By 2027, 23% of retail purchases are expected to happen online.1 Selling online is becoming a necessity for any business that wants to reach new customers and grow sales. Not only can your operation meet the needs of customers 24 hours a day, but you can also access buyers from around the world instead of just your local market.
Let's look at major considerations for small businesses exploring how to sell products online.
Understanding your competitive marketplace is the foundation for any business strategy. When you sell online, you're likely going up against thousands of other sellers, from mega-retailers like Amazon to companies with their own ecommerce websites to individual sellers on platforms like eBay and Etsy. So, how can you set yourself apart?
A target audience of senior citizens in middle America has very different needs and expectations than a target audience of digital-native Gen Z Europeans. This means you'll want to understand your customers to better position your product and services to their unique needs and wants.
One way to do this is to create a buyer persona that gives you a fictional representation of your ideal customer. Using your data and research, define who this person is, what they like, where they work, their pain points, and what they want to accomplish with your product. Try also to define their process for finding products like yours when shopping online.
Next, take the time to learn how to segment customers. Segmentation is vital for crafting targeted marketing strategies and personalized online selling experiences that feel relevant to their needs every step of the way.
With online shoppers able to easily compare prices with a Google search, choosing a pricing strategy that positions your product competitively and safeguards your profit margins is essential.
Begin by using your competitors’ prices as your benchmark to ensure your product is in the ballpark of what customers expect when they look at search results. Depending on your brand and strategy, your goal may be to become the bargain option, the premium version, or something in between.
Keep in mind that prices online change constantly, which means you'll need to keep a close eye on what competitors are asking to ensure you keep pace with the market. Your cost of goods and supplies may also go up, so make sure you adjust your prices when needed to ensure you keep making a profit.
Once you've determined your strategy, you're ready to start building your online store.
The most important part of any business is getting paid, making your choice for payment processing critical to success. If you're new to online sales, here is how a payment processor works: At checkout, the customer chooses their payment method, and the payment processor then provides all the technology required to move money from the customer's account through the payment network to your account.
To select your payment processor, your ecommerce platform will have a section titled “payment types,” “payment options,” or “payment methods.” You can then choose what types of payment types you want to accept. Remember: some customers have strong preferences about how they want to pay, so look at your buyer persona to see if your target audience has a specific payment method they may want to use.
In addition to common payment methods like credit and debit cards, consider payment methods like a digital wallet, buy now, pay later, and subscriptions:
Once your website is ready to accept payments, it's time to hang out your virtual sign and start attracting customers. The best ways to advertise your business and bring awareness to your store will depend on how much you want to spend and how much time you have to allow to specific marketing channels.
For example, an inexpensive but time-consuming way to promote your brand is to set up profiles on Facebook, Twitter, Instagram, TikTok, and other social media platforms where you can share content, photos, and videos of your products and marketing content. For more tips on growing your follower count and reaching your biggest fans, check out this guide to social media marketing.
On the other end of the spectrum are paid channels like email marketing or paid search ads. With these channels, you can often reach highly targeted audiences when they are ready to buy, improving your odds of making a sale quickly. However, you'll need to factor in your customer acquisition costs when using these channels to ensure you're still making a profit.
To choose the right channels and leverage them effectively to sell products online, it’s essential to craft a marketing strategy. This will ensure you choose the channels and marketing methods most likely to resonate with your target audience.
Check out these resources for inspiration on how to shape your business and how-to advice on marketing for small businesses.
As you prepare to launch your online business, keep these best practices in mind:
Ready to start selling online? PayPal makes it easy to get paid quickly and securely online with the payment methods your customers love. By accepting payments online with PayPal, you're not just simplifying the checkout process, you're meeting shoppers’ expectations for convenience and security when shopping online.
With fraud protection, seller protection, and a wide acceptance among consumers worldwide, PayPal’s comprehensive suite of tools and services makes managing online payments straightforward. Accept payments online with PayPal today.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.
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