Until now, the company has kept shoppers inside its ecosystem.
The pandemic was unkind to many businesses, but others saw it as an opportunity to fine-tune their e-commerce business.
Take Amazon. It saw a surge in revenues and profits during 2020 and 2021 — up 220% at one point — and has managed to maintain double-digit growth in its e-commerce sector each year since.
While e-commerce still accounts for a small minority of overall retail revenues (around 16% in 2024, according to the U.S. Department of Commerce), there are a few dominant players.)
Walmart, Target, and eBay are a few of them. But the uncontested leader is Amazon, which commands nearly 40% of the market, according to Statista. In fact, the other nine of the top 10 retailers combined add up to barely 22% of the market.
Historically Amazon has preferred to keep customers inside of its ecosystem, a “walled garden,” as it’s known in the tech world.
In general, keeping customers inside an ecosystem gives a company more control over their experiences. By the way, Amazon is not alone in this practice. Plenty of other companies do the same thing, including Apple, X, and Facebook, to name a few.
In the case of Amazon, the walled garden structure gives the company total control over what users can see and do on their sites. It controls the advertising that can be shown on its site, and it controls all the data it collects.
Amazon is able collect data about customers’ shopping habits and product preferences and then target them with ads and special offers.
It all gives Amazon a competitive advantage that has helped it remain the dominant player in the e-commerce space.
Despite Amazon’s dominance, some brands have chosen not to make their products available on the platform. Now Amazon is testing how it can make some of these products available via its platform anyway.
Amazon testing a way for customers to ‘shop directly’ from brands
Amazon recently revealed it is testing a new feature called “Buy for Me” among a subset of users in the Amazon Shopping app.
The feature, which is currently in beta, “helps customers discover and seamlessly purchase select products from other brands’ sites if those items are not currently sold in Amazon’s store,” according to a company announcement.
Amazon is testing a limited number of brand stores and products. It plans to roll out to more customers and expand offerings based on feedback.
Customers who currently have access to the feature can search for specific brands in the Amazon Shopping app, and in some cases they’ll see relevant results from Amazon and third-party sellers. They might also be shown additional products from other stores in a separate section of search results labelled “Shop brand sites directly.”
Customers can link directly to these sites, or in some cases, customers will see a link to Buy for Me.
Amazon says it is not charging brands a commission for these transactions.
“We’re always working to invent new ways to make shopping even more convenient, and we’ve created Buy For Me to help customers quickly and easily find and buy products from other brand stores if we don’t currently sell those items in our store,” said Amazon Shopping Director Oliver Messenger.
Dana Sullivan Kilroy has been a writer and editor for more than 20 years. Her work has appeared in publications including The New York Times, Real Simple, Self and Outside and on digital platforms including BabyCenter, Everyday Health and WebMD. You can email her here.
Operating an e-commerce business is a rewarding experience. However, venturing into online selling without a plan can hamper your chances of success. You may ask yourself, “Where do I start planning? What does it truly take to operate an e-commerce business in today’s age?”
Thankfully, we’re here to help answer those questions. This post will teach you how to start and grow your e-commerce business!
Let’s dive in.
Define Your E-Commerce Business Idea
Before entering the e-commerce world, you need to define your business idea. Defining your business idea will ensure you have a clear vision of what you want the business to be and determine if it will be successful.
By doing this, you’re finding your niche in the e-commerce market and learning how to do it better than the rest.
This step takes a bit of brainstorming and research, but soon, you will be on your way to financial freedom.
Choosing Your Right Product(s)
Choosing your product can seem like the easiest part of creating an e-commerce business plan, but the truth is that it takes quite a bit of forethought.
To find the right product for your business, you need to do some market research and sense what you are passionate about. Deciding what to sell means more than purchasing goods from a supplier.
You are identifying which market you want to tap into. Consider selling and creating a new business from various niche markets and products.
If you are unsure of what products or which markets you would like to tap into, here are a few examples:
Clothing
Home goods
Children’s toys
Homemade and handcrafted items
Digital services
No matter which product or market you choose, performing research is critical.
Validate Your Idea
Once you’ve decided what your product will be, you must validate your e-commerce business idea.
This process entails researching to ensure an audience for your product, learning about the market’s problems and why they are facing them, and finding out how to solve them. You should also see if there are potential trends you can capitalize on.
Answering the questions above will give you the insight you need into whether a business will succeed.
Any business idea can sound ground breaking at the moment. But moving forward is put on hold until you validate it by ensuring that there is a market for your product or that you can create the need for it.
Define Your Target Audience
Beyond discovering if there is an audience for your product, you will also need to define your target audience.
Is your audience the younger crowd that enjoys and needs trendy items and marketing? Or is it an older audience that prefers straightforward marketing and practical products? Of course, the gender, income level, and general location of your audience also factor in.
Further, you must know your intended audience’s lifestyle factors, interests, wants, and needs.
Implementing a solid definition of who your target audience is will help you shape your marketing approach and tailor your product offerings.
This definition will give you a sense of direction before jumping into the launch of your product or business. Then, you can visualize the prize you should focus on.
Brainstorm What Will Set Your Business Apart
Brainstorming how your business will differ from competitors is vital.
You need to give potential customers a reason why they should choose you over what else is available currently. Without a solid aspect that sets you apart, your business can become lost in the sea of emerging e-commerce businesses.
Research Your Competition
Knowing what sets your business apart from others in the market is critical. That’s why we also recommend spending a substantial amount of time researching your competitors.
To start researching your competitors, pretend you are a potential customer and search for the popular keyword and search queries pertaining to your business.
Then, take note of the pages with the highest rankings, as they will be your main competitors. Don’t stop there!
Dive into your competitors’ social media accounts and note how they brand and market themselves on the platforms. (Also, don’t forget about Amazon!) Use the infamous online retailer as a database to identify similar product offerings.
After you gather all of this information, organize it into a spreadsheet, listing the top competitors for your business.
Build Strong Branding
Branding is everything when marketing your products and your e-commerce business. It conveys the overall message that your company believes in and offers.
For example, brands like Nike will use motivational language to motivate their established customer base and draw potential customers.
But what does branding entail? How do you build your business with strong branding?
Building a strong brand doesn’t have to be costly; it simply takes consistency, planning, and research.
Audience Persona
Your audience persona is what customers will come to know your business for.
As previously mentioned, companies will utilize specific language to convey a message regarding branding. That helps build a company’s persona and brand identity.
You can implement your brand persona in all forms of marketing, from the colours you use in the marketing campaign to the vocabulary you use in social media posts. This implementation will help formulate the characteristics and emotions customers associate with your company.
When you are creating your persona, remember who your target audience is. For example, the persona for a brand like L.L. Bean will not have the same effect on a younger modern audience.
Brand Voice
In addition to vernacular and language, brand voice is critical for conveying your message. It will further tell your audience what your company is and what it can do for them.
This branding portion focuses explicitly on the language and vernacular part of the branding strategy.
To create a strong brand voice, you should first figure out how you want customers to feel when interacting with your brand’s online presence.
If a relaxed vibe is what you are going for, a laid-back tone and casual language are what you want when creating e-commerce marketing materials.
But on the other hand, if luxury and glamor are the vibe of your company, sophisticated language with flowery descriptions is what you need.
Social Media Branding
In our digital age, branding efforts extend into the social media sphere with most audiences, including older generations. In short, social media is the number one place to reach potential customers.
Your brand’s social media presence should be more than posting advertisements and product launches. Engaging with your audience is critical for building rapport and further ingraining brand voice, persona, and identity.
You can increase your audience engagement by hosting polls, commenting back to followers, and organizing live streams where they can interact with you and your company.
Brand Identity
Finally, we reach brand identity. This encompasses your voice, persona, and social media presence. It gets into the fine details of your visuals and content choices that will set you apart from your competitors.
With a proper brand identity, customers recognize your brand through adverts and social media posts without seeing your company’s name.
Visuals and Content
To establish your brand’s identity, you will want to choose your brand colours, design your logo, create content creation guidelines, and formulate your strategy.
Your branding guidelines should entail information about marketing copy, colour palette, brand story, and image guidelines.
Your strategy should also entail plans for reaching your intended audience through stylized branded content and marketing materials.
If you need help formulating these guidelines and plans, professional brand strategists are available on freelance marketplaces such as Upwork and Fiverr. They can help take your current vision and turn it into an actualized plan.
E-Commerce Websites
Next, incorporate that information into setting up your e-commerce website.
Your company’s website is a hub for selling your products to customers and establishing a home base for all things relating to your brand. In addition, this website is the place for driving your brand voice, persona, and identity into the hearts of established and potential customers.
So, remember to strictly enforce your brand guidelines when building and maintaining your website.
Again, if you need help building an e-commerce website, you can find website builders and your brand strategist on platforms such as Fiverr and Upwork.
Create Your Shipping Strategy
If you are running an e-commerce business with physical products, like clothing, home goods, or kids’ toys, you must create a shipping strategy that gets the product to your customers safely and efficiently.
First, you must determine if you will transfer the shipping costs to your customers or factor shipping into the product’s price and offer free shipping. Offering flat-rate shipping is also an option.
Additionally, no matter which shipping cost method you choose, you will want to keep a database of the weight of your product(s). This data will help you consistently track the price of shipping your products when it is dependent upon their weight.
Finally, you need to source your packaging materials. From boxes to envelopes and wrapping materials to filler, your packaging should help safely deliver the product to the consumer and leave a lasting impression with its presentation.
If you have downloadable digital products to sell online, you will want to find the best platform and software for delivering these materials. Consider these top five:
SendOwl
Shootproof
Shopify Digital Downloads
Fetch app
Digital Product Delivery
Each has unique offerings, and depending on the type of digital products you sell and your target audience, some will be more suitable than others.
Launch Your Business
After choosing your products, formulating a brand identity, creating a website, and developing a shipping strategy, it’s time to launch your e-commerce business!
Although you have accomplished so much already, the adventure is still ongoing because you need to start selling products.
When launching your business, it’s critical to remember that anything can happen, and you may have to reformulate your previous plans. But don’t be too quick to jump ship; the plan was created for a reason. You simply want to open yourself up to new possibilities.
From here on out, your mission is to achieve financial freedom, which sometimes requires testing variables to improve performance.
Market Your Business
After getting your business up and running, you must increase your marketing efforts to ensure your business grows.
But unlike decades past, with your online business, physical advertisements on billboards and in print newspapers won’t cut it. So instead, you need to learn the ways of e-commerce marketing.
Learn Basic SEO
Learning the basics of search engine optimization (SEO) is your ticket to boosting your business among the Google ranks.
Have a Baseline
To start venturing into the world of SEO, you need to have a baseline.
By utilizing a service like Semrush, you can see your domain overview, and it will tell you how visible your business/webpage is on mobile and desktop apps. Its domain overview section covers all the data and analytics you need to understand where your business currently stands.
Know Your Keywords
Additionally, you will want to research and learn the most prevalent keywords and search queries for your type of business. You can then use this information to create content that will help lead shoppers back to your website.
Discover The Power of Backlinks
Backlinks are also essential for creating online traffic for your business, as they are links to your website from other websites.
The more links you have from trustworthy and high-traffic web pages, the more search engines like Google and Bing will see your business and website as valuable and reliable sources.
But the most critical component of all when it comes to basic SEO is staying informed. SEO is an ever-evolving world that takes ongoing reform to remain successful.
Blog Consistently
While looking for the best ways to market your e-commerce store or business, you may have seen the phrase “content is king.” But what kind of content is best?
Blogging is one of the best forms of online content for marketing your business. By publishing blog posts consistently and utilizing the keywords and search queries that pertain to your business, you can increase your chances of climbing the Google ranks and accruing more backlinks.
Your blog posts should always surround topics pertaining to your business.
