Photo by Taras Shypka on Unsplash
Selling online can be a lucrative venture, but it also comes with its own set of challenges and considerations. You need to have a strategy in place for how you’re going to sell online before you can begin. Tossing random things onto a website or online marketplace and hoping for the best is the quickest way to fail. It takes more than just building a website and adding product photos to sell products online. You need passion, knowledge, and marketing prowess to succeed. The good thing is that you can get an enormous amount of guidance online to assist you with your online store.
Here are 9 things to consider before selling online…
Things To Consider Before Selling Online #1 Market Research
Understand your target market and their needs. Research what products are in demand, what competitors are offering, and how you can differentiate yourself. Define who your ideal customers are based on demographics (age, gender, location, income), psychographics (lifestyle, values, interests), and behaviour (buying habits, preferences). Analyse trends in your industry to identify emerging needs or gaps in the market. To do this you will need to identify direct and indirect competitors offering similar products or solutions. Analyse their offerings, pricing strategies, marketing tactics, and customer feedback. Look for areas where competitors are lacking or where you can offer a unique value proposition, that will identify your unique selling proposition (USP), to target consumers that your competitors may be overlooking.
Things To Consider Before Selling Online #2 Legal and Regulatory Compliance
Legal and regulatory compliance is crucial for online sellers to ensure they operate within the bounds of the law and maintain trust with customers. Ensure that you comply with all relevant laws and regulations, including those related to taxes, product safety standards, data protection, and any industry-specific regulations. It is also essential to stay informed of any changes in laws and regulations relevant to your business and regularly review and update your practices to ensure ongoing compliance. Consider consulting with legal professionals specialising in e-commerce or business law to address specific compliance concerns and mitigate legal risks effectively.
Things To Consider Before Selling Online #3 Platform Selection
Decide where you will sell your products. Options include third-party marketplaces like Amazon, eBay, or Etsy, setting up your own ecommerce website, or a combination of both.
Things To Consider Before Selling Online #4 Costs and Budgeting
It’s essential to create a comprehensive budget that accounts for all these expenses and regularly review and adjust your financial projections based on actual performance and market dynamics. By carefully managing costs and optimising your operations, you can maximise profitability and sustainability for your online store. Consider the costs involved in setting up and running your online store, including platform fees, transaction fees, shipping costs, marketing expenses, and inventory management costs.
Things To Consider Before Selling Online #5 Product Sourcing and Inventory Management
Determine how you will source your products and manage your inventory. Consider factors such as storage space, order fulfilment processes, and potential supply chain disruptions. Identify reputable wholesalers or manufacturers who can supply the products you want to sell. Establish relationships with multiple suppliers to diversify your product sources and mitigate risks.
Things To Consider Before Selling Online #6 Shipping and Fulfilment
Shipping is a critical aspect of running an ecommerce business, and there are several key points to consider when setting up shipping operations. Define your shipping strategy, including which regions or countries you’ll ship to, shipping methods (standard, expedited), and any special services you’ll offer (e.g., free shipping thresholds, express delivery options). They calculate shipping costs accurately based on factors such as package size, weight, destination, and chosen carrier rates. The choice of packaging is also an important decision, to align yourself with your consumers choices, you may want to consider eco-friendly packaging options to align with sustainability goals and appeal to environmentally-conscious customers. As an online seller, you will be judged highly on your shipping and order fulfilment standards. So make the effort to streamline order fulfilment processes to ensure timely processing and invest in inventory management systems or software to track stock levels accurately and prevent overselling.
Things To Consider Before Selling Online #7 Payment Processing
Payment processing is a crucial aspect of running an online business. Research and select one or more payment gateways to accept online payments. Popular options include PayPal, Stripe, Square, Authorize.Net, and Amazon Pay. Consider factors such as transaction fees, setup costs, supported payment methods (credit/debit cards, digital wallets, bank transfers), and compatibility with your e-commerce platform. Then ensure that the payment gateway you choose complies with Payment Card Industry Data Security Standard (PCI DSS) requirements to protect sensitive payment information.
Offer a variety of payment options to accommodate customer preferences and increase conversion rates. This may include credit/debit cards, digital wallets (e.g., PayPal, Apple Pay, Google Pay), bank transfers, and alternative payment methods. By carefully selecting and implementing payment processing solutions tailored to your business needs, you can streamline transactions, enhance security, and provide a seamless payment experience. It is also essential to implement security measures to protect your customers’ sensitive information, such as SSL encryption, secure payment gateways, and regular security updates.
Things To Consider Before Selling Online #8 Customer Service and Support
Plan how you will handle customer inquiries, returns, and complaints. Providing excellent customer service and support is essential for online sellers to build trust, satisfaction, and loyalty among their customers. This can be achieved by offering multiple channels for customers to reach out for support, including email, live chat, phone support, social media, and self-service options such as FAQs or knowledge bases. You should also respond promptly to customer inquiries, whether it’s a question about a product, an issue with an order, or a request for assistance. Set clear expectations for response times and availability, and strive to exceed them whenever possible. By prioritising customer service and support and implementing these best practices, online sellers can differentiate themselves from competitors, build strong relationships with customers, and drive long-term success and loyalty for their businesses.
Things To Consider Before Selling Online #9 Marketing and Promotion
Develop a marketing strategy to attract customers to your online store. This may include SEO, social media marketing, email marketing, content marketing, and advertising campaigns. Another vital consideration is your billing system. While platforms like Wix offer subscription options, it’s important to be aware of their limitations. For businesses considering recurring payments to Wix, you might face challenges with scalability and flexibility. If you’re setting up your own e-commerce website, pay attention to website design and usability. Ensure that your website is mobile-friendly, easy to navigate, and optimised for conversions.