3 Ways eCommerce Companies Can Stay Competitive for Extreme Growth
The world of eCommerce attracts hundreds of new sellers every month. Thousands of the ones who started their online business try to stay afloat. Thousands of others close their stores and go looking for a better idea. 💡
At the same time, all the sellers compete with each other. All new players immediately face the reality of big businesses controlling the best share of the market. Being able to take on such a competition requires a well-thought-out strategy. It is just important to remember that it is not impossible to make it as an online business.
In this article, we will outline the three ways eCommerce companies can stay competitive for extreme growth.
The three strategies
There are three main things you need to focus on:
- Your product
- Your pricing
- Your positioning
These are the cornerstones of your business that you need to focus on. Seems easy. But naturally, each of these points comprises a few aspects that also require close attention. Let’s have a closer look at them.
The Product 🛋️
The first thing that comes to mind is product quality. Yes, if your product is subpar, your business will not get to be on top. In fact, it will cease to exist. The very first sales you make will result in returns. You will lose money and earn a bad reputation.
The quality of the product is paramount to the overall success and the majority of sellers understand that. But it is not everything.
Products that are sold online are at a disadvantage — customers cannot touch or try them. So the quality, however good it may be, becomes a bit less important. You have to find ways to prove that your product is good. A good way is to have existing customers tell about it to the prospect ones. An even better way is to have your brand recognized for good quality. 🏅 So, brand loyalty is also a part of the Product.
The product itself goes hand in hand with the service that you offer alongside it. The customer is your boss when it comes to online selling. The customer dictates the rules, you only need to play 🤹 by them.
Customers nowadays are more demanding and smart about shopping online than ever before. They know that not every online seller out there is the same. They want to get the best service for the best price. They also can get overwhelmed by the sheer number of products available online 🤩 and want to find a reliable business to shop there for as long as possible. If you become that business, you get yourself a loyal customer base for the years to come.
The key takeaway here is that: not only do you need to make sure that the product you sell is perfect in every way, you also need to make sure that your services and brand work together 🤝 to help you to actually sell the product.
We have previously compiled the definitive guide to finding eCommerce products to sell to help you find the perfect product to sell in your online store.
The Pricing 💸
It is the “make it or break it” kind of the point. Too high a price can alienate a large portion of your customers. But make it too low and you are barely turning any profit.
An important thing to remember for beginners is to not try to beat the competition with the lowest price possible. ✊ This strategy will only hurt your business.
When you lower prices you can only go down from there but as a business, you want to go up. If you have enough money to be able to work without a profit from the start (or actually lose money on each sale), 💱 it is much better to take this money and invest in your Product.
Price your product in such a way that will allow you to maintain the quality for the period of time required to gain credibility among shoppers without the need to raise the price. When calculating the markup and margins, make sure to include the cost of creating you star-quality customer support. Do not forget that you need to make a profit, 💹 always. Without it, you cannot grow and scale your business further. And eCommerce companies that do not progress, eventually collapse.
The Positioning 👍
Ask yourself this — where should you sell? Which of the distribution channels do you choose and why?
Should you build your own online store from scratch and only sell on it? Should you leverage the advantages of popular marketplaces like Amazon, eBay, Walmart, or Etsy? Or should you do both? 🧐
Going multichannel can be a winning strategy for many businesses. And multichannel automation tool from Sellbery is here to help. Sellbery is designed to help sellers automate business processes across multiple channels. You can easily integrate your store with several marketplaces 🔀 and manage all incoming orders in a single dashboard.
The last step of your product strategy is marketing. Despite being the most talked about thing in eCommerce, marketing your products is not that difficult once you have done all the previous steps. You have hundreds of marketing tools 🗣️ at your disposal. There are tons of information online that is even specific to your business area or niche. You can hire a professional to do it for you. Yes, it is a hard and long process if you do not have any experience but when you have everything else figured out, it is much easier.