Launching an e-commerce startup comes with its unique set of challenges, so we’ve gathered insights from ten founders, CEOs, and other key leaders. From employing micro-targeting strategies to managing customer expectations effectively, these experts reveal the one crucial aspect to keep in mind for your digital venture.
Employ Micro-Targeting Strategies
When we first launched our e-commerce business, we struggled to reach the right target audience. We realized that a broad marketing approach was really not working for us. That’s when we decided to employ micro-targeting. According to a PNAS.org research paper, micro-targeting works better than other plans by around 70% or more on average.
Keeping the same in mind, we identified a group of environmentally conscious consumers who were passionate about sustainable fashion. We mapped it by geography, with places that had a higher inclination or presence of organic food stores, for example. Local community insights really helped us, and yes, we did thousands of in-person interviews to identify consumer issues—which then helped us create communication that was focused on solving a problem for our specific target consumer. We would design everything specifically for them, highlighting benefits, convenience, materials, and ethical production practices.
We also did location-based, category-keyword-focused content that really changed the game. The response was overwhelming, and our sales skyrocketed. For any e-commerce startup, micro-targeting is a crucial aspect to keep in mind as it helps to reach the right audience and also provides an opportunity to showcase your specialization.
Chaitsi Ahuja, Founder & CEO, Brown Living
Prioritize the Consumer Experience
I have a good amount of expertise in the e-commerce business startup field as a plumber and co-founder of Damien McEvoy Plumbing, as well as an entrepreneurial background as the owner of Festoon House, a lighting industry company. Understanding the significance of the client experience is one important component that I have found to be essential.
When it comes to online shopping, consumers have a wide range of options in the current digital era. As a result, it is critical to ensure that your online store offers a first-rate consumer experience. This entails going above and beyond to provide exceptional customer service, making sure that the website is easy to navigate, and responding to any questions or concerns from customers as soon as possible.
Making the customer experience your priority can help you gain your customers’ trust and loyalty, which will encourage repeat business and good word-of-mouth. A satisfying client experience can also help your e-commerce company stand out in a crowded industry by differentiating it from competitors.
Ultimately, the key to long-term success in e-commerce startups is to prioritize the consumer experience. By giving your clients an outstanding experience, you can build a solid and loyal clientele that will support the expansion and sustainability of your company.
Matt Little, Owner, Festoon House
Focus on Niche Specialization
From my journey as the founder of Rad Bronco Parts, a key aspect crucial for any e-commerce startup to keep in mind is the importance of niche specialization. By focusing on a specific product range—in our case, Ford Bronco parts and accessories—we’ve been able to carve out a distinct market segment, tailoring our offerings to meet the unique needs and preferences of Bronco enthusiasts. This specialization not only sets us apart from competitors but also allows us to deliver exceptional value and expertise to our customers, leading to higher satisfaction and loyalty.
Furthermore, understanding and leveraging the power of community has been instrumental in our journey. By engaging with the Bronco community through social media, forums, and events, we’ve built strong relationships, gained invaluable feedback, and fostered a sense of belonging among our customers. This community-centric approach has not only helped in refining our product offerings to better meet customer needs but also in driving organic growth through word-of-mouth and social shares. Considering these aspects can be transformative for e-commerce startups looking to establish a strong foothold in their chosen markets.
Robert Resz, Owner, Rad Bronco Parts
Optimize Website Customer Experience
I’d say that customer experience on your website is paramount. When I started my own e-commerce venture, I focused heavily on optimizing the website for ease of use, speed, and reliability. This meant simplifying the buying process, ensuring pages loaded quickly, and the site was seldom down. It’s about creating a seamless experience—imagine the frustration when a site crashes just as you’re about to check out. That can turn customers away for good.
David Rubie-Todd, Co-Founder & Marketing Director, Glide
Consider Logistics and Supply Chain
It’s crucial for e-commerce startups to consider logistics before starting. Especially when it comes to e-commerce businesses started by individuals, people often overlook things like product returns, and this ends up costing them a lot more than they originally anticipated.
Looking at your supply chain and how you handle deliveries, orders, etc., will help you to get a much more accurate representation of how much everything is truly going to cost. As a result, you’ll be able to work out a more accurate budget for starting and can allocate that budget accordingly to improve your chances at success.
Lauren Carlstrom, COO, Oxygen Plus
Target Low-Hanging Fruit Keywords
I would say to aim for the low-hanging fruit. Small business owners (including myself) think that it’s enough to have a cool and slick website in order for business to get rolling. But what you quickly realize is that the hardest thing is to attract people to enter the website in the first place, and you don’t have cash to invest in marketing campaigns.
Go for the low-hanging fruits. The keywords that others aren’t targeting, but that still generate volume, aren’t that hard to find either. Build your first sales from them, and then you will realize that it’s more important to dominate niche markets compared to being the 15th option in a large market.
Behrang Bandali, Founder, Freaky Sauces
Understand and Research Your Audience
In the crowded world of e-commerce start-ups, understanding your audience is critical. Every decision, from product selection to marketing strategy, depends on you and whom you’re selling to. Research your customers’ interests, needs, problems, and online behavior. Adapt products, prices, and information directly to your customers. Remember, you don’t have to sell to everyone. This will attract your best customers. Focusing on your audience can build a loyal customer base and attract the right customers.
Fahad Khan, Digital Marketing Manager, Ubuy India
Ensure Intuitive User Experience
For an e-commerce startup, the key aspect to focus on is user experience. Ensure your website is intuitive, fast, and mobile-friendly, with a seamless checkout process. This drives customer satisfaction and repeat business.
Nicolas Krauss, Founder and CEO, dasFlow Custom Sublimation Apparel
Commit to Ethical Commerce Practices
Reflecting on my experience as an e-commerce startup founder, I’d underscore the significance of ‘Ethical Commerce.’ In today’s socially conscious world, consumers increasingly support businesses that prioritize ethical practices.
From sourcing products responsibly to ensuring fair labor practices, committing to ethics not only sets your startup apart but also resonates with a growing base of mindful consumers. Building trust through transparency and ethical choices can be a unique selling point that propels your e-commerce venture to success while making a positive impact.
Bradley Fry, Owner, PinProsPlus
Manage Customer Expectations Effectively
One key aspect crucial for e-commerce startups, based on my experiences, is understanding and meticulously managing customer expectations, particularly in regards to product quality and shipping times. When we transitioned from a home operation to a larger production facility, maintaining the quality and authenticity of our hand-poured candles was paramount.
Additionally, navigating the shift from Etsy to our platform highlighted the importance of clear communication regarding shipping times and customer service responsiveness. Rapidly adjusting to customer feedback and queries is essential in building trust and loyalty in an online setting. For example, when faced with an influx of customer emails wondering about shipping times, we learned the value of updating our communication strategy to manage these expectations more effectively.
This transition underscored the necessity of agility in operations and customer service to ensure satisfaction and repeat business in an increasingly competitive online marketplace.
Roxie Lubanovic, Co-Founder, Frostbeard Studio
Brett Farmiloe is the founder of Featured, a Q&A platform that connects brands with expert insights.
Startup stock image by SaiArLawKa2/Shutterstock
