Globally, the electronics industry is booming. Undoubtedly, it is one of the fastest-growing sectors in the whole eCommerce and retail space. It is projected that the global electronics market will grow to USD 989.37 billion by 2027, with a CAGR of 5.3%. These statistics prove how 2022 is a great year to build an electronics store online.
It isn’t as easy as it sounds. Sometimes, it is tricky to sell electronics online. You will have to solve some challenges like-
- How to source electronic products?
- How to build an electronics store online?
- How to attract customers?
- How should the products be priced?
But don’t worry. Our ultimate guide to selling electronics online will help you figure out the online eCommerce space.
#1- Sourcing the electronics
Product sourcing is a process through which a business attains the stock to sell. There are various ways through which you can source products. It can be done in domestic or international or both markets.
Sourcing internationally can be very inexpensive from certain countries like China and a few other Asian countries as the labor is very cheap there. However, this doesn’t mean that you can’t source electronics domestically. Both of these methods have their own set of strengths and shortcomings.
Here’s a quick brief of the pros and cons both these methods have-
Sourcing electronics internationally
- Getting the electronics at the best prices
- Having a skilled workforce
- Getting access to advanced technology and infrastructure.
- A higher production capacity.
- International sourcing can lead to longer head times
- Higher MOQs (minimum order quantity)
- Higher shipping rates
- Longer manufacturing time
Sourcing products domestically
- A smaller minimum order quantity.
- Easier to connect to various vendors.
- Lesser cultural or language barriers.
- Lower shipping costs.
- Smaller turnaround times.
- A higher labor cost.
- Higher manufacturing costs.
This is a basic list that will help you weigh the pros and cons of both options and select whatever works best for you to start an eCommerce business.
The next step is to figure out the type of vendors you want to buy from, which has three different options.
The electronics wholesale market generally has sufficient stock levels to fulfill the market needs. And they are easily accessible too. The only challenge here is that the wholesalers have a minimum order quantity requirement.
You can also go for the drop shipping model-a method of retail fulfillment and not stocking any inventory. With dropshipping, you don’t have to worry about inventory storage and complex shipping methods. Instead, you can focus on various marketing campaigns to sell maximum electronic products. So it is advisable to use dropshipping only when you are shipping volumes.
You can find second-hand electronics on various eCommerce marketplaces like Etsy, Facebook Marketplace, or Amazon. However, you may have to wait longer to source your products in this case. There’s also a risk of running out of supplies and not meeting customer demands on time, because of products unavailability in the market. But, if done right, selling second-hand electronics sourcing can be a very profitable and sustainable model for your eCommerce business startup.
#2- Creating an online electronics store
The next step to start selling online is to build an electronics store online. The sourcing of your products is sorted and it is now time for you to start selling online. Just like we make sure our offline store is eye-pleasing, we need to make sure that we build an electronics store online that is equally aesthetic and attractive.
Don’t let coding fear you away. There are various platforms available that are completely free. You just need to install them on your web host and get going.
Along with the open-source platforms that help you build an electronics store online, there are market-leading website builders like Worksleader, which provide highly responsive templates, various themes, white-label storefront solutions, and much more. WorksLeader is like a comprehensive solution for you to build an electronics store online and sell electronics online.
Such website builders have a set of advantages that can help you build an electronics store online-
- The drag and drop features help you with all types of customizations
- Integrations with third-party software like CRM, ERP, and accounting.
- An easy to manage electronics products catalog, and a lot more.
The next step in the process to sell electronics online is to find out where you want to sell. There could be two possible options- an eCommerce storefront or a marketplace
An eCommerce storefront-
An eCommerce store is a great option when you want to start selling electronics online. It enables you to have the right amount of control over the business and its operations. Once you’ve found the right supplier and the sourcing process is in place, an eCommerce storefront can be set up.
A lot of free tools are available online that help you build an electronics store online. They provide ready templates and many other features to help you. There are online tools that also aid you in integrating other software applications like ERP and CRM with your eCommerce store.
A lot of third-party online marketplaces like Amazon, eBay, and Facebook let you sell electronics online. With the help of these platforms, the need for marketing spend reduces, as they already have enough visibility and traffic coming in. You can cater to large audiences and start an eCommerce business here. However, challenges such as high charges and limited control over the customization of the storefront can occur.
#3- Displaying your products online
The next step in the process of building an eCommerce business startup is listing and displaying the electronics product catalog. The listing and display of the electronics product catalog can be done in different ways. The product listing is done as per the categories according to the price, size, or alphabetical order. Upload your inventory meticulously and accurately on your electronics product catalog in a manner that is easy to navigate. The use of high-quality images, product videos, reviews, and good descriptions compel the customers to buy your products and help businesses in achieving good sales revenue.
