Selling online is a necessity for any business that wants to reach new customers and grow sales. Not only can your operation meet the needs of customers 24 hours a day, but you can also access buyers from around the world instead of just your local market.
Let's take a look at everything a small business needs to consider when exploring how to sell online.
Understanding who you're competing against is the foundation for any business strategy. When it comes to selling online, you're likely going up against thousands of other sellers, from mega-retailers like Amazon to companies with their own ecommerce websites to individual sellers on platforms like eBay and Etsy. So how can you set yourself apart?
A target audience of senior citizens in middle America has very different needs and expectations than a target audience of digital native Gen Z Europeans. This means you'll want to take the time to dig into your target audience and understand your customers to then position your product, support, and marketing to their unique needs and wants.
One way to do this is to create a buyer persona that gives you a fictional representation of your ideal customer. Using your data and research, define who this person is, what they like, where they work, their pain points, and what they want to accomplish with your product.
In addition, define their process for finding products like yours when shopping online. This will help determine how to design your online store and marketing campaigns to feel relevant to their needs every step of the way.
Online shoppers can easily compare prices with a Google search, making it critical that you price your product in a way that allows you to show up at the top of the list while ensuring you meet your profitability goals.
Begin by using your competitor's prices as your benchmark to ensure your product is in the ballpark of what customers will expect when they look at search results. Depending on your brand and strategy, your goal may be to become the bargain option or the premium version.
Keep in mind that prices online change constantly, which means you'll need to keep a close eye on what competitors are asking to ensure you keep pace with the market. Your cost of goods and supplies may also go up, so make sure you adjust your prices to ensure you keep making a profit.
Once you've determined your strategy, you're ready to start building your online store.
The most important part of any business is getting paid, making your choice for payment processing critical to success. If you're new to online sales, here is how a payment processor works. At checkout, the customer chooses their payment method, and the payment processor then provides all the technology required to move money from the customer's account through the payment network to your account.
To select your payment processor, your ecommerce platform will have a section titled something like, “payment types,” “payment options,” or “payment methods.” Here, you can choose what types of payment types you want to accept. Remember that some customers have strong preferences about how they want to pay, so look at your buyer persona to see if your target audience has a specific payment method they may want to use.
In addition to common payment methods like credit and debit cards, consider payment methods like a digital wallet, buy now, pay later, and subscriptions:
Once your website is ready to go, and you're able to accept payments, it's time to hang out your virtual shingle and start attracting customers. The best ways to advertise your business and make people aware of your store will depend on how much you want to spend and how much time you have to allow the channel to be effective.
For example, an inexpensive way to promote your brand is to set up profiles on Facebook, Twitter, Instagram, TikTok, and other social media platforms where you can share content, photos, and videos of your products and marketing content. While it can take time to grow your follower count, this is a cost-effective way of reaching your biggest fans.
On the other end of the spectrum are paid channels like email marketing or paid search ads. With these channels, you can often reach highly targeted audiences when they are ready to buy, improving your odds of making a sale quickly. However, you'll need to factor in your customer acquisition costs when using these channels to ensure you're still making a profit.
To choose the right channels and leverage them effectively, take the time to define your marketing strategy. This will ensure you choose the channels and marketing methods most likely to resonate with your target audience. Check out these resources for inspiration on how to shape your business and how-to advice on marketing for small businesses.
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