Online Management & Social Media

Principles that determine the growth of eCommerce business

Many claim that an eCommerce business can be set up in a day. However, it is not entirely true. While an eCommerce business can be set up in moment, it is the scaling up part that is considered difficult and hard to cross. In several cases, this can lead to growth pangs that can affect these businesses adversely.

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Sadly, there is no concrete formula or method that would ensure a company keeps on scaling up, even if it tends to do so at a slower rate. So how can one ensure that his/her ecommerce business is scalable?

Simple, following the seven principles listed below would help increase the chances of his/her eCommerce scaling up.

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Effective Cost Control

Although it makes sense to spend plenty of money to scale up your eCommerce business, only companies that control costs and adopt effective strategies to maintain this would survive in the long run.

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Creative Marketing

Creative marketing strategies would help the business gain more recognition among its customers. Employing a dedicated team of creative marketing minds would help achieve this and help the business scale up eventually.

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Maintaining the Stand

Certain businesses do not last forever. As such, maintaining one’s stand irrespective of future prospects would improve brand recognition tremendously, leading to a scale up.

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Sharing the Dream

Without a dedicated team backing it, an eCommerce venture would bite the dust soon. Sharing the dream with the others in the team and encouraging them with stock options and other ownership offers can help them give it their best shot as well.

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Remaining Liquid

Running out of cash is a nightmare every eCommerce startup would have regularly. Remaining liquid would help maintain cash inflows until the business progresses to the stage where it starts earning its own profits and can sustain operations on its own.

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Sense of Urgency

The eCommerce field is very competitive. As such, taking forever to start a business and showcase it to the market could prove to be detrimental for the same. A sense of urgency is required for scaling up in the ever-changing business landscape.

 Faliure of E commerce business

Avoiding Complacency

Many eCommerce businesses fail due to their owners being complacent enough to think they were the next big thing to look out. An eCommerce business would need to remain down to earth even after tasting success in the field. A level head would thus, help the business scale up steadily instead of lunging for the top and falling back down to its death.

Summary

Scaling up is considered very hard in the eCommerce field. Ecommerce businesses would need to consider these principles, if they need to scale up effectively in the competitive market.

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Dr Prem Jagyasi and Team (C)

Dr Prem is an award winning strategic leader, renowned author, publisher and highly acclaimed global speaker. Aside from publishing a bevy of life improvement guides, Dr Prem runs a network of 50 niche websites that attracts millions of readers across the globe. Thus far, Dr Prem has traveled to more than 40 countries, addressed numerous international conferences and offered his expert training and consultancy services to more than 150 international organizations. He also owns and leads a web services and technology business, supervised and managed by his eminent team. Dr Prem further takes great delight in travel photography.

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