eCommerce anyone?

[Tanzi]

I'm thinking of starting up my own eCommerce business in the natural health and beauty field (ie. 100% organic face, body and hair products ... herbal supplements ... that kind of thing). I have already sourced some wholesale products for private labelling and drop shipping and I am currently working on a web site (free trial). I have a long way to go yet and still have things to look into, such as merchant banking, but it is something that I would seriously like to do.

 

However I understand that competition will be fierce and I have no idea whether or not this will end up to be a lucrative venture. I would really love to hear from anyone who has started up their own eCommerce business (or knows someone who has), whether its been a success or not, how I can make it a success and what pitfalls I may encounter or could avoid along the way.

 

Thank you

 

blue

[littlestar]

The best advice i can give is to have a budget and stick to it. Have a plan, long and short term and don't give up, no matter what! Good luck with your new business venture.

[quirky]

I don't have any advice but I wanted to wish you all the best! I also want to start an online shop at some point so it's encouraging to read your post. How long have you been working on it?

I don't know where you are based but here in the UK you can go to your council and there are often services to help small businesses, from legal advice to budgeting. There must be something similar where you are.

 

There is also this sites I find helpful

 

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This is a mentoring site where someone who's been there and done it can maybe advise you.

 

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These books I have found insightful

 

Creating Competitive Advantage

The 80/20 principle

 

And I follow this guy's blog

 

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[seoulmate]

I have built several large online companies since 1999. I can tell you that I can see you are already going about things the wrong way. Before you build anything, before you do anything...and before you waste any more time, get answers to these questions:

 

1. Who is your target market?

2. Who are your competitors?

3. How will you get people to visit your site? What will be your cost per visitor? What percentage of visitors are likely to buy?

4. What your competitor's prices? How do they position themselves in the market? Are they low price? Unique value proposition?...etc..

5. How do your competitors advertise? Where do they advertise? How much do they pay for advertising?

 

...I have about 100 more questions you need answers to.

 

If you do not have answers to these...you will fail. Simple as that.

 

You need to differentiate. Price? Product? Value? What makes you different? Why do I buy from you? Why do I continue to buy from you?

 

Do you know...a lot of business lose cash on the first 2 or 3 sales they make to a customer. They have their "math" down to a science, they know that their customer's buy every x months, they buy an average of x $ of product, and they know that on the 6th sale (for example) they will be "in the black" with that customer.

 

It takes a customer 5 or 6 interactions with a brand before they even buy. So what happens when they visit your site and don't buy a thing and leave? You need to have a process in place to attract them to giving you their info (name, email address), so you can start a line of communication (newsletter) so that you can nurture them into a future customer. It may take months before they actually buy from you. However, it cost you money to get them to your site (via advertising) you don't wnat them to just leave and never know "who they are".

 

Selling online (ecommerce, as you call it) is not just "competitive" -- it is a science! You need to know that science before you get started otherwise you will fail...and you will fail repeatedly.

[quirky]

You need to have a process in place to attract them to giving you their info (name, email address), so you can start a line of communication (newsletter) so that you can nurture them into a future customer.

 

I really hate it when companies do that though..Do you mean voluntarily service or give details in as soon as they visit the site?

 

Do you know...a lot of business lose cash on the first 2 or 3 sales they make to a customer. They have their "math" down to a science, they know that their customer's buy every x months, they buy an average of x $ of product, and they know that on the 6th sale (for example) they will be "in the black" with that customer.

 

Is there a book related to what you wrote, I'm interested.

[seoulmate]

I really hate it when companies do that though..Do you mean voluntarily service or give details in as soon as they visit the site?

 

 

 

Is there a book related to what you wrote, I'm interested.

 

It's a voluntary exchange of information. You offer something of tremendous value (not just a newsletter) that makes them want to hear from you. Go to your local shopping mall, go buy something at the Gap or Abercrombie, now go to the cash....they always ask if you'd like to "sign-up" for something. Why do you think they're doing that? ...it's no different online. The most valuable customer is a paying customer. The second most valuable is the person who visited your site (and was interested in your product). You want to keep in touch with both of them. It's the only way to build your business...flat out!

 

What do you offer to them?....You don't just ask for their name and email (especially before they've done something). Here's an example...a person comes to a website that sells golf clubs. You know that they are not going to buy before they shop around online. But you want them to COME BACK. Maybe they'll forget your website address, maybe they'll delay their purchase for another week. How do you contact them? How do you keep in touch? Well...how about offering them a free 30-page report on "how to hit the golf ball further with 4 simple stretches!"...they provide their name and email address and you email them a free report. NOW you have a line of communication. COntinue to give them free info, nurture them, don't throw "buy this" or "buy that" spam in their face. Show them you care about the relationship. Build trust. And then after a few times you can suggest some deals on your site.

 

I have never read any books on these topics. They exist but I've written my own books in my head. I have built (7-figure) online companies since 1999 and went to the conferences, attended the seminars, and learned learned learned.

[Tanzi]

Thank you very much for your wishes and responses everyone.

 

quirky: Thank you for the useful links. I will take a look at them. I'm sure they will be helpful.

 

seoulmate: ... and thank you for all your valuable advice. I have been researching my target market and products for some time. I have a little guidance from my partner who started an on-line business a little while ago but it is still a new business and he is only one experience. I would like to hear others. I already have a little understanding of how to drive traffic towards my site, link building, SEO, advertising (pay per click), news letters, blogs, articles, catalogues etc.

 

One of the products I have managed to source is is being talked about a lot in media lately but is not readily available in the UK at a reasonable price. Although it sells over here there aren't actually many UK suppliers. I have obtained another product (not private labelling or drop ship) from a company who have a chain of spas and who are now selling their products wholesale. They are already a successful company and the product, being a new and exclusive range, is being well advertised through them. As part of the product package they also offer leafets to be handed out with each item. They also list you as one of their stockists. At the moment they only have one other stockist.

 

I'm sure there is a lot for me to still learn but I think (well I hope) I know enough to get started.