The Single Most Common Reason Why Online Retailers Fail

The Single Most Common Reason Why Online Retailers Fail

May 16th, 2011

Why Online Retailers FailNo matter if you’re running a brick and mortar business or a business online, it’s going to take a lot of work on your part — no one is going to establish your brand, promote your products, and provide customer service for you … unless of course you’re paying to do so.

Small business owners work hard to make their dream a reality.

When running a retail business online, the story isn’t any different. It’s going to take work … and a lot of it. This is where a lot of people fall off the bandwagon, because they’re holding on to the idea that the internet is a cash machine. While it can seem like a cash machine from time to time (The RunningShoes.com domain recently sold for $700,000), it’s not average.

The single most common reason why online retailers fail is because they approach the activity with a mindset it will generate passive income.

Your Business Isn’t Going to Work for You

Though a business can eventually reach the point where the business owner can afford to step away and go on vacation or let the business coast through the week, the majority of businesses require a tremendous amount of work upfront in the beginning — especially if you’re planning on wearing multiple hats.

Yes, Drop Shipping Makes It Easy

One of the most advantageous perks drop shipping the products you sell is the fact that you don’t have to deal with the overhead a brick and mortar store pays. With no need to worry about storage for your inventory, keeping that inventory stocked, or products that don’t sell, business owners can focus on getting what matters … making sales.

Learn how drop shipping works!

Drop Shipping Doesn’t Replace Your Workload

Many business owners fall into the notion that drop shipping products enables them to spend their days on the beach as their business runs itself and the cash rolls in, which often leads to failure and upset.

The truth is, drop shipping makes it possible for people to jump into the e-commerce retail market and make money — good money — by forgoing the overhead and focusing their efforts on positioning they sell through their retail store online in front of consumers.

The internet is a very competitive place, so it’s important for business owners interested in e-commerce and drop shipping to understand that while it may be easy to ship products around the globe,  it takes hard work before you can ship.

Drop Shipping As A Tool

If you approach e-commerce with the understand that drop shipping is merely one aspect of the overall process of how you operate a business — a tool if you will — then you’ll be able to focus on the other parts of your business, including establishing your brand, marketing, and reaching out to customers with excellent customer service both before and after the purchase.

 

 

Creative Commons License photo credit: griffithchris



1 Comment

  1. Very good content.. its good for knowledge.

    Comment by Kam — September 29, 2012 @ 6:08 am

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