How can you build a successful e-commerce business?
- Laxmi Mathur
- 15 minutes ago
- 3 min read
There were 1.92 billion digital buyers in 2019, and it is estimated that e-commerce sales will reach $4.9 trillion worldwide by 2021.
These figures say a lot about the rapid growth of this industry and thus the competitiveness as well. To stay in the business for a long time, you must earn enough money so that you can keep pace with the growing competition and upcoming technology and succeed in this business.
Below are five important tips, which, when followed strategically and effectively, can make your e-commerce business profitable.
Find products with high demand
To choose the right product, it is important to first find out the demand for the product. Selling a product with zero or low demand usually wastes your time, money, and effort. Therefore, it is important to do product research beforehand. Below are four tools that can help you check the demand for your product.
Google Trends
So if you type in the name of a product, such as jackets, a pattern showing the trend of demand for jackets over that period will appear on the screen. You can also know which products are highly hyped and their demand is seasonal.
It is advisable to avoid overhyped products, as the profit in this business is likely to end soon. You should invest in products whose trend is constantly moving upwards.
You can also check the Explosive Topics feature, which provides information about products that may become popular soon and also about products whose popularity may decline.
Viral Launch: Viral Launch scrapes data from Amazon.com. It provides information about search volume, allowing you to check the popularity of the item. The highlight of Viral Launch is that it performs competitive analysis for your product. Thus, you can know how much revenue your competitors are generating, which can help you set goals for your business.
Reviews: This is one of the most contradictory ways to discover the demand for a product. This is important because 90% of buyers read reviews of the item before purchasing it. Customer reviews give information on how to improve the quality of products.
Market Research: You can find various reports on the industry or product you want to invest in. These reports give you information about the market size of a specific product or industry, current trends in the market, and other important data that will help you make better decisions about that product.
Focus on the customer
While competing with your competitors, don't forget to keep an eye on your customers. Jeff Bezos once said, “We don’t make money when we sell things, we make money when we help customers make buying decisions” This is one of the core values that Amazon follows, which has also contributed a lot to its success. So, the most important thing is to focus on the customer.
Targeting the audience
To be honest, it is not easy or sometimes even impossible to impress everyone. So, a business must define its target audience. You can categorize your target audience based on their gender, profession, age, etc. For example – Let’s say you start a footwear business. However, you only sell women’s fancy footwear. In this case, your target audience would be women aged 18 years and above. Similarly, if you only deal in kids clothing, your target audience would be people below the age of 15. It is important to develop the right product for the right customer.
Using social media- 87% of people who shop online believe that social media has helped them decide what they should and should not buy. These days it takes a few seconds for a video to go viral on the internet; you can see that is the power of social media. Thus, a large portion of the revenue earned is spent on covering marketing costs only. With the advent of several social media platforms, business owners find advertising to be cost-effective. Since the cost involved in digital marketing is comparatively less, and the reach is huge.
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