How to start your E-Commerce Business in COVID-19 Period
The COVID-19 pandemic has completely changed the world, but we believe it’s definitely a great time to invest your time in an online business.
Online businesses are everywhere, especially in western countries. Based on well-developed e-commerce systems, more and more consumers are open to buy from an international business.
Why should I start my e-commerce business during COVID-19 ?
Due to the pandemic, a lot of online marketers stop their paid advertising campaign, which means the CPC cost will be lower than it used to. At the same time, a lot of consumers are looking for online shop to buy their products, instead of going to shopping mall.
However, customers are finding it quite difficult to buy products from the US market, due to heavy import taxes along with reluctance from US manufacturers to sell directly to them.
To deal with these issues, there is a need to bring up more international e-commerce stores.
However, before we get started, there are definitely certain factors to take into consideration.
The Startup Phrase
I would say this is a planning & building stage. It is the foundation of your business that should not be neglected.
At this point, you will have to evaluate your internal strengths and weaknesses, at the same time looking for your competitors. This approach is a basic marketing analysis tool.
The SWOT Analysis
You will eventually understand your position in the current market.
Here are some important factors that you should be aware of:
Delivery Time & Cost for an E-commerce
Statistics show that Canadians are more likely to purchase products online from a website that offers free, fast and reliable shipping and delivery services as compared to those that do not.
We all know how “Free Shipping” and “+2.99 shipping” looks like.
However, when have an online business you should think about logistics costs.
According to the Digital Marketing Guru – Neil Patel, 28% of cart abandonment is related to unexpected shipping cost.
Make sure your shipping policy is clear and concise. Mention all the details to your customers, for example: any “door to door” fees, or import tax related issues.
Setting the shipping policy right is a great basis for a dropshipping website.
Negotiate with your supplier
Before settling on the products you want, you need to consider certain factors.
Majority of the manufacturers would be unwilling to sell to merchants below the normal retail prices. However, how you position yourself to them greatly influences their final decision.
First, the ability and willingness of the manufacturers to deal with e-commerce business.
Well although it’s hard we got you! Super Chain is a Dropshipping marketplace that has a ton of suppliers on board who are all from international markets.
The first concern is usually the sales volume, are you having enough sales to convince the suppliers to give you a wholesale price, without limiting you by the MOQ (Minimum Order Quantity)?
We would highly suggest you to start off by building your own shop front and buy a domain (not using myshopify.com), before approach the suppliers. It’s crucial to let your suppliers know that you are already investing into your business.
Next, the costs involved. That is whether the prices offered by the manufacturer will allow you to have decent profits while at the same time taking into consideration the attractiveness of the prices to the customers.
Finally, consider the popularity of the product in the current market.
Pick your Market
After that, consider the popularity of the product to the market, this definitely has to be your first priority.
It’s good to have stand your ground so you will not get rejected by your supplier. But if you are new to e-commerce, I suggest you to pick a few niches before you dedicate your time to negotiate with suppliers.
A general store means you can sell everything, across different categories, but consider your target audience at this point. You can sell whatever that group of audience needs.
For example if housewives are your target group, you can sell kitchenware, knitting machine, baby items , kid’s product. For a niche store, you are selling one niche with the related items, for example a phone store, you will sell phone and phone accessories as well.
The general marketing and niche marketing technique, will help you to boost and segment your target group.
The Growth Phrase
Driving your sales will take time, but once you are able to break even, then you are very close to the Growth Phrase.
What exactly you should do in the growth phrase? Grab Market shares!
The startup phase is your investing period, you might put a lot of marketing, but now in growth phrase you will at least have some organic growth and buyers.
At this point, you are able to scale your business and aim to get economy of scale.
As indicated, a consumer tends to buy from websites that offer free delivery. Therefore, come up with a Unique Selling Proposition that includes this, for instance “FREE DELIVERY”.
Promotion is a great tool to grab your audience’s attention, as they might be price-sensitive and their purchase intention need to be triggered.
To deal with this, your paid ads need to be specific and relevant as possible so as to attract traffic from the right people.
Most of the online shops get their traffic from Ad campaigns, but in long-run, SEO will help you to get tons of free organic traffic.
So, we should plan for both route (Organic & Paid Ad), to achieve our goal on traffic.
Provide Pre-Sales and After-Sales Serivce
Additionally, you will need someone to handle customer service.
It’s best to find these services locally but they can be challenging. We would recommend you to use a Facebook Chatbot (Manychat) to be your online agent, to answer simple and routine questions. For example: How long will my order arrive? What is the shipping cost? Etc.
However, with complicated questions, especially after sales, we would suggest you to look for Virtual Assistant. And through proper screening and a little bit of luck, you might find people who are trustworthy and qualified.
We want you to have regular customers, instead of single time buyers. We invest a lot to get ONE customer, do not let them leave.
The majority would want to re-engage with your customers and let them be your Brand Ambassador, offer them a good after sales service by giving them tutorial on “How-to” use your product.
Earning points and get some rewards! Consumers tend to earn & save from every purchase, not exactly in the monetary term, but also in virtual rewards.
Loyalty programs will recapture your previous customers and let them join the program and earn from each transaction.
Eventually, you can add an affiliate program for your loyal customer and get their friends in love with your brand too!
The pandemic time is a great time for you to plan and build for your online shop!
Especially, when we are all stuck at home or working from home, you will have some free time to invest in your future business.
Make sure you grab the right timing during the COVID-19 period!
Are you are looking for high quality dropshipping product?
Sourcing Opportunities from Verified International Suppliers including Thailand, Korea, United Kingdom, Australia and more!
Stock Change & Product Update Alert