How do you go from $100M to bankrupt? That’s the question Nasty Gal, once a darling in fashion e-commerce, had to deal with. It’s amazing to think that what started as an eBay store could balloon into a retail powerhouse.
But they made a key mistake that’s haunting them now that their founding CEO has stepped away and their business has spiraled.
The rags-to-riches story that captured the hearts of millennials and inspired on-the-fencers to leap into entrepreneurship now serves as a major reality check.
*Disclaimer: This post contains affiliate links. However, I literally move all of my private clients over to Shopify if they’re not already on it and I really love the platform. I’d never promote an e-commerce tool that I don’t believe in or have not personally used.
If you’re using a marketplace like Etsy, your sales are being stifled! That’s because in addition to worrying about your product, marketing, shipping and logistics, you’re paying some pretty heavy transactions fees with a shop that you don’t even own.
Most first-time entrepreneurs want to know the big secret to running a successful e-commerce business.
And while there are many factors that can affect the success of a business venture (i.e. timing, market readiness, or slow development in the cases of former stalwarts like Kodak and Blackberry), I’ve found some common elements of sound business strategy that have helped new entrepreneurs and even seasoned pros undergoing a re-brand or product expansion take their businesses to the next level.
Being successful in e-commerce comes with a steep learning curve (if you haven’t noticed already). There are various tactics and strategies to generate leads, acquire more customers, encourage repeat purchases and incentivize brand evangelism.
But there are also a ton of potential mistakes along the way, the inevitable ‘trial and error’ of starting and sustaining your own retail business.
The good news: you have a ton of examples to learn from. So avoid these 5 common e-commerce mistakes and you’ll be well on your way to increasing brand resonance and, most importantly, boosting your revenue.
Unlike traditional retail, online stores are open 24/7! That means your store should always be poised to convince and convert.
As ecommerce grows into the preferred shopping method for consumers around the world (thanks Amazon and Alibaba!), it’s more important than ever that you optimize your online store to actually turn that traffic into customers.
But if you’re struggling with sales, you might be making some common mistakes that keep online retailers just like you from maximizing profits.