Sep 20, 2022
Why Buying an Ecommerce Business is a Great Choice?
Uncover the reasons why buying an ecommerce business could be your best decision yet. From high growth potential to flexibility, we discuss it in our article. Our comprehensive article helps you make an informed decision for your entrepreneurial journey.
Ecommerce has become an integral part of our daily activities. More people buy products and services online. People can shop from the comfort of their homes or on the go using their mobile devices. Setting up an ecommerce store has become easier with ecommerce platforms like Shopify, WooCommerce, Magento, etc. The ecommerce reduces entry barriers for entrepreneurs and small businesses and makes doing business faster and more efficient. So, it really saves time for both entrepreneurs and customers. It’s a win-win for everyone. The combination of these factors makes ecommerce an attractive option for businesses, driving widespread interest in this type of business model.
As appealing as that may sound, starting an ecommerce business or buying one comes with its own challenges and risks. You just need to weigh the pros and cons and ask yourself, “What is riskier: starting an ecommerce business or buying an ecommerce business?”
In this article, we'll look at:
- How ecommerce has changed business
- The Ecommerce Dilemma: To Build or To Buy?
- What to look for when buying an ecommerce business?
By the end of this article, you will come to know whether you should launch your ecommerce business or buy an existing one.
How Ecommerce Has Changed Business
With the increased Internet accessibility and the advancement of technology, more business are moving online. Ecommerce transformation has changed the way how physical goods are bought and sold. Even though ecommerce is often used to refer to the sale of physical products online, it can also be used to describe any kind of commercial transaction that is facilitated through the internet. Now, customers can buy goods anytime, anywhere, and on any device. Businesses are able to sell their goods to a global audience, operate around the clock and provide up-to-date information on their products. All this has led to an increase in the number of online businesses and there are now more people shopping online.
To understand why ecommerce business is important, one must look at the numbers of its growth over the past years.
The ecommerce industry is rapidly evolving as a result of technological advancements and global circumstances. Global ecommerce sales have been growing rapidly and are showing no signs of stopping as the access to the Internet has increased worldwide.
Global e-commerce sales are projected to reach $5.9 trillion worldwide in 2023, making an 8.9% annual increase. In the forecasted period between 2021-2026, this is the third-fastest worldwide e-commerce sales growth rate. Global retail e-commerce sales are anticipated to surpass $7.5 trillion by 2026, with e-commerce accounting for 23.3% of all retail sales.
You may tap into this expanding market more effectively if you are aware of the specific reasons for Ecommerce’s continued growth.
E-commerce has significantly changed the way business is conducted in several ways:
Global Rearch: E-commerce has made it possible for businesses to reach a wider audience. For example, with an ecommerce platform like Shopify, entrepreneurs are no longer limited by geographical boundaries, as they can sell their products or services to customers around the world. Small businesses now have access to a considerably wider range of potential customers than they would have had they only been able to sell locally.
24/7 availability: With ecommerce, your business can be open 24/7. And your customers can enjoy the benefits of 24/7 online shopping from their home, which increases the opportunity for sales. This type of business model enables ecommerce website owners to operate around the clock and provide their customers with accurate product descriptions, warranty information, and product reviews to help them make the best purchasing decision.
Lower operational costs: The cost of running an online store is lower than that of a physical store. Since it doesn’t require having a physical storefront you can reduce operational costs such as rent, inventory, warehouse costs, electricity, water, etc. You can run a successful one-person business but as your online business grows, you can hire employees to help you with running your ecommerce store.
To succeed, you must choose the best website builder for your online shop such as Shopify, WooCommerce, BigCommerce, Squarespace, Wix, etc. These ecommerce platforms are some of the best on the market, with Shopify being one of the most popular and user-friendly platforms for ecommerce retailers.
Personalized marketing: Today’s ecommerce merchants understand the importance of personalized marketing in attracting customer’s attention. 80% of respondents say they are more likely to do business with a company that offers personalized experiences, and 90% think personalization is desirable.
Ecommerce platforms can help you collect information about your website users, such as their shopping preferences, browsing habits, and purchase history. You can use this data to create personalized marketing campaigns that are more likely to result in sales.
