There are several common mistakes businesses and entrepreneurs make when they decide to start selling online. Many will look to take shortcuts to save money in the short term but this will usually end up costing them more money further down the line, and can even result in the failure of the ecommerce business.
Below we have outlined some of these mistakes, shortcuts, pitfalls and misconceptions of setting up an ecommerce website.
Shortcut: Off-the-shelf website packages
Setting up a basic ecommerce website is relatively inexpensive compared to how it was just a few years ago. Many providers offer entrylevel off-the-shelf ecommerce solutions and start-ups will, understandably, go for the most cost-effective option. This usually means they have to compromise on some features or functionality that could make their website more successful, such as user experience (UX).
Similarly, a website should constantly be evolving to deal with the needs of its customers, and the business could find that it quickly outgrows the entry-level site or wants more functionality. For example, they may want to integrate it with some of their other business systems, such as accounting and email marketing and very few off-the-shelf package websites will offer this level of integration out of the box. The start-up will then have to reinvest heavily to get a website capable of dealing with their new requirements and growth.
Long-Term Solution: Work with a specialist digital agency
If you’re serious and confident in your online business then it’s worth investing in an ecommerce website that reflects where your business wants to be, and not where it is today. Avoid the temptation to use an off-the-shelf provider and find a specialist digital marketing and web development agency that will be able to advise on the best way to build and grow your website at a rate you and your business are comfortable with.
Mistake: Underestimating the cost of customer acquisition (Build it and they won’t come)
Undoubtedly, the biggest mistake businesses make when setting up an ecommerce website is they significantly underestimate the cost of customer acquisition i.e. getting people to the website.
They outline a budget for the cost of the design and build of the ecommerce website itself but fail to allocate any investment for marketing and advertising. It’s no good spending thousands of pounds to create the best website in the world if nobody visits it. Even if you work with a digital marketing company that specialises in search engine optimisation (SEO) it can take months for your site to start ranking in search engines like Google for your website’s key search terms.
Solution: Pay for relevant audience traffic
Short-term, allocate and be prepared to spend money on some form online advertising such as Google Ads or Facebook and Instagram Ads that will create awareness of your site and drive traffic to it as soon as it goes live. Long-term, allocate a budget to invest in an ongoing search engine optimisation strategy. Search engine optimisation is something that your website will always need.
Shortcut: DIY product photography
While the fact that everyone has a smartphone means almost anyone in the world can buy from your ecommerce website in a few clicks, it also means everyone fancies themselves as a photographer – including ecommerce business owners.
It’s a cliché but if you’re selling products online then a picture speaks a thousand words. If those product pictures are taken on a smartphone on your lounge floor then you aren’t showcasing your products in the best light and people will be unlikely to buy from you.
Solution: Go Pro
If you’re working with a supplier and you’re going to be selling their products online, put the onus (and cost) on them to provide you with professionally taken product photography. If they don’t then you can always hire a local photographer to do them for you. However, you can still ‘Do It Yourself’, depending on the size of your products, you could buy or event rent a mini light room and an SLR camera and do a pretty good job, but remember – the smartphone is not your friend here.
Mistake: Underestimating the cost of sales
Most ecommerce websites will use a secure third-party payment gateway to handle online payments and transactions (think PayPal, SagePay etc). While setting up these gateways on your website is usually free of charge, there is an ongoing charge for using their service which start-ups fail to take into account. Some will take a percentage of your sales, while others will charge a flat monthly fee depending on the number transactions your website handles each month.
Solution: Do your research
There are plenty of companies out there that provide this service, some better than others. Find a provider that is cost-effective for you and your business and one that ensures the security of your customers’ personal and financial data. Failure to gain your customers’ trust in this area is the difference between an abandoned basket and a sale, and ultimately the success of your ecommerce business.
Note: Using a third-party for this service is still significantly cheaper than creating a secure environment to manage your customer information yourself.
