1. Your calculation does not add up
The first point is the financial aspect. This is often disregarded at first, a detailed calculation does not take place with some dealers at the beginning. Thereby mathematics is one of the main disciplines that you should master as an entrepreneur and especially as a manager.
Basically, when choosing a suitable niche and products, there are a few key figures that should be considered:
What is your trading margin? You should take a look at the purchase price and the sales price of your products. For example, if the products you want to sell are very cheap and the sales margin is low, you need to generate a very high number of sales per day to be profitable.
Is there even enough demand? What is the search behavior of your customers, is your product really in demand among them or is it more of a hobby on your part?
What other costs do you have? This often includes much more than just the purchase price of your products. For example, if you open your online store with the help of a provider other than branchbob, you might have to pay high monthly costs.
If you have an overview of these key figures, you can already roughly estimate your profit. You can simply use the following formula: Profit = demand x (turnover-cost of sales). No matter in which area you are active, such a rough estimate should be one of the first steps before you put your idea into practice.
2. You offer too many products
Building a brand is an important step that you should not neglect when creating your own online store. Brands provide customers with points of reference, can set you apart from your competition and give a coherent overall image regarding your product range.
Possibly some of you already know this situation from your own experience: You build up your store and focus on one or a few products that have a close connection to each other. After a few weeks pass without you reaching your hoped-for sales figures, you gradually add more and more of your supplier's products to your assortment in the hope of finally increasing sales. Quite often, however, this leads to your products losing their connection to each other and your assortment being perceived as a motley bunch.
A broad assortment is of course not a bad idea, but you should adapt your brand and your brand-related communication to it. If you want to know how to build your own brand, check out our post on the topic.
3. You use the wrong product descriptions
The fact that you sometimes can't offer your customers the experience they get in a retail store is inevitable. However, this doesn't have to be all downside. Use the digital environment to provide visitors to your store with all the information they need to make an informed buying decision. For example, you can use multiview images to show your offered clothes directly on the model or present your furniture pieces in the already decorated living room. This gives your customers a realistic picture of your products and builds trust in you as a seller.
Of course, this also includes the written description of your product. If they do not provide the information they are looking for, this can quickly frustrate the user and draw their attention to another store. This essential information varies from product to product, of course, and can include things like dimensions, weight, or compatibility with other devices. Therefore, for orientation, take a look at stores that offer similar products and pick the most important components for your description.
4. You don't have a content plan for your marketing
Content marketing is about engaging your target audience with content that is designed to inform, advise, and entertain them. Your goal should be to use this content to convince them of your company and your service offering, and to win them over as customers. To make the whole thing a bit more tangible: This form of marketing includes meme formats, storytelling posts from other customers, or other content that often includes your product but doesn't focus on the purely promotional aspect. It's more back to the original idea of social media: users want to be entertained.
If you don't pay enough attention to this area, it can follow that you get too little organic and social traffic via social media. Especially if you offer products that are not particularly innovative or exciting, content marketing offers a good opportunity to create interesting content for your social channels. After all, this should not be neglected in social media marketing, in addition to the placement of advertisements. You probably know it from your own experience: If an acquaintance recommends a brand to you or you come across it yourself, you often also look at their presence in social media to find out who is behind it, what products they offer or whether it suits you and your lifestyle. If the content is so entertaining that you follow the brand to learn more about it in the future, the brand has gained a lead and achieved its goal!
5. Your offered payment methods are too complicated
You've built a great store that both looks good and is mobile optimized? Then the majority is already done! However, you should not ignore the other small details that contribute significantly to the experience of your customers. This also includes the selection of the right payment methods. If the payment process takes too long or is too complicated, this can also put off your customers and cause them to look around in your competitors' stores.
Therefore, you should take a close look at who your customers are and which payment methods they might prefer. Of course, you also have the option of reading through the comparisons on this topic or simply asking your customers directly. You can follow the principle: The more choice you offer, the higher the probability that there is something for everyone thereby and that your customers are satisfied with their purchase.
Tip: Even after the purchase, you can continue to do something for customer loyalty. Use so-called "post-sale engagements" to build a lasting relationship with your customers. You can do this in various ways, such as surveys, newsletters, or special offers for existing customers.
Of course, these are not the only mistakes to consider when setting up your own store. Nevertheless, we hope that we could help you with this small list and wish you great success in selling!
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