Everyone wants to have their own business working from home. Actually, according to the Google rankings, the search for the phrase “work from home” and variations has tremendously increased over the recent past years. There are many opportunities available today that offer a platform to work from home.
From freelancing to having online stores, the internet offers a lot of areas to choose from according to your expertise. However, doing an online business from home requires as much effort as any other business that has physical locations.
Over the last couple of years, there has been an increase in the number of online stores spread across the world. One of the major reasons why people create online stores is to help their products and services reach as many people as possible across the world now that the internet has turned the world to be a global village.
The profitability of an online store depends on the effort, commitment, and discipline you put into it. The more you put into the business, the more you are likely to gain from it. It is quite unfortunate that a lot of entrepreneurs indulge in this kind of business without having guiding goals. There are a lot of mistakes that happen and cost the business owner yet they can be easily avoided to increase the profitability of the business. Some of the most common mistakes are:
- Wrong choice of niche market in terms of competition.
Many times, we envy successful businesses and we rarely see the handwork behind their success. Due to a large number of people who would want the same kind of success, there are several online stores that open up and pose a great competition to the successful business.
For instance, there are so many e-shops that sell clothes. This is a very competitive market niche that requires one to have something that makes it stand out from the rest thus getting lots of customers.
However, there are quite a number of online clothes shops that have been closed because they cannot stand the competition. Consequently, business owners should consider a business that is not to narrow otherwise they may not sell anything.
To understand the thin line between a narrow market niche and a competitive market, it is very important that you should carry enough research on the market. There are also many available tools that you can get to know what product or service is being searched by a great number of people as well as determine the competition level in that niche.
- Lack of a solid and reliable marketing.
As mentioned above, if you made a wrong choice of a niche market, it would cost you too much to stand out or woo potential clients. Getting traffic and visitors to your website is a crucial consideration that needs a lot of effort and this will turn to the profitability of your firm. Traffic is a key element when starting an online store.
Whether you have found the best niche for your products, the only way you can create awareness of the products and services you are offering is through marketing. The higher the marketing efforts, the more likely it is to be profitable. As it is said, doing business without advertising is like winking at a girl in the dark. No one knows what you are doing except you.
There are several ways that you can use to drive traffic to your website. For instance, the most common ways are; Google Adwords and Google shopping. You can compare different shopping engines to come up with the right one. Also, you can use affiliate marketing to bring about more clients to your site. Amazon product Ads is a common tool that gives business owners free advertising credit thus avoiding any kind of risk that may be involved.
- Wrong choice of a pricing plan.
Having chosen the right niche for your business and got the right marketing plans, there are many business owners who make a wrong choice of the shopping plan for their business. Your website may be so appealing and you have worked tirelessly to make it profitable but if you set absurd prices for your products and services it will surely push clients away leading to its closure.
There are several pricing plans you can choose from and they are designed to meet the needs of your business. In choosing the best pricing plan for your online store, it is very important to consider the size of your business. The good thing is that Shopify offer you to get a 14-day trial without any need to give your credit details. In this fortnight, you will be able to come up with the best plan for your business that will make it as profitable as possible. Each type of plan has its own features and it is thus important to closely look at ur business and see what plan would fit it best. As a starter, you would not want a plan that will cost you your business.
By avoiding the above three mistakes, it will surely give you a profitable online business.