HOME 2018-02-10T14:50:08+00:00

Given the global hunger for everything electronics in today’s market, starting an online electronics store is a very lucrative prospect. The high demand makes launching it seems almost like a slam-dunk. This, however, could not be farther from the truth. The electronics industry is fickle. The failure rate for startups is higher than average.

To blame for this high failure rate is the stiff competition from large online marketplaces and manufacturers who sell directly to consumers. Online marketplaces have large catalogs, which they can afford to sell at very low prices. Competing with these low prices is a challenge for small online electronic shops. When electronics manufacturers like Apple sell directly to consumers, they effectively cut off the intermediary retailer. To survive in this cutthroat world of electronics e-commerce, entrepreneurs have to find effective ways of identifying and exploiting the ever-shrinking pool of unmet consumer needs.

How to survive the competition through differentiation

A small online electronics startup cannot serve the entire electronics market. You will end up stretching yourself too thin and looking like a marketplace with no depth. Instead, you need to differentiate your business. You achieve this by pursuing a niche market. This begins with an honest assessment of your core competencies. Match your core competencies to opportunities in the marketplace.

Next, implement a robust marketing strategy to communicate your niche strengths to your target consumers. Combine both traditional and online marketing tactics to get your customer base to associate your startup with your niche gradually. In doing this, you will be working towards transforming your niche strategy into a vivacious brand identity.

Below are the steps to launching a successful online electronics shop:

1. Formulate a business plan for your electronics store

Among the first tasks, you need to undertake before launching your online electronics business is formulating a quality business plan. A quality business plan can improve the chances of your business succeeding.

You can use a reliable software solution to help you formulate the business plan. Software streamlines the process and increases the consistency and accuracy of the business plan.

2. Investigate the Competition

Before you start selling electronics, you need to find out who the players are. Gain knowledge of how the existing electronics stores in your target market have positioned themselves in the marketplace. Find out the most popular products that they deal with and the gaps that you can exploit. Design your business in a unique way that sets you apart from your competitors and exploits their shortcomings.

3. Get advice from experienced e-entrepreneurs who sell electronics

Learning from those who have been in the business for a while is always a good idea. Unlike physical stores, which share a street or are in the same locale, online stores share the vast internet real estate. Some business owners may be reluctant to talk to a direct competitor, but most are always willing to mentor a budding entrepreneur.

Seeking out a veteran in the trade is worth the effort since it may save you from making some common mistakes.

4. Buy an existing electronics Store

Online stores that sell electronics are always available for purchase. Instead of building your online electronics store from scratch, you can buy an existing store. The primary advantage of buying an existing store is the benefits of an established brand. Building a business can be a lengthy process. You have to gain customers’ trust over time. With an established brand, you will hit the ground running.

You have to make sure, however, that you do proper research to make sure that you make the right acquisition with the right reputation and an established customer base. While it may cost more than launching a business from scratch, the long-term benefits will be worth it.

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