Having an online pawn store allows the marketer to learn things that any business course can’t teach. Having a website to sell products and services is an excellent and convenient way to earn money. Instead of having problems paying rent and other utilities, it is easier to open an online store to sell the products to everyone everywhere.
However, like a physical store, starting an online business doesn’t require good sales right away since the resources used are lesser compared to a physical business setup. A lot of people think that owning an online business is a sure thing when it comes to selling products. Even so, there are still many things that can go wrong and that needs a backup plan that owners may overlook most of the time. In an online business, the most crucial thing is how to make your business visible to potential customers.
E-commerce is like a jungle. Here are some mistakes to avoid and succeed in your online pawn store business.
Not focusing on One Category
Focusing on many categories is a common mistake that e-commerce startups commit. Always keep in mind that establishing an image while starting up is crucial. So if you are planning to put up an online pawn store, make sure that your theme, services and products are properly categorized.
If the business is selling different products, it will be hard for the consumers to identify the business category. During the time where the business is still starting out, focus on selling one product only. The company can add categories when they’ve finally mastered the niche and have established its name.
No matter how small the business is, it is important to stick to a particular niche so that your business will be visible in the search engine when a potential customer searches for relevant businesses. You cannot have an online pawn shop business with a ticketing or travel agency service since we know that pawn shops are there to finance small loans in exchange for valuable items. It can be an added service of your value pawn shop but it will not help if you are still starting and building a name in the industry. You can try to feature your pawn shop’s strong points like great value for item, high appraisal, flexible payment terms, low interest and pickup and delivery of the pawned item. Always get familiarized with the category before expanding.
The Company Lacks Logo and Branding
Another mistake that every e-commerce business owner makes is when a company lacks a logo. Logos usually give the visitor a first impression. Sometimes, without a logo, the store can be mistaken as a bogus seller. This is vital in a pawnshop business, since it involves money and things with value, you need to look legit and trusted. It’s important to think of a brand name that suits your product and services.
Companies most likely thought that once they acquire a logo, they must pay a huge amount to hire a designer. However, there are affordable and free selections also available online.
Failure in Choosing the Right Ecommerce Platform
The e-commerce platform is the business strategy that can have an impact on the success or failure of the firm. So the owner should choose carefully on what platform to use. There are existing hosted platforms like Shopify and popular customizable platforms like Magento that they can choose.
During the deciding process for the right platform, prioritize what best suits the business’s needs and the customer wants. The platform should provide speed, credibility, and the option for custom designs.
The Store Doesn’t Have Social Proof
Business gains benefits are from social proof. Some merchants are failing in this section. Sometimes, the application of social proof is wrong.
Here are some ways to prove that the implementation of social proof can do more harm than good.
Hungry for Reviews
Adding a review to an online store is always thought as a great thing and helps in conversions. Yes, reviews can give rise to conversions, but if applied at the wrong time, it can significantly have an opposite effect.
Startup merchants probably should hold off on adding a review section on their site. And then, until there are a few customers that they could tap to add some reviews.
Some visitors might directly check the review page or section but will see no reviews. It will create different questions for the guest. Is this a good product? Why are there no reviews?
It becomes the negative effect of social proof that causes consumers to question if they should purchase in such a company.
Featuring Social Media Accounts with No Followers
Just like the product reviews, a lot of online shoppers use social media as a basis when purchasing products. Especially to stores that are buying for the first time. The business can create as many social media accounts, but if it has zero followers and engagement, the effect might not be so helpful.
So what can the business do? Instead of featuring every social networking site that the firm is part of, it can start with one. It can focus on one account and try on building up some followers. As it is growing, they can now slowly add and display other social media platforms.
It will also give the business some focus, and the owner can explore any benefits offered by the channel.
The Site is Difficult to Navigate
There are a lot of things that can discourage a consumer than having a site that’s hard to navigate. Not user-friendly sites with hard to find information and annoying colors with out of stock products. The e-commerce site must be user-friendly.
Having a site that is easy to navigate and can offer information is what a consumer wants. Always put the customer in consideration as the user of the site.
E-commerce is a highly profitable industry. There is no denying it. If you make the right move, the business will be extremely lucrative. However, at the same time, a simple wrong move can destroy everything.