For instance, post frequent blog posts about what’s trending in fashion if you have a clothing business. Or, if it’s a digital service company, publish articles that discuss the benefits of utilizing a service like yours.
Implement Social Media Marketing
We live in the golden age of social media, and if you’re searching for more customers, you need to utilize Instagram, Facebook, YouTube, TikTok, and more.
You can do this by posting relevant branded content frequently. Your social media content should also utilize hashtags to help further increase your visibility among your target audience.
Like SEO keywords, hashtags can help lead potential customers back to your page, and the more interaction you have on a post, the more likely you are to appear on Explore and For You pages on social media.
Build and Grow an Email List
Building and growing an email list is the best way to create a direct line to your customer base. You can ensure they return and purchase more products by staying in touch with them.
But people prefer to keep their personal information, like email addresses, private. So how do you grow an email list?
You need to offer a deal in return for a customer’s email. Whether it’s free downloads or special sales offers, customers will take note of what you are willing to give in return.
Analyse Your Results
Adapting your e-commerce business to the ever-evolving world is crucial for long-term success.
After spending time in the market and gathering data, you should analyse your results. You will want to look at critical metrics, like your popular products.
Once you notice consistent growth in your business, you will want to optimize your online storefront for high-scale volume. Think about performing the following as your business grows:
Display popular products on the front page.
Manage fluctuating stock volumes by sending email invitations and allowing backorders.
Allow for more checkout options: guest checkout, abandoned shopping cart reminders, etc.
Match your brand and website messaging to the current market.
No matter what your results are after performing an annual analysis, being prepared to make a few changes is always wise.
FAQs
How Do You Start an E-Commerce Business Without Money?
You can start an e-commerce business without money in a few different ways. One of the best and easiest ways is to sell your expert service.
Whether you are a great writer, marketer, virtual assistant, or graphic designer, you can create an online e-commerce business today with zero or minimal start-up costs.
You can also start a drop shipping business, where you have an online store that customers can order from, and the supplier does the product fulfilment directly. AliExpress or Alibaba are popular suppliers for such storefronts.
How Do You Start an E-Commerce Business on Amazon?
Starting an e-commerce business on Amazon is simple.
First, you must choose what kind of products you want to sell; the possibilities are endless when you choose Amazon as your e-commerce platform.
Afterward, you must sign up for an Amazon seller’s account and select your business model. Wholesale, private label, and retail arbitrage are the most popular.
Once you have the basics covered, it’s time to start listing your products, send them to Amazon to handle storage and shipping, and then market yourself.
What Does an E-Commerce Business Do?
An e-commerce business is a business that sells goods or services online. These goods and services can range from writing and graphic design services to clothing retailers and home goods storefronts.
What Are The Four Types of E-Commerce?
What industry leaders commonly refer to as the four traditional types of e-commerce are business-to-consumer (B2C), business-to-business (B2B), consumer-to-consumer (C2C), and consumer-to-business (C2B).
Each type has specific traits and offerings that set them apart. The most common type is B2C.
Is E-Commerce Really Profitable?
E-commerce can be an incredibly profitable business venture. But if you’re looking for an entirely passive way to generate income, this venture isn’t for you.
Running an e-commerce business takes time and dedication. You have to be willing to devote all of your time to managing the business and potentially marketing yourself to thrive.
How Do You Start up an E-Commerce Business?
Suppose you want to start up an e-commerce business. In that case, you must follow a plan to define your business, create a branding and marketing strategy, and perform market analysis regularly.
Free and low-cost start-up options exist whether you want to sell a service or a physical product.
No matter what e-commerce business you decide to open, be prepared to dedicate a lot of time to starting it. However, it is a rewarding venture.
Start Your Journey to Financial Freedom Today!
Whether you want to operate a small business like a small-scale online retailer or an industry-leading digital service, e-commerce is a way to set yourself up for future financial freedom!
All it takes is time and dedication to ensure smooth sailing in e-commerce. So why not start today?
Start researching your ideas, get to know the current online marketplaces, validate those ideas, and start drawing up a plan.
Studies show that 88% of online shoppers are less likely to return to a site after a bad experience. This means that your ecommerce website’s design can directly impact your bottom line.
In today’s fast-paced digital landscape, having a robust ecommerce website is essential for any business looking to thrive online. With global ecommerce sales expected to hit $7 trillion by the end of 2024, the competition is fierce, and your website is often the first impression customers have of your brand. Choosing the right ecommerce website builder and platform isn’t just about aesthetics; it’s about creating a seamless shopping experience that can drive sales and build customer loyalty.
In this article, we’ll explore not only how to pick the best ecommerce website builder but also how to optimize your site for performance and user experience. We’ll highlight some of the top ecommerce websites out there, share key data insights, and offer practical tips to ensure your online store stands out in a crowded marketplace.
An ecommerce website is a platform that allows businesses to sell products or services online. Unlike a simple informational website, an ecommerce site is designed to handle everything from displaying products to processing payments. Its main purpose is to provide customers with a seamless shopping experience, letting them browse, select, and purchase items from the comfort of their own home or mobile device.
Ecommerce platforms vs. ecommerce websites
An ecommerce platform is a software or service that provides the tools to build and manage an online store. Examples include Shopify, WooCommerce, and Magento. On the other hand, an ecommerce website is the actual online storefront you create using one of these platforms or from scratch. While platforms provide the foundation, the website is where customers interact, shop, and engage with the brand.
Key components of an ecommerce website
Unlike blogs or corporate websites, ecommerce sites are transactional, focusing on driving sales and delivering a smooth shopping experience. As a result, they have specific features designed to facilitate online shopping.
User interface (UI) and user experience (UX)
Their UI is usually clean and simple, with lots of white space, clear images, and a layout that guides your eyes straight to what matters—the products. There’s no unnecessary clutter, just a consistent, easy-to-navigate design that feels reliable and trustworthy.
The real magic, though, is in the UX. These sites focus on minimizing any friction between you and your purchase. From fast loading times and easy navigation to a streamlined checkout process, everything is designed to make buying stuff feel seamless. They’re also optimized for mobile, so the experience is just as smooth on your phone. The result? You’re more likely to find what you want, trust the site, and actually purchase without any hassle.
Product catalogue
The product catalogue is the heart of any ecommerce website. It’s where customers explore what you have to offer. Each product should have detailed information, including a clear name, a compelling description, high-quality images, and transparent pricing. This helps customers make informed purchasing decisions.
Proper categorization and filtering options also make it easier for customers to find exactly what they’re looking for, whether it’s a specific product type, brand, or price range.
Lastly, you should have a robust search function. It allows users to quickly find products by typing in keywords, saving them time and enhancing their shopping experience.
The shopping cart is where customers keep their chosen products before finalizing their purchase. Your customers should be able to easily add items to their cart and remove them if they change their minds.
The checkout process should also be smooth and straightforward. A complicated or lengthy checkout can cause customers to abandon their carts.
Payment gateway
A secure and reliable payment gateway is the final step in the shopping journey, and if it’s not up to par, it can be a deal breaker. You want your customers to feel completely confident when they enter their payment details. So, you want your website to integrate with trusted payment processors. If they sense anything sketchy, they’re likely to abandon their cart and take their business elsewhere.
You should also be able to support various payment options. This can include credit cards, PayPal, and other digital wallets. This allows your customers to choose the method they’re most comfortable with.
Efficient shipping and delivery options keep customers happy and coming back for more. When customers can choose from multiple shipping options, it gives them the flexibility to select the method that best suits their needs, whether they’re looking for the fastest delivery or the most cost-effective choice. Clear pricing for these options is equally important, so there are no surprises at checkout—nobody likes hidden fees.
But it doesn’t stop there. Providing tracking information and regular delivery updates is just as important. When shoppers can easily see where their order is and know exactly when it will arrive, it gives them peace of mind and keeps them engaged with the process.
Whether you’re running a small boutique or a large corporation, an ecommerce site opens up a world of opportunities.
24/7 availability: Unlike a physical store, an ecommerce website never closes. Your customers can browse and shop at any time, even in the middle of the night. This means more potential sales without the need for extended hours or additional staff.
Broader reach: With an ecommerce website, you’re not limited to a local customer base. You can reach people across the country—or even the world.
Lower operating costs: Running an ecommerce site can be more cost-effective than maintaining a physical storefront. You can save on rent, utilities, and other overhead costs. Plus, automation tools can help manage operations like inventory and customer service, reducing the need for a large team.
Data-driven decisions: You can track what products are selling, which marketing strategies are working, and where improvements can be made. This helps you make informed decisions to boost sales and customer satisfaction.
Personalized shopping experience: An ecommerce website allows you to offer personalized recommendations, promotions, and content based on customer preferences and browsing history. This increases the likelihood of repeat business.
Scalability: As your business grows, your ecommerce website can grow with you. Whether you’re adding new products, expanding into new markets, or increasing your marketing efforts, an ecommerce site provides the flexibility to scale up.
Choosing the best ecommerce website builder
When it comes to building your online store, choosing the right ecommerce website builder is crucial. The right platform can make all the difference in how your business operates and grows.
What to look for in an ecommerce website builder
Here are some essential features to consider when making your choice:
Customization: Your e-commerce site should match your brand’s style. Choose a builder that lets you easily customize everything from the layout to the colours, so you can create a unique shopping experience that stands out.
Scalability: As your business grows, your website should grow, too. Pick a builder that can handle more products, traffic, and features without slowing down.
Ease of use: You don’t need to be a tech expert to build your site. Look for a builder with a user-friendly interface, drag-and-drop tools, and clear instructions so you can manage everything easily.
Integration with payment gateways: Make sure your builder works seamlessly with popular payment gateways like PayPal, Stripe, or Square for secure and easy payments.
SEO and marketing tools: To attract customers, your site needs to be easy to find online. Choose a builder that includes SEO tools, email marketing, and social media integration to help drive traffic and boost sales.
Support and resources: Even with an easy-to-use platform, you might need help. Pick a builder that offers strong customer support and useful resources like tutorials and forums to guide you through any challenges.
Top ecommerce website builders
When it comes to the best ecommerce website builders, several top contenders stand out for their features, ease of use, and overall performance. Here are simple reviews of ecommerce website builders that stood out for us the past year:
Dukaan Dukaan stands out for its intuitive drag-and-drop builder and highly customizable themes, making it accessible for users without technical expertise. It offers a complete eCommerce solution with numerous plugins for marketing and conversion, all at an affordable price.
Wix Wix is perfect for beginners, offering a user-friendly drag-and-drop builder and a wide variety of customizable templates. It’s best suited for small stores with limited products, though it may require third-party tools for more extensive inventory management.
Ecwid Ideal for those on a budget, Ecwid allows you to start selling for free and integrates seamlessly with existing websites. It’s particularly useful for small stores or those adding eCommerce functionality to a non-eCommerce site.
BigCommerce BigCommerce is a robust platform that powers major eCommerce brands. It offers extensive customization options and cross-channel commerce, though it comes with higher costs and revenue-based pricing tiers.
WooCommerce WooCommerce is a top choice for WordPress users, providing extensive customization and integration options. It’s an open-source plugin, perfect for those with some technical skills looking for flexibility and control.
Shopify Shopify is known for its extensive ecosystem of themes and tools, making it easy to scale your store. It’s ideal for large inventories but may require additional costs for third-party plugins and tools.
Squarespace Squarespace offers beautiful, well-designed templates and a powerful drag-and-drop builder. It’s best for users who appreciate an all-in-one solution without the need for third-party apps, though it may be pricier for advanced features.
Free vs. paid options
Starting out, you might wonder whether to go for a free ecommerce website template or invest in a paid option. This depends on your business needs and budget. :
Free ecommerce website templates
Pros:
Cost-effective: No upfront costs, making it ideal for those just starting out.
