Many entrepreneurs and business owners have found new opportunities in these uncertain and turbulent times.
Although many small businesses have to shut down or reduce the scale of their operations, people continue to launch new companies and products at a faster rate. 74% increase in speed Compared with ten years ago. Many of these new businesses and products are booming.
An important part of today’s success involves the shift to online sales.
For several years, e-commerce has been growing exponentially, breaking all records and forecasts in 2020. According to data from the MasterCard Institute of Economics, Global online sales increased by 900 billion U.S. dollars 2020 exceeds the trend of the previous two years.According to a Global surveyNow about 36% of consumers shop online every week, an increase from 28% before the pandemic.
If you are considering shifting your retail business to online sales or planning Start an e-commerce business, Make sure you avoid the common mistakes that business owners and entrepreneurs make in the first place Start a business.
Challenge: Meeting the retailer’s requirements
You might start selling your products “direct to consumers” or DTC, which means selling primarily through your website and promoting your online store through social media.
If you do this, you are not alone. Data compiled in Shopify’s direct-to-consumer guide shows E-commerce is expected to account for 6.6% Percentage of all consumer packaged goods (CPG) sales by 2022. The DTC movement accounted for only 40% of the industry’s sales growth.
DTC sales are encouraging, but what happens when you attract the attention of large retailers or want to diversify your channel strategy through the online marketplace?
Usually, this means you need to reconsider the company’s logo with Brand strategy Because you will compete with many other suppliers on a global scale. Also, you need to consider product packaging—both for shipping the product and as part of the customer experience.You will be surprised to hear What mistakes do most companies make in product packaging.
You must also make sure that you have the basics ready.For example, one of the most critical requirements for working with companies such as Amazon, Wal-Mart Marketplace, or Google Shopping is authenticity Global trade item number (GTIN).
GTIN is a globally unique product identifier encoded into the UPC barcode. They are priced at $30 per GTIN and are critical to building your credibility because they can verify the ownership of your products.
However, these unique product identification codes cannot be forged or purchased second-hand.If the GTIN is not directly from Amazon, retailers and online marketplaces (such as Amazon) may hide or reject your product listing GS1 United States And register your company in the GS1 database.
Be ready to profit immediately when a large e-commerce provider calls.
This is what happened Moonlight Skincare, An independent brand of skin care products before going to bed. When Nordstrom came into contact with the brand’s holiday classification, it had already established a strong e-commerce foundation with barcodes.
Stephy Kim, one of Moonlit’s co-founders, recalled:
Their onboarding process is very fast. We only have a few weeks to make, package, label, ship to their warehouse, and enter all product data into their system. Since Nordstrom requires the use of GS1 UPC on all products, we are pleased to have obtained the necessary GS1 barcodes.
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Challenge: Long-term consideration
The pandemic has upended life as we know it, but we will end up on the other side.
Make sure you build a post-pandemic life for your product to enjoy the bounty beyond.
Challenging times often create opportunities for innovation.
This is exactly what Jen Voigt saw when he founded the company, Fake, At the peak of the 2020 pandemic.
When hosting a birthday party for his son, Voigt found himself questioning the tradition of blowing candles on a birthday cake when everyone was wearing a mask. She invented Facakes, which are plastic cakes that birthday celebraters can use to blow out candles without spreading germs.
Voigt believes that Facakes will continue to exist after the pandemic. According to Vogt,
There has always been a group of consumers who don’t like the idea of someone blowing their cakes. People with allergies and immunocompromised have many health problems, and they can benefit from a safer option to celebrate with friends and family.
Voigt’s advice to start-up small businesses is: “Be original and create a niche market for yourself. Get your product in the hands of people who may need it.” For example, Voigt presents Facakes to nursing homes.
Challenge: Become an expert
We are all consumers and we know a good user experience.
The best product lists show products from multiple angles and provide useful information about colors, sizes, fabrics, care instructions, and how the products are made.
But creating “wow” moments for your customers requires work on the backend.
Small business owners who are just starting out may not realize that they need to speed up the way the retail supply chain works.
The aggressive brand owners we spoke with discussed the importance of research and seeking advice. Sarah Klein’s company, Milan neighborhood, Using Shopify and major retail websites to sell fashionable products such as handbags and mobile phone cases on their websites. Cline is from China. She taught herself product inventory requirements through YouTube and other online resources, such as seasonal demand and how to predict different quantities of products. She quickly understood that the retailer needed a UPC code.
I expected that obtaining a GTIN would be very challenging, but it was easier than I expected, so I was able to work with large retailers.
many Solution provider Specialize in helping small brands organize product details and tell product stories. They provide expert insights on how successful brands can reach target audiences and ensure brand loyalty from the earliest product launch stages.
Online sales provide unlimited growth opportunities, enabling companies to transcend their geographic locations. If you have not yet switched to online sales, this is your opportunity to embrace the new normal and look for opportunities to grow your business through e-commerce.
