With the eCommerce industry now worth more than $4.9 trillion worldwide, it’s clear to see that it’s one of the most lucrative options for business people who want to profit from the online world.
Despite there being numerous behemoth companies that rule the roost, there is still a lot of scope for new enterprises to come in and benefit from the ever-growing sector. There are a few key factors that will contribute to success, and other booming online corporations have set a solid model for start-ups to follow.
Building a Solid Reputation is Vital
In fiercely competitive online industries, building a solid and trustworthy reputation is key. Some of the most reliable brands of all time have focused their efforts on fostering trust with their clients and have reaped the rewards.
For instance, companies like Acer, Weight Watchers, and Facebook all have high trust index scores because they have spent years winning people over. Looking at other bustling markets where brands need to constantly work to get the edge over their rivals, it’s clear that reputation is crucial.
The online casino industry is one of the internet’s most prosperous sectors, and sites must do everything they can to stand out. For example, if players see that an online casino has numerous awards and accreditations, they are more likely to choose it because the awards indicate trustworthiness and quality.
This is why sites like Mr. Green, which has won more than 15 accolades, displays them proudly on the homepage alongside reviews for players to see. While a new eCommerce business won’t have all these achievements, business owners should look to display positive reviews prominently, as this also goes toward building trust in your brand.
Start with a Niche Offering Before Expanding
A scary statistic is that the average success rate of an eCommerce store is 10 percent. One of the reasons why so many people fail with these ventures is that they try to do too much, too early. They look at the success of Amazon and Alibaba and think that they also need to offer all these different categories of the product. What they don’t realize is that these firms built up to become so expansive over time.
When Amazon began, it was simply an online bookstore. Likewise, Alibaba initially focused on domestic wholesale trade in China. After establishing themselves, they then sought to expand and diversify their offerings. New eCommerce businesses should try to follow a similar trajectory. It’s wise to pick a niche first and get good at that. Then, once you start to scale, you can add other products.
Encourage Customer Loyalty Through Incentives
Customer loyalty is one of the most important things for any business. One of the most famous stats that business people should know is that it costs between five and 25 times more to attract a new customer than it does to keep an existing one. Therefore, eCommerce stores need to do everything they can to encourage customer loyalty. This is usually done through incentives, such as special offers and discounts.
eCommerce is still a great industry to get into, but anyone interested in it should be aware of how competitive it can be. Building a great reputation, sticking to a niche, and working hard to keep customers happy are the key steps to success in the early days.