missing.

It was not possible to define accompanying measures for online trading. You must look at expanding your technology and the way in which you advertise to gain more momentum. You may want to look at a tip on ecommerce technology for this. The goal of “generating more sales” is too simple because that is usually the reason for a trading company to exist. Much more important is the question of how sales should be achieved so that the right tool is used.

Copying the competition does not mean dealing with the benefits of e-commerce for your own company. So, what do you really want to achieve? What do you want to focus on? The following list gives examples of strategic approaches in online trading. Your focus should be on a maximum of 2 goals, otherwise you will get too bogged down.  If you pursue this e-commerce strategy, you must be aware that investing in this sales channel will significantly increase sales costs per customer without generating any significant additional sales. The key figure at this point is not the increase in sales, but the decline in sales that has not occurred. You can also speak of opportunity costs here.

With the e-commerce strategy, however, opportunities can also be seized:

  • The availability of a shop 24 hours a day makes it easier for customers to place their order after work is over. At the same time, they have more time to deal with other things. Both can increase willingness to buy. Sales per customer can increase.
  • Due to the easy access to an online shop, customers can switch sales channels. The sales in the online shop are then offset by lower sales in another channel. This can be an indication that the goal has been achieved. The customer did not migrate to the competition because they were offered the right communication channel.
  • A positive side effect is the advertising effect in the online channel: Due to marketing and sales activities that run independently of the online shop, potential online-savvy customers can be activated. These customers have not yet bought from your company because there was no online channel. So, get a website sorted!
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