Whether you have experience in online sales or not, you probably know that pricing is often one of the most important criteria for the customer. Of course, we all like a good deal, but pricing also affects our perception of a product. We previously talked about low-cost pricing and premium pricing strategies. But pricing is more complex than that, and getting the price right is one of the most important things in maximizing sales and profits. Different businesses have different products, customers, and competitive environments, so they need the best strategy for their business. Let’s talk about the seven main pricing strategies that apply to Ecommerce and online sales.
Continue readingAuthor: Francois Maingret (Page 11 of 13)
I have met many aspiring entrepreneurs over the years. While some were quick to start their first business, most were struggling to get started. I have heard many reasons (some would say excuses) why they wanted to start a business but could not: lack of funds, not enough education or experience, or too busy with their job. But the one reason that comes up the most is finding the right idea. It is easy to convince someone that they can start a business without a Harvard MBA or a million dollars in the bank. But getting them to acknowledge they can find a good business idea is more difficult.
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Starting a business is always an exciting adventure. But after some time, entrepreneurs will begin to wonder, “What’s next?”. The Ansoff Matrix is an easy framework to figure out growth strategies, even though it was created in the 1950s! With the expansion of ecommerce, are these strategies still valid today? Let’s find out!
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The article below is an extract from my book Ecommerce 101. As the title implies, this is a book for people with no prior experience and knowledge of Ecommerce. This sections goes through the very basics of what online marketplaces are, how they work, and the pros/cons of selling on these platforms.
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Behind this provocative title, I want to highlight a grim reality in the ecommerce world: too many unsuccessful entrepreneurs are actually trying to trade commodities on Amazon. You probably know that commodities are products like steel, sand, or oil. But if you think about it, many products sold to online consumers are close to being commodities. And being a commodity seller isn’t where you want to be as an ecommerce entrepreneur. Let’s see why.
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“Everyone is glued to their phones these days.” We’ve all heard that dozens of times, yet it is more true than ever. Smartphones are a big part of our lives, and we now have the ability to shop online from anywhere at any time. Technology creates massive business opportunities, and entrepreneurs will always take advantage of it. In the ecommerce space, there are now thousands of mobile shopping apps available for download. As an entrepreneur, you’ll find many people recommending that every online business should have its own app. So, should you jump on the bandwagon, or would creating a mobile app be nothing more than a huge waste of time and money?
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How many competitors do you think you have? Are you sure your environment isn’t more competitive than that? It is easy to underestimate how many competitors a company has. While finding out about direct competitors is easy, the threat of indirect competitors (or threat of substitutes) can be more difficult to evaluate. Ultimately, when does this competition matter, and when is it less of a problem? Let’s find out!
Continue readingEven with a great idea in mind, starting a business is tough. It may require resources, knowledge, capital, and even a permit or license – and existing competitors won’t make your life any easier. Entrepreneurship is an exciting adventure, and we are all attracted by potential profit. But aspiring entrepreneurs must consider how tough the barriers to entry are to see if entering a market is technically possible.
Even when it is technically possible, entering a new market does not guarantee success. That is why I like to differentiate the two types of barriers to entry: those that prevent access to a market and those that prevent new entrants from having a fighting chance at making a profit.
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If you’re anything like me, you get way too excited when you receive a notification telling you something you ordered was delivered. Unpacking and having to remove tons of tape and packing materials can kill this initial excitement. However, some companies manage to make this process exciting and provide a fun and enjoyable “unboxing experience”. You probably even came across content creators posting these “unboxing videos” and showcasing products they like. Is it worth putting so much effort into making the packaging as attractive as possible? Would every entrepreneur benefit from offering their customers this experience?
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If you shop online, I’m sure you’ve been there: you find an item you really like at a decent price, you add it to your cart, begin checking out, and find out that shipping will add an extra $7 to your bill. What an awful surprise. The idea of paying for shipping greatly upsets you, and you give up on your purchase. Does this sound familiar? I’ve certainly done that many times. In the age of Amazon Prime, should other online businesses offer free shipping? Is charging for shipping a thing of the past?
Continue readingAbout This Blog
My name is François, I’m the author of this blog. I love writing and talking about business and ecommerce. I hope you enjoy my work, feel free to contact me for any suggestion!