5 things you need to know before starting an online business | Payo
Thinking about starting an online business, but feeling overwhelmed with all the things you need to do? Don’t worry because we’re here to help you. We listed down the most important factors that you need to focus on, including creating solutions for your customers, logistics, and E-commerce automation:
Master your business strategy
A business plan will help you steer your business as you start and grow. Think of it as a GPS or a map that will lead you to achieve your goals. Also, writing a business plan is a way to think things through and flesh out all the details that are vital in running your business. Remember: There is no right or wrong way of creating a business plan. As long as it meets your needs, you can choose a format that works best for you.
The next thing you should consider is your customers’ needs. This is vital information for those who are launching an online business. Your goal should be to solve your customers’ problems and not just add to the noise that they see online. You have to be able to establish that you are the best online seller for the kind of service or product that you’re offering. To make your online business stand out, follow this advice from Google co-founder Larry Page: Always deliver more than expected. Find your niche to be able to offer specific solutions for your customers’ specific needs.
As Zappos CEO Tony Hsieh puts it, “Don’t play games that you don’t understand, even if you see lots of other people making money from them.” Studying your potential customer base and understanding their buying habits will help you succeed in your venture. Knowing things such as your customers’ psychographics and demographics will help you refine your business idea.
Also, it pays to know your competition. Analyze your competitors — how they position themselves and communicate with their customers, as well as their strengths and weaknesses, because these are opportunities and threats for you. Having a clear grasp of these things is crucial in shaping your online business.
Decide on how to get your products to your customers
If you are just starting your business, chances are you don’t have your merchandise yet. Finding someone who can supply you with the items you want to carry in your E-commerce store is easy. But the question now is: Are you willing to order in bulk, carry your stock, and ship orders yourself? Or do you want someone else to do these things for you?
Now, you have three options: carrying your stock, drop shipping, and using a fulfillment center. Carrying your stock and managing shipping yourself is a great opportunity to be hands-on with processes. But, that means you must pack and ship orders by yourself. Drop shipping is your next viable option, but here’s the caveat: when you use this method, you have no control over the shipping process.
Your third option is utilizing a fulfillment service. With this, a third-party warehouse will store, pack, and ship your orders for you. This option helps you save time and lets you focus more on marketing your products. If you’re planning to scale your business fast, and if you’re looking to optimize your fulfillment strategy, working with a provider that offers warehousing services in the Philippines will give you the most flexibility.
As a starting online merchant, figuring out all the means to maintain your business activity can be tricky. Things will be more difficult to handle as your business starts growing, and efficiency will be the name of the game. Because of this, you must be open to E-commerce automation.
According to Entrepreneur Media, automation is not a luxury; it is a requirement if you want to get an edge over your competitors. It’s not practical to perform all of your business tasks manually, tasks like monitoring and collecting information, sending emails, flagging orders, and adding customers to specific segments. With E-commerce automation, the technical aspects of your online business are taken care of.
Let Payo power up your online business through E-commerce automation!
Payo is an e-commerce enabler that will help you sell your products in the Philippines, navigate the E-commerce landscape, and scale your business. We provide merchants with tech-based solutions such as live customer support, a data-driven courier algorithm, and multiple warehousing. With Payo, your E-commerce journey can be simple and easy!
To know more about our services, you can sign up with us today or send us a message at [email protected].