How to adapt your business to the online marketplace

Expanding a company’s online operations is no longer just a trend or a marketing move to improve a firm’s image. In today’s world, it’s a critical necessity to keep up with the competition and ensure successful business growth. Consumers expect a quick and effective solution to their problem with a minimum of effort. This is exactly what an online business offers customers, with important tools to operate in real time without being geographically bound.    

Why businesses need to go online

With globalization, expanding the geography of a business is an inevitable step towards growth and increased market reach. While in the past this required creating a separate team, recruiting staff in a branch office and organizing the work of the department virtually from scratch, with the development of digital technologies this path has become easier. It is enough to register additional accounts on marketplaces and use the services of local logistics companies.

Of course, you should not forget about the need to manage the marketing of the product in the new market, as well as to guarantee the reliability of the software in the case of providing services (for example, get more powerful servers). The main advantages of transfering business online:

• Awareness.
  The development of social networks and native advertising by bloggers will increase brand awareness and build a reputation for a quality product or service, which, in turn, will affect sales. Marketplaces provide businesses with a number of effective tools for product promotion.
• Market expansion.
  Online business removes any restrictions related to the geographical localization of the goods and the buyer. Thanks to modern tools, it is possible to translate information about the service/product into foreign languages and expand the circle of potential customers.
• Improved communication.
  Transferring business into the digital space allows you to establish a direct connection with the customer at a distance of one message. To clarify the availability of goods or other questions with a manager, it is only necessary to use online chat.
• Alternative point of sale.
  Registration of the channel on the marketplace does not oblige to transfer the business to the network completely. An enterprise can operate offline, having a physical office or store, and also offer its services/goods on the online marketplace.
• Cost optimization.
  When moving your business online, you can give up physical representation and retail space in favor of the more flexible conditions of a marketplace page or your own website.
• A perfect balance for the customer and the company.
  With the help of online tools, the consumer gets the right service or product in a few minutes, while the seller demonstrates the advantages of his product through content.
• Different types of communication.
  For some customers, it is easier to call in person to learn about product/service details, while others prefer correspondence. Online business provides a choice to the consumer, improving the quality of service.
• Formation of the company`s image.
  Some channels for promotion can be used to increase expertise in a particular sphere, creating a reputation of a reliable enterprise.
• Exemption from work schedule.
  Online business does not depend on working hours and allows consumers to purchase a product at any time of the day. If you properly organize the sales page and provide maximum useful information, orders will rain down without the participation of managers.

The digitalization of business opens up new opportunities and practical tools for the company owner to expand market reach and increase customer loyalty. Among the most popular online resources for businesses are the following categories of platforms:

• Website of the company.
  In today’s world, having a web page or at least a landing page is a business card of a company. A website is the easiest way to tell customers about the business, increase product loyalty and get feedback from visitors.
• Social media.
  In most cases, Facebook and Instagram allow a business to communicate with potential customers, learn their needs and demands in order to customize their product to meet the needs of the market.
• Youtube-profile.
  This social network differs from others in its ability to provide expert advice in a video blog format, increasing the visibility of the company. You will be able to share professional knowledge, building a reputation as a specialist in your field.
• Specific resources.
  Depending on the type of activity of the company, it is important to write author articles and give interviews for authoritative portals in the chosen topic. For example, it is important for realty agents to appear in the blogs of real estate sites, and IT companies – on technology forums.

Who should go online

In 2024, the volume of online retail sales in the world exceeded 4 trillion USD. According to the forecasts of German statistical bureau Statista, in 5 years this figure will reach 6.5 trillion USD. At the same time, there is a significant growth of Internet users among consumers of all ages, including the generation over 65 years old. Due to globalization and pandemic, almost everything can be bought online: from food, medicines, books, appliances, building materials and digital services. Therefore, moving business online is necessary for all companies, regardless of the field.

The main goals of an enterprise digitalization strategy are:

• Increased sales.
  New tools facilitate the implementation of marketing strategies that will increase the firm’s profitability.
• Market expansion.
  Since there are no borders on the Internet, it is not difficult for foreign companies to open sales to new locations.
• Test of new destinations.
  An online store provides the flexibility to change directions or offer a new product to potential customers while minimizing costs.
• Growing the circle of consumers.
  Properly setting up targeting and other marketing tools allows you to attract new audiences to present your product/service.

Step-by-step process of online integration

At the beginning of digitalization procedure of the company’s activities, it is important to coordinate all processes and gradually move towards entering the online market:

1. Audience analysis.
   Determine the segment of potential customers and focus on their needs when forming your sales strategy.
2. Prepare a website/page on the marketplace.
   After moving online, the flow of internet users will increase and you need to be prepared for that. You should set up efficient receiving and processing of new applications.
3. Selection of promotion channels.
   Analyze how your target audience is looking for information, and form a sales funnel, taking into account the available data.
4. Running the adds.
   Take advantage of multi-functional ad display tools to bring potential customers to your website/page.
5. Set up retargeting.
   You need to build a strategy to retain those customers who visited your page or left a product in your cart but did not pay. If there is initial interest, repeated retargeting ads increase the chances of a purchase.
6. Develop content marketing.
   Provide your audience with your professional opinion about the product and other expert information that will improve the company’s image.
7. Evaluate effectiveness.
   Analyze the opening of marketing campaigns to determine the best promotional strategies and optimize the firm’s advertising expenditures.

Popular online business mistakes

• Comparing internet sales to retail sales.
  In the long run, a website or page on a marketplace can always exceed the income of an offline store, but when this happens depends on the chosen sales strategy.
• Invest in the web-site, but do not spend on advertising.
  You can make a perfect online store, but it will not bring an income if no one finds out about it.
• Underestimate pages on marketplaces.
  Some entrepreneurs may think that only beginners sell through a large portal and the audience of marketplaces is not solvent enough. But such portals allow you to quickly increase the circle of potential customers thanks to an expanded set of tools for advertising.
• Hide some of the information to lure the client.
  Sometimes sellers do not immediately report the price, product characteristics to stimulate the application for an individual conversation. But in fact, this only screens out a part of customers who are ready for impulsive and quick purchases.
• Do not harmonize the online and offline parts of the business.
  While developing both sides of the company it is important to utilize all the advantages at the same time. For example, showcase an offline store online or offer discounts for reposting a Facebook page.
• Transfer ready-made product photos to the Internet.
  Online, customers are unlikely to pay attention to posters prepared for offline stores. It is important to make fresh content tailored to the specifics of the online venue to entice potential customers.
• Limit the marketing budget.
  To increase profitability, it is necessary to use several channels of product promotion and systematically invest in different types of advertising.