Improved customer service: An ecommerce platform like Shopify can help you focus more on the customer’s needs and preferences. Shopify has a rich ecosystem of third-party apps that offers such features as customer reviews, loyalty & rewards programs, shoppable Instagram galleries, etc. You can find them on the Shopify App Store. Each app has its own rating and the app reviews are also accessible. There are all-in-one marketing platforms that combine several features under one dashboard. One of them is Growave. This app can help you improve customer experience, increase customer loyalty and boost onsite conversions.
Supply chain efficiency: Ecommerce can significantly impact supply chain efficiency by automating various processes. Ecommerce platforms can provide real-time inventory tracking, which allows businesses to optimize their stock levels. This can reduce overstocking and understocking costs. In addition to that, the order fulfillment process can be accelerated through ecommerce. Customers can place orders at any time, and automated systems can handle them right away. As a result, it takes less time to deliver orders.
Contribution to the Sustainable Development Goals: Ecommerce can contribute to sustainability in several ways. E-commerce can reduce your carbon footprint because it allows customers to buy your products from home, reducing the need for travel and thus reducing carbon emissions. And if that’s not enough, it reduces the need for physical retail spaces, which can save on resources used for construction and maintenance, as well as energy used for lighting, heating, and cooling these spaces. Besides, ecommerce has led to the growth of the second-hand market. Second-hand clothes and purchases are an environmentally friendly practice. Some ecommerce businesses are already implementing sustainable practices to mitigate these impacts.
These are just a few examples of how e-commerce has changed the way business is conducted. Ecommerce has a significant impact and will continue to evolve as technology improves. So, that’s enough reason for you to start thinking about entering the world of e-commerce.
The Ecommerce Dilemma: To Build or To Buy?
In today’s digital world where customers are expected to shop 24 hours a day, there has never been a better time to enter ecommerce. Your ecommerce business can be customized to perfectly align with your dream lifestyle, offering you the freedom to operate from any corner of the globe, and providing you with greater authority over your earnings. This flexibility not only empowers you to balance work and life seamlessly, but also opens up opportunities for unique cultural experiences and global networking, enriching your entrepreneurial journey.
So, your choices if you want to enter the ecommerce business world are either to launch your own venture from scratch or purchase an existing company. Starting your own company allows for more creativity and control over the direction of the company and has other advantages that we’ll talk about later as does buying an existing company because there’s less work involved. Despite the obvious benefits both options provide, there are risks to both of them.
It’s like choosing between buying an apartment in an older building vs purchasing a newly constructed apartment.
Both options are good and have their own risks.
If you buy an apartment in an older building, the design, heating, plumbing, and air conditioning might not be the best but it could be built closer to the center of town and have everything you need. All you need is to bring your own luggage.
But if you purchase a new-build apartment, it is customizable to your liking and everything is brand new. The exact finish inside the property is up to you. You can rearrange the apartment’s rooms for better use of its space, you can choose the flooring, furniture, etc. But there can be process delays.
Of course, it’s up to you to decide. But to better understand what you’re signing up for, you need to weigh the pros and cons of both options.
Let’s get started.
Is starting an ecommerce business worth it?
When you buy something, you usually know how to use or operate it, right?
But how could you possibly know without trying it out?
The answer is to start an ecommerce business.
“The biggest risk is not taking any risk... In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risks.”
He is absolutely right. It’s really important to take risks in a world of continuous and rapid evolution. Starting your own ecommerce business is risky and there’s no guarantee of success. The future might seem uncertain. However, there is also a huge potential for reward in this uncertainty. Just like Mark Zuckerberg says, failing to take any risks frequently results in passing up possibilities.
You win some, you lose some. That’s how it works.
Starting an ecommerce business is worth it.
But the main question to consider is whether you should start your own ecommerce business or buy an already established one.
What are the benefits of starting an ecommerce business from scratch?
Useful ecommerce skills
When you start a business, you have to contribute to each area of trading since you are the boss. Therefore, you get an opportunity to put your skills to use and learn new ones in the process. It can be a challenging but rewarding endeavor. You learn as you build and the more you learn the better.
