We’re living in an era of global eCommerce. eCommerce is also referred to as cross-border commerce or international online retail and is super dynamic. eCommerce can become a powerful growth strategy for any business. What businesses today need to understand is that global eCommerce or eCommerce, in general, is no more a luxury. It has become a basic necessity, as people shop online now more than ever.
Over the past years, electronic products have become an integral and essential part of people’s day-to-day lives. The electronics industry is widespread and growing offering products ranging from laptops, air conditioners, washing machines, fitness bands to your phones.
With a constantly increasing demand for electronic products, selling electronics online can bring in lots of sales. According to research at Statista, the sales of smartwatches are estimated to grow from 69.3 million units in 2019 to 109 million units by 2023. Further, 60 percent of the respondents said that they cannot live without a smartphone.
Sources state that the global electronics market has reached a figure of $1191.2 billion in 2020, having grown at a compounded annual rate of around 5.4% since 2015, and is said to be ever-growing. These figures not only help us in understanding the demand size, but also the growth potential of the electronics market. The high rise in demand has resulted in the mass production of electronic products, which in turn guarantees availability at all times.
Despite experiencing mushrooming demand, we must remember that selling electronics online is highly competitive and a low-profit margins business.
Let’s now understand how to build an electronics store and sell electronics online. A step-by-step guide to help you decode the process.
How to sell electronics online?
Step 1- Source the electronic products
Before you set up any business or start selling, you need to source the raw materials or the products according to your business type. There exist various options to choose from. All the options come in with their own set of advantages and disadvantages. So, as a business, you need to consider all the parameters and then make a decision accordingly.
Dropshipping
Dropshipping can be described as a method of retail fulfillment, where a business no longer has to bear upfront inventory costs or any kind of shipping logistics. In this method, the products are directly shipped from the wholesalers to the customers. It is one of the most desired options if an eCommerce business doesn’t want to hold onto any inventory. As a result, businesses can focus more on other important activities such as sales and marketing activities.
However, with dropshipping, generating good profit margins can be a tough task. Therefore, if you are planning to choose dropshipping services and sell electronics online, you must focus on getting bulk orders.
Wholesale
Many B2B businesses source their products from wholesalers. Wholesalers tend to offer competitive rates in the market and are always equipped with sufficient stocks. Wholesalers are always a great option to source electronic products for selling online. The only thing you as a business need to keep in mind while sourcing from wholesalers is the MOQ- the minimum order quantity and the storage space.
Second-hand products
Second-hand electronic items are used items that can be bought or sold. This market of buying or selling second-hand electronic products is also growing considerably every year. Second-hand electronic products can be sourced either from a wholesaler or a retailer, and can also be directly drop-shipped.
The problem with second-hand products is that it can pose a challenge for businesses to meet customer requirements in a short period, as sourcing second-hand electronics might sometimes be time-consuming.
Facebook, Amazon, and eBay are some great marketplaces where you can sell second-hand electronics online.
Step 2-Decide where you want to sell electronics online
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 to start with when you want to start selling electronics online. It lets you have enough control over the business and its functioning. Once you’ve found a stable supplier and the sourcing process is in place, an eCommerce storefront can be set up.
A lot of 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.
Marketplaces
A lot of third-party marketplaces like Amazon, eBay, and Facebook let you sell electronics online. With these platforms, the need for marketing spend reduces, because they already have enough traffic coming in. Large audiences come in and have a variety of options to choose from.
There are limitations though, such as high commission and limited control over the customization of the storefront.
Step 3- Displaying the electronics online
The next step is listing and displaying the electronics product catalog. The listing and display can happen in several different types. You can display them according to the price, size, or alphabetical order, but always remember to upload all of your inventory in the right manner along with individual product pages for all the products on your electronics product catalog. This will make the navigation of the products easier. Always remember, a good electronics store has to be engaging, so display the products accordingly. The display should be convincing enough so that the customers make a purchase. High-quality images, product videos, reviews, and good descriptions should help businesses in achieving good sales.
Images
The appearance of the electronic product from the electronics product catalog that you want to start selling online is very important from the customer’s perspective. The appearance also counts as a major factor in B2B sales. So, it is always advisable to use high-resolution images in which the products are visible. With these images, the customers get a better idea of what the products exactly look like. The better the images and the display, the better conversions come in.
Descriptions
Product descriptions also play a very important role. It is the main communication about the products that we as a business can offer to the customers. Giving all the detailed information in easy-to-read formats is what an ideal description would look like. Effective product descriptions in the electronics product catalog will bring in some great sales. You can optimize SEO and make the brand more visible by Including appropriate keywords in the product description.
Videos
Videos are becoming quite popular these days. Adding product videos are one of the most efficient ways of gaining customers’ attention. Videos help in 3D display and effective visualization of the product features for online selling.
Step 4- Set the right pricing for your products
The prices you set for your products will either make or break your business. Researching and determining the right pricing strategy for you to start selling online is a very important part of your online journey. It is also the key to attracting more people, getting more conversions, and higher revenues in general. While selecting the strategy, you need to consider factors like the demand of the products, prices of the competitors, cost of production, etc.
When figuring out the prices, remember to not go too low or too high either. These two factors could be troublesome from the sales perspective. So make sure you’re entering the right prices into the electronics product catalog.
Step 5- Adding a payment portal
After the listing and display of products are done, you will have to add a payment gateway to start selling online. Customers look for different options to make the payment, instead of having just one option. It is important to offer different modes of payment to customers like UPI, net banking, credit or debit cards, e-wallets, etc. A payment gateway will help simplify the payment process for the customers.
Step 6-Packaging and Shipping
Packaging and shipping are two really important aspects you need to consider when you sell electronics online. But both these factors get ignored in the process. It’s important to not miss out on any of these two aspects, as they form an integral part of electronic businesses.
Products that are delicate need the right packaging and shipping. Shipping in time-sensitive cases will require a good relationship with shipping companies so that the deliveries are done in time.
Along with these two aspects, what eCommerce businesses need to keep in mind is the fulfillment of orders. How you fulfill these orders speaks volumes about your brand. Fulfillment of orders will include right order management, picking the parcel, shipping it on time, and a lot more.
Step 7- Investments in marketing activities
It is essential to create brand awareness of the electronic products that you want to start selling online. All of the activities such as investing in good marketing campaigns, building up your SEO, putting up the right posts on your social media, sending emails, and optimizing your ads, are important for creating your brand awareness and identity in the market.
Final thoughts
Selling electronic products online is gaining immense traction these days. The strong business potential in the electronics space might look attractive, but you need to have the appropriate framework in place, such as 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.
