Biggest eCommerce mistakes you made

22 replies
  • ECOMMERCE
  • |
Lets be honest, we all had them. In one aspect of the business, or the other, what were some of the mistakes you made you wish you hadn't?
#biggest #ecommerce #made #mistakes
  • Profile picture of the author alksense
    Originally Posted by Danceparty View Post

    Lets be honest, we all had them. In one aspect of the business, or the other, what were some of the mistakes you made you wish you hadn't?
    Great idea for a thread!

    By far, my biggest (and most expensive) eCommerce mistake was not tracking where my sales were coming from.

    I started almost seven years ago and saw success my first month but for my first year or so in business I had no idea that I could install code to track where each sale came from (which traffic sources were converting into sales).

    My first website had an average order value of over $1k and I was getting at least one sale/day so I started to bring in big money very early on.

    Somehow advertising companies took notice to this because I was contacted by Google Adwords account reps, Amazon Advertising Specialists, SEO companies and niche related blogs who all told me they could increase my business by advertising with them.

    I was making a lot of money so I figured I would invest some back into advertising and make even more.

    I began spending thousands and thousands of dollars each month among all of them and my sales increased in a BIG way so I was happy and just kept spending (eventually up to ~10k/month on advertising alone). Again, I was happy spending this amount because the sales were coming in (and growing) and I was making a lot of money.

    After about a year of this I read an article on Analytics for Ecommerce and had my programmer install it on all of my stores. Basically, it tracks all of your traffic sources and shows you how much revenue comes from each source.

    Well, after a day of tracking the results I was worried. After two days of tracking the results I was disgusted. After two weeks of tracking the results I cut off ~90% of my traffic sources and scaled up on what was converting.

    I realized that I basically threw away $6-9k/month for almost a year on traffic sources that simply weren't converting.

    PLEASE, anyone who is involved with eCommerce or who is about to start an eCommerce business; TRACK YOUR CONVERSIONS!

    Every niche is different but you will very easily be able to track which traffic sources convert for you. If you scale them up it will lead to MANY more sales and if you cut the ones that do not convert it will lead to A LOT more money in your bank account at the end of every month.

    So that's my story I wish I would've learned this earlier but I just chalk it up to one of the many lessons learned over my past seven years online.

    Looking forward to hearing some more stories... this thread can be very useful to people looking to get started or new to the business.

    -Anton
    {{ DiscussionBoard.errors[7567040].message }}
    • Profile picture of the author Palomino
      Originally Posted by alksense View Post

      Great idea for a thread!

      By far, my biggest (and most expensive) eCommerce mistake was not tracking where my sales were coming from.

      I started almost seven years ago and saw success my first month but for my first year or so in business I had no idea that I could install code to track where each sale came from (which traffic sources were converting into sales).

      My first website had an average order value of over $1k and I was getting at least one sale/day so I started to bring in big money very early on.

      Somehow advertising companies took notice to this because I was contacted by Google Adwords account reps, Amazon Advertising Specialists, SEO companies and niche related blogs who all told me they could increase my business by advertising with them.

      I was making a lot of money so I figured I would invest some back into advertising and make even more.

      I began spending thousands and thousands of dollars each month among all of them and my sales increased in a BIG way so I was happy and just kept spending (eventually up to ~10k/month on advertising alone). Again, I was happy spending this amount because the sales were coming in (and growing) and I was making a lot of money.

      After about a year of this I read an article on Analytics for Ecommerce and had my programmer install it on all of my stores. Basically, it tracks all of your traffic sources and shows you how much revenue comes from each source.

      Well, after a day of tracking the results I was worried. After two days of tracking the results I was disgusted. After two weeks of tracking the results I cut off ~90% of my traffic sources and scaled up on what was converting.

      I realized that I basically threw away $6-9k/month for almost a year on traffic sources that simply weren't converting.