To run an ecommerce business you will need to understand and use a variety of digital marketing strategies, such as search engine optimization (SEO), email marketing, content marketing, and social media marketing. If you already have these skills in these areas you can leverage them to grow your ecommerce business.
Although there is a platform like Shopify that makes it easy to set up an ecommerce store without much technical knowledge, having some understanding of design can be a huge advantage. You will be able to customize your site to better fit your brand, improve user experience, and potentially increase sales.
If you know a thing or two about photography, you can leverage your photography skills to present your products in the best possible way.
As the online retailer who is just starting out you will have to wear multiple hats. You will need to know about every aspect of your business to be successful. At one point in time, you will eventually succeed and expand your business. Then you will be overseeing the work that is being done by your employees. You will know whether they are doing a great job or not. What’s more, you can use the skills you've acquired throughout your career for your new business. You can further develop your communication, analytical, and research skills.
We’re living in the digital world where new ecommerce trends and technologies are emerging all the time. Being adaptable and willing to learn new skills is a powerful advantage in this ever-evolving industry.
Low ecommerce startup costs
Compared to traditional brick-and-mortar businesses, ecommerce businesses have much lower startup costs. You can start your online business with just a few hundred dollars in your pocket. That’s what makes the ecommerce industry so attractive to so many people.
No Physical Storefront: You don’t need a physical location and that can save you tons of money. Payments for rent or mortgage, utilities or maintenance, and other expenses related to a physical shop can quickly add up. Instead of investing in an expensive retail space, an ecommerce business allows you to sell products from your home or a tiny office.
Inventory Management: Depending on your business model, you don’t need to maintain a large inventory. For example, with dropshipping, you only buy a product from a supplier once a customer has bought it, avoiding the requirement for storage space and the danger of having unsold inventory.
Fewer Employees: You employ fewer people than traditional companies. In order to cut labor expenses, many tasks-including inventory management, customer support, and order fulfillment can be automated or outsourced. And if you’re just starting out, you can manage your online business on your own.
Lower Marketing Expenses: Traditional marketing strategies may not always be as cost-effective as digital marketing strategies like social media marketing, email marketing, SEO, and content marketing. The latter is free. By adding a blog to your ecommerce website, you can use keywords that your online store wants to rank for. The aforementioned strategies can help you reach a global audience, providing a high return on investment.
Scalability: Ecommerce companies are highly scalable. With a small initial investment, you may build up your firm over time as you begin to make money. Instead of having a sizable upfront investment, this lets you reinvest your earnings back into your company.
Ecommerce Platforms: It is easy to set up and operate an online store thanks to the abundance of accessible and reasonably priced ecommerce platforms. These platforms frequently come with tools for building websites, creating shopping carts, adding blogs and processing payments, which eliminate the need for technical expertise and additional software.
Reduced administrative costs: Many administrative tasks can be automated in an e-commerce company, cutting expenses and the need for extra workers. For instance, there is some room for automation in the areas of billing, order administration, and client interaction.
Even while an ecommerce business may have cheaper initial costs than a traditional one, it's crucial to keep in mind that there will still be expenses. These could include warehousing if you're not employing a dropshipping model, marketing, product prices, shipping and handling, etc. To ensure that you have a comprehensive knowledge of the financial commitment needed, it is essential to conduct a complete cost study before starting your ecommerce journey.
Freedom and Creativity
Think of your new online business as a white canvas. Slap a fresh coat of paint on it and allow your thoughts to come out in the painting. You can paint anything you want. You are in charge. As an owner of a new eCommerce business, you choose your business name, your eCommerce website builder, your niche, a legal structure, and your design. You choose your marketing strategy and the overall trajectory of your business. You are responsible for what happens on the canvas. Will this color spectrum work? Do you believe in what you see? Is the composition spatially meaningful? When you are passionate about your work you will go above and beyond to make it good and you will be proud of it in the end. Because starting an eCommerce business isn’t easy and requires hard work and a strong desire to succeed.
You have full control over your company’s business model, brand identity, mission, operating niche, and general growth trajectory. When you start from scratch, you have the freedom to shape your business according to your vision without any pre-existing constraints.
What are The Risks of Getting an Ecommerce Business Off the Ground?