Low risk: Allows you to experiment and test your online store without financial commitment.
Cons:
Limited customization: Often comes with restrictions on design and functionality.
Basic features: May lack advanced tools necessary for scaling your business.
Upgrade necessity: As your business grows, you may need to switch to a paid option for more features.
Paid ecommerce website templates
Pros:
Advanced features: Offers more tools and customization options to build a robust online store.
Better design: Access to premium themes that provide a professional look.
Enhanced support: Typically includes better customer service and technical support.
Scalability: More storage and flexibility to grow your business.
Cons:
Upfront cost: Requires an investment, which might be a drawback for those on a tight budget.
Commitment: You’re financially committed, even if you’re unsure about long-term needs.
If you’re just starting and want to minimize costs, a free template might be enough. But if you’re planning for long-term growth, a paid plan could save you time and headaches down the line.
Building your ecommerce website
Building an ecommerce website might seem like a daunting task, but breaking it down into manageable steps makes the process much more approachable. Here’s a step-by-step guide to help you get started:
Select a platform
Choose an ecommerce platform that fits your business needs. The platform you choose will impact how you build, manage, and grow your store, so it’s important to pick the right one from the start.
Choose a domain name
Your domain name is your website’s address on the internet. It should be easy to remember, relevant to your brand, and ideally include keywords related to your business. Make sure it’s unique and reflects what your store is all about.
Set up hosting
Once you’ve secured a domain name, the next step is to choose a hosting provider. Hosting is where your website lives on the internet. Look for a reliable hosting service that offers good speed, security, and customer support. Some ecommerce platforms include hosting as part of their package, which can simplify this step.
Design your site
Start building your website by choosing a template or theme that aligns with your brand. Customize the layout, colours, fonts, and images to create a cohesive look that appeals to your target audience.
Add products
Upload your products to the site, including high-quality images, detailed descriptions, and accurate pricing. Organize them into categories to make it easy for customers to find what they’re looking for. If you’re still on the lookout for products to sell, here’s our in-depth guide on some of the best ecommerce products.
Set up payment and shipping
Integrate a payment gateway to process transactions securely. Also, configure your shipping options so customers can choose the best delivery method for their needs.
Test your site
Before going live, test your website thoroughly. Check for broken links, ensure the checkout process works smoothly, and make sure your site looks good on all devices.
Launch your site
Once you’re confident everything is in place, it’s time to launch! Announce your new website on social media, through email marketing, or with a special promotion to attract your first customers.
Using free ecommerce website templates
Free ecommerce website templates can be a great starting point, especially if you’re on a budget. However, to make your site truly unique, you’ll want to customize these templates to fit your brand.
Start by swapping out the default images and text with your own. Adjust the colour scheme to match your brand colours, and tweak the fonts to reflect your brand’s personality.
Don’t forget to customize the layout to highlight your best-selling products or special promotions. Most templates offer drag-and-drop functionality, so you can easily rearrange elements to suit your needs.
E-commerce website examples
Looking at successful ecommerce websites can provide inspiration and insight into what works well.
WJD Exclusives, a New York-based fine jewellry merchant, has built its brand on exceptional customer service. Founded in 2002, the company started with a simple website and a few product listings, but their commitment to customer satisfaction set them apart. By handling all aspects of their business in-house—from product listings and inventory management to customer repairs—they’ve been able to offer personalized, rapid services that keep customers coming back. Co-founder Vahan Avagyan attributes their success to this customer-first approach.
Two key tools have driven WJD Exclusives’ growth: WooCommerce and Afterpay. WooCommerce’s flexibility allows them to customize their website to meet customer needs, while Afterpay’s buy now, pay later option has significantly boosted sales and reduced returns. Avagyan estimates that over 30% of their traffic comes from the Afterpay Marketplace. For WJD Exclusives, prioritizing customer service is the foundation of their business, helping them turn first-time buyers into loyal customers who spread the word.
The Memo, founded in 2019, set out to make shopping for baby supplies easier and more supportive for parents. Co-founders Kate Casey and Phoebe Simmonds aimed to clear up the confusion in the baby retail space by creating a seamless and informative shopping experience. To achieve this, they needed an eCommerce solution that was easy to use and could unify their online and in-store touchpoints. With Shopify Plus and Shopify POS, The Memo has built a loyal customer base and seen remarkable growth, including a 45% YoY revenue increase and a 60% return customer rate.
The challenge for The Memo was ensuring that the in-store experience matched their high-quality online offering, especially since 70% of their in-store customers also shop online. Shopify’s native integration allowed The Memo to provide a consistent, simplified shopping journey across both platforms. This approach has helped The Memo create a unified experience that meets the needs of busy parents, whether they’re shopping online or in-store.
Using Shopify’s tools, The Memo has automated various processes, personalized customer interactions, and optimized their website for a seamless user experience. The result? Loyal customers who keep coming back and rapid business growth. With Shopify handling the technical side, The Memo can focus on what really matters—supporting parents on their journey.
Data insights: The state of ecommerce websites
Let’s dive into the latest data insights on e-commerce websites, covering key growth stats, emerging trends, and performance metrics that are shaping the online retail landscape.
Ecommerce growth statistics
Ecommerce is booming, and the numbers don’t lie. Over the past few years, ecommerce has seen tremendous growth globally and regionally. According to recent data, global ecommerce will surpass $6.3 trillion this year, marking a significant milestone in online retail. This growth isn’t slowing down anytime soon. Projections suggest that by 2026, global ecommerce sales could surpass $7 trillion, driven by increased internet access, mobile shopping, and changing consumer habits.
Regionally, Asia-Pacific continues to dominate the ecommerce landscape, accounting for the largest share of revenue. However, North America and Europe are also seeing robust growth, fuelled by rising consumer confidence in online shopping and improved digital infrastructure.
As we look ahead, the next 5-10 years are expected to bring even more changes to the ecommerce space. Trends like the rise of social commerce, the expansion of AI and machine learning in personalizing shopping experiences, and the growing importance of sustainable and ethical shopping practices are set to shape the future of online retail.
Ecommerce website performance metrics
Understanding how your ecommerce website performs is crucial to its success. Key performance indicators (KPIs) like conversion rates, bounce rates, and average order value (AOV) provide insights into how well your site is meeting customer needs.
Average conversion rates: Conversion rates can vary depending on the industry, but a typical ecommerce site sees an average conversion rate of 2-3%. However, top-performing sites often achieve rates above 5%.
Bounce rates: The average bounce rate for ecommerce websites hovers around 45-50%. A high bounce rate may indicate that visitors aren’t finding what they’re looking for or are having trouble navigating the site.
Other KPIs: Additional metrics like cart abandonment rates, customer lifetime value (CLV), and return on ad spend (ROAS) are also critical to monitor. These indicators help you understand customer behaviour, measure marketing effectiveness, and identify areas for improvement.
Best-performing ecommerce platforms
When it comes to ecommerce platforms, some are leading the pack in terms of market share and performance. According to a 2023 report, WooCommerce is a frontrunner, with a market share of 39%. It’s especially popular among small to medium-sized businesses that value flexibility and control. Its offshoot, Woothemes, is second in place with a market share of 14.95%.
Squarespace, on the other hand, is third with a market share of 14.67%. In fourth place is Shopify, with a market share of 10.32%. Both of these platforms have user-friendly interfaces, extensive app ecosystems, and scalability, making them a popular choice for businesses of all sizes.
Customer behaviour trends
Customer behaviour in the ecommerce space is constantly evolving, influenced by technology, social trends, and economic factors. One of the most notable trends is the shift toward mobile shopping. Mobile devices now account for over 77% of global ecommerce traffic, highlighting the importance of mobile optimization for any online store.
Mobile vs. desktop usage: While more people browse on their phones, they often switch to desktops for bigger or more complicated purchases, leading to higher conversion rates and order values on desktops.
Average order values and purchasing behaviour: Personalized shopping experiences, like subscription models, loyalty programs, and targeted promotions, are key to boosting average order values and encouraging repeat purchases.
Sustainability and ethical shopping: Consumers are increasingly focused on sustainability. Brands that highlight eco-friendly products and ethical practices are gaining stronger customer loyalty and better conversion rates.
Optimizing your ecommerce website
Ecommerce website optimization attracts more visitors and ultimately drives sales. Here’s a breakdown of essential optimization strategies to help your online store perform at its best.
Ecommerce website optimization tips
The following are essential optimization strategies for a successful ecommerce website.
On-Page SEO
Optimizing your product pages, images, and content is crucial for improving your site’s visibility in search engines. Make sure to include relevant keywords in product titles, descriptions, and metadata. You can also optimize images by using alt tags.
Page speed optimization
Fast-loading pages are essential for keeping visitors engaged. A slow website can lead to higher bounce rates and lower conversions. To speed up your site, consider compressing images, enabling browser caching, and using a content delivery network (CDN). Regularly monitor your page speed and make adjustments as needed.
Mobile optimization
With more than half of ecommerce traffic coming from mobile devices, ensuring your site is mobile-friendly is non-negotiable. A responsive design that adapts to different screen sizes is a must. Simplify navigation for mobile users, ensure buttons and links are easily clickable, and make checkout processes as seamless as possible. Mobile optimization not only improves user experience but also positively impacts your search engine rankings.
Increasing your website’s conversion rate is all about making it easier for visitors to become customers. Here are some techniques to boost sales and customer retention:
Simplify the checkout process: A complicated or lengthy checkout can lead to cart abandonment. Streamline the process by reducing the number of steps, offering guest checkout options, and providing multiple payment methods.
Use clear and compelling calls-to-action (CTAs): Encourage visitors to take action with prominent, well-worded CTAs. Whether it’s “Buy Now” or “Sign Up for Exclusive Offers,” make sure your CTAs stand out.
Use social proof: Displaying customer reviews, testimonials, and ratings can build trust and encourage purchases. Highlight best-sellers and feature customer photos or user-generated content to enhance credibility.
Local and off-page SEO boosts your visibility. Start by identifying keywords your target audience is using, especially those related to your location if you have a physical presence.
For local SEO, optimize your site for location-based searches to attract nearby customers. This includes managing your Google My Business profile and ensuring your NAP (Name, Address, Phone number) is consistent across different directories.
Don’t forget off-page SEO. Build high-quality backlinks and work on improving your site’s domain authority to enhance your overall search engine ranking.
Content marketing
Adding a regular blog with valuable posts, optimizing product descriptions, and creating engaging social media content can drive traffic and boost your SEO efforts. Content marketing helps establish your brand as an authority and keeps customers coming back.
Email marketing
Building and maintaining an email list allows you to engage with customers directly. Create engaging email campaigns with personalized offers, product recommendations, and updates on new arrivals or promotions. Email marketing is one of the most effective ways to retain customers and encourage repeat purchases.
Social media marketing
Use platforms like Facebook, Instagram, and TikTok to promote your products and engage with your audience. Paid advertising on social media can help you reach a more extensive, targeted audience quickly. Create eye-catching posts and run campaigns that align with your overall marketing goals.
Ecommerce analytics and measurement
To understand how well your ecommerce website is performing, you need to track and analyze key metrics. Monitor metrics like:
Website Traffic: The number of visitors coming to your website.
Conversion Rates: The percentage of visitors who complete a desired action, like making a purchase.
Average Order Value (AOV): The average amount of money spent each time a customer makes a purchase.
Customer Acquisition Cost (CAC): The average cost of acquiring a new customer, including marketing and sales expenses.
These KPIs provide insights into how your site is performing and where improvements can be made.
Tools like Google Analytics are essential for tracking user behaviour, understanding traffic sources, and measuring the effectiveness of your marketing campaigns. Use these insights to refine your strategies and make data-driven decisions.
