8 questions you should ask yourself before embarking on your eCommerce journey
Post by Joe Wilde
Over the past three to four years, we’ve had several clients shifting their business models to eCommerce - Set up an eCommerce site on Shopify or WordPress, pop a few products with some lovely images and hey presto! We are an eCommerce business now!
If only it were that simple! I always encourage clients to take a strategic look at their business before taking the plunge. Many don’t go into the deep end but rather ‘try a little bit of eCommerce’. For me, that approach is more costly in the long run.
As you embark on your eCommerce journey, there are a series of questions that you should ask yourself.
Question 1 | What are your overall business objectives, and how can eCommerce assist here?
Think about your goals. You may want to grow distribution or volume, or maybe you want to grow both. Another example would be the type of approach you want with eCommerce, such as reaching customers directly or taking a D2C (direct to consumer approach).
Question 2 | What is your product strategy?
Your product strategy should be clear and solid. Start by analysing your product portfolio and defining what products, sizes, and variations you will launch for sale on the site. Next, consider what products lend themselves to eCommerce and the quick wins.
Question 3 | Who are your audience?
Keep in mind that sometimes your potential eCommerce customer may differ from your offline one. Therefore, it’s essential that you know your audience and develop customer personas. Having an in-depth knowledge of your audience allows you to identify their path to purchase and where you can intercept and market to them along this journey.
Question 4 | How will you differentiate yourself online?
Stand out from the competition. Define what makes you different, your OVP (online value proposition). Why should the customer buy from us?
Question 5 | How well defined are your business, service and revenue models?
You want to give yourself the best opportunity to succeed, so it’s essential to map out your business model. Does this need to be changed to integrate your eCommerce function? Does the eCommerce function need to be stand-alone? If your business model is well defined, you should be able to forecast the impact of eCommerce on your offline business. Be clear about what revenue you expect to make and how the stock will be managed.
Question 6 | What is your marketing strategy?
There are 5 key topics you must consider in your marketing strategy:
How you will drive traffic to your eCommerce site or marketplace (Amazon, Etsy etc.).
How you will build brand awareness and affinity.
The best mix of digital and traditional channels.
What the competition is doing.
What investment you will need in marketing.
Question 7 | What impact will eCommerce have on your supply chain?
Supply Chain is a critical part of your business. First, define how you will manage stock and have your supplier list. Also, analyse your current suppliers to see if they are sufficient or if you will need to look further afield. Another important question is the role that affiliates, marketplaces or 3rd party retailers play.
Question 8 | How well are you structured internally?
Ask yourself what eCommerce knowledge you have in-house and what needs to be outsourced. Be clear about the resources you need and if you have senior management support. It’s also important to know if the business is agile enough to make the shift.
Conclusion
Answering these eight questions is a starting point for you to embark on a solid eCommerce journey. Of course, no strategy is infallible, and you may have to adjust it along the way, but planning and structuring your business to trade online is a walk towards success.
Joe Wilde is the founder and CEO of Mac Digital, a B2B Digital and Marketing consultancy based in Ireland. As well as serving client needs, Joe lectures on Marketing and Digital programmes in Trinity College Dublin, UCD Professional Academy, and delivers ongoing corporate training with the Digital Marketing Institute. Feel free to contact joe@macdigital.ie to arrange a no-obligation chat!