Starting an ecommerce business can be financially rewarding, but like any business, it comes with its own set of risks. Here are some of the potential risks involved:
High Risks of Failure
Many people believe that now is the time to start an online business but the reality is harsh. The failure rate of ecommerce businesses, including those on platforms like Shopify, can be quite high.
According to a LendingTree analysis of BLS data, the business failure rate in the U.S. within the first year is almost 20%.
This data tends to grow as time goes by. By the fifth year, almost 50% of small businesses have failed. These statistics show the danger of complacency after having a major success. Even though launching an eCommerce business is less costly, it requires some serious capital investment as your business grows.
The reasons why so many ecommerce companies fail are following:
Lack of Market Research: Many online store owners don’t fully understand their target market. It becomes difficult to build a successful ecommerce business without a comprehensive grasp of who your customers are, what they want, and how they shop.
Poor Online Visibility: With so many companies operating nowadays, visibility is super important. Many entrepreneurs don’t pay enough attention to SEO, social media marketing and other techniques that can increase your online visibility. Thus, many businesses fail.
According to statistics, only 10% of Shopify stores are profitable. Only one startup will succeed and survive the test of time for every ten that are launched.
Bad Customer Service: Online shoppers anticipate top-notch support. Failure to do so frequently results in a company having trouble retaining clients and establishing a solid reputation.
Weak Website Design and User Experience: Your website navigation matters. Customers are more likely to leave your website without buying something if it’s difficult to navigate, takes forever to load, or looks outdated. Ecommerce merchants don’t treat Contact Us and About Us pages as their most valuable pages.
Pricing issues: Some ecommerce companies fail as a result of poor pricing. This could imply that prices are either too high and put off potential buyers or too low and fail to cover expenses.
Insufficient Capital: Starting an ecommerce business might be cheaper but it requires an upfront investment. Many online stores fail, because they run out of money before they start making a profit.
These are the reasons why starting your own online business is a risky endeavor that is associated with the high risk of failure.
The regulatory and legal difficulties are possibly the greatest danger on the list. While the aforementioned risks may be avoided or controlled by you, regulatory changes are largely out of your control.
A wide range of laws and regulations apply to the business sector. It’s always possible that a new rule could make your company outdated or will significantly affect your production, manufacturing or sales processes.
The import and export laws of each nation you ship to must be followed if you are transporting goods worldwide. This may entail paying customs fees and confirming that your goods are not outlawed or subject to restrictions in the country of delivery.
You could be obligated to collect sales tax or Value Added Tax (VAT) and remit it to the proper authorities based on where your customers are located. For companies that sell to clients across the world, this might be complicated.
The regulatory challenges can be complex and time-consuming to navigate but they are an important part of running a successful and legal ecommerce business. To make sure you are fully compliant, it is beneficial to seek legal advice. To succeed you need to be flexible and attentive.
Suggested reading: Is Ecommerce Legit
Benefits of Purchasing an Established Ecommerce Business
In today’s constantly evolving world, buying an ecommerce business has become a viable option. You get a functioning business model and an established customer base. All the heavy lifting is already done for you. You just skip the startup phase.
When considering buying an existing ecommerce business, it’s important to understand the business model you’re investing in, evaluate the financial performance, access the customer base and analyze the market trends. These are the biggest risks.
Is Buying an Ecommerce business worth it?
It is totally worth it. Why?
To understand why, let’s answer the following question: “What are the Benefits of Purchasing an Existing Ecommerce Business?”
Startup Work Complete
As we’ve mentioned before, starting a new online business is quite challenging and the truth is that most startups fail. With the growth of the e-commerce market, the competition is fierce nowadays. That’s why going with an existing e-commerce business makes so much sense. You skip the startup phase, which means that all the hard work that comes with getting a business off the ground has already been done for you. It is a huge advantage that cannot be ignored.
Website development: Even though some website-building platforms like Shopify help you create an e-commerce store without help of the website developer, it still requires some time and research to do it right. When you buy an existing business, the website is already built and functional.
Product selection and sourcing: Finding trustworthy suppliers and choosing the right products to sell can be a headache. An existing ecommerce business will already have products and established relationships with suppliers.
Brand recognition: Building a brand takes time and effort. An existing ecommerce business will already have some level of brand awareness, which can help in luring new customers.