      PLEASE, anyone who is involved with eCommerce or who is about to start an eCommerce business; TRACK YOUR CONVERSIONS!

      Every niche is different but you will very easily be able to track which traffic sources convert for you. If you scale them up it will lead to MANY more sales and if you cut the ones that do not convert it will lead to A LOT more money in your bank account at the end of every month.

      So that's my story I wish I would've learned this earlier but I just chalk it up to one of the many lessons learned over my past seven years online.

      Looking forward to hearing some more stories... this thread can be very useful to people looking to get started or new to the business.

      -Anton
      VERY good post! All too often, our clients in eCommerce don't want to spend the time learning how to use available tools like Google Analytics, and they have absolutely no idea where their sales are coming from or how to improve them. This is a HUGE point to consider. Great post man.
      Signature

      Ryne Landers
      Lover/Fighter/Gamer/Serial Entrepreneur
      McKinney Web Design
      Skype Me: ryne.landers

      {{ DiscussionBoard.errors[7625737].message }}
  • I teach a lot of people ecommerce, particularly eBay (since it's a good starting point for beginners)

    I see a lot of common mistakes people make when they enter this arena. However, I do have to admit - that when I do teach people how to AVOID these mistakes, it's because I've made them at least once before in the past.

    1, They want to start dropshipping right away from day one.
    -This is very difficult since many dropshippers only want to work with people that are quite well established in online commerce with a sales history already. If they do sign up people, they will give them a high wholesale cost and tell them it's a MAP price.

    2, People being 'pushed around' because they don't have as much experience or know-how. Many times people take the status quo as the 'rules' and when they can't make money with them, they get discouraged.

    3, When decisions aren't made via DATA.
    - All to often, people are too emotional. They get scared, frightened, and they make irrational decisions based on a fear of losing money, taking losses, or other reasons. However - the best indicator of PROFIT is history and data. You CAN and SHOULD approach every business decision in two ways. Using your brain AND your heart. If you only use one of those, then you're only making decisions on confusion. Never let emotion be your SOLE decision maker. Data drives EVERY decision. If you don't know how to FIND the data, that is your first necessity.

    4, Going at it alone.
    -All to often - people utilize a lot of resources, but they don't utilize one of the most valuable resources available. A mentor. Someone who has BEEN there before and can WALK you through the process. There is something to say about someone that will check up on you, give assignments, and check on those assignments.

    5, Planning.
    -You really do need a plan - and you need to be a LASER and not a shotgun. Otherwise you're focus is too scattered and you wind up with too many unfinished projects and nothing done.

    Good post.
    Signature
    Famous for my '$1000 dollar challenge,' I've been teaching people how to DOMINATE on eBay for YEARS. Sell 100% of your items FOR A PROFIT. Rank higher, sell faster, sell more, and DESTROY your competition with a data-based approach. Quit listening to Guru's-in-training! Click now below!
    {{ DiscussionBoard.errors[7567119].message }}
    • Profile picture of the author Palomino
      Originally Posted by Auctiondebteliminator View Post

      I teach a lot of people ecommerce, particularly eBay (since it's a good starting point for beginners)

      I see a lot of common mistakes people make when they enter this arena. However, I do have to admit - that when I do teach people how to AVOID these mistakes, it's because I've made them at least once before in the past.

      1, They want to start dropshipping right away from day one.
      -This is very difficult since many dropshippers only want to work with people that are quite well established in online commerce with a sales history already. If they do sign up people, they will give them a high wholesale cost and tell them it's a MAP price.

      2, People being 'pushed around' because they don't have as much experience or know-how. Many times people take the status quo as the 'rules' and when they can't make money with them, they get discouraged.

      3, When decisions aren't made via DATA.
      - All to often, people are too emotional. They get scared, frightened, and they make irrational decisions based on a fear of losing money, taking losses, or other reasons. However - the best indicator of PROFIT is history and data. You CAN and SHOULD approach every business decision in two ways. Using your brain AND your heart. If you only use one of those, then you're only making decisions on confusion. Never let emotion be your SOLE decision maker. Data drives EVERY decision. If you don't know how to FIND the data, that is your first necessity.

