Myths and realities of a successful eCommerce business

By Neeraj Singh | Updated: Dec 28, 2020 | Views: 1201
fix ecommerce myths
Setting up of an e commerce is very tempting and exciting but also carry risks. There are examples of entrepreneurs that have made millions through e-commerce and built successful online business. To name a few: amazon, ebay, alibaba, wallmart, flipkart, myntra etc. Online store is becoming a convenient way of transacting for shoppers and this e commerce is expanding at fast pace. Many entrepreneurs enters in online store business hurriedly, unprepared and suffer great business losses and damage of reputation due to lots of myths circulate around e-commerce which is far from reality. Our article is focused on to clear air around these myths and present your with reality.
  • The true picture behind the successful ecommerce is very carefully crafted and a manifestation of lot of hard work
  • Find what are the concerns not addressed by your technology partner but important to the success of your e-commerce business
  • You get the best when you know and realize the challenges behind your e-commerce venture

The setting up of online shopping commerce is more complicated than you actually think. There are many myths and propaganda floating around that make you think it is extremely easy.

Before you decide to venture expansion or fresh start in an e-commerce market, make sure that you properly understand the amount of efforts involved in operation, marketing and management. Evaluate your risks and dispel the prevalant e-commerce myths.

There are many e-commerce CMS (content management system) available free of cost in the market like WooCommerce, KartRocket, Majento etc. The mere availability of free CMS does not make setting up online store easy and inexpensive option. Here we need to understand that online store setup is only the first step towards successful online business establishment. In reality, building an online store and running it successfully is hard as it needs strong front-end, back-end and skilled marketing maneuvers. Building a valuable and successful e-commerce enterpize with the focus of expanding market is not an easy one. You will have many back end processes involved like collecting product images, content writing, categorization and uploading of these information. The setting up and integration of payment gateways, shipment, taxation are the other ones. More comes in the likes of billing, return of goods, customer care and refunds etc. After all this, the biggest challenge that comes to you is to draw attention of your customers towards your online store. To set up a professional online store setup, you will need experience and anyone cannot do it.

E commerce website require a better and faster server configuration. The reason is to handle as much customers as possible concurrently. You must pose the right questions about the required performance by your technology partner. You can figure out  the cost estimate for creating a new website / online store here.
Chart Area - success rate
Making money online using e-commerce is easy - is far from reality. Someone claiming to earn INR 100,000 monthly by selling some kind of products to few desperate customers is either concocted or designed to make money by illegal or unethical means. There are many companies who have invested time, knowledge and money to build a viable system which can generate revenue by offering online products. They have done it by implementing careful online implementation of core processes, shipment, customer research, marketing strategies and promotion. They have a very good CRM (customer relation management) and customer care behind the operations and have a well defined model to develop trust in their customers. You can earn windfall gains if you involve into processes very carefully and work on it tirelessly and passionately.

Shoppers at your e-commerce portal will more likely to convert if they feel that their data is safe and secure while shopping on your site. The stores with no such protection (without SSL) are less likely to convert than on stores with SSL. You shall disclose that how you will utilize the data collected from your customers on your website. It is mandatory to publish privacy policy of an e-commerce site.

Apparently, when we talk about setting up an e-commerce business, it look like it is more of technology than that of setting up bricks and mortar business. Unfortunately, this is not a reality. Yes, technology is required to setup your store but a sound online business and marketing strategy will determine the success of your online store. You need to have a crafted plan of action for your online business the way you have for your offline ones.

Chart Area: Work load distribution
There are millions of online store on internet. Therefore, you will have to face a cut throat competition on selling your products. Customers now a days have more choices that they had and they visit online store when they need to. So the myth that people will automatically discover is a nowhere close to reality. Being a store owner, this is your responsibility to drive customers to your store and help them buy from your store, you need to work on multiple fronts to achieve this and it is time consuming. Few of them are like –
  • Providing smooth and easy navigation
  • Proper SEO implementation on all major search engines: this will help direct customers towards your store
  • Efficient search box: your search box is like a sales person of your store, who brings items of customer’s choice as quick as possible. Customer tends to be in no-wait mood. If search is not appropriate and quick, he will try next shop where he finds his choice easily.
  • Customer Care: one of most important department you need to consider before you plan to setup an online store. This will build customer confidence and trust

Setting up a working e-commerce portal is just a beginning. All the hard work starts from here and this is the reality and must be recognized. You need planned and coordinated efforts to succeed. For an example, if your store is lacking on providing post sales customer service, you will find very few returning customer to your store. Not only that, they may influence others not to shop with you. Everything that happens in brick and mortar model happened in e-commerce also. There is no shortcut. To succeed, you need to invest substantial amount of effort in making your online store business a success.

This is a dangerous myth and you will will definitely burn your fingers if you believe in this. Again the reality is that when you everything setup properly and tested the platform, you need to do extensive marketing including all forms of digital & social media marketing. You will require to compete for traffic with millions of similar e-commerce stores that exist around. You will require a well thought out strategy for online marketing (with timelines) using all possible tools and means. Those means include email newsletters, promotional campaign, social media campaign, SEO marketing, field promotion, word of mouth publicity and any other means that is suitable to motivate your potential buyers. These campaigns shall be well planned and relatively longer term. If you are new and have doubts, you will make a start here by learning SEO knowhow[1][2][3][4]

Although it is true that good product line is the key for business growth and success, again – to sell those products online, you will need to have a solid online marketing strategy, resources and a robust transactional system in place. Good products are not enogt to sell. You will need to provide many meaningful measures for customers. The measures to make your business successful heavily depends on how you convert your prospects into consumers. The measures that you can deploy are:
  • The product has a detailed description with high quality images
  • The platform states clear return and refund policy in all categories of your products
  • The platform shall contain the grievance redressal mechanism in case there are any disputes with consumer
  • The business shall have a good customer care unit that lends a helping hand to customers. This step helps in return of customers.

There is a cut throat competition in online retail businesses. Today, market need to bring new ideas frequently to attract customers toward your store. They also need to innovate more and more in the way products are delivered these days. If you are not investing enough to stay in trend of the market, you will sooner than later start losing revenue also.

Every e-commerce CMS help you implementing taxes but it is not easy to implement. Taxes keeps on changing and every country has their country specific tax rules and compatibility guidelines. This makes implementation of taxes really not easy. It is not too difficult either if you are implementing the e-commerce in a specific country. Tax implementation becomes more difficult if you operate in multi currency and you have a global e-commerce operation.

Low prices are attractive to customers but this is not the only thing that can drive sales. People have to reach to your site in first place and find value in your product. After this only, they consider buying product. There are many more factors that is needed to drive sales. Trust is one factor customer look out for before opting for a product on your site. The customer look for product review and site reviews as well. This all means that lot of SEO, marketing, trust building exercise, site reviews and existing customer's buying experience drive sales. Only low prices cannot drive sales.

The transaction experience is core to the e-commerce operation. It has direct relation with customer's joyful buying experience and frustrations when transaction failed. Failed transaction frustrate customers and they may not return to your site next time. Failed transaction also hit your bottom line as you will pay additional fee for refund process. More failed transaction may eat your entire profit and result in reputation loss.

In Document References:
Website Development Design & Maintenance Cost - India
Smart Ways To Earn Money From Website or A Blog
10 important tips to boost your SEO page ranking
Top 30 Off-Page SEO Techniques To Rank #1 in Google
Best On-Page SEO Techniques To Boost Page Rank
Best Strategy To Get High Quality Backlinks

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