SEO and Online Presence: For generating organic traffic, search engine optimization is essential. A company that is already in operation already has SEO in place. It might also be active on social media and other websites.
Operational Processes: Order fulfillment, customer support, and inventory management are just a few of the numerous operations involved in operating an online store. These procedures will already be in place in an established company, saving you the time and effort of setting them up.
Legal and Regulatory Compliance: As we’ve told before, an ecommerce company may need to adhere to a number of legal and regulatory requirements depending on the type of products it sells. An existing business will already have addressed these issues.
Customer Base and Team
One of the most difficult parts of starting a new commerce business is attracting customers. An established online store will already have customers, which guarantee a consistent flow of income right away. When you start looking at companies to acquire the majority of them will show their customers numbers. If these details aren’t available, you should ask for them.
When you buy an eCommerce business you also get employees. These people already know what their job responsibilities are and how to work in a team. All you need to know is how they rank and relate to one another. Having an established team is quite beneficial as it can save you time. You can concentrate on other growth and development strategies for your online business or you can take a break and travel around the world with your SO while earning a monthly income. What’s not to love?
Reduced Risk of Failure
When you purchase an ecommerce business that is already working, you’re buying a business that has already proven its viability. This means that the risk of failure is significantly lower than if you were to start a new business from scratch. As we’ve told before, an existing business comes with:
Proven Business Model: If the online business you’re buying is profitable, it means the business model has already been tested and proven. Making informed decisions based on prior performance analysis will help you determine what works and what doesn’t for the company.
Established Customer Base: An established ecommerce company already has a clientele. This means that your customers are interested in your products from the start. Compared to starting an ecommerce business from scratch where you would have to invest time and money, this is a huge advantage.
Existing Infrastructure: A functioning website, established supply chains, and perhaps a team in place are all features of an established ecommerce business. This saves you time and effort of setting up these systems from scratch.
Brand Recognition: If an ecommerce company has been operating for a while, it probably has some level of recognition. It’s an important asset as customers are more likely to buy from a company that they are familiar with and trust.
Immediate Revenue Stream: When you purchase an ecommerce company, you also purchase its revenue stream. This can help you cover the costs of the acquisition and offer a reliable income as you scale your ecommerce business.
The Risks You Face When Buying an Ecommerce Business
It’s important to keep in mind, though, that purchasing an eCommerce company already in operation carries some inherent dangers. For instance, the business can be very dependent on the prior owner's personal connections with clients or suppliers, concerns that you don't find out about until after the purchase. Before making a purchase, careful research must be done. So, what are the risks?
If you are starting an online business on the cheap you won’t lose too much money when you fail. Buying an established eCommerce business, however, requires spending a large sum of money. Ecommerce companies are valued based on their yearly profits which are often multiplied by two to five. The possibility of losing your hard-earned savings when buying an online business is one of the main worries that you might have.
Overvaluation: If your newly bought business has been overpriced, you can find yourself paying more than it is really worth. This may occur if financial records are inaccurate or if the future earnings projections are overly optimistic.
So, it is essential to perform a thorough financial analysis and obtain an independent evaluation.
Declining ecommerce sales: The company may also be experiencing decreased revenues as a result of increased competition, changes in market trends, poor SEO or the loss of key clients.
Bad Debts: You may also wind up having to pay the business’s unpaid liabilities or debts if they weren’t disclosed or found out during the due diligence process, which could result in financial loss.
Unexpected expenses: There can also be unexpected expenses after the purchase, such as the need to upgrade technology, invest in marketing, or settle legal disputes. These expenses can significantly impact the profitability of your company.
High Operating Costs: The company may have high operating expenses that reduce profitability. Process inefficiencies, high overhead costs, or poor supplier contracts could be to blame for this. If these expenses can't be cut, it can affect the company's profitability.
Lack of Ecommerce Skills
Before buying an online business you need to know which type of eCommerce business model interests you the most. The most popular models are Amazon FBA, dropshipping, and traditional eCommerce. But there’s no assurance that you would be able to maintain the business’ profitability if you don’t have the necessary skill set for your work. You need to understand business and product knowledge. The lack of skills and information can create some serious problems for your company’s further development and growth.
