We will show you how to create an online store, how to promote and get traffic to it, how to do SEO, how to get a high satisfaction level and how to increase your sales to get more profits
In this ever evolving technological world, it seems that everything is done online. You talk with your friends online, watch your favorite TV shows online, listen to music online, play online, read the news online, date online, etc. Almost everything is done online. And commerce and shopping is no exception. Each year, more and more people choose to buy online in the detriment of the regular retail shops. According to eMarketer, in 2012, the global ecommerce market was estimated to be worth $1 trillion, with a 21.1% increase from the previous year. Encouraged by such strong trends, it is no surprise that ecommerce is one of the fastest growing sector of the global economy.
Introducing: The ABC’s of Ecommerce and Dropshipping Success
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Here Are Just Some of The Things
You Will Learn From This Ebook:
In chapter one we will show you the basic concept of ecommerce and dropshipping. There you will learn the basic theory behind ecommerce and will see how the dropshipping business model works.
In chapter two you will learn how to create an online store on your own website and on an online marketplace. There we will show you a list with some of the most popular online marketplaces to sell your products, and a list with some of the best shopping cart software to install on your online store.
Chapter three is all about traffic. There we will show you how to get traffic to your online store, both the free way and the paid way. In that chapter we will analyze some of the best free traffic sources for an online store.
In chapter four we will talk about search engine optimization. In that chapter we will analyze the on-page and off-page SEO ranking factors and will show you some good backlink sources for an online store. Lots of links to external resources will be presented in that chapter.
Chapter five is dedicated to customer support, where you can read useful information about what needs to be done and how to treat your customers in order to have a high satisfaction level among your buyers.
In the sixth chapter we will show you some tips and advices on how to increase your sales and the conversion rate of your online store.
And in the last two chapters, chapter seven and eight, we will show you two practical examples of how to create and run an online store on your own website and on an online marketplace, using the dropshipping business model.
We think that this is all the basic information you need in order to create and run a successful online store and ecommerce business. We know that ecommerce, just like anything else, is constantly changing, this is why we have included many links to external resources in every chapter of this ebook, so you could learn even more and keep yourself updated with the latest news and changes from the ecommerce world.
Chapter 1:
Ecommerce and dropshipping basics
In the latest years, ecommerce has become very popular. Many people talk about it, try to benefit from it, learn about it, etc. But what exactly is ecommerce?
[ ] Ecommerce (also known as electronic commerce, eCommerce, or e-comm) is the process (activity) in which products and/or services are sold or purchased by businesses and consumers through an electronic medium, usually the internet. As a rule, no cash is involved in electronic commerce, since most of the payments are made by electronic means (i.e. credit card, PayPal, etc.); but there are also exceptions from this rule, where in some cases, checks and money orders are used as a mean of payment.
The main benefits of ecommerce are: Higher market reach and sales potential Lower cost of sale Faster multiple transactions Easier information access for customers Increased consumer convenience and choice Ecommerce is usually divided in 3 categories: business-to-business (B2B), business-to-consumer (B2C) and consumer-to-consumer (C2C).
[ ]Dropshipping
Dropshipping is a method of selling products in which the seller does not physically have them. This method usually generates more profit per unit sold due to the cost savings that occur when retailers outsource the warehousing and distribution process. In a regular supply chain, the retailer buys the products from the wholesaler and stores them in his warehouse, then ships them to the buyer; but when dropshipping is used, the products are stored in the supplier’s (dropshipper) warehouse, which reduces the cost of shipping and cost of storage. And when the retailer gets an order on his online store, he then pays his supplier and the supplier ships the product directly from his warehouse to the buyer’s address. This way, the product is not sent and stored at the retailer, which saves money and allows a decrease in product price and a higher profit to be made.
Chapter 2:
Creating your online store
[ ]An online store is a website where products and/or services are sold. To put it more simple, an online store is the place where buyers purchase the products you sell. An online store can be located on your own website or it may be located on an online marketplace.