These core elements that make up for a great product listing and display are:
The product name grabs the customer’s attention immediately. It should be clear and relate to the product offering.
The appearance of the electronic products from the electronics product catalog that you want to start selling online is very important from the user’s perspective. It is always advisable to use high-resolution images for all the products making sure they are visible and appear closest to the real product.
With the help of high-resolution product images, users get a better idea of what the products exactly look like. With better images and displays, more conversions come in.
Product descriptions play a very vital role. It is one of the main forms of communication about the products that we as a business can offer to the customers. Ideal product description in the electronics product catalog gives all the detailed information in easy-to-read formats, like bullets or smaller paragraphs. Optimizing SEO and making the brand more visible by including appropriate keywords in the product description makes it visible in search results.
Videos help in 3D display and effective visualization of the product features for online selling. Adding the right kind of product videos is one of the most efficient ways of gaining customers’ attention and taking them one step closer to conversion.
#4- Configuration of eCommerce Functionality and Processes
Below, we will discuss all these aspects in detail and understand how they help a business build an electronics store online.
While creating a pricing strategy, you need to consider factors like the demand of the electronic products, prices set by the competitors, cost of production, etc.
The website builders have an in-built system that allows you to strategize your pricing plans.
So, in this step, as a business you have to:
- Set the price points of your electronic products
- Set how much inventory is available for those products
- Integrate their party payment systems like PayPal, Amazon Pay, Stripe, etc.
It ensures seamless checkout and makes your eCommerce business startup more accessible and popular. Users see what you’re offering, they buy, and you get paid.
After the products are listed and displayed on the website of your eCommerce business startup, you will have to link them to a payment gateway to start selling online. Customers look for different options to make the payment, instead of having just one option. It is vital to offer different modes of payment to customers like UPI, net banking, credit or debit cards, e-wallets, etc. Providing the right payment gateway will help customers with the payment process driving higher revenues to your eCommerce business startup.
When you build an electronics store online, you need to make sure shipping and packaging are happening on point.
Products that are lightweight and delicate will need the right kind of packaging and shipping. Shipping in time-sensitive cases will require a good relationship with shipping companies so that the deliveries are done in time and the customer demands are satisfied just in time.
Fulfillment of orders speaks volumes about your brand. It will include right order management, picking the parcel, shipping it on time, etc.
You can choose an eCommerce platform with shipping partners or get in touch with various shipment carriers like USPS, FedEx, Canada Post, AU Post, etc. depending on your country.
Licensing & Documentation
To be able to sell electronics online, your business needs to get some legal paperwork done too. Here are some legal requirements that you will need to address-
- License: To ensure that your business holds all the required business licenses. Make sure you have checked with the local, state, and federal laws to determine what licenses you need.
- Return policy: You will need a document talking in detail about how you will handle the returns. Return policies can be a great way of establishing trust with your customers.
#5-Marketing Your Product
Your eCommerce business startup needs to create some brand awareness of the electronic products that you want to start selling online. All of the marketing activities such as investing in the right marketing campaigns, building up your SEO, putting up the right posts on your social media, creating email campaigns, and optimizing your ads, are an important part of creating your brand awareness and identity in the market.
Now that your eCommerce business startup is up and running, you can start marketing your electronic products to generate sales revenue.
Recently, marketing has become a very essential part of the eCommerce business. You need to get out there and let the audience know about your business otherwise they won’t know it exists. Unless they know about it, they won’t be able to buy from it.
So, how can you market your company?
Content marketing is where you make videos or write search engine-friendly articles that give your business visibility on the internet and establish thought leadership. They help the customers know about your product and eventually make a purchase. This happens when you use the right keywords in the articles and have a strong SEO game.
Meanwhile, if you have a sufficient budget, your eCommerce business startup can look at paid advertising or perhaps consider outsourcing your marketing.
Once your marketing starts rolling, you’ll start generating sales, and you’ll now have an audience to cater to.
#6- Customer is the king
Customer service holds a lot of power. When you convert the website traffic into leads and leads into customers, great customer service turns them into loyal customers.
Here are some important tips that can create a lasting impression on your customers and keep them in the loop for long periods. Have a fast response system and engage well on social media platforms. This is where your customers discuss the pain points with you and leave reviews as well.
The strong business potential in the electronics space looks attractive, but your business needs to have the appropriate framework in place, like having the right suppliers, proper management, shipping partners, etc. Once you get that right, you can facilitate good conversions and earn robust revenues, and become successful in the market.