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How To Start An E-Commerce Business

Posted at March 19th, 2021 | Categorised in Business tips

Updated: April 12, 2021

How To Start An E-Commerce Business

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How To Start An E-Commerce Business

One of the companies I used to own is actually E-commerce business. It’s one of the most successful ventures that I have done in my career. And, we were doing millions and millions of dollars every year and actually won the Online Retailer of the Year Award by Canada Post.

So, when it comes to E-commerce maybe you’re thinking about starting an e-commerce business, you don’t know where to start. Today I wanna give you three keys, kinda three lessons I’ve learned during that time before I sold the company.

Number one, when it comes to E-commerce conversion matters a lot. Conversion matters a lot. So, you should be constantly measuring your conversion rate on different pages. Your bounce rate, meaning people hit your homepage.

Where are you seeing people exiting from your site? Where are you losing people? Now, one of the things that we notice when I was running an E-commerce business that we were losing a big chunk of the customers at the checkout, right? At the checkout page, we’re losing a big, so they like the product, they click the product, they add to cart by the time they get to buy, we lose a whole lot of people.

So, I was saying to myself, okay, this is not good. What could we do? So, then we added a lot of different things. Example, we added actually testimonials during the checkout process. We streamlined it and simplified the checkout process.

So, in the beginning, back then I didn’t know, we had a multi-step process. And then, we changed all of that to make it much shorter, right. They see the product, they click, if they are add in the cart, they continue as a guest, that’s fine, all right, credit card information.

Instead of that many steps, we shorten it to this many steps. And, we noticed sales dramatically increased. So, conversion matters. You have to measure everything. You’re looking at data, you’re looking at your pages.

You have to know exactly what is going on. It is not so much just about the product. It’s about your customers, visitors behavior, right. And when you have got some products that are selling well, make sure you feature those on your homepage.

That’s key number one. Key number two, you need to have a content strategy as well as a paid strategy. So, we were running a lot of ads on Google, Pay-Per-Click, we were spending a lot of money, right.

But, in the beginning especially no one knows why they should come to our store, online store. So, we were just doing a lot of that. But then, later on, we also spent quite a bit of money optimizing our website for search engine traffic, just organic traffic.

So, we were creating a lot of pages and rank certain key words in Google so people could find us just organically. So, in the beginning what’s interesting is 90-somewhat percent of our sales were coming from paid.

Pay-Per-Click, we were spending a ton of money, right, To get some traction. But later on, actually later, a few years afterwards within the company, the revenue, then it’s almost 60-40. 60% of our sales were coming from organic, free traffic.

Well, I wouldn’t say they’re entirely free because we do invest time and money creating content for them. But, only 40% comes from paid. So, to do E-commerce I believe if you have your own store, meaning you’re not selling through Amazon ’cause Amazon already has all the traffic.

But let’s say you’re not selling through Amazon, you have your own E-commerce store. I believe you need to have a very good organic strategy as well as a paid strategy. And, last lesson I wanna share with you when it comes to E-commerce is, inventory kills.

Inventory kills. What would kill you the most is you have way too much inventory of products that you don’t sell. Depends on what kinda products you sell, do they expire? Assuming your products don’t expire you’re gonna sit on a lot of products that don’t sell.

And, you’re sitting in a lot of cash, right? So, you’ve gotta be very, very careful when it comes to inventory management. Now, before I sold the E-commerce company, we were sitting on millions, millions of dollars worth of inventory.

Now, I’m glad I could sell all of that, right. And get all that money back, otherwise if there’s any problem, we would have been sitting on a bunch of dead inventory. So, be very, very careful, very mindful when it comes to inventory.

I would rather you have fewer products in the beginning. Test it out to see what your customer, your marketplace likes, right, whoever your audience is. See what they like first, before you go crazy and have so many skew, have so many units and products.

Oh, I’m gonna buy 1000 of these, 2000 of these because you’ll be tempted. Wow you know, if I order way more, my cost per unit goes way down. But, what you don’t think about, you don’t consider, factor in is, what if it doesn’t sell? Now, you’re sitting on thousands of something that it doesn’t sell.

