Over the past decade, the digital landscape has undergone significant changes. The way we use and interact with the World Wide Web has completely transformed. Let's take a look at the Ecommerce one: more and more consumers are turning to online platforms for their purchases, and as a result, small businesses as well as big brands, have been forced to evolve to suit their needs. Instead of investing in brick-and-mortar stores with limited possibilities of expansion, the companies of today are now focusing all their efforts on building an online presence through innovative marketing techniques, comprehensive SEO strategies and unparalleled customer support.
But as more brands are joining the Ecommerce game, it's becoming increasingly difficult to gain online recognition. Competition is fierce. How is one supposed to go up against a company like Amazon that produces crazy money every single day? The reality is that you can't, but you don't even have to. In the world of Ecommerce, small businesses and start-ups are perceived differently than established brands, and as long as they have products that people are interested in, a strong marketing strategy and commitment to quality, all small businesses can achieve wild success.
Here are a few statistics that perfectly describe the state of the Ecommerce Industry:
- Studies show that a staggering 71% of shoppers believe they can find better deals online, as opposed to brick-and-mortar stores.
- It is estimated that around 206 million online shoppers will complete purchases in 2015. A total of 215 million shoppers are projected for 2018.
- Another interesting study shows that over 80% of Internet users have purchased an item online at least once. Roughly 50% percent of them said they made more than one purchase.
I will guide you through the basics of planning, building, launching and growing your very own Ecommerce business, while also taking into account the limited resources and budget of a developing company, case-studies that support these strategies, and advice from the industry's thought leaders. Let's dive in:
Step #1: Create a Product that People Actually Need
Noah Kagan, founder of AppSumo, once said that marketing is easy when you have a great product. He was right. As long as you have something that people actually need, it will be easy to promote. Of course, if you're a marketing genius you can also convince people to buy something they don't need, but that's a story for another time. To find out what potential customers want you have to understand what problems they are facing. The best thing to do here is to find something that you need help with. If it's something useful for you, chances are that it will also be useful for others.
CASE STUDY:
Brial Pulliam, of Backplane, realized the importance of good posture after suffering an injury. He decided to make a product that would alleviate his back pains and realized that it might be useful for others. His strategy relied on pre-sales (validating the usefulness of his product by asking people if they'd buy it) and asking them about their problems.
Of course, there are also other ways to evaluate the success of a product like making boring performance reports for similar products, analyzing their marketing strategies, focusing on one of the 8 opportunity types or checking the competitiveness of the market etc. Regardless of your approach, it is vital that you believe in your own product. Once you have evaluated and created your product you can start thinking about Ecommerce site.
Step #2: Write your Business Plan & Start Building your Site
Assuming that you've come up with the final form of the product and contracted a supplier, it's time to let the world know that you exist. Before you start building your site there are two things you need to do: write your business plan and conduct competitive research. You will want to find out what marketing strategies your competitors are using, how they are persuading their prospects to complete a purchase, what discounts they offer, what platform they are using etc. Write all of these things on your business plan and create the roadmap that will help you move forward.
Deciding on a Name & Logo
With this information in mind you have to decide on a name for your business, a memorable logo and a catch-phrase. The visual identity of your Ecommerce store can make it or break it in the eyes of a consumer.
CASE STUDY:
Arguably one of the most iconic logos of the century is that of Starbucks, which originally consisted of a bare-chested siren with intricate details, and the name of the company framing the demure creature. In 1992, the company made a bold move and decided to preserve only the silhouette of the mermaid. Even without the name written down, people still recognize the brand, and this is a testimony to the iconic status that the brand achieved.
Things to consider while deciding on a name and logo:
- 41% of recognized brands use stylized type for their logo
- 93% of the logos are simple and can be recognized even in smaller size
- Over 95% of iconic logos use a maximum of two colors
- The name of the company should be suggested through the logo
- Conclusion: a logo has to be memorable, simple, powerful and versatile
Building your Site
Building an ecommerce site is extremely difficult, because there are many technical aspects including checkout process, categories for products, payment options etc. that must be resolved. The good news is that there are plenty of Ecommerce platforms that already incorporate most of the features you need. As a matter of fact, there are so many platforms to choose from that business owners and entrepreneurs end up spending hours trying to decide.
As far as I'm concerned, the "Ready, Set, Go" strategy is the best course of action. Just choose one platform and test it out. If it's not suitable, you can move to another one later. Here are two of the best Ecommerce platforms:
- OpenChart (free): this is an intuitive and quite powerful Ecommerce platform which incorporates a multitude of features (pre-programmed extensions and apps). It is also open source, which means that you can add your own features to the online store, but you will also have to set up your hosting and security options manually.
- Shopify (starting at 14$/month): undeniably the number #1 choice for thousands of retailers, Shopify is the platform that makes online sales look like child's play. The service takes care of everything, from credit card processing to hosting and website design. You can also choose from a wide selection of apps and templates that will change the layout of your site.
- Wordpress: has a plethora of Ecommerce themes that you can use to create your online store. You should opt for Wordpress if you don't plan on adding complicated features or payment systems, if you're planning on including non-ecommerce pages (such as blog posts or extra pages) and if you want full control over your website.
