The cheap Chinese jewelry wholesalers sell to retailers like a potato — buckets. With such a shoddy product nobody wants to mess. However, once that’s what happened.
One is a wholesaler noticed that its client, major online clothing store — was somehow suspiciously many to buy these buckets. But if buys, then sells. And if it sells, then earns.
And how. One bucket is filled with wonderful things, got to retailer for fifteen thousand rubles. And every single one of them out of that bucket, he sold three to four thousand. Wow, this is a business, I thought the owners of wholesale companies. We like that too.
In wholesale companies, as once in the ocean vertebrate samozarodilsya brilliant idea. Why give space to other margin if you can keep it? Who prevents you to open your online store and to draw the money from those buckets?
Today online shopping open even students — is simple enough. In the wholesale company began. We developed the terms of reference, found the contractor made and running website.
Only why-that nobody on this jewelry did not buy. That is not what the sales were below expectations. Sales were not at all. Newly-made Internet merchants haven’t sold a wonderful knick-knacks. It was a total, epic, epic fail.
The story seems to be exceptional. But in many ways she is very typical and clearly illustrates the attitude of “experienced entrepreneurs” to the Internet-trade.
1. To enter the market worth nothing
Many still live in the illusion that this market is easy to enter. This sin is especially serious guys who already have large offline business. After sitting for a couple of hours on the Internet, they learn that to develop the online store you for a hundred thousand — or a million max. But is it money? In Moscow for one hundred thousand you can rent for a month in the closet Pope Carla at the Mall-beehive.
Given the price range, maybe not so far from the truth, only serious guys usually do not consider that development is only the first door, behind which some more, and locked up tight. Make store — one thing to attract traffic — the other, to establish the conversion of traffic into sales — the third. And yet you ought to do all this construction is profitable.
The threshold of entry into the business — Yes, a little. The threshold of entrance into a profitable business — at times insurmountable.
2. Experts do not need, we do understand
Entrepreneurs are people who are used to solve problems in resource-limited settings. And this skill is certainly very useful. But sometimes it can play a cruel joke with you.
Many neophytes not to spend too much, charge the development of the online stores current employees that have already proven effective in offline business. Business is business. And here and here — trade. Of course there are specifics, but a smart person always will take care of it. And therefore, the involvement of specialists is not necessary. Many people think so.
All is good, Yes, but online is a fundamentally different business, which has become so complex that it is impossible to learn on the run. What good is the Internet marketer who for most of his career was engaged in attraction of Russian celebrities and placing commercials on television?
3. To succeed, you need to do not all
Yet for some reason, people really want to do. They arrive to the Internet with itchy novatorstvo, which is stronger, the more it seems that the Internet is no big deal. Newcomers believe that I look at everything with a fresh and focused view, and is therefore able to reinvent the online store again.
A fresh look is of course great. But there are simple common sense. The industry has already developed many of the standards, which greatly facilitate the lives of customers. So they didn’t need to think where to click, to get, for example, the ordering (of course, if the site is not made by the innovators, and the “boring” guys like us). Violation of these common scenarios and mindless experimentation leads only to ruin.
You can have Windows, though OS X, Chrome OS, though — and everywhere to copy it is necessary to press the function key and C. This is a standard that no one in their right mind would break. Similarly, it is not necessary to hide the basket in the lower right corner just because the assistant Director-General seems to be so “interesting” — or the designer wanted to say a new word in the design of online stores.
E-commerce is an interesting field for experimentation. But this is an experiment of another sort.
4. Online store is the same store, only online
Let’s say you are a happy owner of some popular brands. It is so popular that a lot of people looking for it in Internet and not find. You just need to open official online store — in fact, to create a virtual showcase of your offline store to meet the demand and to row money with a shovel.
So? Not so. Because to achieve success in the Internet, you can only if you will find an online store completely new business. You then will new buyers, other consumption scenarios, new range, new everything.
It is offline on one trade area may be sold a bag for 5 thousand rubles and a bag for a thousand, especially if in different areas. And online all one area, and, most likely, leaving the assortment of cheap goods, you deprive yourself of sales margin.
5. If there’s traffic and conversion, it’s all right
No doubt, the traffic and the conversion of the most important parameters of an online business. But focusing only on them is fraught with troubles. Because it is even more important for e-commerce re-purchase and “cycles of life” clients. When you have all the time to spend money on attracting visitors, it is suspicious.
As you know, if someone bought something once is not a business. Business if you are constantly buying.
This expression is valid in offline, but even when there are loyalty programs and SMS-mailing typically repeat purchases are not there is a key element of the business model. Many stores earn, standing in the stream of passers-by.
Online no passers-by, but there are many more tools in-depth analysis of consumer behavior and work with base buyers than offline. It is the development of competences in this field today can survive tomorrow.
6. I did everything right — and it will be rewarded
For example, the online store running, the channels of acquisition is adjusted, the range is balanced, connected Analytics. At this point, entrepreneurs sometimes think that it’s in the bag. You can exhale and relax. This is a mistake: it is impossible to relax.
Of course, in any market carelessness can create you trouble. Still, the offline business has a fair amount of inertia. If people used to buy something in the store near home or work, it is difficult for them to abandon formed habits and switch to something else. The Internet switch is much easier — any site “at home” and “along the way” and the technology improves daily.
If you now have an online business, it is not the fact that you will have it tomorrow. While you drink a Mojito and watch the new series of house of cards, your competitor, while behind you to order, invents a way to increase your conversion rate by half a percentage point and will soon destroy your own house of cards, which you call your business. Of course, if you don’t come up with something in response.