Getting creative during a down economy

The down turn in the economy has shaken up many established retail companies these last few months that it’s hard not to second guess if online retail is a smart business decision right now. Since January 1^st the layoff carnage has hit companies like Circuit City (30,000 employees), Home Depot (7,000 employees), Williams-Sonoma (1,400 employees), Saks (1,100 employees) just to name a few. It’s tough to swallow how companies this size can restructure this drastically and yet still survive. The answer to this question is that layoffs alone will not get them through these next couple of years, that’s just a piece of it. Those who come out as winners after this recession will be those companies that are able to change the way they do business today while also adapting to the ever changing needs of their consumers.

As an online retailer, it’s important to remember that you have already taken one step towards the future of retail. You have a business model that requires little or no inventory if you use dropshippers, your costs for retail space is likely minimal (under $200 a month), and you do not need to layoff any employees because you likely don’t have any.

You’ve taken the first step but it’s important that you take steps to growing your business. There is no better time to get creative and start trying new things that can help boost sales. Here are some suggestions on what you might want to try during this recession.

1. Try advertising

Now is the time to try advertising your store on different websites or mediums that you were afraid to try before. The prices of ads have lowered substantially the last few months so you will likely be able to find some great ad buy deals. A quick tip for you when buying advertising; always ask them for an initial test campaign. It’s not free but costs are minimal and it will allow you to test and measure results of the campaign before committing too much in advance.

2. Try selling on different websites

If you haven’t done so already, try selling your products on as many websites as you can manage. Remember that you are not limited to selling on just your store or eBay. There are hundreds of shopping comparison engines out there, as well as new and established marketplaces that might work for your products.

3. Start building your own Buzz

Don’t be afraid to toot your own horn. If you are in retail and don’t believe in your store then you are doomed to fail. Get your name out there on blogs, forums, or discussion boards. There are 2 general PR strategies which all retailers should remember. The first is when you have something new to talk about, get it out there as much as you can. The second is repetition. Set goals each week on how many websites you can get your store’s link onto. This will also help in your SEO efforts if you get the right keywords around your link.

4. Use dropshippers

There’s no better time to use dropship suppliers as your inventory source. When you carry inventory, there’s always the risk that you don’t sell everything. This means your cash is locked up and you can’t use that money to grow your business. Dropshippers eliminate this problem since you don’t pay for inventory until after you sell the product. Many retail chains are moving towards using drop ship suppliers to source their online sales since getting credit to warehouse their own inventory has become much more challenging.

These are just a few things that you can do that can help build your online business during the recession. However the key to taking advantage of this recession to grow your business is change. Try new things everyday to stay ahead of those who don’t.

Comments

[supra skytops]

I won't give up*_*