Most people think dropshipping and print-on-demand are get-rich-quick schemes which allow you to make a lot of money without putting in any real effort. While it’s true that eCommerce businesses can bypass the problems associated with handling physical products, there are several other challenges ranging from fierce competition and niche saturation to store management.
Experience is the best teacher. This article shows you 5 major mistakes people make while running their online stores and how you can avoid them in your entrepreneurial ventures.
Mistake # 1: Wasting Time on Mundane Tasks That Don’t Move the Needle
As an entrepreneur, you need to be mindful of the activities you focus on related to your business. Because the things you focus on can also paint a picture of what you didn’t focus on.
To become successful, you need to be able to set priorities according to your business’s needs. Get involved in tasks that are high leverage.
Managing an eCommerce business can easily get time-consuming with all kinds of activities related to different business aspects. Instead of spending your time on tedious tasks, invest in automation tools to automate such activities. Surely, you would need money for these tools but consider them as investments in your business that’ll pay in other areas.
Mundane activities such as inventory management, product listing, content uploading, reporting, etc., are something you can get other people to do for you with reasonable money.
Store management tools like Syncerize are easy to use and light on the pocket yet take the load off your shoulders so you can save time and scale your business.
Doing all the work yourself might look productive, but these are the business operations that don’t require your imagination and innovation as the brand founder. Focus on the creative aspects of your business that need your input, unique perspective, and effort. And look for high-leverage tasks that move the needle for your business the most.
Mistake # 2: Not Knowing About the Target Market and Ideal Customer
Your business suffers when you are unaware of the person interested in buying your product.
Most people enter the eCommerce business intending to make money without understanding the eCommerce industry trends and market dynamics. They just find a product that interests them and start selling it without regard to crafting a clear, persuasive marketing message.
Conduct thorough target market research to find your ideal customers and product before setting up your business. Develop your customer profile and let it guide all your marketing efforts.
For beginners, it’s easier to target micro-niches, and as you grow, you can broaden your niche. Instead of selling an amalgam of products related to your niche, pick a solid product and target it to the customers that need it. Knowledge of your target audience is more important than your product.
Mistake # 3: Missing a Concrete Content & Marketing Plan
Nothing in a business is done in isolation. One aspect of a business informs the decisions related to others.
Despite your efforts in market research and finding the perfect product for your ideal customer persona, if your marketing and messaging aren’t strong and don’t speak to your audience, you won’t make any sales. And a business without sales does not remain a business.
A strong marketing and content plan are essential to create awareness of your business & product in your target audience and drive them through various stages of your marketing funnel.
Give your customer the spotlight in your marketing efforts. Create a content plan to complement your marketing efforts to connect with your customers and turn them into fans of your product(s).
If one message doesn’t work out, try something different. A/B testing is how you refine your message and establish yourself in any niche.
Mistake # 4: Lack of Focus on the Budget
Don’t rush the finance section of your business plan. To see if your business idea is viable, check the revenue potential. For instance, a product in demand that sells cheaply means you would have to sell more products to become profitable – requiring more marketing efforts to attract customers.
A budget gives you a picture of profitability based on estimates of revenue and expenses. It guides your decision-making, such as whether you should spend money on a tool to streamline your processes. Or can you afford more resources to handle the workflow? What pricing strategy should you implement to set your product pricing?
Setting a budget can be overwhelming without experience. You can do it with basic industry insights. Following are the steps to make a budget plan based on your eCommerce goals.
- Predict/ determine your total revenue (revenue includes income from all sources related to your business)
- Calculate your expected operating costs
- Account for your variable costs
- Come up with one-time spends
- Calculate your profit margin
- Build a fund for unexpected costs/ events
- Set your budget for the months ahead and stay on track
Mistake # 5: Committing Branding Errors With No Clarity on What You Sell
People justify a product price with the brand’s perceived value. Even selling an expensive product becomes easy if your branding is right on the spot.
Many beginner eCommerce enthusiasts commit the mistake of adding out-of-the-league products into their stores when their initial product does not work out. This move can ruin their brand and impact their credibility if not done strategically.
Suppose you start a dropshipping store as a gym-wear brand. It does not work out for any reason, so you add other clothing lines such as swimwear or sportswear. They all are somehow related, but the grave mistake is to sell these under the umbrella of a gym-wear store.
Had your branding been of an active-wear store, adding these products might have strengthened your brand image or generated buyers.
The brand perception you build in the minds of your customers requires strategic thinking. If branding errors don’t backfire in the short term, they will harm your business in the long term.
Avoid the Pitfalls of Running Online Stores
Learning from others’ mistakes is the best way to avoid making the same mistakes yourself. The key here is to give your best with your knowledge and keep sharpening your skills with experience and experimentation. Here’s a summary of things you need to do to avoid the major pitfalls of running online stores
- Introduce automation into your business processes to save time and energy for value-driving work.
- Gain as much knowledge as possible about your target market and ideal customers.
- Come up with a sold content and marketing plan.
- Don’t jump into establishing your business without a budget.
- Build and keep a sharp branding and image in the eyes of your target audience.
Read more Blogs : https://syncerize.com/challenges-of-running-multiple-shopify-stores-and-their-solution/
