This series is all about Infographics on ecommerce, where we share insightful and beautifully designed Infographics aka Information Graphics tailored for the modern ecommerce retailers.
The Internet is where consumers are at today. If you don’t have a website or any information on your products on the World Wide Web, you don’t exist. Ironically, a virtual presence matters as much, or even more than in the physical dimension. This immense platform of online data, communities, and opportunities is where businesses are at or heading towards.
These visual representations of information will flesh out issues and answer some of your burning questions regarding customer behaviour on the Internet, the psychology behind online shopping, what your competitors are up to, and upcoming trends in the industry.
This collection of Infographics have been specifically chosen for the purpose of value adding to your business strategies and giving you ideas on how to increase sales or market your products better.
To start Infographic Week off, here's the first one from Chargeback.
This infographic illustrates a few key reasons why most ecommerce businesses fail.
The technology and processes involved in setting up shop in cyberspace seems straightforward and fast. However, one should always check out statistics and do some research before plunging into the world of ecommerce. Don’t let the start up survival rates and Internet business failure statistics at the start scare you – as high as 90% of new ecommerce businesses fail as quickly as the first 120 days! What?!
Now that we're back to reality, don't give up on your lifelong dream of being an ecommerce kingpin yet. Avoiding The Pitfalls Of Ecommerce outlines poor marketing strategies and lack of direction, to mistakes in website design and lazy customer service. It also highlights misconceptions and provides essential tips that you can use to increase chances of success for your online business.
To summarise, points to look out for when managing your ecommerce business includes:
Just because there are more online tools you can employ to reach out to customers, and also ride on social communities and networks on the Internet, it doesn't imply that ecommerce is less of a 'business' than a brick and mortar store. Treat it with respect and never underestimate the market and your competition regardless of your sales channel.
Some basics would be to get familiar with your source of revenue, break even and strategy details, conduct SWOT and competitor analyses, identify competitive advantage etc.
The Internet is a great place to start a business because communication can be fast and timely. But this also means that when things go wrong or threats arises, you need a crisis management plan in place to react fast and do damage control or step up your competition.
Take a look at Friendster, it was a dominant social networking platform that almost everybody in Asia was on. During it's peak in 2011, it had 115 million registered users. Friendster was all set for success until MySpace and Facebook came along. Their eventual 'fall from grace' resulted not because they made a huge mistake, but because they didn't respond to new players in the market and react to retain users.
The user experience factor is easy to overlook when you are not interacting with your customers face to face. Elements such as fancy fonts and incredibly high resolution images on your site may look good to you, but might drag out the loading time for a buyer, resulting in frustration and high bounce rates.
Text and visuals need to balance out, and essential information such as Terms & Conditions, Return Policies, Product Information all need to be easily accessible for your customers without overloading them.
Business friendly ecommerce software also makes a huge difference to user interface. This is when your customer adds a product to the shopping cart and whips out their credit card all ready to make payment and then what? Backend operations form the backbone of an online shop. A dependable ecommerce platform ensures payments go through with the right gateway with speed and efficiency, minus frequent screw ups that crashes the system.
You can accomplish that by having superb customer service and support. Heard of the 20-80 rule? In short, 80% of your sales comes from 20% of your customers. If you can keep those 20% coming back for more of your products, increasing sales is guaranteed.
Surprise customers from time to time by giving attractive incentives and offers. Keep them updated on your company's progress so they don't forget you. Don't be afraid to send out frequent mailers with meaningful content that value adds to your customer experience.
Also, Increasing your online presence using SEO for your site and partnering up with complimentary businesses gets your name out there and prevents you from falling into the black void of the Internet.
Now that we have gone through pitfalls to avoid when dealing with online businesses, stay tuned for more posts on how to achieve success with ecommerce.