Launching an e-commerce online store feels like a milestone, but it is not enough for sales. An online presence is not enough. It does not guarantee any sales.
No matter whether you are a store owner of kids’ products, handmade jewellery or selling digital services. To run your business and thrive in this digital world, you have to put extra effort.
An e-commerce business has lots of global potential in the future. According to research, the e-commerce market will reach $18.81 trillion by 2029, so lots of opportunities to earn money and build a brand.
In this article, we will examine in detail the reasons online businesses don’t grow and possible methods to help them expand.
What is market expansion?
As the word says, market expansion is about finding new customers, exploring new regions and offering products to areas you have never targeted before.
It’s a smart way to grow revenue and create more opportunities. To get maximum benefit out of an e-commerce business, you need a solid plan.
Everything ranges from researching the market, adding new products, changes in products or services and knowing the competitors’ moves helps in gaining new customers.
Expansion is not limited to only finding new customers; it’s about detailed research and redesigning strategies. Every step taken for business growth and improvement includes market expansion.
Importance of market expansion in e-commerce business
Marketing expansion means business growth, the process of introducing products or services to new customers. It could be entering a new city, country, or market sector within your existing area.
Since the e-commerce market is evolving and booming, every online business owner must take advantage of these online platforms.
Even big companies have planned to invest more than €1.2 billion in logistics operations. It shows the importance of e-commerce growth in the upcoming years.
Market expansion is essential for increased revenue and profit with a vast online audience. Simply relying on a single market makes a business vulnerable to economic downturns.
Also, targeting a particular group of people can lead to a loss of business due to changing consumer preferences driven by trends.
E-commerce business owners constantly struggle with strategies and methods to sustain in the digital market. Focusing on new customers will ensure the business generates new revenue.
Reasons to stuck in an online business
There are various reasons why online businesses get stuck, such as choosing the wrong products and charging high prices. You can use these reasons to analyse your marketing strategy and promote your e-commerce business.
Selling wrong products
One of the main reasons e-commerce businesses fail is selecting the wrong products. If you are selling products that no one wants to purchase, it is a big no.
In an online market, make sure the product is popular enough if many websites are selling it. There is still space for you as well.
Not market competitive price
An e-commerce business does not pay off when prices are not charged high enough. Some unprofessional websites and online pages earn money through a low-price strategy.
But for building a brand name, a market-competitive price should be considered. A high price leads to few sales, and a low one does not build trust in the brand name.
No marketing plan
Without a proper marketing plan, an online business does not grow. With no strategy, you can never achieve your goals. So map out what could potentially be possible.
Take time to make a plan and execute. Remember, if it didn’t work out the first time, don’t get depressed. Revise it for a better outcome.
Most online work involves search and social media. Spend wisely on paid search advertising. Plan a budget for buying inventory and marketing.
No clear goals
Most of the online businesses fail because they lack clear goals. Either they lack a goal or have an unrealistic goal. Their sole agenda is to generate revenue through online product sales.
You should go beyond that. For example, for a cosmetic supply, the goal is to make $15,000 a month from online sales. Sell 500 items this month. Reach a 10% conversion rate this year.
Unattractive website design
A bad-looking and unengaging website is one of the main causes of e-commerce business model failure. Not clear categories, tabs that define the product.
No proper Add to cart button or quick view option causes disengagement from the website. As a person spends more time on the website, the likelihood of purchase increases.
Top 7 effective strategies to grow an e-commerce business
Expanding an online store into a new market is not only about sales but also about increasing brand awareness. It needs strategic moves and careful planning. You can follow these steps to expand the e-commerce market.
1-Develop a plan
First, understand your current market position. Completely know about your products, which stand out in the market. What is your brand’s unique voice?
Look for places where your product demand exists but is not fulfilled fully. Don’t just rely on your gut feelings; use location data wisely.
Set smart goals for your expansion strategy. Ask yourself what specific sales target you want to achieve. What’s the main focus of your expansion? Is it brand awareness or an increase in sales?
