“Build it, and they will come,” Ray Kinsella said in the movie Field of Dreams. So I built an ecommerce store. With more than 26 million online stores across the globe, I was not the only one. And I’m sure I am not the only ecommerce store losing revenue.
But they did not come. Or came, saw, and left without buying. There are various reasons people don’t visit a website or buy enough for you to make a profit. Let’s look at some of those reasons and how to fix them.
Lack of investment
Some people think you need only to invest a couple of pounds, and an online store will flourish. Like any brick-and-mortar store, online stores need a significant investment of time and money to establish themselves and grow into money-making machines. Think of your ecommerce store as a new location. Retailers will happily invest thousands of pounds into a physical store but squeal at the thought of investing in an online store that might make them more money.
When you invest, make sure it’s in the right place. Don’t spend all your money and energy on building the store or inventory and then skimp on your marketing budget. Work out your budgets on actual revenue, not projected sales. Use inbound marketing on Facebook, YouTube, LinkedIn, Twitter and Google+ where content is king and mostly free. Good, relevant content like blogs, podcasts, and vlogs can help build your reputation and brand awareness.
Inventory management
Managing inventory and suppliers has become increasingly difficult after the pandemic, Brexit, and the war in Ukraine. If you carry too much inventory, you might compromise cash flow. Have too little, and you might disappoint customers who will never return. Some suppliers deliver re-orders quickly, and others take weeks. It complicates anticipating lead times and managing customer expectations. Freight costs have also gone through the roof with the global energy crisis. Managing all of these factors takes daily commitment and dedicated staff. So don’t skimp when you appoint someone in this role. A specialist logistics manager is worth his weight in gold. If you’re not aware of dropshipping, consider it as a business model. It might be the answer to your prayers if you’re in the right market.
Option paralysis
Sometimes there are just too many options for consumers. If every store offers the same products as big ecommerce stores, you’re bound to lose out on sales. Find your niche, and keep finding new ones or new products to satisfy that niche.
If you’re already operating in a niche market and still don’t sell, perhaps you have the wrong niche. Your organic and paid media fail to deliver on potential. Are you targeting the right audience? Do your research. Constantly review and do A/B testing. Review, adapt, redo, repost, research, repeat.
Price, price, price and price
Pricing is a huge factor in making online sales or not. If your prices are too high, you price yourself out of the market. Too low, and it looks like you’re running a fake website, or people might doubt your website and payment security. Remember, people have seconds to compare prices online. Spend time developing an online pricing strategy and executing it to the t.
Interrogate your website
There is only one thing more difficult than building a good ecommerce website. That’s fixing a bad one. Ensure you spend the appropriate resources on building and maintaining your site. Remember, it’s your store and face to the outside world. Some services are worth paying for. It includes a decent website designer, webmaster, web building software and platforms. A professional photographer will help you maximise your images, and a UX designer will ensure that your website works seamlessly. It might sound like a lot to invest in, but you’ll thank us later. If you can’t afford to permanently appoint people in these roles, get contract or freelance workers to complete the initial build. A good web admin will be able to maintain it. The last point, optimise your site for mobile usage. That’s where everybody shops and does window shopping.
You can forget about making a profit if you don’t get paid. Ensure your payment gateway works smoothly, quickly and securely. If you haven’t become a Truevo merchant, speak to us about ecommerce. We can’t wait to do business with you.
