Wednesday, July 15, 2020

how to learn start a basic E-Commerce Business

What Is E-commerce?

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 added 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 behaviour, 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 keywords in Google so people could find us just organically. 

So, in the beginning, what's interesting is 90-somewhat per cent 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, the last lesson I wanna share with you when it comes to E-commerce, the inventory 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 ina 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 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 skews, have so many units and products. Oh, I'm gonna buy 1000of 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. 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. 

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