      4, Going at it alone.
      -All to often - people utilize a lot of resources, but they don't utilize one of the most valuable resources available. A mentor. Someone who has BEEN there before and can WALK you through the process. There is something to say about someone that will check up on you, give assignments, and check on those assignments.

      5, Planning.
      -You really do need a plan - and you need to be a LASER and not a shotgun. Otherwise you're focus is too scattered and you wind up with too many unfinished projects and nothing done.

      Good post.
      Excellent post. I think the points you made about having a plan, being focused, and making decisions via data are all really good points about running a business in general. At the end of the day, anything successful online will have to be run like a business, because that's what it is- an online business. Good post.
      Signature

      Ryne Landers
      Lover/Fighter/Gamer/Serial Entrepreneur
      McKinney Web Design
      Skype Me: ryne.landers

      {{ DiscussionBoard.errors[7625779].message }}
  • Profile picture of the author Anton543
    "Analytics for Ecommerce"

    Is this a specific tool or are you talking about general analytics for ecommerce?
    {{ DiscussionBoard.errors[7567299].message }}
  • Profile picture of the author Royal Computer
    Good post. thanks
    {{ DiscussionBoard.errors[7571912].message }}
  • Profile picture of the author seoed
    I started almost seven years ago and saw success my first month but for my first year or so in business I had no idea that I could install code to track where each sale came from (which traffic sources were converting into sales).
    interesting. how have you managed to get immediate traffic? have you used ppc?
    or did you get traffic from long tail keywords, although within one month this is
    unusual.
    Signature
    {{ DiscussionBoard.errors[7571988].message }}
    • Profile picture of the author alksense
      Originally Posted by seoed View Post

      interesting. how have you managed to get immediate traffic? have you used ppc?
      or did you get traffic from long tail keywords, although within one month this is
      unusual.
      Back then we were getting traffic immediately by advertising on eBay. My business partner and I listed all of our products on there for higher prices than on our website and we would link back to our online store from our product listings pages and capture the sales directly on our website. I wouldn't recommend doing this if you care about losing your eBay account because it is against their TOS and if they could possibly close your account if they see you are doing this. We never had our account closed but I wouldn't advise anyone to do something that is violates eBays polices.

      I stopped working with eBay about five years ago though and my new stores still get traffic from day one. I use a combination of shopping comparison engines and blog ads. I still haven't found a way to get Adwords profitable for eCommerce and honestly I'm done trying. I typically work on 20% margins (drop shipping) and adwords just isn't cost effective for me. Even on my stores that sell VERY expensive items. There is PLENTY of money to be via other traffic sources (both paid and free).
      {{ DiscussionBoard.errors[7572033].message }}
      • Profile picture of the author ryshark
        Originally Posted by alksense View Post

        Back then we were getting traffic immediately by advertising on eBay. My business partner and I listed all of our products on there for higher prices than on our website and we would link back to our online store from our product listings pages and capture the sales directly on our website. I wouldn't recommend doing this if you care about losing your eBay account because it is against their TOS and if they could possibly close your account if they see you are doing this. We never had our account closed but I wouldn't advise anyone to do something that is violates eBays polices.

        I stopped working with eBay about five years ago though and my new stores still get traffic from day one. I use a combination of shopping comparison engines and blog ads. I still haven't found a way to get Adwords profitable for eCommerce and honestly I'm done trying. I typically work on 20% margins (drop shipping) and adwords just isn't cost effective for me. Even on my stores that sell VERY expensive items. There is PLENTY of money to be via other traffic sources (both paid and free).
        I have to say I feel a sense of encouragement after reading that you haven't found a way to make adwords profitable for ecommerce. I was a little discouraged after my last adwords campaign which just ended and I finished unprofitable. It was the same ad I ran in my previous campain which did come out profitable, but looking at the big picture of utilizing adwords(which is only about 3-weeks time) I am not profitable overall. I'm interested in the blog ads you mentioned. Which type ads do you typically utilize on blogs? On the Homepage? Big Banners? Is there any requirements you look at with the blog in regards to monthly traffic/alexa ratings? Thanks!
        {{ DiscussionBoard.errors[7573281].message }}
  • Profile picture of the author seoed
    interesting!

