Myths and Realities of starting an E-commerce business
The e-commerce space is a relatively new business model that has soared in popularity amongst users and entrepreneurs alike. The online platform provides its users with a unique shopping experience that enables them to buy a variety of items, all from the comfort of their home. This market is equally enticing to entrepreneurs, since it allows them to cut down on physical store costs as well as broaden their consumer base by just going online.
Due to the pandemic, individuals have shifted towards online modes of communication, shopping, and payments. Nearly 73% of UAE consumers reported that they have been shopping more since the pandemic begun. This industry is one that is still at its peak, with no signs of slowing down.
However, as a new or aspiring entrepreneur, there may exist a few misconceptions regarding setting up an e-commerce store that are completely different from reality. In this article, we will break down the 5 biggest myths surrounding e-commerce stores.
Myth 1: Setting up an online store is inexpensive
The biggest myth surrounding the e-commerce space is that starting one is inexpensive. This, however, is far from the true scenario. E-commerce businesses may be cheaper than your average brick-and-mortar store, but they are by no means ‘cheap’. Underestimating how much you will need to start your online business is the first pitfall that can ruin everything before it can even begin. Assess the costs that your business will need to incur, from one-time investments to minor everyday items. A budget can give you an idea of how much it will cost on average to start and maintain your online business.
Myth 2: Starting an online business is easy
Though you may not have to go down the more traditional means of starting a business, the effort to start and maintain a successful e-commerce store should not be downplayed. Lack of insight and expertise in the field can make your business blend in with the hundreds of stores that exist online. Continuously creating strategies to garner user attention and lead conversions is part and parcel of the online business process and can enable your business to stand out amongst the rest.
Myth 3: A great website is the key to business success
An intuitive website with sleek design should not be the end goal of an online business, but rather a starting point to convince the user that the business provides great offerings. Focusing solely on web design can backfire on your business, since users will leave as soon as they realize that there is no actual substantial content on the website. Creating a website that is interactive and aesthetic while prioritizing the content, products, and services the business offers is a great balance that can boost your business’ reputation and revenue.
Myth 4: Low prices can boost sales
The trend with most e-commerce giants like Amazon show that online sales and low prices are what makes e-commerce a successful mode of business. This low-cost model is not viable for most businesses. Underselling your products for long periods of time can mean decreased profits and can position your business as a store that always provides low-cost items in the minds of the consumers, making it difficult to maintain proper pricing strategies. Setting effective pricing strategies with the occasional sale held a couple of times a year can create a realistic and long-term model that your business can follow and thrive off of.
Myth 5: Modes of payment aren’t important
Many new online entrepreneurs neglect payment modes and how online payments function on their e-store. Overlooking this aspect can mean losing customers over something that is completely avoidable. Creating effective modes of payment, whether that be through debit/credit cards, Apple/Samsung pay, or cash on delivery, can boost your business’ reach effectively. Moreover, for those who prefer online payment, creating a safe and secure payment gateway is crucial in making sure that your customer has a great shopping experience from beginning to end.
Starting an e-commerce business can seem confusing due to the various myths surrounding it. Our experts here at SPC Free Zone can help address these myths and effectively show you the realities and processes involved in starting an online business of your own. Contact us at 800 SPC FZ to get started today.