Security and compliance
Protecting your customers’ data and ensuring your site complies with legal standards is crucial for building trust and maintaining a reputable online store.
Implement strong security measures to protect customer data, such as SSL certificates, encryption, and regular security audits. Make sure your site is safe from breaches and that customers feel confident when shopping with you.
Ensure your payment processes are secure and compliant with the Payment Card Industry Data Security Standard (PCI DSS). This not only protects sensitive information but also helps you avoid costly fines and damage to your reputation.
Lastly, stay informed about the legal requirements for ecommerce in your region. This includes privacy laws, tax regulations, and consumer protection guidelines. Complying with these laws helps avoid legal issues and builds customer trust.
Best practices for running your ecommerce website
Running a successful ecommerce website isn’t just about the initial setup—it requires ongoing effort to keep everything running smoothly and efficiently. Here are some best practices to ensure your online store stays in top shape.
Ongoing maintenance and updates
Regular maintenance is crucial to keeping your ecommerce website secure, updated, and functioning at its best.
Security updates: Cybersecurity threats are constantly evolving, so it’s vital to keep your site’s software, plugins, and themes up to date. Regularly update your platform to patch vulnerabilities and protect customer data. Implement automated backups to ensure that your data is safe and can be restored quickly in case of an emergency.
Content updates: Keep your site fresh by regularly updating content, including product descriptions, images, and blog posts. This not only improves SEO but also keeps your customers engaged and informed about new products or changes.
Performance checks: Regularly monitor your site’s speed, functionality, and user experience. Slow load times or broken links can frustrate customers and lead to lost sales. Schedule regular checks to identify and fix any issues before they impact your business.
Analytics and performance tracking
As mentioned, Google Analytics is an essential tool for monitoring site performance. It provides valuable insights into user behaviour, traffic sources, and conversion rates. By analysing this data, you can identify what’s working and where there’s room for improvement.
Set up goals and track key metrics such as page views, bounce rates, and average session duration to gauge the effectiveness of your marketing efforts and overall site performance.
Customer service and support
Excellent customer service is the backbone of a successful ecommerce business. According to a Microsoft study, 96% of people said that customer service plays a big role in their brand loyalty and whether they’ll make repeat purchases. What’s more, 54% of respondents now see customer service as even more important than they did just a year ago.
Provide clear and accessible contact information, including phone numbers, email addresses, and live chat options. Being available and responsive to their needs shows that you care about their experience.
Effective customer support is also critical for resolving issues and retaining customers. Additionally, a well-defined returns and refunds policy can boost customer confidence and encourage purchases. Regularly gather customer feedback to identify areas for improvement and make adjustments as needed.
Building and running a successful ecommerce website takes careful planning and continuous effort. Choosing the right ecommerce website builder is the foundation of your online store’s success. It’s essential to pick one that aligns with your business needs. From there, optimizing your website for performance, mobile use, and conversion rates will ensure that you’re providing the best possible experience for your customers.
Now that you’ve got a solid understanding of what it takes to create and manage an ecommerce website, it’s time to take the next step. Start by exploring the recommended ecommerce platforms we’ve discussed. If you need additional help, consider reaching out to their experts for guidance. The sooner you begin, the sooner you can start selling and growing your business online.
FAQs
What are ecommerce websites?
Ecommerce websites are online platforms that allow businesses to sell products or services over the internet. These sites provide everything a customer needs to browse, select, and purchase items from the comfort of their home or mobile device. Ecommerce websites typically include features like product catalogs, shopping carts, secure payment gateways, and customer service options to facilitate the entire shopping process.
What is the best ecommerce website builder to use?
The best ecommerce website for you depends on your specific needs and business goals. Some of our top picks include Dukaan, Wix, WooCommerce, and Shopify.
How do I start my own ecommerce website?
Starting your own ecommerce website involves several key steps:
Pick an ecommerce platform that suits your business needs.
Choose a domain name that reflects your brand.
Select a hosting provider if your ecommerce platform doesn’t include hosting.
Design your website by choosing and customizing a template or theme.
Add your products, including images, descriptions, and pricing.
Set up payment and shipping options to ensure smooth transactions.
Test your website thoroughly before launching to catch any issues.
Launch your site and start promoting it through marketing channels like social media, email, and SEO.
How much does an ecommerce website cost?
The cost of an ecommerce website can vary widely depending on several factors. Platform fees are a significant consideration. For instance, Shopify starts around $99 per month, while WooCommerce is free but requires hosting, which can range from $10 to $100 per month or more.
Design and development costs can vary, from using free templates to hiring a designer, which could add a few hundred to several thousand dollars, depending on the complexity. Paid plugins or apps may also increase costs over time. Remember to factor in ongoing expenses like domain renewal, marketing, and transaction fees. A basic ecommerce website might start at a few hundred dollars, while more advanced sites with custom features could cost several thousand dollars or more.
The e-commerce landscape is in a perpetual state of evolution, requiring brands to continuously adapt their strategies to effectively reach and engage consumers.
While traditional advertising channels still hold relevance, digital platforms, including retail media networks (RMNs), are experiencing unprecedented growth and reshaping the marketing landscape. Global e-commerce sales are projected to pass $6.3 trillion this year, underscoring the immense growth potential within this space.
In this digital ecosystem, RMNs are emerging as a formidable force, presenting brands with a powerful new avenue to connect with consumers and drive sales. For example, my company worked with a CPG giant to discover a previously untapped and highly valuable customer segment—health-conscious millennials with a penchant for eco-friendly products—using retail media strategies. This newfound audience ultimately unlocked a significant sales increase for the brand, showing the transformative power of RMNs.
Retail Media Networks: Taking E-Commerce Advertising By Storm
RMNs are changing e-commerce advertising by strategically connecting brands with potential customers when their purchasing intent is highest. Hosted by major retailers such as Amazon, Walmart and Target, these advertising platforms provide more precision and effectiveness compared to traditional advertising’s approach. (Disclosure: My company works with Amazon and Walmart.) RMNs offer focused targeting capabilities, ensuring messages reach and resonate with the most receptive audience.
The benefits for brands extend beyond increased visibility. RMNs unlock a wealth of data, granting access to in-depth shopper insights, purchase behaviour patterns and conversion analytics. This type of information allows brands to identify previously unseen niche audiences. Even brands like Home Depot are entering the RMN space, creating highly specialized advertising opportunities for specific industries.
Amazon has been at the forefront of the RMN revolution. The company’s expansion into advertising has solidified its position in the digital advertising landscape. Amazon’s recent announcement of 24% growth in its advertising unit, reaching $11.8 billion in ad revenue for the first quarter of 2024, further solidifies its dominance.
The Evolving Consumer Journey: A Maze Of Touchpoints
I think the rise of RMNs reflects a shift in consumer behaviour. Traditionally, marketers mapped a clear-cut consumer journey with distinct phases like awareness, consideration and purchase.
However, the lines are becoming increasingly blurred. Social media platforms like Instagram are now heavily influencing purchase decisions, making the consumer journey more of a labyrinth than a linear path. A potential customer might see a viral recipe video that features your brand’s olive oil, then head straight to Amazon to buy it—all within minutes.
According to eMarketer: “Advertisers still view social media as a discovery medium and retail media as a conversion-driver. But both platforms are ‘potentially full-funnel,’ according to Liz Cole, executive director and US head of social at VMLY&R.” This perception underscores the need for a more integrated approach that leverages the strengths of both platforms to optimize the customer journey.
This interconnected web of online channels demands brands take a marketing approach with partners who can take a holistic view of their budgets, strategically deploying various levers—from RMNs to social media campaigns and influencer marketing—to achieve optimal results. Today’s successful brands understand the power of weaving a cohesive narrative across all digital touchpoints to truly resonate with consumers. Gone are the days where simply listing a product on an online marketplace sufficed.
Best Practices
Retail media networks offer a powerful opportunity for brands to connect with highly targeted audiences at the point of purchase. However, navigating the complexities of RMNs can be challenging for many companies.
To maximize the potential of RMNs, brands should:
1. Establish clear objectives and define goals. Are you aiming to increase brand awareness, drive sales or gather customer insights? These objectives will guide your strategy and help you measure success.
2. Leverage first-party data. RMNs provide access to valuable first-party data, such as shopping history and demographics. Utilize this data to create highly targeted campaigns that resonate with your ideal customers.
3. Experiment and optimize. Retail media is a dynamic landscape. Don’t be afraid to experiment with different ad formats, placements and messaging.
4. Continuously monitor performance and make adjustments to optimize your campaigns.
5. Track KPIs to measure the effectiveness of campaigns. Analyse the data to identify areas for improvement and inform future strategies.
By addressing these key factors and overcoming challenges such as complexity, limited inventory and data privacy concerns, companies can effectively utilize RMNs to drive sales, build brand awareness and gain valuable insights into their target audience.
The Future Of Retail Media: A Story Still Being Written
The future of retail media is brimming with possibilities. As e-commerce continues its meteoric rise, I think RMNs will become an even more essential tool for brands to connect with and convert consumers. Their combination of data-driven insights and targeted advertising capabilities empowers brands to navigate the changing e-commerce landscape with confidence and precision.
E-commerce has not only reshaped the modern business landscape but also created inspiring success stories across the globe.
One such example is Nivetha Muralidharan, who transitioned from a software engineer to an e-commerce guru, founding her own agency that specializes in converting traditional businesses into online successes.
Similarly, the story of Flipkart, started by former Amazon employees Sachin and Binny Bansal, illustrates the vast potential of e-commerce. Beginning as a small online bookstore, Flipkart grew into one of India’s most valuable startups, eventually attracting a $16 billion investment from Walmart.
This article serves as your comprehensive guide to the e-commerce journey.
From the initial steps of setting up an online store to employing advanced strategies like leveraging artificial intelligence (AI) to improve customer interactions, we cover all you need to know to start, manage, and optimize your e-commerce business.
Join the ranks of success stories like Nivetha and Flipkart by mastering the fundamentals and exploring innovative e-commerce strategies detailed here.
What is ecommerce?
E-commerce, short for electronic commerce, refers to the transaction of goods and services through the digital medium, primarily the internet.
This broad domain includes various business models, each catering to different market needs:
B2B (Business-to-Business): This model involves transactions between two businesses, such as a manufacturer and a wholesaler, or a wholesaler and a retailer. B2B e-commerce often involves bulk sales, which require complex logistical planning and longer sales cycles.Platforms specialized for B2B transactions often offer features like order management systems, bulk pricing options, and detailed invoicing capabilities.
B2C (Business-to-Consumer): The most common form of e-commerce, B2C transactions occur between businesses and individual consumers. This model includes online retailers who sell products or services directly to consumers without an intermediary.B2C e-commerce is characterized by faster sales cycles, lower order volumes compared to B2B, and direct marketing approaches to entice the individual consumer.
C2C (Consumer-to-Consumer): Popularized by platforms like eBay, Etsy, and Craigslist, C2C e-commerce allows individuals to sell goods and services to each other. This model has given rise to a vibrant marketplace for secondhand goods, handmade items, and personalized services.It relies heavily on platform security, user verification processes, and effective transaction handling mechanisms.
D2C (Direct-to-Consumer): D2C e-commerce is a newer model where manufacturers or producers sell directly to the end consumer, bypassing traditional retailers or intermediaries.This approach allows businesses to gain more control over their brand presentation, customer experience, and profit margins. It often involves a significant focus on digital marketing, community building, and customer service.
E-commerce also varies in the types of goods and services sold, ranging from physical items like books and clothing to digital products such as software, and services like online courses or consulting.
The ecommerce operations can be supported by various backend functions including logistics, digital marketing, and customer service, tailored to each model’s specific needs.