Other platforms worth testing include BigCommerce, LemonStand, SquareSpace, WooCommerce and BiGCartel.
Step #3: Learn About SEO
Before you start working your Ecommerce store there is one more thing you need to consider: Search Engine Optimization (SEO). You could say that SEO is the art and the science of making a website rank on search engines, and it encompasses strategies such as keyword research, link-building, search engine friendly web design, online marketing and more. SEO is an extremely complex field, and I'm not suggesting that you have to learn all its secrets, but having a grasp on basic practices such as selecting profitable keywords for your industry will significantly increase your visibility on SERPs, and help you attract more organic traffic to your store.
Useful Guides to get you Started
- The Ultimate Guide to SEO for Ecommerce Websites (KissMetrics)
- Perfecting On-Page Optimization for Ecommerce Websites (Moz)
- Keyword Research for Ecommerce: A Beginner's Guide (Shopify)
Now that you know what makes Search Engines move, it is time to put things into motion. When it comes to Ecommerce stores (and not only), visual impact is vital. You have to make sure that your website is attractive, easy to navigate and that your products are organized well.
CASE STUDY:
Chris Laursen managed to create quite a handful of valuable links for a newly launched Ecommerce platform, "JustBuiIt.com" using the Moving Man technique. What makes this case remarkable is the fact that the newly created site had no content on it, and no authority. Under normal circumstances it would have been extremely complicated to create contextual links. But by determining parked domains and helping other webmasters repair broken links he managed to obtain good referral traffic and boost his site's ranking. - Full story here
Here are some other things you need to include on your website-building to-do list:
- Create captivating and unique product descriptions accompanied by high-quality photos of products (also make sure to add Title and Alt attributes to your images to attract extra traffic from visual search engines).
- Decide on the tools you will be using for keyword research, performance monitoring and marketing. There are plenty of reasonably priced, or even free tools that you should consider. Google Analytics and Webmaster tools are the first examples that come to mind. For Keyword research you should go with SemRush (for competitive analysis), WordStream or Ubersuggest (free). Consider investing some money in a keyword research tool, as it will be the bread and butter of your online efforts - I recommend you to focus on long-tail keywords which have higher conversion rates.
- Create interesting & concise category pages that will help your visitors navigate the site. Take a look at Amazon's product pages for inspiration.
I cannot stress enough the importance of choosing relevant, long-tail keywords for your store. By writing correctly optimized posts and product descriptions and adding correct attributes to your images, you will greatly boost your visibility on search engine result pages.
Step #4: Preparing to Launch
Don't spend too much time trying to tweak all the details of your website. When it comes to Ecommerce, constant A/B testing is the only way to determine what works and what doesn't. Right after launching the site you will have to start testing with different variants for call-to-actions, buttons, website layouts etc. to determine what converts, and what doesn't. However, there are a few essential elements that you need to have ready for when the online store opens.
- You have to figure out your shipping strategy: Will you be offering free shipping for your customers? What conditions must they meet to become eligible for free shipping? You can take a look at Amazon's shipping policies to get a better idea.
- Decide on your Key Performance Indicators (KPI): many marketers mistake traffic volume with high conversion rates. While traffic may be an important indicator for blogs, your KPIs should consist of monthly sales, conversion rate, average margin and order size, shopping cart abandonment rate (for sales), time on site, unique vs. returning visitors, traffic sources and page views (for marketing) etc.
- Have you prepared your social networks? Social networks are extremely important if you are planning to market your site and create a brand identity. You should consider creating at least 3 social profiles on platforms such as Twitter, Facebook, Pinterest or Google Plus. It is here that you will be promoting your brand and engaging with your customers. You can find out more about social media promotion from a previous SMT article.
- Kick-start your Email Marketing Campaign: Once your social profiles are all lined up, it is time to set-up your primary communication channel: email. When it comes to ecommerce stores, marketing through newsletters and follow-up messages based on user activity is the key to online success. Consider using one of the following tools for email marketing automation: Klaviyo or Emma (for Shopify), and MailChimp, Get Response or Aweber for other platforms.
- Fine-tune your landing page: the landing page is the first thing your visitor sees. Most of the times, it also determines whether he will continue browsing your store or not. To ensure that you maximize your conversion rate, you must have a few key elements on it: beautiful images of products, concise categories (including products, about information, discounts etc.), social buttons, reviews (if possible), subscribe to newsletter button and call-to-actions. Analyze the landing pages of your competitors and determine their key elements.
- Are you going to use personalized packages? There is nothing more exciting for a customer, than to open his latest package. Some brands go to great lengths to make the unboxing experience unforgettable by using hand-made boxes, adding gift cards or coupons or simply adding a little something extra.
