Top 5 eCommerce Myths
There are a lot of myths out there about what it’s like to run an eCommerce business. We’re here to separate the facts from the myths and give you the lowdown on what it’s really like in the world of eCommerce!
Myth #1 – It’s Easy
You’ve probably heard this one before. The eCommerce business is easy and anyone can do it, right? Wrong. Most eCommerce sellers won’t see a real profit for several years. Running this type of business requires a lot of hard work and dedication. There are a lot of video tutorials out there making it look like it’s easy, free, and effortless. Those of you who work in eCommerce already know that it’s anything but.
Speaking of free……
Myth #2 – It’s Free
Starting your own eCommerce business is going to cost you. While it’s true that the costs of an online business are generally low as compared to a brick and mortar business, it’s hardly free. On the front end you’ll face startup costs like software and hardware, advertising, sourcing expenses, etc. If you have your own website you’ll have the added costs of hosting, web development, and a domain name. If you sell through Amazon or eBay you’ll also be paying seller fees. Before you launch an eCommerce business, it’s a good idea to sit down and draw up a detailed business plan that anticipates all of your expenses before you spend a single dime.
Myth #3 – Only Cost Matters
The myth that you need to sell your product at the cheapest price point to be successful still persists. What most people don’t factor in is that underselling may create revenue, but in the long run it’s unlikely to net you any real profit. Buyers aren’t always just looking for the lowest price (and sometimes cheap just looks, well, cheap). You want to sell your product at a reasonable price that makes the customer feel as if they’re getting what they pay for. Too low and they might feel that you’re selling them an inferior product. Too high and they’ll feel like they’re being taken advantage of.
You can take any number of steps to gain consumers’ confidence. Make sure your website and/or listings look professional and polished. Create product descriptions that are clear and include a lot of information. Let customers know about your shipping and return policies up front, give them several options for payment, and a guaranteed delivery date. These things will go a long way towards making the customer feel that the price they’re paying for your products is worth it.
Myth #4 – It’s Not Time Consuming
Many people get into eCommerce as a side hustle with the thought that it can be a fun, lucrative hobby that they can dedicate a little time to on the weekends. The truth is, an eCommerce business is more often than not a full-time job. Between sourcing products, maintaining your books, staying on top of customer service, and packing and shipping products, be prepared to spend a significant amount of time tending to your business.
Myth #5 – Paying For Business Solutions Isn’t Worth It
The truth is, depending upon the size of your business, what types of products you sell, whether your site is mobile friendly, etc., it’s often well worth the price you pay for business solutions. These can include things such as software that integrates your website with social media, creates excellent web speed and responsiveness, or, in the case of InventoryLab, helps you manage your inventory and listings, tracks your expenses and profits, and helps you source the right products.
It isn’t always easy to separate fact from fiction, especially when it comes to the persistent myths that surround eCommerce. Now that you know the truth, you can make more informed decisions about whether eCommerce is right for you.
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