Evolution and trends in ecommerce
The trajectory of e-commerce has been profoundly influenced by the rapid evolution of technology and the shifting habits of consumers.
Starting in the 1990s with the commercialization of the internet, e-commerce has transformed from a novel concept into a fundamental business practice, featuring prominently across global markets.
Historical perspective
Initially, ecommerce was limited by the technology of the time and consumer trust issues. Early adopters were few, and systems were not as robust or secure.
However, as internet technology improved, and secure payment gateways became standardized, more businesses and consumers began embracing online transactions.
The dot-com boom of the late 1990s and early 2000s saw a surge in e-commerce businesses, some of which are now leading global retailers.
Today, ecommerce is characterized by several key trends that are shaping its future:
AI in ecommerce
Artificial intelligence is revolutionizing e-commerce operations by enhancing user experiences through personalized shopping and customer service. AI-driven systems analyse customer data to predict buying patterns, recommend products, and manage inventory more efficiently.
AI is also pivotal in optimizing logistics and supply chain strategies, making e-commerce operations more responsive to market demands.
Mobile shopping
With the increase in smartphone usage, mobile commerce (m-commerce) has grown exponentially. Consumers appreciate the convenience of shopping from anywhere at any time, which has led businesses to prioritize mobile-friendly websites and apps.
This shift demands responsive web design and mobile-specific marketing strategies to capture the mobile-savvy consumer base.
E-commerce SEO and marketing
As the ecommerce space becomes more crowded, effective search engine optimization (SEO) and comprehensive e-commerce marketing strategies have become crucial.
Businesses are investing in SEO to improve their online visibility and drive organic traffic to their sites. Additionally, targeted digital marketing campaigns using social media, email, and content marketing are key to engaging potential customers and building brand loyalty.
Personalization and customer experience
E-commerce businesses are focusing more on delivering personalized shopping experiences. By using data analytics and machine learning, online retailers can create individualized content, offers, and product recommendations, leading to higher engagement and conversion rates.
Sustainability and ethical practices
Increasingly, consumers are considering the environmental and social impact of their purchases. E-commerce brands that adopt sustainable practices, such as eco-friendly packaging and ethically sourced products, are gaining favor among conscientious buyers.
Global expansion and cross-border ecommerce
As technology bridges geographical gaps, more e-commerce businesses are exploring international markets. This expansion is supported by improved logistics, multi-lingual customer support, and localized marketing efforts, making it easier to sell and ship products globally.
These trends highlight the dynamic nature of e-commerce, continually driven by innovation and consumer expectations.
As we look to the future, these elements are expected to play even more significant roles, pushing the boundaries of what e-commerce platforms can achieve and offering new opportunities for businesses and consumers alike.
When launching an e-commerce business, the initial steps you take can determine your long-term success.
Choosing the right products or services to offer and understanding your market and audience are foundational elements that require careful consideration and strategic planning.
Choosing the right product or service
The cornerstone of any successful e-commerce business is its product or service offering. When selecting what to sell, consider the following factors:
Market Demand: Assess the current demand for potential products or services. Tools like Google Trends and social media analysis can provide insights into what consumers are interested in and how these interests change over time.
Competition: Evaluate the competitive landscape. Identify direct competitors and analyse their offerings, pricing, and marketing strategies. Look for gaps in the market where you can offer something unique or of better quality.
Profitability: Consider the cost of sourcing, storing, and shipping your products. Some products may have higher initial profits but might be more expensive to manage due to storage or shipping requirements. Digital products or dropshipping models can reduce overhead costs and simplify logistics.
Conducting market research
Effective market research involves gathering and analysing data to better understand your industry and target customers. This process should guide your business decisions and strategy:
Who are your potential customers?What are their age groups, interests, spending habits, and preferences? This information can help tailor your marketing efforts and product offerings.
Where are your customers located? Understanding the geographic distribution of your potential market can influence product choices, marketing strategies, and shipping logistics.
Be aware of any trends that could affect your product categories. Seasonal fluctuations can significantly impact sales, and being prepared for these changes can help maintain steady revenue.
Identifying target audiences
Identifying and understanding your target audience is critical to tailoring your e-commerce strategy.
Start by segmenting your market based on demographic, geographic, and behavioural criteria. This segmentation can help create more targeted and effective marketing campaigns.
You’ll then need to understand what your customers value, having this information can help in designing your product line and your marketing messages. Customer feedback, surveys, and engagement on social media can provide valuable insights.
Finally, position your brand and products in a way that appeals to your target audience. This involves not only the functional attributes of your products but also the emotional and psychological aspects that can resonate with your audience.
By taking the time to choose the right product or service, conduct thorough market research, and clearly identify your target audiences, you set a strong foundation for your e-commerce business.
These steps are crucial in ensuring that your business not only meets existing market demands but also stands out in the competitive online marketplace, positioning it for long-term growth and success.
E-commerce platforms & websites
Choosing the right e-commerce platform is critical, as it affects everything from the user experience to the ease of site management. Ecommerce website builders like Shopify, Magento, and WooCommerce offer different features and scalability options.
Overview: Shopify is a highly popular e-commerce platform known for its ease of use and all-in-one hosted solution, meaning you don’t need to worry about buying separate hosting. It’s designed to help individuals and businesses build their online stores quickly and efficiently without requiring technical skills.
Key features:
User-friendly interface: Shopify is celebrated for its simple, clean, and intuitive admin panel, which is great for beginners.
Integrated payment solutions: It offers its own payment gateway, Shopify Payments, as well as integration with numerous other payment processors.
Scalability: Shopify can scale with your business, from small startups to large enterprises, and supports various sales channels including online, in-store, and social media.
App ecosystem: A vast marketplace of apps and plugins that can add functionality and customize your store.
Overview: Magento, now known as Adobe Commerce, is an open-source e-commerce platform that offers robust features and unlimited customization options, making it ideal for medium to large enterprises with more complex e-commerce needs and the resources to manage them.
Key Features:
Customization: Being open-source, it allows for deep customization of every aspect of the store, from the user interface to the backend processes.
Scalability: It handles large inventories and complex functionalities better than most platforms, making it suitable for businesses planning to scale quickly.
Community and Professional Support: A large community of developers and professional support from Adobe ensure continuous improvements and enterprise-grade support.
Integrated B2B Functionality: Offers features designed specifically for B2B sellers, including quote management, credit purchases, and custom catalogues.
Overview: WooCommerce is an open-source e-commerce plugin for WordPress. It is a great choice for small to medium-sized businesses already familiar with WordPress or those seeking to extend a WordPress site into an e-commerce platform.
Key features:
WordPress integration: Perfect integration with WordPress makes it a go-to choice for users who are already comfortable with the WordPress environment.
Cost effectiveness: The core software is free, though many extensions and themes are paid, but generally, it’s considered a cost-effective option for startups.
Flexibility: It supports physical, digital, and even affiliate products. Like Magento, it’s highly customizable because of its open-source nature.
Large plugin ecosystem: Access to thousands of WordPress plugins and themes to extend the functionality and design of your e-commerce site.
Choosing the right platform
When selecting between Shopify, Magento, and WooCommerce, consider your specific business needs, technical capabilities, and growth plans.
Shopify might be best for those who need simplicity and quick setup, Magento for large businesses needing a highly customizable platform, and WooCommerce for existing WordPress users looking for an easy extension to e-commerce.
Each platform offers unique advantages and could be the right choice depending on your particular requirements.
Setting up an ecommerce website
Once you’ve chosen a platform, setting up an effective e-commerce website involves several critical steps:
Step One – Domain Name: Your domain name should be memorable, align with your brand, and be easy to type. A good domain name can make a significant difference in marketing and brand recognition. Secure a domain name that is straightforward and reflects your business.
Step Two – Hosting: Reliable hosting is crucial to ensure your website remains accessible at all times. Hosting solutions should offer excellent uptime, fast servers, and good customer support. Some e-commerce platforms offer their own hosting, which may simplify setup and maintenance.
Step Three – Website Design: The design of your website should reflect your brand’s aesthetic and appeal to your target audience. It should be visually appealing and functional, offering a good balance between beauty and usability. Ensure that your website design is mobile-friendly, considering the increasing prevalence of mobile shopping.
Step Four – Security: E-commerce sites must be secure to protect sensitive customer information such as credit card numbers and personal details. Ensure your platform supports HTTPS/SSL for secure connections, and comply with PCI DSS (Payment Card Industry Data Security Standard) requirements.
By carefully choosing an e-commerce platform and meticulously setting up your website, you create a solid foundation for your online business. This foundation supports not only current operational needs but also future growth and expansion, ensuring that your e-commerce venture is built for success.
Operational aspects of e-commerce
A robust operational framework is vital to the success of any e-commerce business. This includes not only how the website functions but also how products are managed and delivered.
Let’s delve deeper into the essentials of e-commerce website operations and the critical components of inventory management and shipping logistics.
E-commerce website essentials
For an e-commerce website to thrive, it must excel in several key areas:
Well-Designed Product Pages: Each product page should provide detailed information, including high-quality images, comprehensive descriptions, specifications, price, and availability. Additionally, incorporating elements like customer reviews, ratings, and related products can enhance user experience and aid in purchase decisions.
Seamless Checkout Process: A streamlined checkout process reduces cart abandonment and enhances customer satisfaction. This involves minimizing the number of steps to purchase, offering multiple payment options (including mobile payments and digital wallets), and ensuring transparency in pricing and fees throughout the process.
Mobile Optimization: With a significant portion of online shopping done via mobile devices, ensuring your website is mobile-friendly is essential. This includes responsive design that adjusts to different screen sizes, easy navigation, and touch-friendly interfaces. Mobile optimization also affects search engine rankings, further emphasizing its importance.
Effective management of inventory and shipping operations is crucial for maintaining service quality and operational efficiency.
Here’s how businesses can optimize these areas:
Efficient Inventory Management
Proper inventory management ensures that you have the right amount of product, at the right time, to meet consumer demand without overstocking or stockouts. Implementing automated inventory management systems can help track stock levels in real-time, forecast demand based on historical data, and trigger alerts when it’s time to reorder.
Real-Time Inventory Updates
Integrating real-time inventory updates on your e-commerce site helps maintain accurate stock levels on the website, reducing the chance of customer disappointment due to order cancellations. This transparency can enhance customer trust and satisfaction.
Reliable Shipping Policy
Clear and reliable shipping policies are fundamental for customer satisfaction. This includes offering various shipping options that balance speed and cost, providing tracking information, and ensuring that packaging is secure and appropriate for the items being shipped.
Automated Shipping Systems
Automation can streamline the shipping process, reduce errors, and increase efficiency. Automated systems can generate shipping labels, track shipments, and update customers automatically, thereby improving the overall customer experience.
Handling Returns
Efficient handling of returns is also a critical aspect of e-commerce operations. A clear, straightforward returns policy and a simple process for customers to follow can help in retaining customers who might otherwise be dissatisfied with their purchase.
By optimizing these operational aspects, e-commerce businesses can enhance their efficiency, improve customer experiences, and ultimately drive greater success.
Each element from website design and checkout optimization to inventory and shipping management plays a critical role in building a reliable and successful online business.
E-commerce marketing and sales strategies
Effective ecommerce marketing and sales strategies are pivotal for the success of any e-commerce business. They help in not only attracting new customers but also retaining them over the long term.
Digital marketing for e-commerce
Digital marketing encompasses a variety of strategies tailored to reach and convert online consumers. Here are some key strategies:
Search Engine optimization (SEO): E-commerce SEO involves optimizing your website and its content to rank higher in search engine results pages (SERPs). This includes using the right keywords, optimizing product descriptions and images, and ensuring your website has all the necessary technical optimizations to enhance visibility and drive organic traffic.
