SILKFAIR: 7 SIGNS THAT YOUR ONLINE STORE IS IN TROUBLE

We work to make our business grow. That’s what it’s all about- growing. Unfortunately, just like a garden, without proper care our business can begin to wilt as it shows signs of trouble. Of course, the first step in saving your online store is realizing that it’s in trouble. Sometimes it’s little things that we oft not notice, and sometimes they can slap us in the face with a wake-up call. Regardless, if you’re in trouble, don’t hesitate to make the necessary changes to turn your online store around.

The numbers dwindle

One of the first hints to trouble is when your customer count begins to dwindle. Not just sales, but the actual amount of people that are buying from you. This is usually quite blatant, and can definitely wake us up with the fact that something we’re doing needs adjustment. Whether it is your sales pitch, your product, or the way your shop site functions (make sure it’s easy to navigate and easy to buy from your store), a change may definitely be in order.

Repeat business, as well as new referrals, make up a large amount of any business’ structure. We rely on our customers remaining satisfied so that they are inclined to not only return to frequent our establishment, but also to refer their friends to our store. When you notice that your old customers aren’t shopping anymore, and you’re receiving fewer referrals, it may be time to change up your store’s charisma. Your charm might not be right, or you just might not be offering the right products to your audience.

A little off balance

Something else you may notice, perhaps not at first, is that your sales are going to a few select customers. Sales are good, but when disproportionate, they can be risky. If you find that you’re relying on only a few customers for the majority of your income, it can be a large blow to your store if just one of them stops buying from you. This is where you need to focus on spreading out your business. Just because you’re making the sales, doesn’t mean you’re safe. Focus on growing your garden of clients.
Buying from only one vendor also may prove to be an underlying problem. It is never recommended to put all of your eggs in one basket, so don’t. While you may have a favorite, always keep your options open, or you may find yourself at the mercy of your vendor’s prices, choices, or even their inability to supply you. If they happen to run out of inventory, then you will too. Make sure that you have a variety of vendors when it comes to supplying your store.

Income affects the outcome

Another problem that may arise is when your books begin to show signs of trouble. Cost numbers should stay comparative to your sales. If you notice that things are beginning to cost more, but you’re still making the same amount, trouble is definitely brewing. It can be difficult to mark up your product, especially if you’re afraid that it will frighten off customers. But, that isn’t always the solution. A business has many costs, not just products, so you can get a little creative here and find out if you may be spending too much on your product (perhaps go with another vendor) or find unneeded costs within your store.
Your inventory is an investment, and when inventory begins stocking up but not going anywhere, you may quickly find yourself in a bind. The last thing you want is to end up with surplus merchandise and nowhere and no way to move it. Keep an eye on your inventory to make sure that you aren’t buying and keeping more than you can move effectively.

I’ve seen various small businesses have trouble with collecting properly. Luckily, most online stores utilize Pay Pal, and outside payment sources. But, in case you offer your own credit, particularly to specific or special customers, you need to make sure that you are paid what is owed. That’s money that you don’t have, product that you don’t have, and time that you’ve now lost. As Benjamin Franklin once said, “Lost time is never found again.” Avoid situations in which you have to struggle to collect, and you can prevent costing yourself unneeded trouble.

Not every business finds itself in a heap of distress, but it’s good to be aware and know what to look for just in case trouble comes a knocking on your online store door.