CASE STUDY:
Creative package design sets boring brands apart from cool ones. Some retailers believe that product packaging is as important as the product itself. You might be familiar with the Oculus Rift DK1 and DK2 situation. When the first generation of virtual reality headsets came out, they were shipped to tech gurus all over the world in beautiful, dark plastic cases. When the second generation of headsets came out, they were delivered in boring cardboard boxes. Needless to say, reviewers were so disappointed by the second package that they actually considered this aspect in their review. This proves just how important product packaging here. (Read more about the DK1 and DK2 kits here)
If you've got all the points above covered, you are ready to launch your site. But what comes next? Now is the time to build. You will have to interact with your customers, implement A/B testing to figure out what works and what doesn't, add more content and products on your site, and exercise patience. Ecommerce stores don't grow over-night, so you will have to constantly invest in SEO and user-friendly strategies to increase your brand awareness.
Step #5: Consider Selling your Products on Amazon, Etsy or Ebay
More and more online retailers are considering the pros and cons of marketing their products on standalone sites, as well as other online marketplaces such as Amazon, Etsy or Ebay. As I mentioned earlier, your objective isn't to fight tooth and nail with multi-million dollar platforms such as Amazon. As a matter of fact, you should try leveraging your presence on them. Below you will find a list of Pros and Cons for marketing your products on major online marketplaces:
#1 Amazon
Amazon is the number one marketplace for American shoppers, with a staggering 244 million active members and incredible authority. The pros of marketing on Amazon heavily outweigh the cons, so you should definitely consider setting up shop on this service.
- Pros: Since its inception, in 1994, Amazon has established itself as the number one online marketplace for consumer-oriented products. It has the credibility and trust that comes with age, it offers excellent shipping support and infrastructure, it has an overwhelming customer base and an excellent built-in algorithm for related purchased.
- Cons: On the downside, Amazon fees are rather pricey, the competition is rather fierce, and you can't really control the branding process. The only things you can edit on Amazon are the product description and photos, so nobody will actually know who you are.
If you're planning on promoting your products on Amazon, you should definitely read the Ultimate Amazon Guide, which will help you understand the company's policies, packaging options, goals and marketing cycle.
#2 Ebay
Ebay is another market-place worth testing. Here are its pros and cons:
- Pros: with Ebay, it's extremely easy to set-up an attractive shop and start selling. There are over 150 million active users on Ebay right now, and you will gain access to all of them. Another thing worth considering is global reach. If you can support international sales, this is definitely a plus.
- Cons: As is the case with Amazon, Ebay feels are also steep. Most sellers pay 10% of their sale to Ebay, but there are also other fees that must be considered, especially for larger shops. Another drawback is the fact that you might end up not getting paid.
#3 Etsy
Etsy is the ultimate online market-place for DIY and crafted products. Although its customer base is smaller (approximately 40 million active users), the year 2013 recorded over 1.35$ billion in sales. Let's overview the pros and cons of this service:
- Pros: setting up shop on Etsy is fast and easy. In addition to this, the community is extremely loyal and supportive.
- Cons: some hiccups with money processing and little ability to customize one's shop.
Step #6: Post Launch Tips & Marketing Strategies
The hard work begins after you've launched your site. Shopify compiled a great list "50 Ways to Make your First Sale" that will help you get started with social media marketing, Search engine marketing, content marketing, PR and traditional advertising. Create a list with vital points (examples: how to drive more traffic, how to encourage conversions etc.) and keep them in mind while working on your site. Patience and perseverance are key when it comes to building an Ecommerce store from the ground up.
Before I conclude this extremely lengthy guide, let's take a look at some of the most effective and unusual online marketing strategies for Ecommerce stores that won't strain your budget, and are better than traditional advertising tactics.
- Word-of-Mouth/Referral Marketing: studies show that shoppers will always trust the opinions of their friends over product descriptions or suspicious marketers. An often overlooked marketing strategy, word-of-mouth has the potential to significantly grow conversion rates. You should encourage people to share their opinion about your products by giving them incentives, follow up through email and showing genuine interest, thus winning their loyalty and create an unforgettable unboxing experience that they will surely appreciate.
- Micro-targeting online Audiences: Ecommerce is all about territory. Your goal isn't to take over the entire market-place, but to sell your products to the right people. Look for communities of people that are likely to purchase from you, find a common interest, and penetrate these communities with offerings they can't deny.
- Invest in Mobile: although not a marketing strategy in itself, mobile optimization is often neglected by retailers. More and more shoppers are purchasing from mobile devices, and not having a correctly optimized site will make you lose out.
- Offer free stuff: everybody loves free stuff. If your budget permits it, try to offer some free products or services (like subscriptions, discounts, coupon cards etc.) to loyal customers. You could also offer free stuff to those who refer their friends to your site.
CASE STUDY:
Dropbox is undoubtedly the best known referral marketing success story. By offering extra storage space to customers who refer their friends, the company managed to build a 10 billion dollar empire and go from 100.000 users to 4 million in 15 months. (Full Story: ReferralCandy)
- Paid advertising on social media: is extremely effective, and it isn't expensive. I would suggest focusing on Facebook and Pinterest advertising, because they drive relevant traffic for most ecommerce stores. As long as you target the right people, paid advertising is worth the investment.
This concludes my guide to building an Ecommerce store for small businesses. Did you find it useful? I would love to hear your thoughts!