Why Ecommerce Businesses Succeed

Posted: February 20, 2011 in Message
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We all know of several highly successful e-commerce businesses. Amazon, ebay, Dell, and Apple are among the few names that most people can identify. Some of them are B2C (business-to-consumer), while others are C2C (consumer-to-consumer) set-ups, but regardless of its structure, one thing is evident – you don’t need to have a fancy pen to be a great cartoonist. In layman’s term, it means that you don’t have to be a big organization to succeed at e-commerce.

Let’s take a look at the top ten reasons why online businesses succeed.

1. Niche Market
Products have to be unique and stand out from the rest. Catering to a specialized but profitable section of the market can be highly effective as they are focused on being the master of the trade.

2. User-friendly Website
The website has to have an excellent design and layout. This allows potential customers to navigate the website and browse products without any frustrations. A smooth shopping experience is bound to improve the customers’ mood, which in turn affects his purchasing decision.

3. Stellar Customer Relationship Management
Businesses that provide an excellent level of customer service is likely to have more returning customers.

4. Good Market Research & 5. Competitive Prices
Tremendous effort has to be put into market research to ensure that the 5P’s of marketing (sans place) will give the business an edge over their competitors.

6. Innovative Marketing
With the popularity with Social Media, its reach is extensive if utilized effectively.

7. Word of Mouth Buzz
Never underestimate the power of word of mouth recommendations. In order to tap this potential, implement a referral system which rewards existing customers with incentives.

8. Good Product Sourcing
Good product sourcing will help the business to keep production costs low and maintain a higher profit margin, which is ultimately the fuel that keeps the business running. Buy low, sell high.

9. Good Business Planning & Financial Planning
Whether the business takes off or goes bust is dependent on this factor. He who fails to plan, plans to fail.

10. Strong Perseverance
When it comes to business, perseverance is a synonym to success. With the abundance of e-Commerce sites springing up daily, the competition is stiff and many businesses may not be profitable during the initial stages. Persevere through the initial hardship and a bountiful harvest may be awaiting.

Do you agree that most e-commerce businesses are able to succeed because of these ten reasons? If no, what are your thoughts on their success/failure?

Source: Powerhomebiz.com

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