E-commerce sales account for more than 3.5 USD trillion sales worldwide, and it will jump to 6.54 trillion USD by 2022. It’s growing at break-neck speed and if you want to succeed, then pull up your socks tight because there will be a tough competition ahead.
The top e-commerce giants like Amazon and Alibaba are working dedicatedly in increasing their customer base. There are many opportunities hidden inside the global market. All you need is just the right set of strategies to set up a million-dollar e-commerce business.
So, what are the strategies required to create a million-dollar e-store?
1. Find out the unreserved customer section.
2. Create an experimentation-focused culture.
3. Over-Delivery on customer expectations.
4. Growth Sucks Cash
5. Build a brand
Let’s dig in:
1. Find out the unreserved customer section that can benefit them with quality products and services.
All the successful retailers have one point in common. They always pinpoint the underserved or dissatisfied customer. Generally, these customers are either happy with the current offering or their demands are unmet.
Well, whatever will be reasons, it depends upon you that you find these customers, build a compelling brand, and provide the optimum quality of service or products that outpace your competitors. It’s also worth considering the products that you can sell for a higher margin, and it’s profitable.
It doesn't matter how you succeed-you might sell better quality products, provide good customer service or give more added value with an ecommerce value proposition (like free delivery, discounts, etc.) – but you must find one.
You should also create USP, i.e., a unique selling point; it consists of designer branding, excellent customer service, high quality, and reasonable price. With this, you can set your brand as a serious contender in the internet market.
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2. Create an Experimentation-focused Culture
Testing and especially the right type of testing distinguishes the good e-stores from the brilliant ones. The Internet provides you a unique opportunity to make quick improvements according to the market and your business status there.
You can test all the aspects of your website, doing various small tweaks and finding a winning solution (something that's better than your competition) in a comparatively short time.
Take a look at this image and see what you can implement in your site from it.
Initially, your main task is developing a great USP. Once you have identified a clear potential differentiation, validate them by perceiving the customer's response over it.
When you promote your web store in light of a unique USP, do key metrics rise? Yes, it is.
One example of the Susty Party validated its USP of non-toxic, compostable party tableware. When it presented its USP on the homepage, the conversions increased by 250% than the earlier generic designs.
Once you've set a rock-solid USP, it's time to use the "keep on testing" mantra.
Many online retailers like Amazon does it better than others. Take a quick look at their approach. You might get surprised.
In Amazon's testing strategy, you'll see it has three key features:
Consistent and long-term testing- Introducing, testing, and tweaking elements on its pages constantly like CTAs and more.
Avoidance of site-wide redesigns- Amazon has always made gradual changes and kept the basic design.
Willingness to try new things- Always tried new things like one-click buying and video reviews that its competitors are also copying.
Therefore, you can go ahead by doing experiments and analysing its results.
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3. Over-Delivery on customer expectations
One of the foremost goals of every online retailer is to provide enhanced customer service. For this, I will recommend you to use “Net Promoter Score” (NPS). It is an index ranging from 0 to 10 that measures the customers' willingness to recommend the company's products and services to others. You can also call it a proxy for measuring the customer's overall behavior toward the brand.
No metric is perfect, but NPS is the right choice in many ways to measure your customer behavior. With it, you can get two important outcomes.
You will know that you need to improve your system to provide better plus satisfying customer service.
The measure helps forecast business growth, cash-flow, assess your brand's health, and overall customer satisfaction.
The knock-on result is a boost to your average customer lifetime value, and it's probably the essential ecommerce metric. I think it’s even more important than conversion rate.
In a nutshell, if you want to create a billion-dollar business, you have to delight your customers. And its simple formula is to offer free shipping, beautiful packaging, lots of social media interaction with followers, and different ecommerce platforms. You can hire woocommerce developers to create a well designed website for your business. Use NPS as an actionable metric tool to track your performance and results.
4. Growth Sucks Cash – Find Affordable Capital to Fuel It
Cash is an essential thing for any business; it’s a self-evident thing.
Thus, proper management of a business’s capital is essential; otherwise, it can harm any fledgling e-commerce store.
However, there are more ways to stick on the right track. But one thing you should surely give attention to is the “Cash Conversion Cycle” (CCC).
If you can decrease your conversion cycle, you can increase the speed at which you can grow, assuring you don’t run out of cash plus avoiding the problems that occur due to it generally.
Verne Harnish explains it in the following way:
“We encourage companies to calculate their Cash Conversion Cycle (CCC), which measures company-wide how long it takes between when you spend a dollar (marketing, design, rent, wages, etc.) until you get that dollar back.”
See the image to understand CCC a little deeper and better:
Growth sucks money, and that’s why you should work on increasing your cash flow as much as it's possible daily.
5. Build a brand
Branding is the foremost thing while starting any business. It’s something that distinguishes you in the market. That’s how we recognize a company in the market like Amazon, Warby Parker, and Casper are top-notch brands of the market. They are thriving with their vast customer base.
It’s difficult to overestimate the importance of branding, and, in many cases, it often beats other primary e-commerce business goals.
So, how to build a strong brand? What do you think is required to make a brand?
Just follow these simple steps, and your brand is ready:
1. Know your competitors
2. Discover your brand purpose
3. Find your primary and secondary targeted audience.
4. Create a brand strategy
5. Develop a compelling brand story
6. Create a brand identity
7. Launch your brand in the market.
According to a web development survey, 47% of people worldwide are using the internet. As an ecommerce retailer, you will find this figure exciting. It merely means that you can target almost 50% of global customers from any part of the world.
The e-commerce sector is growing in billions every year, and this growth will never go down in the digital world. You have the best chances to secure your business future in this booming sector. All you need to do is plan, invest and launch your e-commerce business with the right set of strategies.
Above, I have shared the top e-commerce strategies that can give your business an exponential hike. By keeping in mind the current market norms, I have listed the five primary and bonus strategies.
But still, if you are facing any difficulty, then consult the best eCommerce development company in India. They will guide you better and strategize according to business and budget.
Go Ahead & Start Building Your Million-Dollar E-Commerce Business Today!