How to Thrive As a Small eCommerce Business

There's no doubt that the eCommerce industry is booming. It was already on the rise, before Covid-19, but with fears of being out in public raging in the spring of 2020, many consumers found the convenience of eCommerce to be the solution for their shopping needs.

Of course, there are many giant corporations at the top of the eCommerce market, but that doesn't mean that you can't carve out a space for yourself. Running a web-based retail company has never been easier since there are so many cloud-based solutions available, and the industry is set up to take on new entrants in the market. Here are some ways that you can thrive when starting a small eCommerce business.

A Unique Product

If you are going to survive as an eCommerce business, then you need to find a niche. Trying to compete with the big guys just doesn't make sense. Choose a product or a series of products, and try to create a niche for yourself. A unique product doesn't have to be something completely different than anything that has come before. However, it does have to have something that others do not. For example, there are thousands of clothing merchants in the world. If you want to be one as well, then you need to provide something unique, such as a combination of materials, humorous graphics, or attractive designs.

Do Your Research

Along with creating a product, you will also need to do some research into whether that product is viable for selling. In some cases, you might think that your product is unique, but there may be somebody already selling it on the market. Doing your research will identify gaps in the market that you can fill, and help guide you when coming up with a product.

Your research should also include the demographics of your potential customer base. Why would they want to buy your product? What kind of spending power do they typically have? You need to create a value proposition for yourself so that you have a clear idea of how to find success.

Develop Your Brand

Along with creating your product, this might be the most fun part of the whole process. Your branding will be a huge part of your success or your failure. You have to get it right. The name of your business should be memorable and catchy, and at least give off the vibe of the product you are trying to sell. Your colors and logo should reflect your brand's personality, and this should be carried throughout all of your marketing materials. This includes your website and your social media channels.

When developing your brand, make sure that you design everything to appeal to your target audience. There is no point trying to be flashy and edgy if your target market is 50 years or older. If your product is new and exciting, and your branding has to be new and exciting, that personality needs to be apparent in everything you do.

Social Media

Speaking of social media, you can make great use of it to find your success. It is an incredible tool for getting your brand in front of consumers at an affordable cost. Use targeted ads to be viewed by the demographics that are most likely to purchase your product. While you won't be hitting as many people overall as television would, you should get a larger percentage of conversions from those you do hit.

Social media is also a great way to showcase the personality of your brand. Post informative and engaging content. You don't always have to be selling on your social media. Using the 80/20 concept is a good rule of thumb. 80% of your posts should be informative and entertaining, and the other 20% can be sales posts. That way you will build trust with your audience with the 80%, and then they will be more likely to buy from you afterward.

Don't Forget Your Insurance

Many eCommerce entrepreneurs work from home. They have agreements for warehousing and shipping and handle the marketing with their laptops on their couches. This might seem like a no-risk environment, but that is simply not true. There is risk associated with any business, including eCommerce. You never know when you might get sued for something, such as a data breach or libel. You also need to protect your inventory in case of theft, damage, vandalism, or any other hazard. If you use your vehicle to make deliveries, then you will need a commercial auto policy to cover you while performing those tasks. It's quick and easy to get eCommerce business insurance online, so you can be properly protected at all times.

Incentives

Turning a customer into a loyal customer is much more affordable than trying to get new customers. Loyalty programs and other incentives are a great way to get customers to keep coming back. These can be anything from a points system for certain purchases or sending them gifts or vouchers when they purchase certain items or reach a certain amount in purchases. Loyalty is the best thing that a company can have, so you should do what you can to foster it.

Customer Service

In a world of automation, consumers appreciate when they are treated like real people. That's why customer service is making a comeback. We, as people, want to be connected to others. When you run your company, you need to make sure that you are prompt with answering questions and replying to reviews online and on your social media channels. Don't avoid negative reviews and complaints. Answer them honestly and do what you can to make things right. Even the negative reviewers will appreciate being listened to and respect the fact that you tried to help. Plus, on social media, others can see your replies and reactions. They will trust you more if they see you working to correct any errors.

Getting into eCommerce is a viable choice for anyone, and it's never been easier. However, it's not a guarantee of success when you jump into the industry. Take these steps, do the work, and you can reach your goals.