The simplest way of selling products online is by creating an online store on an online marketplace. You just sign up for an account, list your products and you are done. The downsides of an online store located on an online marketplace are that you have to comply with all the rules that the marketplace has, usually you have to pay fees for listing products and when the products are sold, you have limited actions in promoting your online store, etc. Some of the most popular online marketplaces where you can sell your products are listed in the table below:
List of best online marketplaces Name URL Notes eBay [www.ebay.com] Generates a lot of sales and profit but some sellers complain about their high fees. Popular worldwide. Amazon [www.amazon.com] Just like eBay, generates high sales and profit but sellers complain about high fees. eCrater [www.ecrater.com] 100% free marketplace. You do not have to pay any fees on this marketplace. Design is nice and clean. eBid [www.ebid.net] Professional marketplace but some sellers complain about the low volume of sales. Webstore.com [www.webstore.com] No buying or selling fees, No signup fees Atomic Mall [www.atomicmall.com] Boocoo Auctions [www.boocoo.com] Blujay [www.blujay.com] 100% free online marketplace but has very low traffic so you will have to do a lot of promotion. OnlineAuction [www.onlineauction.com] Madbid [www.madbid.com] CQout [www.cqout.com] Wensy [www.wensy.com] Taobao [www.taobao.com] It is available only in Chinese language. If you know Chinese, you may sell on this marketplace. As of March 2012, it is ranked the 14th most popular website on the internet by alexa.com. For comparison, eBay is ranked 21st most popular in the world by the same website. You may hire a Chinese-speaking person to sell on this marketplace. Tmall [www.tmall.com] Owned by Taobao. If you know Chinese you may sell on this marketplace, or you may hire a Chinese-speaking person to sell there. Yahoo Auctions Japan [auctions.yahoo.co.jp] Very popular in Japan. You may hire a Japanese-speaking person to sell there. Bidders [www.bidders.co.jp] Popular in Japan. Molotok [www.molotok.ru] Very popular in Russia. 24au.ru [www.24au.ru] Popular in Russia. To see the full list of 35 online marketplaces where you can sell your products globally, please buy the full ebook.
On the other hand, if your online store is located on your own website, then you have much greater possibilities to promote it, to influence the sale process, you set up the rules the way you want, you don’t have to pay any fees, etc. Creating an online store on your own website is a little bit harder than on an online marketplace, but it is worth the effort. First you need to register the domain name of your website, then you need to choose a hosting for it, than you need to install a shopping cart software and in the end you need to list the products. The shopping cart software you use in your online store plays an important role in store management, conversion rate, sales, etc, this is why you should use the best shopping cart for your store. Some of the best shopping cart software are [Prestashop], [Magento], [Zencart], [osCommerce], etc.
Chapter 3:
Getting traffic to your online store
[ ]Web Traffic is the total amount of visitors a website or online store receives in a period of time. These are the people who visit your online store. So the more visitors your online store has, the more products you will sell. This is why traffic is so important to an online store. Without it you have no sales.
Traffic can be classified into paid traffic and free traffic. Paid traffic is for fast results on short term, while free traffic is for slow results on the long term. Paid traffic may be used when the online store is new and does not have sales and/or reputation, or when there are some ongoing promotions or discounts available, but in the long term, it is better to focus on the free traffic.
The best sources of paid traffic are online advertising networks, some of which are shown in the table below.
Online advertising networks list Name URL Google AdWords [www.google.com/adwords] Chitika [www.chitika.com] Bidvertiser [www.bidvertiser.com] Facebook Advertising [www.facebook.com/advertising] Baidu Phoenix Next (for Chinese market) [e.baidu.com/pro] Yandex.Direct (for Russian and CIS market) [direct.yandex.com] Casale Media [www.casalemedia.com] Zanox (for German, Italian and European market) [www.zanox.com/en/] CPX Interactive [www.cpxinteractive.com] Mail.Ru Advertising (for Russian and CIS market) [corp.mail.ru/adv/] Tribal Fusion [www.tribalfusion.com] Text Link Ads [www.text-link-ads.com] Ad Magnet (for Indian market) [www.admagnet.com] Ikoo (for Arabian market) [www.ikoo.com] To see the full list of 29 advertising networks that you can use to get paid targeted traffic to your online store, please buy the full ebook. The list is on page 8.
While paid traffic might be good, free traffic is a lot better. This is because free traffic is free, abundant and its effects last a lot longer. Paid traffic is also good – it brings fast results; but as fast as it comes, as fast it goes. On the other hand, free traffic brings slow results in the beginning, but in the long term, it brings much more traffic and profit than the paid one.
The best sources of free traffic for an online store are:
Search engines Price Comparison websites – A list with the best price comparison websites, that can bring HUGE traffic to your online store is listed in the table below:
List of price comparison websites Name URL Cost Google Shopping[www.google.com/shopping] Free Bing Shopping[www.bing.com/shopping] Free TheFind[www.thefind.com] Free ShopWiki[www.shopwiki.com ] Free Nextag[www.nextag.com ] Paid Become[www.become.com ] Paid Buscapé[www.buscape.com.br ] Free/Paid Streetprices.com[www.streetprices.com ] Paid To see the full list of the 22 price comparison websites that can bring HUGE traffic to your online store, please buy the full ebook. The list is available on page 10.
Question and Answers websites – The full list of the top 35 Question and Answers websites is shown on page 14. Videos Articles – 16 article directories where you can submit your articles to get free traffic are shown on page 15. Social networks – links to 18 social network websites are available in the full ebook, on page 16. Online Classified Ads – A good list of classified ads websites that can bring relatively good traffic to your online store, are listed below:
Online Classified ads website list Name URL Note Craigslist[www.craigslist.org] Very popular in USA and Canada. Available worldwide.Backpage[www.backpage.com] Very Popular in USA and Canada. Marktplaats[www.marktplaats.nl] Popular in Netherlands.Dba.dk[www.dba.dk] Popular in Denmark.Baixing[www.baixing.com] Popular in China.Quikr[www.quikr.com] Very popular in India.Expatriates[www.expatriates.com] Very popular in Bahrain and Saudi Arabia. No registration is required to post an ad.Mobawaba[masrawy.mobawaba.com] Very popular in Egypt. Available in English and Arabic languages. Iz ruk v ruki[www.irr.ru] Popular in Russia.Classifieds Giant[classifiedsgiant.com] Popular in Russia, Estonia, Ukraine, Kazakhstan, Belarus and Uzbekistan.To see the full list of 43 classified ads websites, please buy the full ebook.
