E-Commerce Need To Knows For Small Businesses

As of 2020, the value of e-commerce in Europe was around €460.5 billion. It’s projected to grow by 42% by 2025 to €655.6 billion. Worldwide it has grown exponentially and has experienced the birth and growth of large multinationals in recent years, including eBay and Amazon. With an expected increase of 22% by 2023, small businesses need to adopt virtual offices and shops to generate more revenue.

However, this is no small feat. Most small businesses find it daunting to set up shop on the vast web. In this article, you’ll gain great insights into what you need to know to set up a functional e-commerce shop and the best practices to manage and maintain it.

How to set up an e-commerce store

Setting up an e-commerce store for your small business requires time and effort. It’s a worthwhile experience if you’re determined to grow your business in the shortest timeframe.

In setting up an online store, there are factors you need to consider for its success. They include the following;

1.      Type of e-commerce software

Like any marketplace, there are several e-commerce service providers you need to consider before settling for one. What differentiates them is the kind of structure they offer for your website hosting requirements. For small businesses, we’ll consider the following,

• Open source– you can either host your website or have a third party host it for you
• SaaS– here, you rent the software and the hosting from the same provider. It includes software like ClydeOffices.

The two e-commerce software offers the best foundation for small businesses or startups seeking to grow their online presence. As a result of their use by various developers, it has led to the formation of different e-commerce platforms for small businesses, including;

• ClydeOffices
• Wix
• Shopify
• Squarespace
• Weebly and,
• WooCommerce

They all have pros and cons. It would help if you did due diligence to decide the right fit for your small business.

2.      Cost of the e-commerce store

To choose the right platform to host your virtual office, you must keep in mind the cost associated with it. Always go through the rules and regulations to get acquainted with the charges and any hidden costs you must pay. It can be on a monthly or yearly basis. Keep an eye out for the following fees;

• Hosting fees
• Credit card processing
• Domain names fee
• Site maintenance fees
• Plug-ins or add-ons fee
• Security and PCI compliance fee
• Website themes fee

You can use the free trial before settling on the software to use. It will give you the total exposure you need to know the functionality and cost of the platform.

3.      Data insights

Online stores largely depend on data to deliver effective online marketing campaigns. You should choose a platform with analytical tools to help you understand your customer’s preferences, shopping experience, shopping cart abandonment rate, products that sell together, purchasing habits, and their location.

You can go the extra mile by incorporating SEO, email marketing campaigns, and social media to create brand awareness and improve conversion rates. Finding a platform that tracks this data and can work well with other marketing options is vital for the long-term survivability of your business.

4.      Security

E-commerce stores handle a lot of private information. It includes addresses and credit card numbers, making them prone to fraudulent activities. Though the minimum requirement to avoid fraudsters has an SSL certificate, it might still not meet the cut.

It would be best if you went the extra mile by ensuring that your site is PCI compliant. This will prevent cases of loss of customer trust, inability to receive payments, or fines.

Best practices for online marketing

You might have an online store, but your conversion rate is low. What conversion rate means is your ability to influence your target market to do what you desire them to do. After setting up your store, implement the following practices to improve your conversion rate.

a.      Inventory management

The sole purpose of an e-commerce shop is to provide a flawless shopping experience at the touch of a button. There’s no need to have an outdated or out-stocked store; this is a frustrating experience for shoppers and damages your online brand.

Therefore, it’s imperative that you continuously update your inventory in real-time to ensure quality service delivery.

5.      Compatibility

Many online shoppers shop using smartphones. Though most sales are by desktops, smartphones play a critical role in reaching out to potential customers and eventually converting them. For better customer engagement, your website must be compatible and viewable on smartphones and desktops.

6.      A good logistics system

Nowadays, shoppers want to shop from the comfort of their homes. This also includes the delivery of goods to their doorsteps. It would be best if you devised a well-thought-out plan to satisfy your customer’s requirements.

Some of the ways you can ensure you have a sound logistics system include the following;

• Offering free delivery for purchases over a certain amount increases their purchasing appetite.
• Doing deliveries as soon as possible. For far-flung areas, deliver within 24 hours; this will improve customer satisfaction with your services.
• Offering free delivery within a specific area, for instance, large cities, to capture your target audience.
• Partnering with delivery companies or courier services to enhance your delivery efforts.

You can gain more clients and retain your previous customers with such applications.

7.      Awards! Awards! Awards!

You should apply this strategy if you’re having trouble getting consistent sales. Customers like awards for shopping with you. There are many ways of going about this, including;

• Offering presents for purchases made at a certain amount. It would help if you gave out affordable and profitable presents for your business.
• Giving out incentives. For instance, if you’re a service provider, make your long-term purchases cheaper than your short-term purchases. This will ensure you get committed subscribers on a yearly or termly basis compared to the weekly or monthly group.
• Partner with businesses offering complimentary services or goods to offer promotions and create brand awareness. You can also run promotions on products that sell together on your site.
• Create loyalty programs for your day-one clients or repeat clients to retain them and encourage brand loyalty. Such programs can have points that are redeemable for goods or services.

The power of awarding something for free while you’re shopping shouldn’t be underrated. It improves brand loyalty, increases turnover, and creates brand awareness.

Wrapping up

The retail space has grown and continuously expanded to new heights. Small businesses need to improve their revenues as they hold the most significant chunk of the market, at around 99%. However, most companies shut their doors within the first 120 days of operations.

By following through with the above strategies, from setting up an e-commerce store to the best practices of online marketing, you can change the narrative and grow to be among the big multinationals like eBay and Amazon. I wish you a wonderful e-commerce experience.