Tips for Making Money from Online Retailing
Hundreds of thousands of online retail businesses are started every year in the US, and 50% of them fail within the first 12 months. It is said that most of them do not succeed because of underfunding or a lack of business knowledge. However, it does not have to be this way if you do things properly from the start. Here are some tips on what you need to do to begin with and how to keep your business profitable once it is up and running.
Keep It Simple
Everything about your online store should be simple. Products should have pictures and descriptions so that allow users to see exactly what they are buying. The site should be easy to navigate, or visitors will go elsewhere. Ordering and paying should both be processes that are not going to cause them any stress. Your email and a phone number should also be very apparent so that they can make contact if they have a query. The easier your website is to use, the more visitors will become customers.
Get Your Pricing Right
Most retailers want to sell their products as cheaply as possible in the hope of attracting buyers. However, that is not always the right thing to do. Every business has overheads it needs to cover as well as purchasing the products they are going to sell. You have to ensure that your gross profit margins are enough to pay all your business expenses and still leave some money for investing in the business. When you want to make money online, it is vital to get your margins correct, so an online profit margin calculator like Oberlo will let you easily see if you’ve got it right.
Excel at Customer Service
Excellent customer service will win you more loyal customers than anything else. People would rather pay a little more for a product if they know they can rely on you to deliver when you say it will turn up, have a no-nonsense returns policy and deal with any issues they may have. It all comes down to them building trust in your company, and good customer service does just that.
Be Prepared for Hard Work
Running any type of retail business is hard work, especially in the early days. You will have to be prepared to work hard for long hours and have very little financial gain to start with. As your business grows, you may be able to outsource some of the tasks or employ people to help you, but until you reach that stage, all the work is down to you. If you want an easy life, starting an online retail business is not what you should be doing.
Make Your Retail Business a Success
If you have researched your products and know that there is a demand for them, there is no reason why you cannot succeed with you retail business if you go about it in the right way.