Rating and Review sites – the full list of 14 of the best global rating and review websites is available in our ebook, on page 17. Image Marketing Press Releases – a list with top 14 press release websites is available in the full ebook. Voucher and Coupon code websites – the full list of 20 of the best voucher and coupon code websites is shown in the full ebook, on page 16.
Chapter 4:
Search engine optimization for your online store
[ ]For any website, including for an online store, search engines are usually the best free traffic source. But in order to receive some noticeable amounts of traffic from them, you have to optimize your online store, a process called Search Engine Optimization, or commonly abbreviated as SEO.
SEO is usually divided into 2 categories: On-page SEO and Off-page SEO. On-page SEO focuses on optimizing the internal ranking factors of a website or webpage, which affects its position in the search engine results, while the off-page SEO focuses on optimizing the external factors.
Internal ranking factors include the title tag of your online store, the meta data, page content, keyword density, etc., while the external ranking factors include number of backlinks, their relevance, the anchor text of the backlink, etc.
A common saying in the webmasters world is that on-page SEO is done to show the search engine that your page/website is relevant (for some keywords), while the off-page SEO is needed to show that the website/webpage is popular.
Chapter 5:
Customer service and satisfaction level
[ ] Customer service is a very important factor in having a successful online store and ecommerce business. If done correctly, customer service will boost the satisfaction level of your customers and they will come back again to buy more products from your online store. Some of that satisfied customers may even tell their friends about your online store, thus bringing you even more customers. So as you can see, with as little as a good customer service, you may get so much as lots of easy traffic and sales. So providing a good customer service is a really good way of getting lots of customers and sales.
On the other hand, if you provide bad customer service, your customers will be unsatisfied and will not come back to buy more products from your online store, leaving you with less sales and less profit. They may even spread bad publicity about your online store and you will end up with even lesser traffic and sales, and all the hard work that you have done in promoting your online store, optimizing it, getting backlinks, traffic, etc will fade away. This is why it is so important to provide good customer service and to make sure that your customers have a high satisfaction level.
A marketer has calculated that repairing the damaged image caused by the bad publicity spread by an unsatisfied customer costs from 5 to 10 times higher than bringing a new customer to your online store. Therefore, it is much cheaper and wiser to have a good customer service and a high satisfaction level among your buyers than to have a bad customer service that will only bring your online store down.
Chapter 6: Tips and advices to increase the conversion rate of your online store and to get more sales
[ ]While getting many visitors to your online store is important, the rate at which those visits convert into sales is by far more important. An increase in the conversion rate from 1% to 2% is equal to a 100% increase in sales, so this is definitely a point worth focusing and improving.
Increasing the conversion rate is a much more viable and effective solution for getting more sales, than trying to bring more traffic. You may bring as much traffic as you want, but if that traffic doesn’t convert into sales, all your time, efforts and money you have put in getting that traffic, is useless.
Things like website design, free shipping, videos, etc have a big impact on the conversion rate and on how many sales an online store gets. This is why it is so important to use them wisely in your online store.
Chapter 7 and 8: Practical example - Selling on an online marketplace and on your own website using the dropshipping business model
[ ]Creating an ecommerce business and selling online could not be easier than selling on an online marketplace using the dropshipping business model. This requires little to no investments of money or time. You just sell the products of your supplier on an online marketplace at higher prices, and keep the profit to yourself. Selling on an online marketplace using the dropshipping business model is very easy and highly rewarding if it's done in the right way. You can choose to open your online store from many online marketplaces, like eBay, Amazon, TMall, Taobao, etc. The full list with online marketplaces is shown in chapter 2.
The first thing that needs to be done when opening a new online store is a market research, to find out what products to sell. Then we need to find a supplier that will do dropshipping with us, then we must create the online store on an online marketplace, and after this, we can start selling the products, and marketing our online store.
In the example presented in this chapter, we have used the eCrater marketplace as our online store host, and our supplier was from Aliexpress.
[ ]Selling on an online marketplace is good, but selling on your own website is even better. It gives you more freedom of action and makes you more independent in the decisions you make, compared to the online marketplace stores. But just like with most things that have a positive side, it also has some negative sides, like a lot of extra work, mainly for promotion, some additional costs for domain and hosting, etc.
The steps required for selling on your own website are almost the same as in selling on an online marketplace, the only difference being in the third step, which is a little bit more complex.
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