The Dark Side of Online Marketplaces
Introduction When I started my first business, I created an online store but also listed my products on Amazon. As a new […]
Tag: business strategy
Understanding the Most Important Ecommerce Expenses
aim of this section is to focus on costs related to Ecommerce. Cost structures are a very important part of a business. They are key to crafting the best pricing strategy, effective financial planning, and ultimately maximizing growth and profits. So, let’s get started and look at each category.
Good-Better-Best Pricing Strategies
As the name implies, a G-B-B strategy aims to offer the customer multiple tiers of features for the same product or service at various price points. For example, if you book a flight, you can get the basic economy seat with five inches of legroom and guaranteed back pain after landing. Or, for an extra hundred dollars, you can get economy-premium seats with more legroom and a slightly better seat. Or if you’re feeling fancy and have money to spend, you can fly business class and have the best seats.
Pricing Strategies for the Ecommerce Entrepreneur
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
How to Find New Products Ideas
I have met many aspiring entrepreneurs over the years. While some were quick to start their first business, most were struggling to […]
The Ansoff Matrix in the Age of Ecommerce
Starting a business is always an exciting adventure. But after some time, entrepreneurs will begin to wonder, “What’s next?”. The Ansoff Matrix […]
You May Have More Competitors Than You Think
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?
Being Able to Enter a Market Does not Guarantee Success: Barriers to Entry vs Barriers to Profitability
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.
Free Shipping : Necessity or Margin Killer?
If you shop online, I’m sure you’ve been there: you find an item you really like at a decent price, you add […]
My Take on the Idea of Value Proposition
People will buy products that solve their problems and/or make their life better. That is for me the main idea on what’s […]