E-commerce is quickly establishing itself to be the best and easiest way to launch a product and/or business.
From a testing point of view, it’s much more effective to engage and gather feedback from customers online than if you were to try to do something similar as a brick-and-mortar type of business. Facebook and Google remain the easiest ways to market to broad customers and also end up leading to the highest margins—because you end up owning the relationships you have with your customers directly (as opposed to someone walking into a store, buying a product, and leaving).
That said, we believe it’s important for businesses to maintain as much control over the shopping experience as possible. We would try to stay away from third-party ecommerce sites—including Amazon. But at a certain point, we realized how much we were leaving on the table by building a business on their platform instead of driving customers to our own website, and actually capturing their information. We pivoted, and today Amazon represents 0.5% of our sales. It’s more of a marketing tool than anything else.
The reality is, the coronavirus has severely impacted in retail businesses. Many have either pivoted to ecommerce, or gone out of business. We still believe in retail, and I think, in the long term, the category will come back and thrive in new, exciting ways.
But especially for entrepreneurs looking to launch a new product or venture in the world today, you are far better off starting online.
Manager’s Office Team