The path that online stores go
Each online store goes through 6 main stages of its development. In this article, we'll talk about them in detail:
Entering a business is the first stage.
Your further movement forward depends on how prepared and confident you enter the business. At this stage, attention should be focused on creating a clear concept of work, customer interaction policy and advertising strategy. You must clearly describe the tasks of each specialist in your store, so that the work is well-coordinated. Very often people with no business experience enter the Internet and ignore the creation of a clear concept of work. In this case, they first gain experience, and then build a clear concept of work towards the end of the second stage of development.
Immediately after creating an online store and building the first business processes, you automatically find yourself in the sandbox. This period lasts on average 6-12 months. After about this time, search engines begin to trust the site more and give it some kind of traffic. At this stage, most people merge due to lack of patience, experience and advertising budget. At this stage, it is important to start getting the first clients and clearly work out the concept of work. Cut off all unnecessary and gain experience, as well as clearly draw a portrait of your client and adjust your pricing policy. This stage is given for gaining experience and accumulating potential for further takeoff. The more potential you accumulate, the faster your growth will go in the next stage. Your potential depends, well, firstly on the level of competence, secondly on the scale of the advertising campaign, and thirdly on the readiness of your organization to cope with turnover.
After about 1 year of operation, the online store begins its upward movement. You get more clients. How much your RPM will grow depends on how well you have completed the sandbox stage. Further growth will depend on how well you organize your team's work. You need to continue to invest in advertising or further develop your information blog. Gradually expand the staff and build up turnover, then the store's capitalization will grow.
The peak of online store development
Sooner or later, capitalization reaches its peak. If you have reached the peak, this indicates that you have occupied your niche. At this stage, you need to keep your niche. You need to continue to advertise and keep people engaged in your project. Then you will receive a stable profit.
Recession or further growth
In any commercial environment, there is a limited capacity of customers and entrepreneurs. Sometimes the customer capacity decreases, in which case the environment shrinks and spits out unnecessary entrepreneurs from the sandbox. And those who have occupied their niches will decline. And sometimes the trend is upward and the customer capacity expands. In this case, there will be further growth and then a new peak. It also happens that the leading market participants leave it themselves, after passing the peak. In this case, again, growth is possible if you were not a niche leader.
Decline and stagnation
This stage is always inevitable, because the economic system is cyclical and all its segments also develop cyclically. At this stage, it is very important to tackle risk diversification. Any seasoned entrepreneur starts to fund part of the budget in new emerging markets. You have already gained a lot of experience and can start developing a new and more promising project. Your old project is either stagnating and will bring a stable income, albeit a lower one, or over time you will completely sacrifice it to the new one.
If you get into the system, then someone left it, or the demand for the service has increased and it has expanded. If you got into the system, then you are already in demand in it. Further advancement within the system depends on how much you are in demand in it. The quality of the services provided, the level of competence, advertising, the level of organization and the volume of turnover that you are able to master. This is what determines your progress upward within the system.