Flooding the internet like a swamp of frenzied bees are the creators and administrators of online businesses. Finding it much easier to manage with it’s time saving perks of working from home, rather than a 9 to 6 job in the office, many people up and leave their day jobs with the assumptions that creating an online business from home is far less painless.
These people enter the online retail business without experience, no preparation, no knowledge of what they are doing and the uncertainties they might be faced with.
1. No Direction
String your business aimlessly without envisioning what the future has in store for it will not get you far in this industry. Starting an online store just because it disembogues that ‘complication free’ vibe, does not always mean the road will be easy. Without a proper goal and basic standards set to meet, I can pretty much guarantee your business with stay stagnant and might not even hit a sufficient profit.
2. Lack of proper inventory management
This is one of the major factors that could affect the cash flow of your business. Buying too much stock when sales does not hit the quota will of course have a crippling effect on your profit. However, buying too little stock can have you missing out on sales too.
You might think having insufficient stock in your inventory is not a big issue as you could easily enable the backorder options for customers who want that specific product or put customers on the waiting list till the stock arrives. However, it’s more complicated than you think. Some suppliers and vendors have lead times before the stock arrives and it is not realistic to customers to wait such a long period. Also, vendors might have a minimum number of items to be purchased and this number could be greater than the number of people on your waiting list. This leads you back at having too much stock in your inventory. This issue commonly arrises if you are an online store selling apparels. You will witness first hand how difficult it is to clear excess inventory when fashion is ever changing.
3. Competition in your market
A specific market can be densely concentrated with competition while other markets are irrelevant to customers. Choosing a niche market and having a game plan that sets you apart from the rest will stimulate growth. Consider this question, “Why should customers buy from me?” What sets your store apart from the rest?
On the flip side of the coin, if you’re a risk taker with confidence that decides to hit the market with limited competition, you should be asking bolder questions such as “How do I get this product to be a product of demand?”
Once you have determined your absolute answer, you will be on your way from underdog to key players of the market.
4. Quality of product photos do not meet expectations
Having a strong visual representation of your products is key to luring customers in. Having a poor quality image of your product can risk losing sale opportunities. Pictures should be clear and large. If an individual product is allowed to be zoomed in, in order for customers to inspect the little details or embellishments, pictures should be clear and visible. It is advisable to upload large images that shrink to fit, instead of having small images that have to expand to fit. Remember to keep product images CLEAR, FOCUSED and CLEAN.