There are a huge range of online resources that claim to demonstrate how to make an eCommerce business successful. Most of them cherry-pick a small number of runaway successes (the one-percenters), but the unfortunate reality is that their experiences won’t apply to everyone. In fact, in some cases, creating your strategy based on what made another company successful could be your biggest mistake.
The following three misconceptions come up time and time again when we talk to online retailers:
1. You’ve sourced a fantastic product that anyone and everyone can use, so you should target anyone and everyone.
Even if you simply get 1% of the market, you've made it, right? Wrong! One of the most common mistakes eCommerce businesses make when starting out is not considering their target audience -- that is, the people who are most likely to buy their product.
Knowing your audience and really understanding what drives their buying decisions is one of the biggest opportunities to gain a competitive edge.
You need to create a buyer persona so you can develop content and messaging that appeals specifically to your buyer. This takes time and research, but it can make or break a brand, especially online, where it's so easy to shop around.
Understand why people buy your products. Think about who they're interacting with the most and what those people are telling them – consider their goals, motivations, and shopping habits.
Above all, keep asking "why." That way, you can build a full picture of the person who wants to buy your product. It’s better to be incredibly relevant to a smaller audience than somewhat relevant to a wider one. It helps you stand out.
2. Pricing is the No. 1 factor considered when making a purchase.
Totally wrong again. While it’s true that money makes the world go around, successful brands sell an experience, a feeling.
Research has shown that 95% of purchasing decisions are subconscious -- the price just isn’t as important as you may think, in most cases.
Because everyone has different reasons for buying. Studies show that a consumer’s emotional response to an ad has a far greater influence on their intent to buy a product than the ad’s actual content. This means it’s essential to think about things like convenience, social cause, indulgence, prestige and brand recognition – in short, the "why" behind the buy.
If you manage to stand out because your brand or product is unique, then pricing 10%, 20%, or in some cases, even 100% more than the competition may not actually make a huge difference. Of course, there are exceptions to every rule!
3. This company in the same industry is incredibly successful, so I should simply copy them.
No, you shouldn’t. First, you're assuming that you have the same unique value proposition (UVP) and/or audience. Second, you're assuming that you're even able to copy them.
That’s not to say that you shouldn’t take account of what they’re doing, but the big brands are ahead of you because they figured it out already. For that same reason, they have the budget, audience and reach to make certain things work. It’s likely that you don't.
Instead, focus on your USP and what makes you stand out. Find something you have that no one else does. Think about your own brand story, your product qualities, and how your product makes people feel.
Once you find that unique quality - use it consistently across the board with your marketing, then you'll be on your way to sustained success.
A word from the author:
Our software Profitizer, is an app that makes it easier for eSellers to understand their marketplace profit & loss data from the top of their business right through to individual or grouped product profitability. For Amazon, eBay, Etsy and other marketplace sellers, Profitizer is “Profit and loss, made simple”.
Find out more: https://www.profitizer.app
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