Content marketing: Effective content marketing can help attract customers through valuable and relevant content that addresses their needs and interests. This might include blogs, buying guides, how-to articles, and videos that not only help in SEO but also provide value to your audience, building trust and authority in your niche.
Pay-Per-Click (PPC) advertising: PPC campaigns can drive immediate traffic to your e-commerce site. Platforms like Google Ads and Bing Ads allow you to display ads in search engine results and on partner websites, targeting specific demographics and keywords.
Social Media advertising: Utilizing platforms like Facebook, Instagram, Twitter, and Pinterest can help you reach a vast audience. Social media ads can be highly targeted based on user demographics, interests, behaviours, and more, making them effective for generating leads and driving sales.
Email marketing: Email remains one of the most effective marketing tools for e-commerce businesses. It allows for direct communication with your customers, enabling personalized offers, newsletters, and updates that can encourage repeat purchases and foster brand loyalty.
Customer engagement and retention
Engaging with your customers effectively and maintaining their interest is crucial for building a loyal customer base.
Incorporating interactive elements such as live chat and AI-powered chatbots on your website can improve customer service by providing instant assistance and answers to customer queries.
This real-time interaction enhances the shopping experience and supports conversion and retention rates.
Using data analytics to offer personalized product recommendations can significantly enhance the shopping experience. By analysing past behaviour, preferences, and purchases, you can suggest relevant products to your customers, increasing the likelihood of purchases.
Implementing loyalty programs that reward repeat customers with discounts, special offers, and exclusive deals can enhance customer retention. These programs encourage customers to return and make additional purchases.
Actively seeking customer feedback and facilitating product reviews can lead to greater customer engagement. Feedback helps you understand customer needs and improve your offerings, while reviews provide social proof that can influence the buying decisions of new customers.
Remarketing involves targeting customers who have visited your website but did not make a purchase. Through targeted ads and follow-up emails, you can re-engage these potential customers, increasing the chances of converting previously missed opportunities.
By employing these digital marketing and customer engagement strategies, e-commerce businesses can attract a diverse audience, convert them into customers, and retain them for long-term success.
Each element plays a crucial role in building a robust online presence and a loyal customer base.
E-commerce SEO
Optimizing your e-commerce site for search engines is essential for enhancing your online visibility and attracting more customers.
Effective e-commerce SEO involves several key elements that are crucial for improving your search engine rankings and driving organic traffic.
Optimized product descriptions: Each product description should be unique, informative, and include relevant keywords that potential customers might use when searching for that product. This not only helps in SEO but also improves the user experience by providing valuable information.
Keyword optimization: Conduct thorough keyword research to identify the terms and phrases that potential customers are using. Incorporate these keywords naturally into your product titles, descriptions, meta descriptions, and URLs to help search engines understand and rank your pages.
Mobile optimization: With the increasing use of mobile devices for online shopping, having a mobile-friendly website is crucial. Google uses mobile-first indexing, which means it predominantly uses the mobile version of the content for indexing and ranking. Ensure your site is responsive, loads quickly on mobile devices, and provides a seamless shopping experience.
Site structure and navigation: A well-organized site structure helps search engines crawl your site more effectively. Use a logical hierarchy for your product categories and links, and ensure your navigation is easy for users to follow.
Technical SEO: Address technical SEO aspects such as fast loading speeds, secure connections (HTTPS), and the elimination of duplicate content. Implement structured data (schema markup) to enhance your listings in search results, which can improve click-through rates.
By focusing on these aspects of e-commerce SEO, you can significantly improve your site’s visibility in search results, attracting more traffic and potential customers to your online store.
How to choose ecommerce products
Selecting, presenting, and pricing products are critical components of running a successful e-commerce store. Each element plays a vital role in attracting customers and driving sales.
Selecting products for your e-commerce store
Choosing the right products is foundational to your e-commerce success. Conduct market research to identify trends, customer preferences, and potential niches.
Consider factors such as profitability, shipping costs, and supplier reliability. It’s essential to select products that not only have a proven market demand but also align with your brand values and target audience.
Product presentation and listings
Effective product presentation is crucial. High-quality images, detailed descriptions, and clear specifications help customers make informed decisions.
Utilize multiple photos from various angles and include videos if possible to enhance the visual appeal. Your product listings should be SEO-friendly, incorporating targeted keywords to improve search engine rankings and visibility.
Pricing strategies
Developing a competitive pricing strategy is key to attracting and retaining customers. Consider both cost-plus pricing and market-oriented pricing strategies.
Analyse your competitors’ prices to ensure your pricing is competitive but also allows for a reasonable profit margin. Employing psychological pricing tactics, such as pricing products just below a round number (e.g., $29.99 instead of $30), can also subtly enhance the attractiveness of your prices.
Regularly review and adjust your pricing based on market conditions, customer demand, and overall business goals.
By meticulously managing these aspects of your e-commerce products, you can optimize your product offerings to meet customer expectations and drive business growth.
Advanced ecommerce techniques
Advancements in technology have given rise to sophisticated techniques that can significantly enhance e-commerce operations.
Utilizing data and analytics, and integrating AI and automation are at the forefront of these advanced strategies.
Utilizing data and analytics
Data and analytics are indispensable for understanding customer behaviour and optimizing e-commerce strategies.
Key Performance Indicators (KPIs) such as conversion rates, average order value, customer lifetime value, and traffic sources are crucial for monitoring and measuring e-commerce success.
Tools like Google Analytics offer comprehensive insights into user behaviour, traffic patterns, and effectiveness of marketing campaigns. By analysing this data, businesses can identify successful elements of their online presence and areas that require improvement.
For instance, if the data shows high cart abandonment rates, strategies can be developed to address this issue, potentially increasing sales.
The role of AI and automation
Artificial Intelligence (AI) and automation are transforming e-commerce operations across multiple dimensions:
Customer Service: AI-powered chatbots can handle customer inquiries 24/7, providing instant responses to common questions and issues. This not only enhances the customer experience but also reduces the workload on human customer service teams.
Personalized Shopping Experiences: AI algorithms analyse customer data, past behaviour, and purchasing patterns to deliver personalized product recommendations and promotions. This level of personalization can significantly enhance the customer experience and increase the likelihood of repeat purchases.
Optimized Logistics and Supply Chain Management: AI can optimize inventory management and logistics, predicting demand to ensure the right products are in stock and automating routing and scheduling for deliveries. This results in more efficient operations and can reduce costs.
Marketing and Sales Strategies: AI tools can automate and optimize marketing campaigns, adjusting in real time based on customer interactions and engagement. This allows for highly targeted marketing that is more likely to convert.
Fraud Detection: AI systems are capable of identifying potential fraudulent activities by analysing patterns that deviate from the norm, enhancing security for both the business and its customers.
Incorporating these advanced techniques into e-commerce operations not only streamlines processes but also provides a significant competitive advantage.
By leveraging data and analytics and embracing AI and automation, e-commerce businesses can enhance efficiency, improve customer satisfaction, and ultimately drive growth and profitability.
Challenges and solutions in e-commerce
Operating an e-commerce business is not without its hurdles.
From logistical challenges to legal and ethical concerns, there are numerous obstacles that businesses must navigate to ensure smooth operations and maintain customer trust.
Addressing common e-commerce challenges
Managing Customer Expectations: In the digital age, customers have high expectations for service, delivery, and quality. To manage these expectations, clear communication is key. Ensure that product descriptions are accurate and comprehensive, and policies regarding returns and deliveries are transparent and well-communicated. Utilizing customer feedback systems can also help identify areas needing improvement.
Ensuring Timely Deliveries: Delivery delays are a common issue in e-commerce. To mitigate this, optimize your logistics and supply chain strategies. Partnering with reliable shipping providers and maintaining good inventory practices can help avoid delays. Additionally, providing customers with tracking information and proactive updates can improve the experience, even when delays occur.
Maintaining a Secure Online Presence: Cybersecurity threats pose significant risks to e-commerce businesses. Implement robust security protocols such as SSL certificates, data encryption, and secure payment gateways to protect customer information. Regular security audits and staying updated on the latest cybersecurity trends are also crucial.
Legal and ethical considerations
Compliance with E-commerce Regulations: E-commerce businesses must adhere to a complex array of regulations that vary by country and region, including consumer protection laws, data protection directives, and tax obligations. Staying informed about relevant legislation and seeking legal advice can help ensure compliance. Implementing compliant practices not only avoids legal penalties but also enhances your reputation.
Maintaining Ethical Practices: Ethical concerns, particularly related to privacy and data usage, are increasingly important to consumers. Be transparent about how you collect, use, and store customer data. Implement privacy policies that protect user data and provide customers with options to control their information, such as easy-to-use privacy settings and customer data access requests.
Sustainability Practices: Ethical considerations also extend to sustainability. Consumers are increasingly favouring businesses that demonstrate environmental responsibility. Adopting sustainable practices, such as using eco-friendly packaging and supporting fair trade products, can enhance your brand’s appeal and contribute to customer loyalty.
By proactively addressing these challenges and adhering to legal and ethical standards, e-commerce businesses can build a strong, trusted relationship with customers, ensuring long-term success and stability in the competitive online marketplace.
Final thoughts
The potential of e-commerce is immense, offering myriad opportunities for businesses to expand and innovate.
By utilizing the strategies outlined in this guide, entrepreneurs can effectively build and grow their e-commerce ventures, ensuring sustained success in the digital marketplace.
FAQs
What is e-commerce with an example?
E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet.
It encompasses a variety of transactional processes conducted online, ranging from ordering digital content for immediate online consumption to purchasing conventional goods and services.
Example: An individual purchases a new laptop from an online store like Amazon. They select the laptop, place it in their virtual shopping cart, complete the payment process online, and the laptop is shipped to their address.
How do I start my e-commerce business?
To start an e-commerce business, follow these steps:
Choose a Niche: Identify a product category that interests you and meets a specific market demand.
Market Research: Conduct thorough research to validate your idea, understand your target audience, and analyse competitors.
Select a Business Model: Decide whether you’ll dropship, hold inventory, or manufacture your own products.
Choose an E-commerce Platform: Select a platform like Shopify, WooCommerce, or Magento based on your technical skills, budget, and customization needs.
Set Up Your Online Store: Customize your website, add products, and set up payment and shipping options.
Launch Marketing Campaigns: Use SEO, content marketing, PPC advertising, and social media to attract customers to your store.
Analyse and Optimize: Monitor your store’s performance and make improvements to enhance user experience and increase sales.
What are the four main types of e-commerce?
The four main types of e-commerce are:
B2C (Business-to-Consumer): Businesses sell goods and services directly to consumers online. Example: Netflix subscriptions.
B2B (Business-to-Business): Transactions between businesses, such as a manufacturer and a wholesaler, or a wholesaler and a retailer. Example: Office supplies from Office Depot to businesses.
C2C (Consumer-to-Consumer): Consumers sell goods or services to other consumers. Example: eBay or Craigslist.
C2B (Consumer-to-Business): Individuals sell goods or services to businesses. Example: A freelance graphic designer creating logos for a business.
Is ecommerce worth it?
E-commerce can be highly rewarding if managed correctly. It offers access to a larger market, the convenience of shopping from anywhere, and often lower costs.
However, success requires an understanding of digital marketing, customer service, and the technical aspects of running an online store. It’s a competitive field but can yield substantial returns with the right strategy and commitment.
Can e-commerce make you wealthy?
Yes, e-commerce has the potential to make you wealthy, but it isn’t guaranteed. Success depends on factors such as choosing the right niche, having a robust online presence, effective marketing, and a bit of luck.
Many e-commerce entrepreneurs have built prosperous businesses, but like any business, it requires hard work, persistence, and smart strategies.
Is e-commerce a good side hustle?