Digital marketing strategies, such as SEO, PPC advertising, email marketing, and social media marketing, are extremely important to eCommerce companies. You can find it difficult to draw in and keep customers if you don't have experience in these areas.
As an ecommerce store owner, you must understand the target market, customer behavior, and competition. A lack of experience in market analysis can lead to ineffective strategies.
It is crucial to understand the financial aspects of the business, including pricing strategy, cost management, and financial analysis. Poor decision-making and significant financial loss might result from a lack of experience in financial management.
If the prior owner or a key employee’s knowledge and expertise were crucial to the company’s success, their departure can have a negative effect on the company.
As we’ve told you before, starting an eCommerce business from zero can be challenging as most start-ups fail but it is cheaper. Buying an ecommerce business can be more expensive but it is a safer option. This is because an existing business typically comes with a proven business model, an established customer base, and operational processes already in place. These factors can significantly reduce the uncertainty and risk involved in building an ecommerce business from zero. What's more, you can analyze the financial history of an existing business to make informed decisions about its future performance.
What to Look for When Buying an Ecommerce Business?
1. Your Online Store’s Traffic Matters
Having an eCommerce store that already has traffic can help you start selling online faster. That’s why one of the first things you should check when buying an online business is website traffic. Your website traffic plays a significant role in the success of your eCommerce store. The more people view your online shop the better.
You really would want to know where your most converting traffic comes from and how much it costs. Not all traffic is the same. Some come through search, some come from recommendations from other websites, and others come from paid search networks.
How do you find out how much traffic your webstore gets? You need to use a reliable tool like Google Analytics. It helps you analyze and track your website traffic.
You should concentrate on each individual traffic source as soon as you get a better understanding of how the traffic is performing. Analyze the main traffic sources, which are typically referrals, social media, and search.
For example, if your traffic comes from search, you just can’t ignore search optimization (SEO) for your eCommerce business. If you already have an SEO specialist on your team, it is a huge benefit to your company.
If your company is doing well in the search results, start looking at what keywords it is ranking for and how much of the store's overall traffic those phrases are bringing in. It's essential that you consider the quantity and quality of links coming into the store.
2. Knowing your Suppliers and Deals
Before buying an eCommerce business, it is crucial that you understand the connections your previous owner had with their suppliers and how they interact with your business. Review all the paperwork. You need to know what these supplier agreements are, and what the terms are. You don’t want to learn that supplier gave a seller a wonderful deal only for them to hike the prices after the purchase. You don’t want to rearrange contracts but it’s not always like this. The good news is suppliers are more than happy to work with the new owner.
You should also find out how dependent the previous owner was on a single supplier. Relying on one supplier could be a disaster for your online business. You also need to know if the suppliers are replaceable because sometimes it’s better to switch them because they may not be giving the service you want. That’s why you need to purchase a company with a low reliance on a single supplier.
The more suppliers you have, the better. You will be able to solve the problem with supply disruptions. You won’t run out of stock. Moreover, the competition gives suppliers a great incentive to make prices appealing and improve the quality of service.
3. Social Media Presence is a Must
Having a social media presence is crucial for the success of your online store. It can boost the organic traffic you receive through search traffic. Your customers can learn more about your company and the products you offer. You should look up the company on social media to see how active it was. Simply being present on social media isn’t enough. You should post regularly. But remember this you don’t need to show up on every social media platform. Trying to be active on every single platform is counterproductive. It can be overwhelming and it can harm your brand reputation. If your targeted audience isn’t using social media platforms like TikTok or Snapchat, you don’t want to waste your time posting on those channels.
Social media is something your company can’t live without. You need to engage with your audience, respond to all social media comments, conduct polls, and remain true to your brand. Social media can act as social proof and it is a strong ingredient for marketing. You can embed social media testimonials on your eCommerce website. You can also include customer-created photos and videos to improve your brand image and increase sales.
For example, Lexus used Instagram to bring more attention to its brand as it showcased pictures of their happy customers. They launched a great hashtag campaign #lookatmylexus.
