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How To Own A Store And Make Huge Profit Online | In today’s increasing digital-age, it is very rare for those with a physical product or high street presence to not take advantage of the many channels there are to sell online. Selling a product online allows you to reach a wider audience and new customer pockets. As at 2017, Digital buyer penetration worldwide rose to about 60.2% and this numbers are expected to reach 65.2% in 2021.
Perhaps you started out with a local shop, but know that you could have a much wider audience. Or you already have an online presence but want to explore where else your product could be seen. Whether you’re self-taught, a novice or just curious, this article will give you a comprehensive overview of how to own an online store to maximize profits from your business.
Table of content:
• Benefits of selling online
• How to own an store online with little to no budget
• How to increase online sales by 600%
• How to increase online sales: fewer options, more sales
• Why fewer options lead to an increase in sales
Benefits of selling online
Selling your products or services online can greatly expand your business. The benefits of choosing an Internet marketplace as opposed to a traditional storefront are extensive. By analyzing these benefits, you can make an informed decision about the direction of your business and determine if migrating your business to an online selling format will suit your individual needs.
The Internet allows business owners to reach a far broader customer base. Instead of merely catering to a local customer demographic, you can reach a global audience. You will expose your business to customers who might never have shopped in your traditional sales space.
Since selling online requires no brick-and-mortar storefront and reduces the amount of employees necessary to conduct business, there is very little overhead compared to traditional retailing.
Extended Hours of Operation
Online selling gives businesses the opportunity to provide around-the-clock hours of operation, thus increasing their profit margins. Customers can browse through your goods or services whenever and wherever they have Internet access.
How to own a store online with little to no budget:
These days, there are a lot of channels which you can leverage on to start selling your products online. However, choosing the right channel is very essential as this will ultimately determine the general performance of your business and your ability to grow a sustainable way of income.
The cheapest and easiest way to start selling online is via online Marketplace. The likes of JUM.IA, KON.GA, DEAL.DEY, and so on, have provided an easy solution to small scale business and startups to quickly make their product available online for customers to discover and make purchase from them.
How to increase online sales by 600%:
There’s a way for you to increase your online sales by 600%. And don’t worry, you won’t have to do anything shady or participate in any shenanigans.
When most people start selling stuff online, they often create extensive product and service lists. They think having a little something for everyone will help them get more sales.
The problem is, people think “more is better,” but in the real world, long product lists are conversion killers. And if you want to increase your sales by 1,000%, you must streamline your offerings.
To illustrate, let me share Sheena Iyengar’s famous field test.
How to increase online sales: fewer options, more sales:
Sheena Iyengar, a professor at Columbia University, set up a free tasting booth in Draeger’s supermarket—an upscale grocery store, known for an extensive product selection—on two consecutive Saturdays.
One Saturday, 24 flavors of jam were available, and on the other, 6 were available.
Now take a guess. Which display sold more jam?
Given the “more is better” mindset, you’d think the larger display sold more. But that’s not what happened.
When 24 jams were available, 60% of the customers stopped for a taste test and 3% of those bought some. When 6 jams were available, 40% of the customers stopped for a taste test, but 30% bought some.
Huge results. While the larger display attracted more people, the smaller display sold more jam. About 6 times more. A 600% increase in sales.
Why Fewer Options Lead To An Increase In Sales:
Buying products and services is mentally taxing. In most cases, it’s not a “black and white” answer. You need to understand the available information, evaluate if it is the right fit, compare it to competitors, and then decide whether to buy or not to buy.
When you have an exhaustive product list, your prospects will have to go through the above decision-making process for each item on the list.
That’s a ton of work!
And it also leads to what social psychologists call choice overload. To summarize, when people are confronted with several options, they often pick none of them and move on to something else.
This was evident in Sheena’s experiment. When 24 flavors of jam were available, 97% of people chose none, whereas when there were 6 available, 30% bought at least 1.
I am always happy when I see young people willing to make a positive change to their financial life by trying to become a successful entrepreneur. However, it is very important you set out a plan for what type of business you want to venture into, make a lot of research on the niche you choose and act immediately. It is also very important you make the right choice when choosing a platform to sell with as they all have their uniqueness. Choosing a marketplace that best meet your business needs is very crucial to it success.
So the choice is yours to make. I hope you have learn a thing or two in this article; I look forward to seeing you at the Top of your game. Do have a lovely day.
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