E-commerce can be an excellent side hustle, offering the flexibility to manage your business from anywhere and potentially providing a significant income stream.
It can start as a part-time endeavour and grow into a full-time business. However, it requires time to manage inventory, fulfil orders, provide customer service, and market your products.
How difficult is e-commerce?
E-commerce can be challenging due to intense competition, the need for continual marketing efforts, and the logistics of managing an online business.
Success often depends on selecting the right niche, effective marketing, optimizing the customer experience, and scaling operations. It’s accessible to beginners but does require learning and adapting to many facets of running a business online.
Social commerce is where social media and e-commerce intertwine. Consumers scroll social media platforms like TikTok and Instagram for entertainment and information. More recently, consumers are using social media to browse and shop online. If brands want to reach a new pool of consumers, they must meet shoppers where they are.
Consumers want convenience and variety when shopping online – and they are willing to invest time and effort to comparison shop. An overwhelming 82% of global consumers will visit two or more websites before buying, according to the 2023 Online Consumer Behaviour Global Report by Rithum and research firm Dynata. This report was based on a survey of over 6,000 online shoppers across the U.S., U.K., Australia, France, Germany, Sweden and Denmark in August 2023.
That’s the same percentage of consumers who found items through Amazon recommended products and Google search ads. 72% of consumers said they would go further, visiting two to four websites before buying, according to the report.
Social commerce is popular among younger consumers
Adding social media platforms as a selling channel gives direct-to-consumer (DTC) brands the opportunity to connect with audiences they might not otherwise reach. This includes reaching younger consumers who are comfortable scrolling and trying new products they find through social media. According to the report, 63% of consumers between the ages 18-25 said they had been influenced to make a purchase after seeing a product promoted by a brand on social media in the past 12 months.
Consumers comfortable purchasing through social media are expected to buy more through 2027. According to market research company eMarketer, U.S. social commerce sales per buyer is expected to nearly double from $627.8 billion in 2023 to $1,223.7 billion in 2027.
That influence isn’t limited to Gen Z’ers. More than half of consumers (53%) ages 26-35, and 40% of consumers ages 36-45 also said they were influenced to buy products they saw through social media ads, according to the Rithum and Dynata report.
Social media goes beyond brand awareness
Social commerce is evolving. The rate at which it has grown has exploded over the last year. It is expected to reach $1.698 trillion in sales by the end of 2024, according to data gathering platform Statista. That momentum shows no signs of slowing.
Consumer behaviour indicates that social commerce is a retail opportunity for the long-term. 23% of global consumers indicated that they already use their social media feed to find products to buy online, according to the Rithum and Dynata report.
According to research and consulting firm Forrester’s August 2023 Consumer Pulse Survey, 46% of consumers who participated in back-to-school shopping bought directly from an ad they saw on social media. But brands are learning they can leverage social media beyond sponsored ads. It is its own selling channel.
ByteDance’s TikTok launched TikTok Shop in September 2023 in the United States. TikTok Shop is also live in the United Kingdom. Instead of relying solely on ads, influencer’s user-generated content (UGC) creates an authentic shopping experience. Consumers can now buy products promoted by their favourite content creators. TikTok’s community spans more than 1 billion monthly active users.
Social commerce as an authentic shopping experience
Brands can look to content creators, or influencers, to reach new consumers. Here, it’s the quality, rather than quantity, of followers that matter. Non-celebrity micro-influencers with a few thousand loyal followers capture attention and can contribute toward a higher conversion rate for a product.
Authenticity is increasingly important. Micro-influencers have gained followers by sharing their lives or advice on social media. UGC is not produced or polished by brands. Here, the content creator shares a product they like with their followers. As a result, consumers tend to trust their recommendations.
Brands can partner with influencers, where the influencer promotes the brand’s products or services through social media platforms such as TikTok, Facebook, Instagram, YouTube and others. These relationships can be established directly between the influencer and brand or be connected through agencies that help usher these relationships to find the right fit.
Apparel and beauty categories are popular among consumers shopping through social media. These tend to be lower-priced purchases, so the risk and reward is less prohibitive. It’s also easy with less friction to pay at checkout. Consumers can increasingly pay through various social media apps using trusted methods such as PayPal, Apple Pay, Google Pay and Venmo.
The evolution of social commerce isn’t a passing trend. Consumers want an honest review – and they feel they can trust the content creators they follow on social media. Social media opens a gateway for brands to create an authentic connection with consumers. Learn more about selling on TikTok Shop, and Shops on Facebook and Instagram.
If you run a small, local business, chances are you’ve got some sort of a website. You may even be set up to sell a few products online, here and there. But you may not have tapped the massive potential of building out a real e-commerce arm for your business. And you might not realize just how easy — or how lucrative — it’s become for small, local businesses to move online.
If you’re still mostly bound to brick-and-mortar, it’s time to consider a change. Here are some low-risk, high-reward ways to successfully scale into the digital world.
1. Do a Digital Reboot
As noted, you may already have a great website or even a decent online store. But it’s likely you could be doing much more to make it competitive with other e-commerce sites in your niche.
If it isn’t already, your site should be hosted on—or at least integrated with—a platform that’s designed for e-commerce, like Shopify, Squarespace or BigCommerce. Make sure it’s easy to use, intuitive to navigate and has a clean, simple design. It might be worth having a specialist conduct a user experience audit.
Perhaps most importantly, ensure your site is optimized for mobile users. Remember that 91% of Americans ages 18 to 49—likely the bulk of your target customers—shop on their smartphones. Most web design platforms let you convert your desktop designs to mobile layouts almost automatically. But you still need to make sure the mobile version is attractive and usable.
2. Leverage the Power of Online Testimonials
Getting good product reviews on your site and on other platforms can do wonders for your business. Consumers don’t trust brands, but they trust other people’s experience of a brand or product. Positive reviews can be just as effective as hearing directly from people they know in real life.
Smallbiz Technology recommends that businesses feature reviews and testimonials directly on their website and social media channels, natch. But they also note that positive reviews on third-party sites like Google, Yelp, and Trustpilot can generate tons of traffic.
To encourage customers to write reviews, they suggest offering customers free products or discounts as incentives. But note that if you sell products through a marketplace like Amazon, exchanging gifts for reviews could violate their policies. Alternatively, you can reach out and simply ask customers who like your product to take a moment to do a short write-up.
3. Offer Convenient Payment and Shipping Options
Your customer won’t buy from you online if you don’t make it as easy for them as shopping on Amazon. It’s imperative to offer fast, free or cheap shipping and eliminate any trace of friction from the shopping experience. The smallest details can send a customer packing even when they were already pretty serious about making a purchase.
Whatever you do, don’t force your customers to create an account before checkout. That’s one of the fastest ways to turn a ready-to-buy customer into one who’s just closed your site’s browser tab. It’s also vital to offer a number of convenient payment options, including PayPal, Apple Pay and Google Pay in addition to the standard credit cards.
Packing and shipping your own orders in-house may save you money when you’re just starting out. But as a small business, you don’t have the infrastructure to keep doing that at scale. Eventually, you’ll need to contract with a third-party fulfilment service. Shopify offers its own in-house option and maintains a list of other recommended fulfilment services you can try.
4. Be Smart About Email Marketing and Social Media
One advantage you have as a small local business owner is that you already have a devoted following. You’ve got people in your corner who support your business and want to see it flourish. If you create content that speaks to your biggest champions, they’ll be excited to share it with others.
Email marketing remains one of the best ways to drive engagement and sales for your brand. After all, it’s one of the few forms of brand communication that customers actually enjoy receiving. Still, carefully consider your content—you don’t want to irritate your loyal fans with ads for the same old products. Use email to make announcements, share informative blog posts or offer valuable discounts. That’s the kind of content your devotees will be happy to pass along to their friends.
Social media is likewise a powerful tool for bonding with current customers and reaching new ones. This is especially true if you actively engage with users, such as responding to Instagram comments or stitching videos on TikTok. Partnering with influencers through a platform like Grin or Afluencer could also help drive engagement.
Don’t Reinvent the Wheel
As recently as five or 10 years ago, small businesses had to transition to e-commerce on their own. They needed their own systems for everything from packing and shipping to handling customer service to accepting credit card payments.
All that has changed. Now, there’s an easy, affordable third-party solution for just about any e-commerce problem you can think of. You’ve already got a small, likely overworked staff. Don’t make them—or yourself—create systems from scratch when there’s probably a ready-made solution a short Google search away.
John Hall is a sales keynote speaker and virtual keynote speaker. He’s an adviser for the growth marketing agency Relevance, a company that helps brands be the most relevant in their industry. He’s also the co-founder of Calendar, a scheduling and time management app. You can book him as a keynote speaker here.
Site design shakeups are helping retail brands increase conversion, decrease return rates, and build lasting, fruitful relationships with their most loyal customers.
When’s the last time you updated your website?
While the rise of omnichannel retail has led countless brands to invest in in-person real estate and social commerce has driven investments in social media, some founders contend that retailers should focus on sharpening their own websites to increase conversion, customer loyalty, and lifetime customer value. “Platforms will come and go. What is consistent is your own channel,” says Janvi Shah, co-founder and CEO of the Boston-based e-commerce company Hue. “Even if a customer isn’t checking out from your own website, so many are doing a high level of research before they decide to purchase–so the halo effect of you investing in your own platform will spread to all the different channels you’re in.”
Innovations in artificial intelligence and site design present new opportunities for retailers to better connect with their audiences–and drive long-term benefits. Here are five ways B2B businesses are transforming e-commerce.
Improved product information
For beauty brands looking to increase conversion, Hue proposes a solution that isn’t new–user-generated content–but with a more seamless implementation. The company enables clients to embed video reviews of customers onto their website landing pages, product pages, and social media platforms to drive sales and increase engagement. Clients are also welcome to use Hue-sourced UGC in paid advertisements.
Hue handles the technology required for web integration, as well as video sourcing. The company manages a community of about 2,000 content creators who originate honest testing-and-review videos for Hue’s clients in exchange for free products. Video reviews are key to boosting customer engagement, says Shah, 30: On average, clients see a 127 percent lift in time spent on-site after integrating Hue. “What we see with video is that it’s a lot harder to fake,” Shah says. “People have a lot of scepticism about written reviews. And if someone is speaking to the camera and showing their skin, that’s not easy to Photoshop.”
New York City-based Surratt Beauty, a Hue client, embeds the company’s UGC on product pages for its foundation. Evadney Petgrave, e-commerce and digital marketing director for the company, says that that platform is user-friendly and has helped Surratt to replicate the in-store, shade-matching experience digitally. On average, Hue has seen sales on product pages with its embedded UGC increase by 23 percent. The company, which currently partners with more than 20 beauty brands and retailers, expects to triple its revenue in the next 12 months.
Hue enables clients to embed video reviews of customers onto their website landing pages. Photo: Courtesy Company
Smarter search functionality
Getting the right product in front of the right customer is a huge hurdle for retail businesses–even when customers have already made it to their site. That has driven Lily AI, a Mountain View, California-based startup, to make the search bar more human. “There’s language I have in my mind when I look for products, but that’s not the same language [a brand uses] when they’re sold to me,” says co-founder and CEO Purva Gupta, 35. “Let’s say a brand describes a product as ‘midnight French terry activewear’–a consumer is going to call it ‘blue sweatshirt.'” The issue, Gupta says, is that for many retailers, the merchandising process is incredibly manual, typically requiring junior-level merchants to attribute three to four attributes per product.
Lily AI aims to solve the problem with image recognition technology that uses artificial intelligence to attribute more accurate, customer-centric keywords to products, at scale. The technology can also accommodate customer searches that may be more subjective or nebulous–such as trends like quiet luxury or cottagecore. Gupta says that Lily AI helped clients–which include Bloomingdale’s and Macy’s–increase site conversion, as well as average revenue per consumer. One Lily AI client, ThredUp, attributed a 15 percent lift in sell-through rate to Lily AI’s enhanced product attribution.