    I see that you also sell a wso, just had a look at it. there you talk about
    dropshipping. I would like to know if these dropshipper companies are also
    available in other countries like Germany?

    Moreover, is the online shop system also usable for general ecommerce
    goods? could I also profit from your wso when I just
    focus on normal ecommerce and sell my own goods in my own country?

    there is always the talk about magento, what do you think about
    it, its open source?

    thanks in advance
    Signature
    {{ DiscussionBoard.errors[7572049].message }}
    • Profile picture of the author alksense
      Originally Posted by seoed View Post

      interesting!

      I see that you also sell a wso, just had a look at it. there you talk about
      dropshipping. I would like to know if these dropshipper companies are also
      available in other countries like Germany?

      Moreover, is the online shop system also usable for general ecommerce
      goods? could I also profit from your wso when I just
      focus on normal ecommerce and sell my own goods in my own country?

      there is always the talk about magento, what do you think about
      it, its open source?

      thanks in advance
      Honestly; I wouldn't recommend my course if you're planning on doing business in Germany (I'm a great salesman, I know )

      This course is based on my seven years of knowledge and experience while doing business in the US, working with US based suppliers, using US based advertising platforms and selling to US customers.

      While my methods MAY work in other countries, I can't say for sure so I wouldn't want you to waste your time and money.

      If you just want to learn how I do business here feel free to check it out I have lots of international members (mainly in the UK) who are trying to implement my system over there.

      Hope that helps!

      Thanks,
      Anton
      {{ DiscussionBoard.errors[7572063].message }}
  • Profile picture of the author ronorr
    I see people do ecommerce sites and don't know the customer and don't run email marketing lists, autoresponders and a sale funnel. I think they are leaking out most of their traffic and working 50x harder than they have to. It's about repeat customers, and keeping them happy. Many offers way too many choices and should let people enter through specific pages from the search engines based on unique content on each page so it's targeted.
    {{ DiscussionBoard.errors[7572148].message }}
  • Profile picture of the author seoed
    ok, so if I like to sell in usa I would need anything in the us? like bank account etc?
    Signature
    {{ DiscussionBoard.errors[7572154].message }}
  • Business address - and EIN number.

    If you're going the dropshipping route, dropshippers do like to see you're an established business with the proper credentials.
    Signature
    Famous for my '$1000 dollar challenge,' I've been teaching people how to DOMINATE on eBay for YEARS. Sell 100% of your items FOR A PROFIT. Rank higher, sell faster, sell more, and DESTROY your competition with a data-based approach. Quit listening to Guru's-in-training! Click now below!
    {{ DiscussionBoard.errors[7572172].message }}
  • Profile picture of the author ruby2011
    Choosing Magento as the backend of my site is my biggest mistake i already made ! It is too complex for someone like me. I spent a lot of time on that without much positive turnout. And the service fee is so expensive that i can't afford.
    Signature

    Want to recover lost data on iPhone? Check this tutorial to fully restore deleted files from iPhone just in 3 clicks.

    {{ DiscussionBoard.errors[7572704].message }}
    • Profile picture of the author Palomino
      Originally Posted by ruby2011 View Post

      Choosing Magento as the backend of my site is my biggest mistake i already made ! It is too complex for someone like me. I spent a lot of time on that without much positive turnout. And the service fee is so expensive that i can't afford.
      Magento is definitely a very complex, cumbersome platform for n00bs. I would not recommend it to someone just starting their first ecommerce venture. The majority of our business comes from migrations of successful online merchants migrating from more basic platforms as their business expands and they need the power and flexibility Magento provides.

