As you enter a new year of doing business online, you’re likely to be increasingly more comfortable with All Things Internet. But the learning curve is high, and it seems as if a new technology or platform develops every day. A decade ago, the term “social media” meant learning to connect with networks of cohorts and others using a computer.
That was then; this is now. In 2018, the most essential aspects of life have some involvement in social media— health, finance, news, social interacting, and the most explosive area, shopping.
It’s good news for fledgling and growing ecommerce merchants hoping to reach new clientele. But it also requires an above-average familiarity with how social media works.
Excitement is in the air -- Las Vegas Market kicks off this Sunday, the 28th!
Because there's an app for everything, there's an app for Las Vegas Market, and if you're going, it's a huge help in navigating exhibitors and figuring out which seminars and events are worth your time. Search for LVMkt in your app store and check it out. We like it, but we'd love to hear what you think in the comments.
If you're old school, there's a cool tool on the website to help you plan your market experience -- try it out here.
And if you're just looking to peruse the goings on at Winter Market -- here you go: Seminars and Events.
Pro-Tip: If you're a Market newbie - don't miss the Orientation for First Timers on Sunday morning -- completely worth it!
The Price is (Usually) Right
It should come as a surprise to exactly no one that product pricing is the most prominent driving motivation behind purchasing decisions for more than 60 percent of people who shop online. The internet is a perfect venue for price-shopping; before ecommerce became a big thing, prospective buyers relied on search engines to comparison-shop.
Now that sites dedicated to performing meta-searches and offer best-price selections are flourishing—some estimate that one in five online shoppers consult them—it’s tempting to try to get in on that trend. Even if you don’t make the sale, your business is a discovery for someone who may be intrigued enough to come back.
Depending on your volume and longevity in the business, you may prefer to work on a cost-based pricing model. This is a non-discretionary mathematical formula that incorporates your cost of purchasing and your target profit, and assigns a price per unit.
Sounds simple? Perhaps. But there are variables that throw a monkey wrench into this strategy. Your actual wholesale cost may not reflect overhead and other factors that alter the per-unit cost you shell out.
It’s a new year, and a new chance to evaluate your strategies as an ecommerce player. Maybe you’ve noticed the proliferation of ecommerce giant Amazon.com, which is quickly becoming the Microsoft of the computer sector. Amazon CEO Jeff Bezos is determined to dominate the online sales market by expanding offerings and by snatching up ancillary entities such as delivery services.
What does this mean for you? More opportunities. And approaching the Amazon sales model is always a wise choice; by all accounts, they are the venue of choice, surpassing even eBay for vendors of new merchandise. Ecommerce experts estimate that 2 million sellers sold more than 1 billion items on Amazon in 2015. That number is expected to escalate quickly.
Amazon’s sea of opportunity is competitive. There’s no getting around that. If you’re peddling goods that are not custom-made, it’s likely you’re going up against other sellers who may be larger and selling at volume, or smaller and willing to accept a lower profit margin.
All of this means you’ll want to keep an eye on your bottom line—your pricing. The most customer-friendly policies and business model in the universe won’t lure pure price-shoppers away in many cases. This doesn’t mean you should be forced to undersell yourself, but just to make sure you’re offering a deal you can live with.
Enter Amazon “repricing,” or a tool Amazon uses to push their own branded and sponsored merchandise above yours. They scan pricing for like items by using automated analytics software, and reduce their pricing accordingly. Does this put you at a disadvantage? Yes. Is it insurmountable? No. Why? Because you also have access to that strategy.
There are several apps and programs out there that allow you to track pricing of the goods you sell on Amazon. You may adjust pricing the minute Amazon does, and also monitor your third-party competitors.
Up-and-Comers in Retail Tech
To honor the start of a new year, we’ve identified four tech companies that we expect to make a huge impact in the retail space in 2018.
Amazon is seemingly at the center of the Internet, but for up-and-coming entrepreneurs aiming to put a product in customers’ hands as soon as possible, there are young companies that are working to make retail tasks less intimidating.