E-commerce tips: when planning your virtual store, know the legislation of the sector and know exactly how much you should spend on Marketing
Right now, thousands of Brazilians like you are planning to create a virtual store and I bet a lot of them would like to get some good e-commerce tips. That's what I'll do in this article, follow along!
10 e-commerce tips for those who are going to create an online store
If you are in the e-commerce planning stage, then take 5 minutes to read these 10 e-commerce tips. Above all, they will help you to know a little more about the behavior of Brazilian consumers, among other things:
1 – Know how much an online store costs:
If you're thinking about creating a top-of-the-line online store with an exclusive, original layout/design, then it's best to know the implementation costs beforehand. Access and read the article " How much does an online store cost? " and learn about price ranges by business size. In fact, they can cost from R$1 to over R$1 million.
2 – Know the Conversion Rate of the national online retail:
According to WebShoppers reports , the national E-commerce Conversion Rate (ECR) is around 1,5%. I usually round it to 1% because it's easier to do and understand the calculations. Therefore, for every 100 unique visitors to your online store, only 1 makes a purchase. Your management challenge will be to increase the number of visitors and improve your store's ECR.
3 – Know the Average Ticket in Brazil:
In 2018, the Average Ticket was BRL 378,45, according to the report “Consumer Online Behavior”, by Social Miner. In the first week of 2019, Rakuten reported that it was BRL 429,00. Anyway, each Brazilian online consumer spends on average something around these values in virtual stores. Your management challenge will be to get them to spend more at your store.
4 – Know how much to spend on Marketing:
According to the "National Online Retail Survey 2014, 2015 and 2016" by Sebrae, companies spend an average of 13% of their revenue on marketing. To know exactly how much you will need to invest in advertising, create an e-commerce strategy aligned with your business's "Vision" and work with e-commerce sales targets.
5 – Take into account that investment in SEO can help you sell 6 times more:
E-commerce tips: SEO is essential for your blog, video channel and for the product pages of your online store
The research “E-commerce Trends 2017”, by Rock Content, reports that investment in SEO increases the number of visits by 13 times and the number of customers in e-commerce by 6 times. Therefore, I recommend using SEO techniques in your online store's product descriptions, in your e-commerce blog posts, in your e-commerce videos, and wherever else possible.
6 – Understand that Generation Y is more susceptible to Email Marketing:
Research conducted by Campaigner in 2017 showed that 22% of Generation Y respondents (born after 2000) would open an email marketing message, compared to an average of 15% of respondents from other generations. Therefore, if your target audience is Generation Y, using email marketing for e-commerce is certainly a good idea.
7 – Bear in mind that currently girls buy fashion, boys buy computers:
Anymarket's "Online Consumer Behavior 2018" study revealed that men buy more computers and beverages (92,58% and 70,12%) than women (7,42% and 29,88%); and that they buy much more fashion and baby products (89,23% and 92,41%) than men (10,77% and 7,59%). The tip is: sell the right product to the right consumer!
8 – Bear in mind that Brazilians prefer to buy electronics in virtual stores:
A study carried out in 2017 by PricewaterhouseCoopers (PwC) exposed that Brazilians prefer to buy books, music, video games and electronics in online stores rather than in physical stores. In other words, I just mentioned four types of products with high potential for success in e-commerce. It's worth thinking about this if you haven't chosen your business niche yet.
9 – Understand that Brazilians prefer to buy in virtual stores because of the cheaper price:
According to a report published by Rock Content in 2017, 74,2% of consumers prefer to buy in virtual stores because prices are lower than in physical stores; 73,3% like the ease of comparing products that online stores offer; and 69,6% like the convenience. Address these aspects in your planning.
E-commerce Tips: Convenience is one of the things Brazilians value most in e-commerce
10 – Know that e-commerce will grow 16% in 2019
According to ABComm's estimate, e-commerce in Brazil will grow by 16% in 2019. This year, 265 million orders will be placed, and online stores together will generate R$ 79,9 billion in revenue. Small and medium-sized enterprises will account for 29% of this amount. In other words, e-commerce continues to be a good business. So, take advantage and create an online store!
Bonus e-commerce tips
Want more e-commerce tips? Here's another one: keep an eye on e-commerce legislation ! Learn the rules governing the sector to create an online store in accordance with regulations. Take the opportunity to improve your skills in the field. Read many e-commerce books and, above all, keep an eye on updates from the e-Plus Agency blog.
