Starting in 2020, the post-covid-19 year of domains, things seem to be getting better and better for those involved in e-commerce with e-commerce platforms and Magento mobile app development services emerging that allow you to avoid technical issues and focus on business; there are many services that can help traders; more and more people want – and are accustomed to – buying online.
But this does not mean that everything is always simple. Getting started with e-commerce is an exciting but always challenging new business experience.
What are the main tasks you need to focus on in 2020 to get your eCommerce project off the ground?
Direct competition with big brands
Big online brands are the first challenge – and certainly one of the hardest – that a newbie will have to face with their new e-commerce business. Companies such as Walmart, Amazon and eBay, which are giants of the online trading industry, will easily take a startup out of the market.
Statistics show that Amazon has been doing better and better over the years, outperforming every other online retailer in both sales and popularity.
The solution to this particular problem is to avoid direct competition with the giants of the sector, perhaps by choosing a less competitive niche; or move into the hypervertical segment (as an expert) and in all cases strive to develop your business step by step, without mega-projects with sky-high investments that still risk failure, adding an aggravating circumstance to the economic disaster that you could take with you.
Shipment, delivery and returns management
Newcomers and startups in the e-commerce sector are facing many challenges as a continuous stream of transactions with placed and paid orders begins to come in: you have to manage shipping costs, timely and accurate deliveries and product returns from disgruntled customers… all of which can pose a serious threat for your business.
Most buyers also complain about the quality of services that are provided after payment: to stay in business for a long time, companies entering the world of online sales will have to do everything to offer their customers the best services. The risk is not seeing them come back and get negative reviews, elements that would bury any company.
There are several order fulfillment models associated with product delivery, you need to do extensive research to determine which one works best for your business and maximizes productivity.
Too expensive marketing and advertising
This is no longer the 90s, when you could make an impromptu business project and achieve popularity with a kick in the ass!
In the face of growing competition, digital marketing and advertising are becoming more expensive every day.
Most startups often make the mistake of spending their entire budget on developing websites and great features while completely ignoring the marketing aspect.
Before starting, all investments that a company will need to make in order to make a name for itself must be hypothesized, budgeted, and their coverage must be properly verified to ensure the growth and development needs of the project.
Also, you don’t want to spend too much on web development. You can start Shopify, which allows us to start with a basic 8/10k startup project.
If it costs more, remove the pieces.
You will add them when you see that the business is running.
(PS: maybe allow for a few thousand extra euros for the connector with the control program if you need it, to equalize stocks and orders)
Along with your usual digital marketing activities, you should also try other tactics to keep your customers coming back, such as rewarding customers with loyalty points that can be used for future purchases; discounts will also help bring back customers. Keep in touch with them, consistently offer valuable content, and don’t treat them like cash cows.
Well, you get the concept: running e-commerce is just an expense and then the serious stuff comes in, i.e. to get customers in, get them to buy, and get them to come back.
Be aware of what’s happening
As a rule, big brands are the trendsetters, they are the ones who innovate, create new ideas, open new horizons and become a reference point for the general public.
Smaller companies almost always have to catch up in technology and innovation, most often involving capital-intensive investments or otherwise beyond their capabilities.
If you need Magento 2 migration services – come to our company, and we will help you at any stage of developing your e-commerce store.