Lily AI aims to solve the problem with image recognition technology to attribute more accurate, “customer-centric” keywords to products. Photo: Courtesy Company
Better personalization
New York City-based Psykhe AI envisions a world in which e-commerce sites cater directly to individual customers, serving them the products it knows they’ll most respond to. The company, which is currently in pilot testing with plans to launch in September, uses A.I. to merchandise category pages to unique visitors. By seeing which products a visitor engages with, it gathers information about their user preferences and serves them products that are likely to align with those preferences. For example, a shopper who interacts with classic, bright floral dresses that cost $100 or less isn’t likely to be served a more avante-garde, structural leather garment priced at $800. The platform–which is designed to work for both fashion and home décor brands–is trained on a data set that draws connections between personality traits such as neuroticism and agreeableness, style preferences, and three million aggregated products. The company has raised more than $3 million in funding.
Founder and CEO Anabel Maldonado, 37, who has a background in both fashion and psychology, says that the product is targeted toward large, multibrand retailers looking to improve discoverability. “It’s like a salesperson who sees you looking at something and from that is able to understand your aesthetic ecosystem,” Maldonado says. Pilot testing has shown a 5x increase in conversion rate, an 8x increase in dwell time, and a 25 percent decrease in return rates.
Psykhe AI uses artificial intelligence to merchandise category pages to unique visitors.Photo: Courtesy Company
More engaging digital interfaces
While retail brands are increasingly investing in their in-person strategies, Neha Singh, founder of the New York City-based tech company Obsess, contends that it’s well worth elevating their online presence, too. Working with clients like Coach, Mattel, and Crocs, Obsess designs interactive virtual storefronts that operate on both mobile devices and browsers. “It’s really about engagement and brand-building,” Singh says. “It typically takes seven to eight touch points for a customer to make a purchase decision. Now you’re making one of those touch points much deeper or more memorable.”
Because virtual storefronts increase time spent on a retail brand’s site and customer engagement, they can also lead brands to secure new sources of first-party data. “We have a lot of capabilities in our platform around gamification and quizzes that enable brands to ask questions in a way that’s baked into the flow of the experience,” Singh says. “And what we see is that people are much more likely to answer questions in our gamified environment versus if you just put a pop-up on a regular ecommerce site.” That has an impact on a brand’s long-term success, as it can provide learnings on customer preferences. Obsess declined to share revenue, but Singh says the company has grown more than 100 percent year-over-year for the past three years.
Targeted conversion tactics
The best opportunity to upsell a customer is when they’re already likely to make a purchase, says Elizabeth Buchanan, chief commercial officer of the New York City-based ecommerce company Rokt. That’s why Rokt enables retail businesses to promote offers–for both their own brand (like membership programs and store credit cards) or other brands (for which they’d earn revenue based on customer engagement)–through the checkout process and on order confirmation pages. The key, Buchanan says, is the ability to use A.I. to promote offers that are relevant.
Rokt enables retail businesses to promote offers through the checkout process.Photo: Courtesy Company
“If you think about a barista that remembers your order when you approach the counter–we try to achieve that same kind of seamless and relevant experience throughout the checkout flow,” she says. Relevancy has become paramount for brands to pull off upselling without alienating customers–to the point that, if Rokt’s A.I. determines that an offer will increase the risk of cart abandonment, it won’t present an offer to the customer, Buchanan adds. Especially as increased privacy restrictions have limited the ability of brands to track customers via cookies, the enhanced ability for companies to increase lifetime customer value through A.I. targeting can prove highly beneficial. One Rokt client, Panda Express, had a 7.8 percent positive engagement rate with post-purchase offers, which the company says increased revenue and customer loyalty. Rokt has a valuation of $2.4 billion and in the past financial year grew more than 45 percent.
Feature Image Credit: An Obsess interactive virtual storefront for the brand Laneige. Photo: Courtesy Company
Without sounding too ‘Been there, done that’ – when it comes to live stream events – we were early adopters at Asos.
During my time leading the social media team there, we ran an earlier iteration of this e-commerce revolution. Albeit a little scrappier than what we’re seeing now.
Ours included live and interactive Twitter competitions. Yes, remember Twitter?
We also coordinated live virtual games of Pass the Parcel and Take Me Out (although the latter was a total disaster!) on our social media platforms. But that was then, and in the seven years since, live events have evolved into something altogether slicker, cooler and oh-so profitable. So much so that Coresight Research predicts that by the end of this year, sales from livestream events will reach $32bn, and by 2026, will account for over 5% of total e-commerce sales.
Huge.
This contrasts sharply with a retail environment that feels more than a little flat. We’re hearing of super low conversation rates of around 1-2% and basket abandon rates of 90%. People are not finding what they want online. And if they do, about 20-30% return them afterward. But then there are live shopping events. The unicorn of e-commerce. A bastion of hope for brands and influencers.
Although it might seem gimmicky – may I refer you to my team’s earlier experiments at Asos – livestream shopping actually solves a significant customer problem. Although convenient, shopping online can feel boring, impersonal and wholly functional. There’s none of the human access and interaction that stores and social platforms can offer, and in the case of beauty in particular, none of the tailored advice those hallowed beauty counters provide. It’s all just transactional.
This is why we’ve seen so many brands and creators pivot in recent years. To take everything they’ve learned from their social media presence – and combine it with products they really know and believe in. The result is a new e-commerce revenue channel that feels engaging and interactive, like social, but sells products at speed and scale. The result is livestreaming.
So, what do I mean by livestreaming? I mean video content hosted on social media platforms like TikTok Live and Instagram Live or on a brand’s website. Presented by a personality, the content will usually be themed around a trend, product launch, seasonal moment etc. (think of it like a campaign), and when the presenter mentions certain products, the platform will show the product on screen. It will be easily-shoppable for viewers. Chat functionality allows viewers to ask questions in real-time to make their shopping experience feel even more tailored and special.
The success stories are rolling in thick and fast. In one week this summer, make-up artist and brand owner Mitchell Halliday earned $2m selling his Made by Mitchell (MBM) mystery bundles live on TikTok. Flash sales are nothing new in retail. But the power of his personality, the entertainment of not knowing what bundle a customer would get, the unboxing videos that followed, and his deep understanding of his followers and products made his flash sales feel entirely new.
But social media platforms don’t have a monopoly on providing this service to brands and creators. Most of them have lagged behind D2C e-commerce sites. In the UK, beauty brands like Pai Skincare have led the way. Mostly presented by the brand’s founder, Sarah Brown – it has gone live with 65 live shows since 2020, which, like Made by Mitchell’s, now live under a ‘Watch ’tab on its website. And just like MBM, it is being presented by a charismatic personality that embodies the brand and knows everything there is to know about the products – because it created them. That makes them totally authentic and, more importantly, unflappable during a live show. No question could derail them; no accidental deleting of a script would be an issue. And that’s why it works. In fact, by 2021, 10% of Pai’s online revenue was generated by live shopping. And its conversion rate from livestreamed shows? A staggering 17%.
The tech that enables live streaming is getting better and better, too. Third-party providers like Wonder.live or Bambuser – whose livestream shopping clients include fashion brands like Adidas, Stella McCartney, Net-A-Porter, Fendi and Farfetch – boast four times higher engagement than Instagram, three times longer session time than traditional e-commerce and ten times higher conversion.
There’s no longer the need to question whether the Western markets are ready for livestreaming; it is time to test, learn, go live and sell.
If you run a small, local business, chances are you’ve got some sort of a website. You may even be set up to sell a few products online, here and there. But you may not have tapped the massive potential of building out a real e-commerce arm for your business. And you might not realize just how easy — or how lucrative — it’s become for small, local businesses to move online.
If you’re still mostly bound to brick-and-mortar, it’s time to consider a change. Here are some low-risk, high-reward ways to successfully scale into the digital world.
1. Do a Digital Reboot
As noted, you may already have a great website or even a decent online store. But it’s likely you could be doing much more to make it competitive with other e-commerce sites in your niche.
If it isn’t already, your site should be hosted on—or at least integrated with—a platform that’s designed for e-commerce, like Shopify, Squarespace or BigCommerce. Make sure it’s easy to use, intuitive to navigate and has a clean, simple design. It might be worth having a specialist conduct a user experience audit.
Perhaps most importantly, ensure your site is optimized for mobile users. Remember that 91% of Americans ages 18 to 49—likely the bulk of your target customers—shop on their smartphones. Most web design platforms let you convert your desktop designs to mobile layouts almost automatically. But you still need to make sure the mobile version is attractive and usable.
2. Leverage the Power of Online Testimonials
Getting good product reviews on your site and on other platforms can do wonders for your business. Consumers don’t trust brands, but they trust other people’s experience of a brand or product. Positive reviews can be just as effective as hearing directly from people they know in real life.
Smallbiz Technology recommends that businesses feature reviews and testimonials directly on their website and social media channels, natch. But they also note that positive reviews on third-party sites like Google, Yelp, and Trustpilot can generate tons of traffic.
To encourage customers to write reviews, they suggest offering customers free products or discounts as incentives. But note that if you sell products through a marketplace like Amazon, exchanging gifts for reviews could violate their policies. Alternatively, you can reach out and simply ask customers who like your product to take a moment to do a short write-up.
3. Offer Convenient Payment and Shipping Options
Your customer won’t buy from you online if you don’t make it as easy for them as shopping on Amazon. It’s imperative to offer fast, free or cheap shipping and eliminate any trace of friction from the shopping experience. The smallest details can send a customer packing even when they were already pretty serious about making a purchase.
Whatever you do, don’t force your customers to create an account before checkout. That’s one of the fastest ways to turn a ready-to-buy customer into one who’s just closed your site’s browser tab. It’s also vital to offer a number of convenient payment options, including PayPal, Apple Pay and Google Pay in addition to the standard credit cards.
Packing and shipping your own orders in-house may save you money when you’re just starting out. But as a small business, you don’t have the infrastructure to keep doing that at scale. Eventually, you’ll need to contract with a third-party fulfilment service. Shopify offers its own in-house option and maintains a list of other recommended fulfilment services you can try.
4. Be Smart About Email Marketing and Social Media
One advantage you have as a small local business owner is that you already have a devoted following. You’ve got people in your corner who support your business and want to see it flourish. If you create content that speaks to your biggest champions, they’ll be excited to share it with others.
Email marketing remains one of the best ways to drive engagement and sales for your brand. After all, it’s one of the few forms of brand communication that customers actually enjoy receiving. Still, carefully consider your content—you don’t want to irritate your loyal fans with ads for the same old products. Use email to make announcements, share informative blog posts or offer valuable discounts. That’s the kind of content your devotees will be happy to pass along to their friends.
Social media is likewise a powerful tool for bonding with current customers and reaching new ones. This is especially true if you actively engage with users, such as responding to Instagram comments or stitching videos on TikTok. Partnering with influencers through a platform like Grin or Afluencer could also help drive engagement.
Don’t Reinvent the Wheel
As recently as five or 10 years ago, small businesses had to transition to e-commerce on their own. They needed their own systems for everything from packing and shipping to handling customer service to accepting credit card payments.
All that has changed. Now, there’s an easy, affordable third-party solution for just about any e-commerce problem you can think of. You’ve already got a small, likely overworked staff. Don’t make them—or yourself—create systems from scratch when there’s probably a ready-made solution a short Google search away.
John Hall is a top motivational speaker and the co-founder of Calendar, a scheduling and time management app. He’s also an adviser for the growth marketing agency Relevance, a company that helps brands differentiate themselves and lead their industry online. You can book him as a keynote speaker here.
