E-commerce was already on the rise before the global COVID-19 pandemic, which has accelerated its growth. Statista reports that it will grow to 5.4 trillion U.S. dollars by 2022. That’s some serious cash — it’s no wonder more people are looking to break into the industry and reap the rewards.
Building an online presence, especially as an e-commerce company, is no easy task. It requires a fair amount of trial and error before companies find their groove and start making a profit. Navigating an online marketplace is something e-commerce professionals must master if they want to see sales increase.
There are best e-commerce practices to follow, and there are plenty of examples of mistakes companies make when it comes to establishing their e-commerce presence in a competitive landscape. Let’s go over some of the common mistakes companies tend to make in their e-commerce processes and how to avoid them.
Common E-commerce Mistakes to Avoid
While it’s challenging to eliminate all mistakes, some are more costly than others. It’s critical to avoid the following pitfalls to improve business performance and meet business goals. Continue reading to learn more about these mistakes.
1. Not Identifying Your Target Audience
Any business owner or entrepreneur understands how crucial it is to zero in on the audiences that will most likely purchase products or services. Finding the niche market that provides the highest return on investment (ROI) should be a top priority when building an e-commerce presence.
To drive traffic to a website, a strategic marketing plan is necessary. The more traffic a website gets, the more potential customers are engaging with the brand, which leads to more purchases in the long run. Trying to cater to a narrow, specific audience using demographics and marketing insights is the best way to go.
2. Not Planning Ahead
Proper planning looks different for every business, but the idea of creating a business plan is something every e-commerce business should aim to do. Getting involved with e-commerce platforms and trying to sell products online right off the bat may backfire.
It’s best to plan appropriately and gain as much knowledge about e-commerce as possible. Having a solid background in e-commerce will drive businesses forward and will come in handy when obstacles arise.
While it’s suggested that planning is the best route, be sure to be flexible when challenges present themselves. Being agile is a crucial characteristic to have as an entrepreneur. A sustainable business plan will set you apart from the competition.
3. Neglecting the Customer Experience
Customer experience is business currency. Homing in on customer expectations will guide your future business decisions and marketing efforts. Customers crave user-friendly, convenient, and reliable experiences from e-commerce brands. When a potential customer sees a brand online and starts to engage with it, their experience will contribute to their purchasing decisions.
Providing high-quality customer experiences will be a top priority for businesses in the next five years. Avoid falling behind the competition and make sure to prioritize the customer experience.
4. Using the Wrong E-commerce Platform
Online platforms such as WooCommerce, Shopify, and BigCommerce help conduct basic e-commerce operations. It’s critical to experiment with various technology and software platforms to see what works best for the products or services you provide.
Using the wrong e-commerce platform can hinder business growth. While some entrepreneurs aim to use the cheapest platform, the quality the platform offers may be low-quality. It’s best to find a reasonably priced platform to run the business without draining company resources. A platform should be scalable and grow with your business, not work against it.
5. Poor Product Descriptions
Because potential customers purchasing items cannot be there in-person to review them before buying, it’s vital to include detailed, thorough descriptions for products. Include all of the necessary information, including the size, color, and functionality of the product.
Be sure to incorporate the specifications into the description so customers know exactly what they’re getting for their money. The last thing customers want is to read a poor product description and receive something that doesn’t match their expectations.
Building a Strong E-commerce Brand and Presence
Because the market is competitive yet lucrative, it shouldn’t come as a surprise that more and more people are jumping on the opportunity to engage in e-commerce. Be sure to avoid these mistakes when building your online presence because it could hurt your business if you fall victim to these common pitfalls.
