Tag: ecommerce (Page 9 of 10)
I may be one of the few weird people who enjoy looking at financial dashboards and playing with complicated Excel files. I find it fascinating to change a number in a cell and see the whole spreadsheet, charts, and tables change. And you know what? It actually helps me wrap my head around different aspects of the businesses I deal with. I may be a nerd, but I understand that finance, numbers, and ratios may look scary to rookie entrepreneurs. Here’s the deal: understanding and managing cost structures is a key to success, whether in the Ecommerce world or other industries. Some of the costs related to an online business are similar to what you’d find in any other business, while some are unique and tied to online businesses. Others are much more important than in other business models.
I can’t talk about every component of every business; this would take the whole book, and I know a lot more about Ecommerce than other business models anyway. The 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.
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Not too long ago, I ordered a really cool-looking pair of boots on Amazon. These were reasonably priced, and the reviews were mostly positive. What I received looked like a toddler designed and 3D-printed these boots, and I immediately returned them to the seller. Most people love the convenience of online shopping and being able to order almost anything without having to leave the couch. However, not being able to physically see and touch the product can cause issues and disappointments. As a result, consumers returned products worth $743 billion in 2023, with an estimated average return rate of 15% to 20%.
While returning items can be a hassle for customers, it is also expensive and time-consuming for companies. Let’s see the main reasons customers return items, the consequences for businesses, and what can be done to reduce item return rates.
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When talking about Ecommerce, most of us picture a customer like you and me ordering something online for personal use. In other words, we think of a B2C online transaction. And just like we think of someone buying an item online for personal use when thinking Ecommerce, people tend to picture sales reps and face-to-face negotiation when talking about B2B sales. However, B2B is happening more and more online. Most people don’t know that B2B Ecommerce is much larger than the B2C Ecommerce market. In fact, the B2B Ecommerce market is valued at close to $15 Trillions, five times the B2C market. Forrester also estimates that online sales will grow to 17% of all B2B sales in the U.S. by 2023, from 9% before the pandemic.
Let’s see why B2B Ecommerce is growing so fast and what companies need to do to be successful in B2B Ecommerce.
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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.
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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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“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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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?
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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!