Increasing e-commerce business is on every CMO’s or business owner’s mind. How can you drive more sales? Simple. Keep four fundamental principles at the forefront of your marketing efforts!
It’s essential to focus on the customer at all times. Keep your buyer persona(s) at the front of your mind when determining the best approach.
In this post, we’ll discuss what an e-commerce business is, how you can start one, four types of e-commerce, the four e-commerce business principles, and how you can use them to skyrocket your sales.
What Is A E-commerce Bussiness?
An e-commerce business is simply an electronic business or a business that allows individuals to purchase products or services through the internet. Several brick-and-mortar stores operate e-commerce stores as well. In comparison, others work solely through e-commerce. Just about anything you can think of can be purchased online today.
Tip: to stand out among the numerous e-commerce businesses out there, make sure you have a clear understanding of your audience.
How Do I Start An E-Commerce Business?
Starting an e-commerce business today isn’t as hard as it may seem. Yes, there are several steps involved, but it’s entirely possible! The future of e-commerce is looking brighter than ever. According to eMarketer, in 2023, global retail sales are projected to be close to $6.8 trillion.
If you’re considering starting an e-commerce business, then here are some fantastic resources to help guide you through the process.
- How to Start an Ecommerce Business – A Step-by-Step Guide
- Ecommerce Business Blueprint: How to Build, Launch, and Grow a Profitable Online Store
- A Practical Guide to Starting an Ecommerce Business
- How to Start an E-Commerce Business in 2021 | The Ultimate Guide
- How to Start an E-commerce Business: An Easy Guide to Getting Started
- Ecommerce Roadmap: How To Start A Successful Ecommerce Business
- How to Start an Ecommerce Business From Scratch
What Are 4 Types Of E-Commerce?
Most people think there are only three types of e-commerce, but in truth, there are four types. Let’s look at the business models and examples of each type.
1. Business to Business (B2B)
A marketing agency, such as Wheeler Marketing Agency, operates under a business-to-business or B2B business model.
2. Business to Consumer (B2C)
This is the most common business model. Any purchase you make through an online retail store is a business-to-consumer transaction.
3. Consumer to Consumer
Facebook Marketplace, Craigslist, eBay, and Offerup are all examples of consumers selling to consumers.
4. Consumer to Business
Affiliate marketing and services like Fiverr and Upwork would fall under consumer-to-business transactions.
The 4 E-Commerce Marketing Principles
These four principles (trust, price, scarcity, and urgency) are the basic foundation for improving your e-commerce business. We’ll look at how each plays a role in e-commerce marketing and how you can better improve upon each. Ultimately, when you use each principle appropriately, you will see your sales increase.
Trust is a significant barrier to overcome for a first-time buyer, even if you’re a huge name brand such as Nike. However, Nike does a great job building consumer trust through content, social interaction, and using well-known athletes as brand spokesman.
How To Build Trust
You can build trust with your audience through content marketing, influencer marketing, and user-generated content (UGC), as well as social media. A blend of all these methods works best.
Here are some examples:
- Informative blog posts that are highly shareable on social media.
- Sharing social media posts that others have made that include your product or service.
- Showcasing your reviews and testimonials on your website and throughout your social media marketing.
A lot of sellers worry about whether or not their pricing is too high for their consumers. My response is, what’s the difference between a $60 pair of Nike tennis shoes and the $20 generic tennis shoes you can get at a general store? Why would someone willingly pay $40 more for a pair of shoes that do the same thing?
The answer is price doesn’t matter. It’s how you position the need and the benefits of the product that counts.
How To Get The Focus Off Of Price
If you don’t want buyers to focus on price, you need to focus on the value. Does your product or service save time? Does it provide a lifestyle your consumer wants? If you focus on the value, then that’s what the consumer will focus on.
If there is only so much of your product or service to go around, it can make it even more enticing. Just look at how big Clubhouse has gotten with their exclusivity. There is a waiting list.
How To Create Scarcity
If you run an e-commerce store, add quantity to your items. If you have a product and there are only four left, let buyers know! This will also create urgency.
Fear of missing out (FOMO) is a real thing! Have you ever received an email about a great deal that was only going to last for the next several hours? Did it make you think long and hard about the purchase? Or did you jump on it because you didn’t want to miss out?
How To Create Urgency
To create urgency, you can offer a limited-time deal such as buy one get one (or get one half off), free shipping, or even a coupon.
It’s Time To Increase Your Sales
An e-commerce business is a great business idea if done correctly. If your sales are not meeting your goals, then it’s time to look at how you’re marketing. Do you have your consumers’ trust? If not, consider how you can build that relationship and engage with your audience.
If you need help growing your e-commerce business, then give us a call! We can evaluate your current marketing efforts and implement clear, actionable strategies for e-commerce business growth!