Started your own online retail business can be really exciting, especially when something took several months of hard work and planning to do? Well, this is perhaps just the beginning. Setting up an online retail business is not difficult. It really isn’t.
The toughest thing about any online retailing business is setting up of the distribution. Distribution is probably harder to create than building a website from scratch. Anyone in this sector long enough will understand.
Distribution is about physically bringing the item to your customers and not just showing pictures to them online. This is probably one of the weakest areas in most online blog shops or stores. This is also the reason why majority of online business never touches the retail sector to skip this section to go to the more important parts of money making. Majority of the online businesses starts out in the service sector providing value in added technical service to businesses working online. Online businesses never want to go into the hassle of physical item management and the sending of items. This is because distribution can only be worthwhile only if mass orders are gotten on a daily basis and huge orders can be compiled for delivery at one time to save on transport fees. If not, transport fees are just a bulk more additional cost hassle on the sellers hands.
Another problem is about generating exposure. Unlike real-life retail businesses, online retail businesses do not have any walk-by traffic, people don’t just walk pass, see your store and walk in. Neither is it like advertising on the television set where you get massive number of people watching your ad when it is screen onto the TV.
If you ever want to leverage any traffic off the internet via contents put up by others, your best options is still to go for paid advertising such as google ads or Facebook. That being said, there are still opportunities for free you can leverage off by queries put up by people doing searches on search engines, where the market is significantly lower. Majority of the paying consumers are still the ones that are not that proficient at searching. The higher possibility of quality product exposure is still via content linking and paid ads through someone else content.. but it all cost money$$$.
One last concern is also the competition and transparency that the internet impose on retailers today. Without transparency, you will probably not be able to so easily start your own blogshop because you wouldn’t know where to find your customers. Transparency can also be the reason why majority of online businesses fail.
Just think about this, 20 years ago, you probably would have to travel far to compare pricing between different products and to find one that is of a couple of dollars lower might not even be worth the transport fee and time. However, today, we are talking about clicks, how much time or money does a click cost compared to the time and effort taking to travel? Shoppers can easily compare pricing with similar attributes all about the internet. If there is someone else selling at a lower price, you are never going to get the sale.
Being in the retailing business today can be relatively tough due to the above factors. However, these problems can be easily solved when you become a merchant over at Everything Under. Everything Under employs a new way to market and expose your items. We take the stressful task of putting dozens of ads on your own out there to turning happy customers into your distributors. Let happy customers do the affiliation for you and make money doing the advertising for you. Pay them only when a sale is made and save on the unnecessary advertising costs off in-effective marketing.
The post Why most Online Retail business fail appeared first on The Editor Guide.