The e-commerce sector has been very robust. In a recent report, total e-commerce sales grew to $127.3 billion in the United States for the second quarter of the year. In North America, the retail e-commerce sector is projected to grow by double digits until the turn of the new decade. But these figures also indicate that the competition among e-commerce businesses will become more intense as the sector further grows.
That’s why it is important for online retailers to have the following three things in order to thrive in the marketplace:
E-commerce businesses must have a clear-cut strategy
A clear-cut business strategy provides any business a road map. It outlines the short and long-term goals of the firm.
Online merchants should know the essentials of the products or services that they want to offer as well as the kind of market they want to serve. Moreover, they should be aware of their capabilities to serve that target market. These details will help any firm develop a clear-cut business strategy.
E-commerce businesses should have a value proposition
A value proposition is the main reason a prospective customer buys a product or avails of a service. It should be compelling enough for a prospect to move into action. Crafting a compelling value proposition begins with an understanding of the market, the competition, and the customer preferences.
Established businesses have come to fore partly because they cultivated their compelling value proposition. A recent example is Amazon’s entry to India. While the e-commerce giant came later than its competitors, it rode on its standout qualities like superior customer service, topnotch quality of products, and brand of service in ending the dominance of other e-commerce firms in the country.
E-commerce businesses should execute their strategy well
It’s not only vital that e-commerce firms have a business strategy; equally important is the execution. The organization should set goals for team members, provide a means of measuring progress, and clear accountability. These are all the basic requirements for good execution of the business strategy.