      Just out of ccuriosity, which version were you trying? Magento CE, the most popular version, the version most every one is talking about when they say "Magento", is FREE. You just pay for hosting, like you would for OpenCart, WordPress, Joomla, Drupal, etc.
      Magento Go starts at $15/mo, and their plans are cheaper than almost any other hosted eCommerce solution I've seen.
      Being an e commerce newbie, I HIGHLY doubt you ran Enterprise.
      So, where did your cost come from?
      Signature

      Ryne Landers
      Lover/Fighter/Gamer/Serial Entrepreneur
      McKinney Web Design
      Skype Me: ryne.landers

      {{ DiscussionBoard.errors[7625767].message }}
  • Here's the best advice I can give you on running banner ads on your site. (And choosing blogs to put ads on your site)

    First off, alexa rank doesn't matter. What does matter is the DEMOGRAPHICS.

    Make sure you have Quantcast tracking on your site, and make sure you have a good picture as to what demographics are generally visiting your blog.

    If you find that white women, with kids, that are college educated, making between 50 and 100k per year, in the USA on desktops, visit your site, then you want to target blogs that generally have the SAME demographics.

    Why?

    Because if you target ads on blogs with different demographics, then your target audience isn't optimized and you're wasting your clicks and money at that point.

    Before you EVER build an ad, you need to make sure you're targeting and creating a display network with the SAME audience as your site.

    So make sure you're running quantcast data for at least a month or two for significant result.

    And remember - data based decisions are always the best decisions!
    Signature
    Famous for my '$1000 dollar challenge,' I've been teaching people how to DOMINATE on eBay for YEARS. Sell 100% of your items FOR A PROFIT. Rank higher, sell faster, sell more, and DESTROY your competition with a data-based approach. Quit listening to Guru's-in-training! Click now below!
    {{ DiscussionBoard.errors[7575051].message }}
  • Profile picture of the author Julia Russo
    The biggest mistake I have made in my online business? I have to say that trying to translate my online success to a brick and mortar store! Duh! In 2008, businesses began closing soon after I opened my doors. The gas crisis and the economy mixed with a terrible location tanked my store after 9 months.
    The best thing was that my websites made money without the rent and overhead of the store. Expensive lesson learned. But I love making money now.
    An improvement to my sites in place today is that I wish I had had higher pricing to cover the future changes in shipping, special offers and discounts. It is difficult now for me to give free or discounted shipping unless I give up profits to pay for it. Those WILL be factored in future sites.
    It is always a mistake not to TEST everything from your market, your product, your suppliers, marketing and your own policies. Knowing what you can and can not do or provide is the key to staying in business.
    Signature
    Wholesale/drop ship tutorials--LEARN HOW and where to get drop shippers
    http://www.storkandveil.com/wholesale-drop-ship-info/
    {{ DiscussionBoard.errors[7631018].message }}
  • Profile picture of the author merlot105
    The biggest mistake I made was not realizing early on that customer service is probably the single most important brand-building concept out there. The reason is simple: your sales are driven by your website rankings, which in turn is based on the number of links to your site. Good service will drive back-links.
    {{ DiscussionBoard.errors[7631131].message }}
    • Profile picture of the author malchiang
      my biggest was lack of communications with the dropshippers.
      {{ DiscussionBoard.errors[7631146].message }}
  • Profile picture of the author pinacolada
    My biggest mistake was being too trusting in the beginning.
    I have been scammed out of a few thousand dollars, but everyone makes at least 1 mistake and learns a lesson at some point in business so I'm glad mine was in the beginning.
    It has really changed the way I conduct things
    {{ DiscussionBoard.errors[7644759].message }}

Trending Topics