Any online entrepreneur would tell you entering the retail world is tougher than it looks. Though it may seem like a piece of cake to pull off when you are browsing through numerous successful online stores, when you start your online venture, you’ll begin to ask yourself “What on earth am I doing wrong?!”
Let’s take a look at two common mistakes new online businesses with little experience tend to make and how you should correct them.
Many blogshops go out of business in Singapore because of their poor product pricing. It is a challenging task to decide how much to charge each item available on your store. If the price is too low, you might make a lot of sales but not enough to sustain your business. Charge a customer too much, the shocking price will obviously scare them away.
When deciding your price, you would need to come up with a good execution plan where accounting and documenting every penny spent and gained is crucial.
Not only are you suppose to know your profit from each sale, where are all your losses going to each month?
Consider these questions:
How much are you paying for the platform you choose to run your online business on?
How much do you spend on online marketing and advertising of your brand?
Are you paying for SEO?
Once you have come up with your average expenditure, you will be able to set the pricing that benefits you.
What are you really selling?
The reality is that blogshop owners cannot marginalize their prospect business based on the basic product they are selling. “My store sells clothes” ….. Yes, and so does millions of other businesses. “I want to open a makeup store.” ….. Cool. Good luck telling every girl who wears makeup that, I am sure that will make your store stand out from the rest.
You see, starting a business is more than just the “I have this product, so people should buy it” concept. What can you offer that’s in the market but is unique?
ALWAYS REMEMBER! You are NOT selling a product to a person, you are selling them a lifestyle.