There are many attractive elements of having a webshop and be independent. You decide when you want to work, you reap all of the rewards of your efforts if your store is a success and you have the opportunity to build a great and exciting business.
Especially among young entrepreneurs, it has become popular to start webshops with all sorts of different products.
A large number of these webshops do not survive for a very long time, and it is mainly due to poor planning regarding logistics and the choice of niche. This can be done better by following these 3 tips:
Follow the money: Choose something there’s money in
If you do bodybuilding, it may seem obvious to start a shop with protein powders and other supplements. However, the challenge is that you go into a tough market with many other large and skilled shops.
The most “interesting” topics – supplements for fitness, consumer electronics and various gadgets – are also those with the most competitors.
With many competitors in one market the inevitable happens – prices fall and it becomes impossible for you to make an actual business in the niche.
Therefore, you should instead choose a subject where there’s actually money in it. A good example is to start a ladder and stairs business, because not many people grow up with a dream of selling ladders and stairs. But if you see an opportunity and seize it, then you will also reap the rewards.
Have a grip on logistics
A shop is to a great extent a matter of being in control of your logistics – how to get your goods in and how to get them out.
One of your major competitors’ main advantages is economies of scale in the warehouse. For example, many websites handle hundreds of thousands of packages per year.
This allows them to purchase at very low prices when buying cardboard, tape and make agreement with freight distributors.
Consider the opportunity to ally yourself with other webshops or service providers of shared storage capacity and shared people who pack the products. It lowers the cost for all of you to share resources.
Ultimately, logistics is the single most important factor in your shop’s succes. Your customers expect fast delivery, your cost per “pick” is a competitive factor and you should know which packages you sent when they are returned etc.
Be inspired by others’ marketing
Once your store is up and running, it becomes central to focus on how to get customers into the store. After all, this is when it gets fun.
Take advantage of the opportunity to be inspired by your competitors’ sites. You might even take some online courses in Google Adwords, Search Engine Optimization etc. to start mastering online marketing. Once you get people through the door, make sure to have a landing page that is optimised to convert visitors into customers.
Online marketing can be automated to a degree that offline marketers can only envy. That in itself is therefore a fun discipline once you have learned the basic concepts. Try to become part of marketing networks/forums, where you can exchange ideas and be inspired by like-minded people so you get your business even further ahead.
Do you have more great tips to start a webshop? Share them with other readers below in the comments section!