Moreover, you might want to build an email list. It is essential to your success. It can help you build your customer base and increase your revenue. It also means you own your email list. With Facebook, Twitter, and Google it’s impossible. They often change their policies. Besides your email list doesn’t depend on the decisions of other businesses. But that’s not all as you can effectively connect with your customers and talk to them one-on-one.
If your newly purchased company doesn’t have a social media account. It makes sense to create one or two.
Suggested reading: The best active Shopify Forums and Communities
4. Ecommerce Website Design is the Foundation of your Brand
When looking at a prospective E-commerce website, you need to pay attention to its design. It has the power to affect how your potential customers see your brand. See the example above. That's what a good website design looks like. A beautifully made website can help you attract more traffic to your website. More traffic means more leads and more of the right customers. It can also help you boost your sales.
Leaving a good first impression is paramount to you as an eCommerce website owner. People” will judge the book by its cover”. It will give you a solid foundation for building positive relationships with prospective customers. Every element of your website from the contact forms to the product photos has the power to influence your customer’s decision to make a purchase. Use high-quality images, because we are visual creatures and we buy emotionally. You need to showcase your store to its fullest and check every section of your website. You should make your homepage understandable for everyone. Anyone visiting your website should be able to find what they're looking for upon landing on any page.
Make sure these elements of your website are visible:
- Menu Bar
- About Us Page
- Contact Us Page
- Search Bar
- Return Policy Page
An effective website means appropriate colors, photos, videos, themes, graphics, and the use of white space. Your call-to-action buttons must be clear. In addition to that, your social media buttons must be clickable. And don’t forget to keep it simple. Pop-ups galore, banner advertisements, and too many colors can distract your potential buyer from making a purchase. You need to keep your web design minimalistic but at the same time exciting.
Website readability matters in your eCommerce business. It applies to everything, from landing pages, pricing pages, and service pages to blog posts. The easier your text is for reading and understanding the better. Pay attention to color contrast. The right one makes all your texts visible. Use headers and make your sentences shorter. They are easier to understand.
You should also analyze your competitors’ websites to see what are they doing well or bad. If your online store’s design needs some improvement, it’s better to call a professional web designer.
Always keep your customer in mind. It will allow you to provide the best user experience. Putting in the time and effort to get your website right you make your customers feel special and make sure they feel cared for.
5. Your Online Store Should Have a Blog
If you want to succeed you need to add a blog to your ecommerce website. Nowadays people will likely think twice before buying something online from brands they don’t know. This is where the blog comes in. It helps you promote your products and services, increase brand awareness and improve your search engine optimization. As if that’s not enough, with the help of the blog you can gain consumer trust. Blogging can help you increase both conversions and leads. And it’s a free marketing strategy.
However, it’s not easy as it sounds as it takes time and effort to make your blog shine. You should always remember that quality always surpasses quantity. It would be too much work to write an article every two days. You would want to avoid burnout as a writer. Writing good quality posts is what matters most. You also tell your consumers that you are much more than just selling products.
The more content your website has, the more your website will be indexed and the more organic traffic your website will receive from potential customers.
Suggested reading: Blogging for Ecommerce: 6 Reasons to Start a Blog
E-commerce is the new buzzword and there are a number of reasons why this type of business model is more attractive than the one that doesn’t use technology. Today everyone wants to get their piece of that pie.
There are numerous perspectives on starting vs purchasing an eCommerce business but if you are passionate about it you should go for it. You just need to do research and make an informed decision. Now that you understand all the benefits and challenges these two options provide, you understand why buying an ecommerce business is a better investment.
Starting from scratch looks good on paper but in reality, it is quite a stressful endeavor. You need to be really good at multitasking. Sometimes it might feel like there are a thousand things to work on simultaneously. In addition to that, you need to learn a lot of new skills. What’s more, starting your online business from zero is a long game. You have to be willing to invest time and money in a project that has a high chance of failure. It can take months or even years before you get the return on investment.
Buying an already established eCommerce business is a safe option. With an already successful business, you have more chances to succeed. You get a proven business model, proven products and services, and proven marketing and sales strategy. You have a proven system to make money. Buying an existing business isn’t cheap but you can recoup that investment fairly quickly.
Both approaches include some risk, but if you have enough money to buy an existing e-commerce business, it puts you in a better position.
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