Starting an online business - Part 3 - Growth
So you figured out the first 2 steps and are your online business is now live on a couple of e-commerce platforms. Good. Now starts the real journey of growing your business.
Out of our experience, we have made a list of few pointers a growing business should keep a track of in their online journey.
In case you would like to read the first 2 parts of this series, they tallk about Starting an online business – Pre Launch and Starting an online business – Launch phases.
Lets begin with the first one – Seller Rating.
A. Seller Rating -
A high seller rating is an indication that the seller is meeting or exceeding the expectations of the marketplace and its customers.
It can be an important factor for customers when deciding whether to purchase from a particular seller, as a high rating may suggest that the seller is reliable and trustworthy.
The two main factors that affect seller rating the most are – order fulfillment and product quality.
Order fulfillment refers to the process of completing and delivering an order to a customer. The “TAT” (turnaround time) is the amount of time it takes for a seller to fulfill an order, from the time the order is placed until the time it is shipped or delivered.
Product quality refers to the overall quality of the goods that a seller is offering for sale. This includes factors like the materials used, the workmanship, and the overall condition of the goods.
Another important thing if you are selling consumables, such as food or personal care products is to check the expiration dates of any consumables that you are planning to sell and make sure that they will still have at least two-thirds of their shelf life remaining when they are delivered to the customer.
B. Increase Product Visibility & Traction -
Competition on e-commerce platforms will be fierce, and it can be challenging to stand out in a crowded marketplace. However, there are still ways that you can differentiate your business and make it more competitive, even if you are selling a product that may eventually be copied by other sellers.
As a seller or a business, you have to continuously look for ways to improve and innovate your products or business model. This could involve adding new product lines, introducing new features or services, or experimenting with different marketing strategies.
Paid advertising can be an effective way to help your products stand out and attract customers on an e-commerce platform. By using paid ads, you can increase the visibility of your products and bring more traffic to your product pages, which can help to drive sales and increase the success of your business.
There are a variety of paid advertising options available on different e-commerce platforms, and it is important to choose the ones that are most suited to your business goals and target audience. Some common types of paid ads include sponsored product ads, display ads, and social media ads.
To get the most out of paid advertising, it is important to understand how the different options work and to invest a sufficient amount of money in your ads. It can also be helpful to track the performance of your ads and make adjustments as needed in order to optimize their effectiveness.
While these advertising options can be effective, they do require a financial investment and an understanding of how they work in order to be used effectively. To avoid the costly “trial and error” approach, it is often a good idea to work with a professional team to create and implement your paid advertising strategy.
C. Product Reviews -
A good seller rating, visibility for your products, and getting people to land on your product pages are all important factors that can help to drive sales for your products on an e-commerce platform.
A good seller rating can help to build trust with potential customers and make them more likely to make a purchase from your business. You can improve your seller rating by focusing on factors like order fulfillment, product quality, and customer service. In addition to these factors, it can also be helpful to work on getting product reviews on your products.
Product reviews can be an important factor in influencing the purchasing decisions of potential customers, as they provide insight into the experiences of other people who have used your products.
Positive reviews can help to build trust and credibility for your business, while negative reviews can have the opposite effect.
Product reviews and ratings can play a significant role in influencing the purchasing decisions of potential customers, and can also impact the visibility of your products on an e-commerce platform.
In general, products with good reviews and ratings tend to sell better than those with poor reviews, as customers are more likely to trust and purchase products that have been well-received by others.
Similarly, products with good reviews and ratings may also rank higher in product searches and be more likely to be suggested to customers, while those with poor reviews may lose visibility and be suggested less often.
D. Product Range
Consumers often turn to e-commerce marketplaces because they offer a wide range of products and options to choose from. Therefore, it is important for sellers on these platforms to offer a variety of products in order to attract and retain customers.
By offering multiple options, buyers are more likely to find what they are looking for and are also more likely to make a purchase. Additionally, having a selection of products to choose from can help encourage buyers to compare and consider different options before making a final decision
The appropriate range of products for a seller to offer can vary depending on a number of factors, including the specific product category and the target market. In some cases, a small selection of products may be sufficient to meet the needs of customers, while in other cases a larger selection may be necessary.
For example, in a product category with a relatively small number of options, such as a specific type of clothing item, a seller may only need to offer a few different options in order to attract buyers.
On the other hand, in a product category with a large number of options, such as electronics, a seller may need to offer a wider range of products in order to compete effectively.
Ultimately, the appropriate range of products for a seller to offer will depend on their specific business goals and the needs and preferences of their target market. It may be helpful for sellers to conduct market research and analyze customer data in order to determine the most appropriate range of products to offer.
E. Promotional Events
Mega promotional events, such as Flipkart’s Big Billion Day and Amazon’s Prime Day, are large sales events that are typically held by e-commerce marketplaces.
These events often feature significant discounts on a wide range of products and are a way for marketplaces to attract new customers and drive sales.
During these events, it is common for marketplaces to offer additional discounts on top of the regular prices of products. These discounts can be particularly attractive to consumers and can help drive traffic to the marketplace’s website or app.
In addition to discounts, these events may also feature other promotions, such as special deals or limited-time offers, in order to further drive sales.
It is important for sellers to be aware of these promotional events and to consider how they can participate in them in order to maximize their sales. This may involve offering special deals or discounts on their own products, or adjusting their pricing strategy in order to remain competitive during the event.
During promotional events like Flipkart’s Big Billion Day and Amazon’s Prime Day, e-commerce marketplaces often offer significant discounts on a wide range of products in order to drive sales and attract new customers. These discounts can be attractive to consumers and can result in an increase in sales for sellers on the platform.
However, it is important to note that these discounts may not be fully funded by the marketplace. Instead, a portion of the cost of the discounts may be borne by the sellers themselves.
To summarize -
The steps mentioned above cover the most important aspects of growing an online product business. However, just knowing what is to be done and doing it right are two different things. The same applies here as well.
It is a common case for sellers to try everything on their own and lose focus of the business itself. As a result, these sellers make losses and exit the business.
The smart thing to do here would be to outsource your e-commerce operations to a specialized team which has both the expertise and experience in doing this.
Contact Amidora Infotech for building a sustainable e-commerce business right from day one.
