Getting set up to sell products online is relatively easy these days. An online store, a merchant account, some products, and a method to deliver the products are all you need. The sales set-up isn't the real key to success; it is just a tool, a platform. Rather, the key lies in your business and marketing plan. Here are five common mistakes I see e-commerce newcomers making:
Inadequate research. Too often newbies select a niche or product line without adequate research to ensure that (a) they aren't in a saturated, over-competitive space and that (b) they are offering in-demand products with a high enough price tag to allow them to make some profit. Do your homework carefully before you start. More....
Unrealistic expectations. Many people expect to make quick money selling products on the Internet. It's much more realistic to expect to learn on your first attempt at e-commerce. The chances of you striking gold the first time aren't too great. But once you done this, you'll understand much better how to succeed the second time. Don't get me wrong. I believe that you can make good money on the Internet, but like any business, but it's not a sure thing. Fortunately the cost of entry and experimentation isn't that great.
Something-for-nothing mentality. I shouldn't be surprised at the people who expect everything for free, who actually believe they can make money online without investing any money in advertising and promoting their site. I was naive once. These days it takes some money to cut through the clutter and competition. You don't need millions of dollars in venture capital to succeed, but you'll need several thousand dollars at the very minimum to begin to get a foothold in a national or international niche market. This is business, dear friends, not fantasyland. Even Disneyland tickets cost money.
PPC dependence. The advantage of Pay Per Click (PPC) search engine advertising is that you can buy your way to the top of the search engine quickly for your important keywords. But too many merchants have an overdependence on PPC advertising and not enough emphasis on building a high search engine ranking through careful search engine optimization (SEO). If you rely only on PPC, your higher cost-per-sale won't be balanced out by the essentially "free" visitors from "organic" search engine traffic that help lower your overall cost-per-sale. As a result your prices can't be as competitive as those of a business that does both PPC and SEO effectively. More ....
Perfectionism. Some new merchants spend way too much time and money getting set up. They think everything has to be perfect. Your business does need to look excellent -- but not perfect. My advice for first-timers is to do your research carefully, take your best shot, then set up quickly and inexpensively. If after due diligence your business seems to be going somewhere, then invest more money in it. If not, move on. Don't beat a dead horse.
