The eCommerce industry is soaring high from the past few years. With multi-billion dollar markets yet to be tapped, there are a lot of opportunities in this space. Here are some tips to follow if you are planning on starting up – or already have an existing eCommerce startup, which is still a hatchling.
Tips for e-Commerce Startups
Find a Niche: If you are going to compete in a saturated market, your best bet is to find a niche market. If you are planning to full-scale eCommerce business similar to the likes of Amazon and other big players, it is likely that you would be consumed by the corporate guns. Instead, try to find an untapped niche and find your unique selling proposition.
Market: As evident from the infographic below, there is a lot of potential for eCommerce startups in untapped markets, like underdeveloped and developing countries. Of course, your choice between untapped or saturated markets has its own pros and cons. The obvious advantage of opting for the former is potential for growth rate due to ever increasing rate of internet penetration. However, you should be patient before you can expect huge profits. On the other hand, opting for established eCommerce markets like U.S.A, U.K gives you the benefit of a huge market size. Even though you target a rather small-scale niche, you can expect significant profits if you manage to succeed.
CRM: CRM is one of the most important aspects of any online business. It is the basic pillar which supports your customer retention rate. ‘Customer Satisfaction’ should be your primary concern because a lot of small-scale eCommerce startups flourish on word of the word-of-mouth marketing, rather than extensive million dollar marketing campaigns. Utilize technology to simplify customer management. For instance, Exotel or Salesforce are tailored platforms which provide CRM experience to fit your business needs. You can use such platforms to fuse technology with traditional systems.
Bootstrapping: Your primary aim shouldn’t be garnering astonishing funding figures or gaining VC support. You should able to bootstrap your startup. If you want to scale, you can opt for funding but don’t expect that it’s going to work as a safety net.
Social Media: Assuming that you are a bootstrapped or budding startup, it is highly unlikely that you have enough budget for mainstream marketing modes. If you want to get the word out, Social media is the cheapest and most effective mode. There are two ways to do this, you can opt for paid advertising or viral campaigning. Paid advertising is a relatively economic online advertising method compared to PPC and other internet marketing methods. While on the hand, viral marketing is free but not everyone’s cup of tea. By creating posts and videos relevant to your business and with a bit of ‘Share factor’, you can garner a lot of prospective customers.
This infographic is designed by TrackingCourier team.