When one thinks of an undertaking, the first thing that comes to mind is the amount an online store, because the investment is less than if I open a business offline and to sell anything is not much experience is needed. Error…! The e-commerce is not child’s play.
Undertake e-commerce is more complex than it may seem widespread idea looking for a nice and cheap product and backing me. First because from which no one is waiting for you on the market so you’d have to make yourself known and that takes time and ingenuity. Second, because the problems they often face in the offline world must be added other directly related to this sales channel: logistics; payment gateway; stock management itself or through drop shipping (merchandise goes directly from supplier to customer); how to convert visitors into customers; what is the cost of customer acquisition and life cycle; usability and the buying process …
Do not think that our intention is discouraged, far from it. We want to open your eyes. In that sense, the logistics may be, by far, which creates more problems for entrepreneurs.
The Great Barrier Reef: logistics
There is a free comment to say that most of the logistics operators are to serve large e-commerce vendors while small retailers (the vast majority) are left to accept the submission guidelines, collection and delivery they impose major logistics operators because their bargaining power is low.
One of the strategies that are being used more is the drop shipping, but not a panacea. “It’s cheaper this system? It depends on because, not having your product, it is your provider which sends your customers; there are many parts of the process that are beyond your control. One of the mistakes is to have integrated information handled your logistics company; For example, you may be selling something that your dealer has in stock. Or delivery, you do not control,” says Javier maxis the marketing expert, which recommends not forget two commandments: “You know your logistics agency to respond to the needs of your customer. For example, if you sell food, beware of the fragility of the shipment, or if cold. And your agency to ensure that you will treat the customer the way you want.”
The conversion process
Another fault is to confuse the acquisition cost of the first order with the customer.”Maybe the acquisition cost of the first order is large because the conversion rate is low adWords -and expensive- click, so that the first order to sell a client means you lose a lot of money. This happens because they consider that if that customer would you do actions for them loyal and you’re selling from cheaper sources of traffic and higher conversion, from a certain number of orders you will pay”, Maxis explains.
This expert advices assessing and calculating these two ratios and see where the customer pays off. “Obviously, for this, you have to know if your project allows recurrence in purchasing. For example, if you sell food, it is easier than the first order can cost more to be investing in attracting customers first and then in successive purchases and profitable exit. But if you sell chairs, the cost of customer acquisition will be almost the same as the acquisition cost of the order.”
The money, to get more traffic
One of the initial mistakes that often make is how I manage the budget for the project I have my online store? “They devote more budgets to the part design and programming to attracting traffic. There is a lapidary phrase: Do me a nice design that more people come to my shop. Error! People do not go to your store just for that reason. It is true that will help you convert sales better, but it will not make more people come. You will have to invest in traffic, marketing campaigns, to make a good SEO in campaigning with influencers, organize events, etc.” recommends Javier Maxis the marketing expert.
In that sense, when you start, “it is better to invest in a much lighter platform with less functionality, with the basics (one PMV), so that when someone comes into your store to see what you have and can buy and the remaining budget invest in traffic, getting potential customers,” says this expert.