It becomes a big problem, so inventory kills. And, this is also why I stress if you’re thinking of earning more money, before you go out there and start an E-commerce business, I talk about that through my wealth triangle.

You should develop your high income skill first. You can go watch my high income skill video. I talk about why it’s so critical to develop your high income skill first before you go out there and start that scalable business, before you start that E-commerce business.

So, go watch that video. one of the companies I used to own is actually ecommerce business it’s one of the most successful ventures that I have done in my career and we were doing millions and millions of dollars every year and actually won the online retailer that year award by Canada Post so when it comes to e-commerce maybe you’re thinking about starting an e-commerce business you don’t know where to start today I want to give you three keys it’s kind of feed lessons I’ve learned during that time before I saw the company number one when it comes to e-commerce conversion matters a lot conversion matters a lot so you should be constantly measuring your conversion rate on different pages your your bounce rate meaning people hit your home page where are you seeing people exiting from your site where are you losing people now one of the things that we noticed.

when I was running ecommerce business that we were losing a big chunk of the customers at their checkout right and the checkout page we are losing a bit so they like the product they click the product they Add to Cart by the time they get to you buy we lose a whole lot of people so I was saying to myself okay this is not good what could we do so then we added a lot of different things example we added actually testimonials during the checkout process we streamline and simplify the checkout process so in the beginning back.

then I didn’t know we had a multi-step process and then we change order that to make it much shorter right they see the product they click if they are adding the card they continue as a guess that’s fine or credit card information instead of that many steps we shorten it to this many steps and we notice cells dramatically increased so conversion matters you have to measure everything you’re looking at data they’re looking on your pages you have to know exactly what it’s going on.

it is not so much about the product it’s about your customers visitors behavior right and when you have got some products that are selling well make sure you feature those on your homepage that’s key number one key number two you need to have a content strategy as .

well as a pay strategy so we were running a lot of ads on Google pay-per-click we were spending a lot of money right but in the beginning especially no one knows why did you come to our store online store so we were just doing a lot of that but then later on we also spend quite a bit of money optimizing our website for search engine traffic just organic traffic so we were creating a lot of pages and ranked certain keywords in Google so people could find us just organically so in the beginning what’s interesting it’s 90 somewhat percent of our sales were coming from paid pay-per-click we’re spending a ton of money right to get some traction but later on actually later a few years afterwards within a company the revenue then it’s almost 60 40 60 percent of our sales were coming from organic free traffic why would.

How-To-Start-An-E-Commerce-Business

How-To-Start-An-E-Commerce-Business

I say they’re entirely free because we do invest time and money creating content for them but only 40 percent comes from paid so to do ecommerce I believe if you have your own store meaning you’re not selling through Amazon because Emma’s already has all the traffic but let’s say you’re not selling through Amazon you have your own e-commerce store I believe you need to have a very good organic strategy as well to pay strategy and last lesson I want to share with you when it comes to e-commerce is inventory kills inventory kills what would kill you the most is you have way too much inventory of products that you don’t sell depends on what kind of products you sell do they expire assuming your products don’t expire you’re gonna sit on a lot of products that don’t sell and you’re sitting in a lot of cash right so you got to be very very careful .

when it comes to inventory management now before I saw the e-commerce company we were sitting on millions millions of dollars worth of inventory now I’m glad I could sell all of that right and get all the money back otherwise if there’s any problem we would have been sitting on a bunch of debt inventory so be very very careful very mindful when it comes to inventory I will rather you have fewer products in the beginning test it out to see what your customer your marketplace likes right whoever your audience is what they liked first before you go crazy and have so many skew have so many units and products I’m gonna buy 1000 of these 2,000 of these because you’ll be tempted wow you know if I order way more and my cost per unit goes goes way down but what you don’t think about you don’t consider factor in is what.

if it doesn’t sell now you’re sitting on thousands of something that it doesn’t sell it becomes because a big problem so inventory kills and this is also why I stress if you’re thinking of earning more money before you go out there and start an e-commerce business I talked about that through my wall triangle you should tip up your high income skill first you can go watch my high income skill video I talk about why it’s so critical to develop your high income skill first before you go out there and start there scalable business before you start their e-commerce business.

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