How can a small e-commerce website survive against a large e-commerce website that sells the same kind of products?
I have an e-commerce site for selling kitchenware products. How can I compete with e-commerce sites that offer a broader range of products, discounts and often lower prices?
We also had a similar issue, but with price match and giving discounts on next purchase, also giving out vouchers when a client/customer refers us to others customers. It is also important to have good reviews to the packaging products. We have done well on this check us at https://packagingetc.com
One way to compete is through the online experience, namely the user experience and user interface. Amazon has a lot of good things going for it, but it's hardly a fun experience. Versus a beautiful site like Fab. I know those aren't apples to apples, but the point is that you can compete with good design and user experience.
Provide effective discount and reward points. Also provide local service for free.
Hi Dinesh Kumavat,
Everybody here gives excellent advice I will not repeat. The one thing that made my parents leaders in their industry was specialization. Specialize and focus. Use the ideas you can execute from everybody to specialize. My mother, the front line person, made it as The Grand Matriarch from the fan base and The Queen of Bondage in AVN's Hall of Fame. She received 2 lifetime achievement awards for her 30 years of contribution to the adult industry. My parents retired over 10 years ago. There is not a person alive in America in the adult industry that could even be placed as a contender to their achievement. They were in the adult business. This is the most vicious and abused industry (at least it used to be) and they literally excelled and opened the door to lesbians, submissive males and females, dominant females and males, transvestites, transgender and mainstream to live a better life they do today. They did not excel to be millionaires themselves but there business was a multimillion dollar company worldwide. They were the first adult American company to make it into Japan. It all started with $6.75 and many years of reinvestment and hard work and persistence and perseverance. The odds were sorely against them.
The movie Boogie Nights was based on the actual experiences of my mother, and 2 other peers (men) not in the same niche combined. The basis of success was of my mother's contribution. Most especially the discrimination part. They all filled a specialized niche (not penetration sex as portrayed). All these people did this legally. This is most important. They had very strong work ethics. The women Skye Blue and Summer Cummings were "made" by my mother using female supremacy. They were abused stomped on nobodies who were literally on the street. My mother valued equal rights.
She would have never succeeded without specializing. Big companies can never complete with filling niches and specialization. It is too costly. I cannot tell you the specific niche for you. You need to know your business and your client base. What made my parents economically feasible were the people who value the niche. There is not a company today that provides what they did. When a specialized niche dies it no longer exists. This is why you would always make money. Other considerations, not to waste money, is to have proper accounting to know when to spend, save or invest money. Lawyers need to be consulted to know what you can legally do so you do not get sued and other such nonsense to waste your money. Big corporations do this to stomp the niche competition. Some will even resort to illegal means. My parents were able to exceed former Mayor Rudy Giuliani when he was a federal prosecutor and many higher echelon organized crime figureheads. These people were sorely agitated that my mother specialized in transvestitism AND female dominance and supremacy.
One thing to note is when you specialize in a niche you absolutely do not need to be the cheapest. You need to provide the best products at prices that are acceptable for that product. You must also be willing to accept not getting every sale. Most business last for a short amount of time. This is how they get to undercut everyone. You need to know your product and your customer base. The internet requires very good promotional skills. My parents made it by very good promotional efforts which built a viable and sustainable fan base. They were never cheap but always fair as far as the market was concerned. The other advantage is that they produced very high quality, but not elite, products and services at marketable prices. If they listened to all their salesman who went on to other industries they would have went out of business. You need to have the knowledge and confidence to face the people in you inner circle that you are best and doing the best thing without caving into pressure.
HI Dinesh, whats important why does your site exist and whats the reason for you to do business, what is the need you are fulfilling. When you started, what made you think you could do things better what was different from what you offered.
There are few techniques which can be adopted based on SWOT done on your business and competitors. Thereafter identifying the right customer segments based on this swot. The differentiator can be any of the service parameters which the consumer/ customer values (for which you need to speak to at least a 50-75 customers). Once you understand consumer behaviour you can do wonders.
We help start up and midsized companies scale up, do contact for any help.
Wow, that's the beauty, Dinesh! Digital marketing can share established businesses. If done right. Create your niche; project it well; you don't need to be miles ahead to win a race, but just nose ahead!
What's your core, where can you win? what are your competitors' weaknesses? what do customers want (spelt, unspelt, both)? Build your online strategy, and do it better than the best!
Look at customers as your core; as your reason for existence. Most just say, but certainly do not follow or practice it. It is all about attitude; show that you have it and your customers can trust you. These factors can move mountains and leverage social media very effectively to get you exponential reach over time.
It is all about doing things right, and doing the right things! Create a fly-wheel momentum. Learn from Zappos; learn how Google, or FB succeeded! There were tiny tots once upon a time, isn't it; compared to Microsoft or IBM? So you can do it too.
Get quality advisors on-board; create a great team, that is full of energy; that will take you to the path of success.
Happy to help, in case you wish to get any support. Good luck!
- Shyam (Startup Xperts)
Focus on creativity rather than competing head-on. Understand your audience better than anyone else. What do they complain about? What problems do they cite? What facets of transaction do they find most inconvenient or annoying? It could be delivery, old kitchenware disposal, convenience or very specific audience that you can cater to better.
Of course, comments by others are also right on target. A better, friendlier and responsive e-commerce site.
There is no one magic bullet. To be able to come up with better strategy, think "Judo" and not "Sumo."
It is always about your value proposition. If you offer a better user experience you can compete. I would do a competitive overview and compare what you sell to your competition to gain insight. You might be able to sell you products at slightly higher price if your user experience is better than your competition.
Dont worry, all is not lost and you can certainly still complete. The first step to success is to learn to understand your disadvantages. There are some things that make your unique pages and others that you have to cover to keep up. A very important aspect is the product descriptions and rich snippets are all over the place at the time and if you have an e-commerce site and not using them, you are missing a great opportunity.
For sure a small e-commerce website survive with hard working policy after studying products both the websites selling , selling depends on skills which means the way to show your product , the way to convince clients , the way to dilever your services , makes customers dicides from where to buy . in pracital way you can withdraw clients from your compititors .