The idea of making easy money is something everyone dreams of. Most people flock to ecommerce to realize this dream. The likely chances of individual online purchases increasing to 72% this year is promising. According to ASSOCHAM, with a compounded annual growth rate of 35%, Indian ecommerce can cross the $100 billion mark sooner. Online retail reached just about everywhere in the past year. We have smart phone technology to thank for this.
These are just a couple of facts about India’s ecommerce industry. At the same time there are quite a few ecommerce myths about cyber space retail. Believing hypes without dissecting them can cause many reservations about ecommerce. Or worse, ineffective business planning, poor sales and loss of investment and even irreversible debt. We are going to set the record straight today and debunk the common misconceptions most people have about ecommerce.
The Truth About Ecommerce
Myth 1 – Ecommerce is easy as pie
Getting into the ecommerce business is very easy. All you have to do is register online. The rest is simple and fun.
Reality – Ecommerce is just another form of business. All that’s different is the approach and delivery. The fact that it is easy to set up does not mean you can throw caution to the wind. There is a lot to consider. The products you want to sell, pricing them, arranging for inventory, deciding whether to go with an online marketplace or set up your own online store. Your success will depend on the kind of effort you put into online selling. Online retail has a separate set of challenges to encounter. The rules are different in this playing field as are the factors of influence. Then there’s a thing about cyber crime. If you don’t tread with caution, you are asking for trouble.
Myth 2 – Selling Experience is not a necessity
You don’t need to know anything about business to start selling online. You only need to have a product to sell.
Reality – It is possible to start selling online with no business background. However, you need to be aware of the whole process. How to get online, how to promote your product and close deals. You must make up for your limited experience by leaning from your competitors and mentors. If possible, ask another ecommerce specialist help you out. Ecommerce assistance is readily available. Companies like Browntape specialize in launching online retailers and managing their ecommerce. Be it sales, inventory or remittance. It’s better to have someone show you the way rather than tumble and fall over your own feet. It will help you save your resources and improve your chances of steering clear of risks.
Myth 3 – Going live online is all you need
Having an online presence is the only thing you require. Once you get there people will come to you.
Reality – Unlike brick and mortar stores, it is a lot more difficult to draw attention your way. Especially if you plan on joining the ecommerce community through online marketplaces. The content you put up can make or break your appearance. But most of all, your product will set your standards as an online seller. You cannot directly contact online shoppers and persuade them to buy your merchandise. (Like you would at a physical store.) You need to attract people with words, pictures and creativity. Simply relying on people’s will to shop is not enough. You need to show them why they need to come to you and willingly give you their money. Discounts help pique interests and motivate consumers to make purchases. Also try combining products. People usually feel combo deals save money. This will not only increase sales but also ensure repeat sales. Try using social media to promote your products, it’s cheaper and effective.
Myth 4 – Low pricing will lead to success
Many have been offering unbelievable prices over the internet. But what are they are making off of these sales?
Reality – Not much! Pricing is important. Altering it is essential to compete in this ever growing industry. But that does not mean this is where your attention should lie. If you keep cutting the price of your goods it will shrink your earnings. Plus marketplaces regulate pricing to a certain degree. In addition to that they also charge a commission on sales, deliveries and returns. So how much will you be left with after all those deductions? If your online sales plan lays entirely on low pricing and discounts, you won’t breakeven let alone make a profit. Good customer service will set you apart. So will product quality, personalization and positive reviews. Work towards making customers feel like they can trust you. Don’t let them leave feeling your products won’t add quality to their lives.
Myth 5 – Online products are all the same
Just because the same payment platforms, shopping cart software and marketplace facilities are used to sell products online mean all products are the same.
Reality – Differentiating online products is a must! You may be selling ethnic clothes. But so are a hundred other sellers doing the same. In the eyes of the customer you may be no different from the rest. To get purchases you need to set yourself apart. Take calculated risks, like joining multiple marketplaces. Or signing up for product discounts (provided they are within your budget)! Be creative with your product images and descriptive content. Go the extra mile. You can take packaging one step further by making it more effective and environmental friendly. Call up your recent customers and ask if they enjoyed your product and service. People like it when a seller is involved.
There is a lot to know about online selling. If you continue to believe in ecommerce myths you will not survive in this industry for long. The factors of ecommerce will root you out. Getting a better idea of how Indian ecommerce works from an expert, is smart. To find an ecommerce expert you can call us at Browntape! We are India’s leading ecommerce solutions experts and we are always happy to help!
