Dave’s Thoughts on Shopping Cart Website Based Businesses
I have developed many shopping cart websites for clients, so they can sell their products online. What I have experienced, is that the online store is nowhere near as profitable as the online store owner expects.
The online store owner normally thinks that they put up a fancy website and the orders just come rolling in, without doing anything else…
It is as if they didn’t hear what I said from the start. Yes, the website will be very SEO friendly (Search Engine Optimized). But you need to market your store, your website.
Businesses of all types need to create awareness, the more competitive the marketplace, the more marketing is required. Marketing either by using Facebook and other social media, writing blog articles, engage conversions on related forums etc.
Marketing needs to be done, online and off-line.
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Marketing needs to be done, diligently daily for any new business, in this case a shopping cart to just to get off the ground.
Marketing can be paid for in 2 ways…
Your Time or Your Money…
Lets say you have an online store, where use a very experienced and cheap marketing package. You would be budgeting at least 150% (in the first year) of the development cost. I’m talking if you outsource it to India or the Philippines. Otherwise the cost will probably be much higher.
As a side note: there are good, bad and terrible SEO and Internet Marketing people from India or the Philippines. You need to filter out the bad ones … (from any country, not just India and the Philippines).
That makes the initial outlay for a successful shopping cart website about $7,000 to $10,000 (at least) in the first 12 months to set up a good Shopping Cart Website and marketing it online.
Plus the shopping cart owners still need to update the website, create regular articles, send out remarketing emails/newsletters to clients, to keep customers and potential customer, connected.
Now the Online Store needs Stock. The stock normally needs to be purchased upfront, before any sales are made, so the business owners are out of pocket again before they make a sale!
Storage, Packing and Shipping, we need to ask! Does their car sit in the weather and the Online Store Stock live in the garage?
So think about the turn around time from the order being placed to when it is shipped!
For Example: If it is ordered today and it needs to be shipped within, say 24 hours so the customer gets it within 5 days of placing the order. Then how do you have a long weekend, let alone having a week away…
Think about that time limitation!
I hope that my thoughts and experiences of Shopping Cart Website Based Businesses has helped you.
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Talk Soon,
Dave Cane
