Small businesses are taking the brunt of the country’s economic woes, while as this NYTimes article states, “Meanwhile, larger businesses, sitting on mountains of cash, have been weathering the weak recovery relatively well.” Many ecommerce merchants operate as small businesses, and though the ecommerce industry as a whole has shown signs of growth (while bricks and mortar retailers visibly suffered) during the economic crises, the problems fueling the slump affect everyone. With high unemployment, lack of credit, commodity price increases, an enduring housing trauma, general unease about the economy etc. consumers are still pinching pennies and feeling reluctant to spend. During this down economy, there are a number of response strategies Yahoo! Store ecommerce merchants can employ to strengthen their financial outlook.
Don’t Panic
Business gurus usually advise that panicking will get you nowhere, however there is more to this story: Panicking will definitely get you somewhere, just not where you need to be. Because we tend to lose touch with reason when we act impulsively, it’s best to meditate on the problem. This doesn’t mean delay judgement, or procrastinate–it just means to take the time and proper information to make strategic moves, and only then act in accordance with the long view. One misinformed reaction often leads to more turbulence, thereby causing a domino effect. Careful planning and decisive actions can not only be key in averting chaos, but will often times jettison a business from the vicious cycle of perpetual crises.
Remembering the Advantages of Being an E-Store
Back when you first launched your Yahoo! Store, you took the time to consider the advantages of being an ecommerce store merchant. Going down the list, dollar signs flashed in your mind’s eye when it was clear you could:
- Launch a store for less than 5k.
- Maintain an entire retail store by yourself or only one or two support staff.
- Easily serve a wide market (local, regional, national, and even international).
- Maintain your store with very low general overhead.
- Manage your store from wherever you are in the world (assuming shipping is outsourced or employed).
- PPC, SEO, Social Media marketing are relatively cheap compared to traditional advertising.
Leveraging Ecommerce Advantages
As you go through the above list, trying to find areas in which to cut back, the truth quickly becomes obvious: ecommerce stores are generally extremely efficient. Does this mean there’s nothing you can do once the store starts going into the negative? Of course not!
Here are some ways to leverage the advantages of being an estore:
- Because of the streamlined high-tech nature of e-business, you can easily generate reports to weed out product that’s not moving, thereby reducing money that’s sitting on the shelf in inventory.
- Similarly easy-to-use technologies are in place to collect customer information, so make sure to go back through your customer information to make sure everyone is in the email database–then start putting the specials out! Make sure to use compelling copy writing and integrate social media into your marketing campaigns.
- If you haven’t updated your SEO, PPC, etc. the one disadvantage of doing business on a commerce platform open to the world is that there’s a LOT of competition. Inbound marketing campaigns should be updated and improved at least once a month.
- While development and design aren’t cheap (up to $150 an hour), it’s really a drop in the water when you think about how much it would cost to modernize a bricks-and-mortar with fancy shelves, new signage, a custom paint job, etc. Keep your store looking fresh and appealing and folks are more likely to feel good about shopping your aisles.
- Speaking of aisles, make sure everything is organized. A cluttered store is the quickest way to turn new business away. Make sure customers can find what they’re looking for in seconds, NOT minutes.
When times are tight, too many merchants think about packing up or cutting the load…sure it’s good to do all that in truly desperate situations, but if there’s any potential to spare, it’s better to sharpen the aim than desert years of investment. Considering a full-scale Yahoo! Store audit is a good way to establish a baseline on what needs to be upgraded and/or repaired. There will be bumps in the road in any economy, but the difference between those who stay on track and the 50% of small businesses that fail is in using a good roadmap and in regular maintenance. If you haven’t taken the time, go ahead and pull over now at the nearest reputable Yahoo! Store pit stop.