Choose the appropriate market campaign strategy. Begin small by targeted advertising and social media interaction. Your objectives and the nature of the market determine a correct strategy.
2- Localize e-commerce store
When you have an expanding online business store, do your research effectively. Adjust your product prices, marketing messages, and customer service to meet local tastes and expectations.
Adjust the online presence to align with the local area’s cultural norms and shopping habits. Localization increases relatability. People are likely to buy products that they can relate to
Good customer service creates a lasting brand impression and builds customer trust. People are often confused about what to buy and what to leave.
The customer service team helps them buy the correct product. Provide your customer care in the local language, and it will increase purchases. Display the product price in the local currency. Viewing prices in local currency helps customers compare prices and assess their budgets. It increases the likelihood of customer purchase.
3- Gamification
Giant businesses like Subway and KFC use gamification to increase sales and build their brands. Gamification is a way for customers to complete tasks and earn points as rewards.
These rewards must be redeemable. Either give them a few percent discount in exchange for those points. Or give them according to their point value.
This small effort will make you popular among new customers. This gamification effort attracts more people to try your brand. You can challenge your audience to complete a game and earn rewards.
For implementing gamification, you can choose Strands Game, an online puzzle everyone can play. You can add rewards and discounts for completing puzzles. Gamification adds an exciting element to your marketing plan.
4- Makes marketing strategies
When you bring something new to the market, it needs to be marketable. Let people know about your product or services. Consider these points for making a market effort.
- Understand audience: Before selling or creating posts or stories for your brand pages, know who you are talking to, what they want, and their preferences. Understand their shopping behaviour.
- Localize marketing effort: Suppose you are targeting a different market in a country, city, or region. Align marketing efforts with cultural languages and trends. One strategy may work in some areas, but not in others. Therefore, choose according to the area.
- Use a social media platform: To enter a new market and reach potential customers, use social media accounts. Create engaging content for the audience through Instagram stories, Facebook ads and TikTok videos. Take full advantage of the social media paid campaigns and organic reach to promote their business.
- Consider Email marketing: Write short emails, easy to read, based on customer interest, to spread reach to a new market. Give them personalized sale offers.
- Collaborate with a local influencer: Collaborate with influencers in their areas to spend your outreach. Work with those influencers who align with the store’s values and have a strong online presence. They will introduce your brand to their followers. It will help you quickly gain trust and online visibility.
5- Monitor market expansion steps
Once you know which market expansion strategy works, keep an eye on performance. Make changes whenever necessary. Look at sales numbers, pay attention to web traffic from the targeted region.
Track your conversion rate and focus on customer feedback. These are a few key indicators to determine whether a new market can produce more sales and whether customers are happy.
6- Increase customer engagement
One way to enter a new market is to engage more with the audience. Regularly post about your products. The more visible you are, the more people will be attracted to buying from you.
People remember products when they see and know about them in detail. To keep people active, post about the product’s benefits. Use attractive visuals and relatable content.
Publish a blog to share information. Solve your audience issues.
7- Increase average order value
The average order value is the amount customers spend per order over a specific period. Increasing AOV for e-commerce is simple. You can follow these steps to give value to customers.
Create bundle offers and offer a special discount on them. To satisfy customers, publish user-generated content, such as reviews and testimonials, to provide social proof.
Create time-gated sales to create a sense of urgency. Suggest customers buy the premium version of the same product. These activities help e-commerce businesses to grow in a stagnant market.
Conclusion
Market expansion in e-commerce is not optional. For business sustainability, it is a long-term effort. With the rise of digital media, online business competition is growing.
Online business owners are continuously working on strategies to expand their business. By doing proper research, localising customer service and adding gamification to marketing strategies.
One can expand their business into new regions, attract a new audience, and increase overall sales. Market expansion becomes easier with data-driven decisions and clear goal objectives.
