7 Things to consider when starting an e-commerce business


So you want to start an e-commerce business? Here are critical factors that will determine the success or failure of your business:

1. Pricing

How you price your products will greatly determine your success.  According to a consumer report by KMPG International where 18,000 people were interviewed, 57% of the respondents said they were most likely to buy from the website with the lowest price they could find.

Pricing is of much importance to customers just like convenience. It’s one of the key reasons why people shop online. Besides, buyers do price comparisons on different e-commerce stores before making the purchase.

2. Stock popular brands

Consumers only purchase brands that they know and trust. Stocking popular brands will save you the hustle of marketing the new products to consumers.

3. Ensure speedy delivery

People shop online for convenience. There’s no need for starting an e-commerce business if you haven’t figured out proper and secure delivery channels. 43% of the people who took part in the survey said enhanced delivery options were a crucial determinant of their decision to shop online.

4. Customer Service

One of the key pillars of running a successful e-commerce business is great customer service. With online businesses, there is always back and forth communications with customers.

Establish several communications channels that customers can reach you. A significant number of people send messages to businesses on social media. Excellent customer support, therefore, is fundamental if you want to win your customers trust.

5. Marketing

Good online presence leads to more sales. You can create awareness about your business by marketing on social media.

Facebook ads will allow you to target specific categories of people in specific areas at a cost that fits your budget. The more your ad budget the more people you’ll reach.

However, you can reach more people organically by posting interesting content that can go viral. Videos have better engagement on social media compared to other contents. Grow your online audience by posting regularly across different platforms.

You can post links on your social media pages to direct people to your website.

6. Online Reviews

Buyers not only share feedback online but also look at reviews before making a purchase. 31% of the people who took part in the KPMG survey said that they share product reviews online.

Businesses that have negative reviews drive potential customers away. For this reason, you’ll need to watch out for customer reviews and address their concerns. Never leave a bad review unattended too as it will paint a bad picture of your business.

Should you receive a negative review, kindly ask the customer to pull it down after you address their grievances. At the same time, you can ask satisfied customers to share their experiences on their blogs or leave a comment on your Facebook page.


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