06: Sales
E-commerce
Many CPG founders start out selling their products direct to consumer through an e-commerce site, as it has a low barrier to selling and doesn’t require you to go through a grocery store buyer. E-commerce has become a crucial channel for reaching customers, building brand loyalty, and driving sales growth. But diving into the world of online sales can be overwhelming if you don’t know where to start. Don’t worry; I’ve got you covered. Let’s break down how to get your brand up and running in the e-commerce space, focusing on the essentials like choosing the right platform, mastering digital marketing, and more.
E-Commerce Strategy
Not all products are equally suited for e-commerce. If your product is small, lightweight, and has a high margin, it’s a perfect candidate for online sales. These products are easier and cheaper to ship, and they allow you to maintain healthy profit margins even after factoring in shipping costs.
But what if your product is heavy, refrigerated, or frozen? These items can be challenging to sell online due to high shipping costs and the logistics of keeping them fresh during transit. For these products, e-commerce might still be a viable channel, but it will require a different approach. You might need to focus on regional sales to reduce shipping distances or consider offering subscription services where customers are more willing to pay for regular deliveries.
Think strategically about where e-commerce fits into your overall sales plan:
- Small, Lightweight Products: Ideal for e-commerce. High margins and low shipping costs make these products a great fit for direct-to-consumer sales.
- Heavy or Perishable Products: Consider limiting your e-commerce reach to local or regional customers, or explore partnerships with specialized logistics companies that can handle the challenges of shipping these products.
Choosing the Right Platform
First off, you’ll get set up on an e-commerce selling platform. I recommend starting with Shopify. It’s one of the most user-friendly platforms out there, and it’s specifically designed for small to medium-sized businesses. Shopify handles the heavy lifting when it comes to setting up your store, so you can focus on what really matters: your product.
Here’s why Shopify is a great choice:
- Ease of Use: Shopify’s intuitive interface means you don’t need to be a tech wizard to set up a beautiful, functional online store.
- Customization: With a wide range of themes and plugins, you can create a store that reflects your brand’s unique identity.
- Integrated Payment Processing: Shopify makes it easy to accept payments through various methods, including credit cards, PayPal, and more.
- Scalability: Whether you’re selling 10 units a week or 10,000, Shopify can grow with you.
- Support: Shopify offers 24/7 customer support, so you’re never left in the lurch if something goes wrong.
When I first started TeaSquares I used WooCommerce and WordPress to set up our website and e-commerce store. I liked that I just had to pay for functionality one time instead of recurring fees (like with Shopify) and I was familiar with the platform. After running the site using this setup for years, kept running into frustration after frustration, and finally made the switch to Shopify. The transition was actually really seamless and our sales actually performed much better because of our increased loading speed and familiar checkout. Trust me, you’ll want to use Shopify.
Other E-commerce Platforms
- Squarespace.com
- BigCommerce.com
- WooCommerce.com
Setting Up Your Store
Once you’ve chosen your platform, it’s time to set up your store. This involves more than just uploading product photos and descriptions; it’s about creating a seamless shopping experience that converts visitors into customers.
Considerations
Branding: Your online store should be an extension of your brand. Use consistent colors, fonts, and imagery that reflect your brand’s personality.
Product Pages: Your product pages need to do more than just list features. Use high-quality images, detailed descriptions, and customer reviews to showcase the benefits of your products. Remember, in the digital world, customers can’t touch or try your products, so your description and imagery need to do all the convincing.
Navigation: Make sure your site is easy to navigate. Categories should be clear, and customers should be able to find what they’re looking for in just a few clicks.
Mobile Optimization: More and more consumers are shopping on their phones, so make sure your store is mobile-friendly. Shopify themes are typically responsive, meaning they automatically adjust to different screen sizes.
Main Components of an E-Commerce Site
A successful e-commerce site isn’t just about aesthetics; it’s about guiding your customers seamlessly from your homepage to the checkout. Here are the key components of an e-commerce site and the role each plays in converting visitors into customers.
Home Page
Goal: The home page is your brand’s digital front door. It’s where first impressions are made, so it needs to be visually appealing, easy to navigate, and clearly communicate what your brand is all about.
Key Elements: Feature high-quality images of your products, a clear call to action (like “Shop Now”), and links to your best-selling or new products. Your home page should also reflect your brand’s identity through consistent colors, fonts, and messaging.
Collections Page
Goal: Collections pages group similar products together, making it easier for customers to find what they’re looking for. Think of these as digital aisles in your online store.
Key Elements: Organize your products into collections based on categories such as product type, flavor, or occasion. Use clear images and concise product titles to make browsing easy. Shopify allows you to create automated collections that update themselves as you add new products.
Product Pages
Goal: Product pages are where customers decide whether to buy. These pages need to provide all the information a customer needs to make a purchase decision.
Key Elements: Include high-quality images (from multiple angles), detailed descriptions, ingredient lists, and customer reviews. Highlight key benefits and any unique selling points (USPs) such as organic certification or local sourcing. Include a clear call to action (like “Add to Cart”).
Cart
Goal: The cart is where customers review their selected products before proceeding to checkout. This is a critical step in the purchase process.
Key Elements: Make sure the cart is easy to access from any page on your site, and that it clearly displays product names, quantities, prices, and total costs. Offer easy options for updating quantities or removing items, and include a visible checkout button.
Checkout
Goal: The checkout process is the final step before purchase. It needs to be as smooth and straightforward as possible to minimize cart abandonment.
Key Elements: Shopify’s checkout process is streamlined, but you can customize it further to match your brand. Ensure that it’s mobile-friendly, offers multiple payment options, and has a guest checkout option (to reduce friction). Include shipping information and options, and a clear order summary.
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Good customer service is key to retaining customers and encouraging repeat purchases. Make sure you have a system in place for handling returns, answering customer inquiries, and managing reviews.
Analytics and Optimization
Keep an eye on your store’s analytics to see what’s working and what’s not. Shopify offers built-in analytics, but you can also use tools like Google Analytics for deeper insights. Regularly test and tweak your website, marketing strategies, and product offerings to maximize conversions.
Final Thoughts
Selling direct-to-consumer through e-commerce is one of the most powerful ways to grow your CPG brand. It offers unparalleled control over your brand, higher margins, and the ability to build direct relationships with your customers. By starting with a strong foundation on Shopify, leveraging digital marketing, and continuously optimizing your operations, you can turn your online store into a thriving sales channel. Remember, the digital landscape is constantly evolving, so stay curious, keep learning, and don’t be afraid to experiment with new strategies and tools.