The traditional eCommerce business model is broken. Listen to this episode where I give detailed steps on how to not only make your business profitable but also fulfilling. Drive your business in such a way to make an impact on those around you. The traditional model focuses on building the best product – which of course is important. But instead, consider focusing on the person you’re serving first. The key to a successful eCommerce business is that you MUST prioritize people over product.
What is the problem with eCommerce?
So many people are in the eCom game. The barrier to entry is extremely low. The result is various products with no differentiation. Profits go down because it becomes a race to the bottom to see who can charge the least. And when profits go down, there is no impact in business – or even in your life because there’s not enough profitability to put back into the business. You have difficulty even drawing a paycheck and it forms a frustrating, vicious cycle. You must abandon the traditional business model and replace it with a new one that results in exponential growth.
Get to know your audience – their needs become your opportunities
The primary focus in the new business model is on the people you’re going to serve. When you make this shift, it becomes very clear what products they need and where the opportunity is. You begin to guide your audience through a transformation. As you build a community with purpose, you become a trusted guide or advisor, who not only offers products but services as well. Together, these form one rung in your buyer’s transformation ladder.
How to build an eCommerce business model with more profit AND purpose
When you are part of the buyer’s transformation, it creates a chance for you to offer key elements of a great membership. When these are used, it’s a perfect opportunity for recurring revenue in your business:
- Community
- Mastery
- Entertainment
- Need
Give your buyers a chance to feel like they’re a part of something and you are the trusted advisor guiding them. Think of your business as a castle. Your job as the owner of this business is to create a mote around it. That mote is what keeps intruders out – it keeps the competition at bay. No one can come near you because you have built a community with fans. You have built a tribe, a following that you are guiding.
Follow these steps to build a new model that works
In this process, you are listening to your tribe. You’re waiting to hear what they need, and as the leader of this tribe, you meet that need. Your job is to accelerate the buyers’ results. Figure out what the transformation is and insert the products or services that will accelerate the results for them. Implement these steps to build your new business model:
- Serve an audience – prioritize people over product. Build a following and figure out how you can meet their needs.
- Systematize – build a bonding process with your audience. Whether it’s through email or other automation, spend time consistently growing those relationships.
- Create products and services that accelerate your buyers’ transformation. This is how you differentiate from everything else in the market. Your products and services are not just commodities. You create a community with a mission, with a transformation, and you’re helping to accelerate the results.
Outline of This Episode
- [1:00] Find out why the traditional eCommerce model is broken (barrier to entry)
- [4:17] Learn the new model – prioritize people over product
- [6:00] Find out the four crucial elements that make up a great membership
- [8:14] What key elements you need to implement a new model that works
Resources & People Mentioned
- ecomcasestudy.com – Bryan’s case study for eCommerce sellers looking for profitable and predictable sales
Connect With Bryan Bowman
- Bryan’s website: https://www.ecomunderground.com/
- On Facebook