During this crisis caused by the COVID-19 pandemic, a lot of people have a lot of time on their hands by staying in their respective homes. This is being done to prevent the disease from spreading and causing more damage. While this may be the case, it’s also the best reason to be productive with the time given to you. You may consider learning a new skill, taking online courses, or even reconnecting with your loved ones at home.
For entrepreneurs, this home quarantine period can be used for the benefit of their own businesses. Since a lot of people are staying indoors, their only means of communication is via the internet. This is a good opportunity to reach out to your future customers and add value to their lives through your products or services. This can be done to its maximum effect by optimizing your E-Commerce skills during this pandemic. Shown below are some tips that can help you out with this endeavor.
Find a product that has a low-competition factor
Those who have started their E-Commerce stores may have started off with Amazon, considered as the largest company in this type of industry. If you are one of those who use this platform, you might have successfully sold products but faced great competition in the process. On the other hand, you have the option to go for low-competition products that have not yet attained success in the market. Doing so would be great if you aim to be a leader in that product category, especially if you pair it with a reliable E-Commerce fulfillment service. It’s also beneficial if you want to stand out from the tight competition when you start selling products on Amazon.
Of course, there’s a risk that goes along with this tip. To begin with, you don’t have any sales record when selling a low-competition product to consumers. There might be a good reason why other sellers don’t carry this specific item or there isn’t a strong need for it in the market. What’s important is you need to analyze if the product itself is worth your time and effort or you can find a way to encourage buyers to believe in your vision of it.
Price your high-competition products lower
As compared to the first entry, selling a high-competition product will almost guarantee you the attention of shoppers. As a result, you have the chance to reach your target market and the profit you want to make. That may be all good and well but there’s a danger too if you go this route. There will always be a good number of E-Commerce stores that sell the same product, hence making it high-competition.You might end up with a bloated inventory of this product with no way to sell it because there are more established players who are now more established in the market.
The solution to this predicament is to offer a lower price for a high-competition product. In this way, you are cutting your way through the other more well-known sellers and into the attention of the market. You can attract customers and solidify your online foundation. Just be careful not to set a ridiculous price to your products because you might be labeled as a ‘discount’ store in doing so. Analyze the price well so you’d still attract customers and get the profit you require.
Quality is the key when searching for products to sell
Quality is, and will always be, the key element when selling products online. The success and failure of your E-Commerce venture will certainly hinge on how well-made the product is and if it actually adds value to the customer. Whether you’re going for a low-competition product or an offering that caters to the high-competition crowd, you need to make sure quality is always present. If you manage to achieve this requirement, customers will remember your brand as a premium one. It will result in improved sales and a growing customer base.
On the other side of the argument, selling products that are not quality will give you a high return rate and a significant amount of poor reviews, which will hurt your E-Commerce efforts in the short and long term periods.
Incorporate high-margin products into your online offerings
Now that you’ve discovered the positive effects of selling both low and high-competition products that can be qualified as quality, you can now plan on making a profit. That won’t be possible if the products in your online store don’t have sufficient margins for profit. Even if you sell quality products and you have a constant stream of customers, you won’t make much if you don’t price them accordingly.
What you should do is a quick, yet concise, cost analysis. This exercise will inform you of the exact cost of procurement, packaging, shipping, storage, and labeling, among others. Once you have determined the total cost, you can then set a price that will yield respectable profits. Once you have done this to all of your products, you can then expect a steady income that will propel your online reputation and business to the stars.
Come up with an inventory strategy you can trust
While you are at home to prevent the spread of Covid-19, you should come up with an effective strategy for your inventory management and order needs. You have to find a balance between having a surplus of unsold products or having few items in your inventory. Either of the two options will cost you money and time, two important resources for anyone starting with their respective E-Commerce venture. What you need is to forecast your sales and inventory carefully using pricing, market demand, competition, and quality as your basis.
Make your brand stand out
Now that you know what and how to sell, you need to make the most out of your time at home by creating a clear direction for your brand. It shouldn’t be based on your products because they can change over the course of time. Instead, you should focus on coming up with a strong market identity that potential customers will immediately identify with. Once you’ve done that, you’ll have no problems reaching your target market and the profit you want for your business.