Growing Pain Ecommerce companies must overcome before scaling
When you decided to become an e-commerce entrepreneur, your dreams were big … practically "Amazon big!" In your eyes, the sky is the limit. Why can't your e-commerce business be as big as Amazon?
Well it can …
The only problem is that new ecommerce business owners are so involved in the excitement of starting their own business that they forget about the hard work required to properly scale a business, especially to Amazon's level. More importantly, they forget the obstacles along the way that require solutions.
According to Business Insider, Jeff Bezos had growing pain on Amazon in the late 90s and early 2000s. There was no suitable inventory management system, the products were sat around by the employees, and there was total chaos!
Your ecommerce business doesn't need this kind of scaling experience to grow. In fact, your scale-up story can be a lot less bumpy if you know what to expect at the front end. You may already have plans to tackle these obstacles.
But preparation is the key here. When you start your business, there is absolutely nothing wrong with having great hopes and aspirations to expand and grow. Just make sure that you are ready to deal with the growing pain associated with the territory.
Set up the right systems
Organizations need to process large amounts of information to function properly. The size company you are in may work very well with the current system because you are not dealing with very large amounts of information. However, when you start scaling, you need a system improvement.
As you scale your business, you will be dealing with customer information, financial records and inventory management on a much larger scale. A misjudgment could completely ruin your numbers with inaccurate information that can be difficult to access.
You need the right infrastructure to ensure that your company and all the information you have is processed correctly.
You need to find a software program that can handle large amounts of information from larger companies. The best thing you want is a system that has everything in one place. JD Edwards Software is the perfect solution for your business. From financial management and CRM to project management and procurement management, this software is your one-stop-shop solution for your growing company.
People like to argue that e-commerce and brick-and-mortar companies have the same security threats and that one company is at higher risk than the other. Well, both types of businesses have their own challenges when it comes to security. However, in the world of cyber security, e-commerce companies are at a much higher risk.
Data breaches and the vulnerability of your customers' sensitive data were one of the highest crimes in cybersecurity in 2019. Cybercriminals were exposed to over 160 million sensitive data sets.
Prevention is key in this scenario. Make sure you back up all of your data regularly. Also make sure you create unique and secure passwords (the days of abc123 passwords are dead). Also pay attention to the type of purchases made. Multiple large purchases of the same product are a great sign that suspicious activity is taking place.
Find the right marketing strategy
The only way for your business to grow is when people know they need to shop with you, right? Of course, this means that you have to improve your marketing strategy. You may have a fairly stable customer base right now, but in order to grow, you need to raise your websites.
Create a blog for your e-commerce shop, hire an SEO company to drive more visitors to your website, improve your online presence and become more active on your social media pages.
Social media is actually one of the best ways to connect with your audience, simply because almost everyone around the world has at least one social media page. From answering their comments to creating fun competitions, you can use it to expand your fan base and attract more visitors to your website. Using clever hashtags to grow your business is also another way to get more traffic to your website to cause a stir.
Hire the right people
Finding good help is a real challenge for small business owners. The thing to understand is that your business is your business… you created it, so you will be much more passionate than someone you hired from a career site.
Late nights and early mornings may be the new normal for you, but you cannot expect the people you hire to make this their lifestyle just because you have it.
Be very open and honest about your expectations, hours and payment. Let your potential candidate know where you work in your company and what you want to do. This gives them the opportunity not to waste their time. This also opens the door to negotiating their availability to see what you can work with.
If you find a candidate who is qualified to help you but has some availability issues, at least communicate with them to see if you can work with them.