Using a website instead of a brick-and-mortar retail store to sell products can be a great way to make money while keeping your overhead low. No need to pay rent or utilities on a storefront and hiring people to manage it—with an e-commerce site, you can open a virtual store and begin selling your wares almost immediately.
While it is similar to opening a physical store, the mere act of creating a website won’t provide you with instant sales. Yes, your overhead is much lower and moving product from your pipeline is a more seamless event; however, there are still many things that can go wrong if you aren’t paying attention or thinking about every angle.
Here are three of the most common mistakes people make when building an e-commerce site:
Not knowing where your customers are online
As with traditional marketing, not every channel is right for your business. For example, trying to sell mass-produced plastic items on a DIY website like Etsy may not net you much success. However, if fun, hand-crafted items are your thing, Etsy would be a great place to start.
It is absolutely critical that you do your homework before jumping into e-commerce. Who buys what you’re selling? Where would they go online? Look for websites that carry items similar to the ones you create. Browse their selections and see what their Internet presence is like to get a feel for what you should be doing.
Not maximizing social media
The marketing gods blessed the world of advertisers everywhere when social media came into existence. There are many different platforms that reach different types of people, which makes reaching your target audience much easier. This does take a little bit of awareness, however — for example, methods that appeal to a typical Facebook user might not work as well on Twitter or Instagram, and vice versa.
Social media is where you can build a strong brand voice and interact directly with potential customers. Understand the difference between the platforms and be as active in your community as possible in order to better serve your customers. Many e-commerce website builders integrate the major social media platforms directly on your page.
Getting too far ahead of yourself
In the early stages of any business, it’s important to pace yourself and utilize your time and resources effectively. One of the most common mistakes is purchasing too much inventory before you know what demand is going to be—you don’t want to end up with a garage or storage unit full of product with no one around to buy! To get a sense of how much demand a particular item has, search for it on eBay or other e-tailers and see how many have sold in the last month.
Opening an e-commerce store is very nuanced and comes with many obstacles. Avoiding these three pitfalls will help lead to a successful launch of your e-commerce store.
For more on the future of e-commerce, see How Can IoT Help Retailers?