I love talking to newbie online retailers like you. You’re all so full of enthusiasm and hope, and it’s always my pleasure to help out by offering some advice. However, it’s hard when I discover sellers are about to make one of the biggest blunders possible in online retail: They try to start an online store for anything and everything, rather than focusing on selling a more specific niche product.
They'll sell Xbox 360 games, clothing, key chains, office furniture and any random mixture of items. They often say to me “I just want to try and sell a whole lot of stuff.” Usually, they will source products from a handful of different suppliers and just handpick a few good deals.
There are so many problems with this method and in my opinion, this is the biggest mistake any seller can make! I’ve seen it fail time and time again.
Whenever someone tells me that this is the approach they want to take with their business, I tell them the three major issues they will face:
- No one will come to their store.
- Marketing their store will be a challenge.
- They won’t have the buying power to compete in this business model.
As I explain the finer points to sellers, they start to see the cracks appear in their “business model.” I’ve explained these obstacles below so that you can stop yourself from making one of the biggest mistakes online retailers make. Plus, I have a practical suggestion for another approach that is far more successful.
1. No one will come to your store
If you try and sell a little bit of everything, or anything cheap you can source, your store will have no identity that people can relate to. Often these stores get nondescript names such as “Bob’s Emporium of Bargains” or something similar, rather than a name that really resonates, like "Mom-to-Be Maternity."
Can you see what I mean by identity? It's obvious what "Mom-to-Be Maternity" offers buyers, but “Bob’s Emporium of Bargains” could be anything. If I saw an ad for Bob's Emporium, or if I saw the name in Google search results, I wouldn't immediately know whether they have what I am looking for.
The issue of search engine rankings: How will people find you?
Stores like Bob's Emporium can work in brick-and-mortar retail because they are often in high-traffic locations such as main roads or town centers. However, when people are shopping online, they usually do a search. Since they search for specific things, rather than browse, it makes it harder for you to get customers. “Bob’s Emporium of Bargains” has no keywords that can help you rank in the right searches. This is only part of achieving good rankings in search engines, but it sure makes a difference!
What keywords will you try and rank for in Google?
Generally, successful online stores try to target specific keywords or key phrases such “snowboarding gear for kids” or “vintage bridal accessories,” but if you are selling a little bit of everything, you can’t really pinpoint keywords to rank for. This is a real handicap for an online store, and you'll be making life harder for yourself if you can't target keywords that your core market will be searching for.
2. Marketing your store will be a challenge
Try writing an ad for a store that sells everything. You’d probably write something like “bargains for everyone!,” which is a pretty weak marketing message. On the other hand, if you write an ad for a store with a specific audience in mind, you can create copy that is a lot more interesting and targets the right people, such as “snowboarding gear for serious snow lovers. Shop now." See how that targets people a lot more accurately?
I know the Walmarts and the Targets of the world have more general taglines — "Expect more, pay less" and "Save money. Live better." — but these guys are on a completely different level than you and I!
Marketing will be easier for you if...
The best forms of marketing for small online retailers are social media marketing (Facebook, Pinterest, Instagram) and email marketing. These mediums are either free or cheap, and just require your time to make them a success. The most crucial part of these marketing tactics is building a following of customers with whom you have a relationship.
Like any lasting relationship, it is always good to have a shared interest. That's why if you are selling dog equipment, you can easily build a relationship with dog owners/lovers. If you are selling cosmetic items, you can easily make friends with fellow makeup addicts. The same goes for baby gear, coffee equipment, beer brewing kits, art supplies, etc.
Compare that to trying to build a relationship based on a store that sells just about anything. Not so easy, is it?
When you communicate with your customers based on a shared interest, you can offer them value. In online marketing today, that's what it's all about.
For example, let's say you are selling dog equipment. In the spring, you can post on Facebook, or email your customers and talk about the fact that their dogs will soon be losing their coats. This is a pet peeve among dog owners (pardon the pun, couldn't resist!) as dog hair gets all over their clothes, furniture and carpet. This gives you an opportunity to give your followers some tips on how to deal with pet hair. Then, plug some of your grooming products and maybe offer 20 percent off those products to guarantee some quick sales.
You can apply this form of content marketing, where you offer your buyers value, to almost any niche. Selling baby gear? Offer tips on potty training or tips on how to do "time out" the right way. You don't need to be a parenting expert. Just do some research using trusted sources and make it your own. Selling golf gear? Write a few tips on how to improve your game. Selling running gear? Create a list of the 15 best songs for a running playlist.
See how opportunities to build a relationship and a real following of loyal customers are greater when you sell more specific items, rather than "anything and everything"?
3. The lack of buying power
You know why places like Walmart and Target work? Yes, there are a lot of reasons, but one of them is their sheer buying power. I’d never deny that this method of "anything and everything" works for them, but it does so because they have incredible buying power that enables them to buy goods for low prices.These stores then resell the goods for low prices, relying on volume of sales rather than profit per sale. Could you survive on that same model? What if you only make a few sales a week because no one is coming to your store (for all the reasons I mentioned above)? It could take a long time for your store to take off.
What to do instead
Avoid this trap by selling niche products. I've already touched on this today, but you will have much greater success when you sell to a targeted audience of eager buyers. I know I sound like a broken record, but honestly, if there was one single piece of advice I could give you to help you succeed in online retail, it would be this: niche up your business and sell to a specific, targeted audience.
Generally, the deeper the niche, the better. Choose a niche like plus-size maternity clothing, source some great products and then build a peripheral product range around it. Think, what else would my target market need? This is usually easy because you have an understanding of their needs: they're plus-size pregnant women. Perhaps they want anti-stretch mark cream, or a pregnancy sleeping pillow case, or a back support.
Start adding related products like these into your listings, so you can watch your store grow and your sales increase!
Overall, you should aim to do two things:
- Create a following and a list of repeat customers who have a genuine interest in what you sell.
- Build a brand and content marketing strategy (mentioned above) that cements your store as the go-to in your field. Remember, in retail, it is better to be the best at something than the cheapest at something!
Ready to take action? If you haven't already come up with some ideas for product niches, now is the time to focus on that. Make it your priority for the next few days to identify a product niche. If you're not already a SaleHoo member, sign up today and surf our wholesale directory for ideas on what to sell. It will go a long way in helping you avoid this one common mistake that too many retailers make!
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