Tuesday 19th of May 2015
E-commerce is the new in-thing in the retail industry. It has revolutionised the way goods and se
...rvices are bought and sold. With technology advanc...
E-commerce is the new in-thing in the retail industry. It has revolutionised the way goods and services are bought and sold. With technology advancing rapidly, online shopping is growing and penetrating every part of the country. Smartphones have further escalated the growth of the industry, with a market penetration of 47.7% in 2021. Unsurprisingly, there are more than 56,000 e-commerce platforms in South Africa with 27 million registered users. The number of users is expected to reach 37.9 million by 2027.
Naturally, many aspiring entrepreneurs are planning to start an e-commerce venture or purchase an existing business for sale in South Africa. These marketplaces sell everything from apparel and toys to electronics and DIY kits. With internet users growing in the country, the industry is expected to boom in the coming years. So, here is everything you need to consider when starting an e-commerce business. It will help you make the right choices and run the venture successfully.
When starting an e-commerce business, avoid picking a broad product category. Focus on a niche that interests you and has demand in the marketplace. A niche is a specialised area where you can grow because of less competition and high demand. It requires identifying gaps in the market and filling them with a satisfying product.
For example, selling chocolates made with plant-based milk to vegan customers. Since the number of vegan customers is increasing and chocolate is always in demand, this business can become popular quickly. The niche must be recession-proof and have continued demand in the market. It will help to build a loyal customer base quickly and grow through brand advocacy.
Once you have found your niche, you should embark on market research. It is needed to understand the needs and wants of the target audience. The research must help the entrepreneur determine potential customer's pain points and online buying behaviour.
They must look at the competition in the niche, how they are marketing their products and their traffic and conversions. Since you are launching an e-commerce business, it is crucial to identify the technical challenges customers face on competitor sites to offer them something more valuable and useful.
An e-commerce business thrives through branding, which depends on creating effective brand guidelines and identity. The entrepreneur must use innovative ideas and creativity to create the logo and brand colours and choose a suitable and catchy domain name. The domain name must be registered along with the intellectual property.
The next step is to apply for the employer identification number (EIN) and the business permits and licences needed to operate in South Africa. After this, you must decide on the legal structure of the business and register the business with the Companies and Intellectual Property Commission. If you buy an existing business for sale in South Africa, it must be transferred to your name.
Before choosing the platform, you must determine how the e-commerce business will operate. There are different types of online retail stores, such as dropshipping, subscription-based models, manufacturing and wholesaling. Choose the right model based on your interests, product and budget.
Next, find the best content management system to build a functional e-commerce website. The most popular platforms include Shopify, WordPress, Wix and WooCommerce. Use the platform that fits into your budget and offers the maximum benefits. During this period, they can sign contracts with suppliers to procure goods.
Entrepreneurs must spend time developing the website’s graphics while ensuring that it is user-friendly and easy to navigate. Your version must eliminate the technical difficulties faced by customers on other sites and allow smooth product browsing, selection, and buying. The product catalogue must have descriptions and other details to help customers learn about the items.
Choose the payment gateway after considering the best online transaction method the target audience prefers. Integrate the payment gateway into your website after creating a merchant account and receiving API keys to connect with the server. Test the website thoroughly before going live to identify problem areas and fix the bugs to ensure a seamless online buying experience.
The site cannot go live until the entrepreneur identifies the delivery partner to fulfil orders. They must identify service providers who can ship products across the country quickly. Late product deliveries and damage during transit are two primary reasons for customer churning for e-commerce sites.
Thus, the delivery partners must be chosen carefully. The website must have the functionality to check the progress of the package while in transit and should provide tracking details. Many sites offer same-day delivery to attract more customers, and these can be used to increase revenue by charging extra for speedy delivery. Entrepreneurs planning to purchase e-commerce businesses for sale in South Africa should implement this feature in their sites.
Launch the business and start marketing it online to drive traffic and conversions. Entrepreneurs can attract customers organically through search engine optimisation and paid ads on search engines and social media channels. The marketing strategy must follow the branding guidelines and the media consumption preferences of the target audience.
It is essential to use various marketing techniques like blogs, social media posts, images, videos, PPC, email marketing, and influencer marketing to build a strong online presence. Digital marketing is cost-effective and measurable, which helps to improve existing campaigns and eliminate non-performing activities.
Use analytics to identify the source of traffic and the bounce rate of different pages. Keep optimising your website to make it more intuitive and immersive. Make it mobile-friendly and reduce loading time to prevent cart abandonment. Use retargeting to persuade interested customers to purchase.
Customised service can help retain buyers and turn them into loyal customers. Use data gathered from browsing history and past purchases to send product recommendations and remind customers about products waiting in the cart. Scale up and keep growing.
Wrapping Up
If you are looking for business opportunities in South Africa, you can consider starting an e-commerce venture. It is fairly easy to set up and promote because of low investment and high demand. Use the tips above to get started and build a high-growth brand.
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