Week 4 - E-Commerce

10 Critical Success Factors in E-Commerce 

Ask yourself! Why do you buy a product from a particular website? What are the factors which motivate you to choose that site and not others? That answer is what you’re looking for your own e-store success. They are the key factors which will help your e-store to stands higher in crowd and sell more.

1. Branding

A brand is a belief and the most powerful thing. The reason why you decide to pay higher price without any problem. That is why people are paying for brands like LV, Gucci and Prada.

These are the effective ways to build a stronger brand using Internet for a new business.

1. Unique Design: Good enough to hold them! If you’re able to amaze them, you can sell even more. Get a Logo and designed website. It doesn’t cost you much if you use service like Elance.
   
   
2. Utilize Social Networks: Facebook, Twitter and LinkedIn presence are very helpful here. They got some very innovative products (Twitter Promoted, Facebook Ads etc) to promote a brand. Spend some time to discover the ‘best practices’.
   
   
3. Run multiple Display Advertising Campaigns: Let them remember your name and what you do.
   
   
4. Participate in conversation and Q&A sites and answer every questions about your brand
   
   
5. Showcase your Testimonials, Reviews and feedback across the site and networks
 

2. Unique Selling Proposition (USP)

How do you differentiate your business from others? What are the product differentiators?

A buyer usually spends a good time on research. He searches for Price, Quality, Deals and Reviews. So how do you differentiate your products? Is it price, quality, customer support, any guaranty (Money Back, warranty etc.) or payment flexibilities?

When you find your USPs, showcase them everywhere. It’ll help buyers to make decisions. For example, I’m willing to pay higher price for fast shipping. It’s strange but justifies my impatient behavior.

3. Store Experience / User-Friendly Website 

A good store experience is a must have for E-Commerce success. Make your store as much as user-friendly you can. Easy navigation, clear headers, correct spelling and a visually pleasing look all contribute to a site that people visit and stick around to explore. Links that take users to sales pages contribute to converting visitors into customers. You also want a clear shopping cart or buying process spelled out to get the sale.


4. Product Catalogs

When it comes to product catalogs, consumers agree that the following five factors matter most:

1. Additional costs must be clearly shown
2. Shopping cart is easy to edit
3. Thorough product information and detail
4. Clear path and navigation through the catalog
5. Products are easy to find

5. Web Traffic

A point to succeed in E-Commerce is the traffic to your website. Just as a brick-and-mortar store can't sell to non-existent customers, you can market and sell to online users who don't come to your site. This point helps emphasize the importance of marketing in the development of an online business. You have to include a marketing plan, a budget and a commitment to communicate with your targeted customers as part of your business development process.

6. Customer Retention 

A business is never going to be a success without Loyal Customers. Customer retention is helpful to get more sales and brand building. A loyal customer not only buys from you but he/she also spreads the good words in his/her network.

Also you’ve to apply less effort to sell something to existing customers again. They’ve already used the product and they won’t be affected by Fear, Uncertainty and Doubts.

Always be connected with your existing customers. Let them feel special. Ask for regular advice using newsletters, blogs or surveys. Thus they’ll be connected and feel like a part of the business and not only a proposition/asset.

7. Multi-Channel Marketing 

There are opportunities lying everywhere in the Internet. Some businesses are making millions from Facebook. Some businesses are killing their competition with Search Engine Marketing. The key is to spread your reach everywhere over the Internet. An ideal marketing strategy should focus on no. of marketing channels. Use Email Marketing, SEM, Affiliate Marketing, Referral Marketing, Social Media and offline campaigns to diversify your reach. Thus you’re not dependent on a single source and they’ll also bring you regular amount of buyers.

8. Build Reputation and Establish Credibility

Partly driven through your marketing, E-Commerce success grows as you build a solid reputation and establish credibility. Small businesses with a proven brick-and-mortar store can often more easily convert to the Web with an established reputation. A secure website, which includes clear symbols of security commitments, is part of online credibility. Statements of commitment to guaranteed satisfaction can also put online shoppers at ease. Rapid responses to customer services inquiries and complaints help you build long-term relationships.  


9. Clear Value Proposition 

One mistake some e-businesses make is the assumption that the "if you build it, they will come" mantra applies to the Web. You can't just have a nice, tech-driven website and make money online. You also have to understand basic business facets involved in delivering an excellent value proposition. Knowledge of your targeted customers, a distinct product or service offering, an efficient distribution or delivery system, revenue optimization and cost controls and Web maintenance all contribute to customer-oriented value propositions.


10. Accomplish

Last but not least, every great E-Commerce website has a few things in common. For starters, brand loyalty is huge. That said, both new and established online merchants should focus on staying competitive, attracting new customers, offering enhanced customer service, facilitating shipment tracking and so much more.