Several things have contributed to the rise of e-commerce over the course of the last couple of decades, and each factor reveals something about the phenomenon which is important to understand. First and foremost, of course, is the technology that has allowed for the rise of e-commerce. Advancements in areas such as payment security, website design, and electronic order fulfillment have allowed e-commerce to really take off.
Moreover, this technology has allowed for one of the biggest reasons why e-commerce sites are incredibly common today. This is simply that setting up an e-commerce store requires significantly less capital and resources than setting up a brick-and-mortar store. Indeed, the internet has democratized the retail game. Nevertheless, there is an important observation we should make at this point – the number of e-commerce sites may be high, but the number of successful ones is significantly lower.
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Success in Ecommerce
Sacramento web designer Peak Design– also experts in SEO and e-commerce strategy – maintain that this is primarily on account of how hard it is to stand out online. When anyone can set up a website for peanuts, the chances of having your brand-new e-commerce store stand out are significantly less than the traditional brick-and-mortar retailers who have a physical shopfront working for them. This is one of the reasons why website design is such big business and why there are so many services devoted entirely to it. Standing out is where the resources should go, at least at first.
This brings us back to the question of cost. It might be unbelievably cheap to set up an eCommerce site but setting up a good one actually does require some investment. Furthermore, just like any other form of business, it probably won’t be breaking even until profit margins begin to grow. Accordingly, the question of cutting costs and freeing up resources is still essential in e-commerce – just as it always has been.
So, financial planning is an essential part of setting up an e-commerce site. You need to consider the stuff you have to manage the company, the website design company you have designed it, the marketing you invest in to draw people to it… and this is all before you get to purchasing stock and, hopefully, making a profit. Therefore, cost cutting is wise. To that end, here follows some useful tips:
Create a Strategic Marketing Plan
Again, this all goes back to standing out. But the right marketing plan is also one that considers how much you are to spend on marketing. A benefit of internet culture has been that low production value videos (i.e., those shot on a smartphone) can make for amazingly effective marketing. This is just one example of saving money in this area.
Link Up with Partners and Collaborators
The internet is a place that rewards making connections with other brands and companies. Simple shout-outs to other companies, where there is no clear conflict with your own product, can expose your brand to a whole new customer base while also helping the other company out too. This is free.
Focus on Brand Identification
Wherever you find customers online (and you can find them on a great many places outside of your actual website) it is particularly important that you unify all these disparate threads by ensuring that some form of identification with your brand is fostered wherever you pop up. This is a way of making your marketing stretch further for no extra cost.
Ultimately, you do need to spend some money to make money. Despite all that e-commerce has achieved, this very much remains the case.