Creating an Internet Only Brand ? Here are some tips

With cross border e-commerce growing there are a plethora of internet only brands emerging

You too can create an internet only brand

As an existing brand you may consider brand extensions. Or you may wish to create a new brand for a specific target audience. Or as a trader or retailer you may want to consider creating your own brand

While manufacturing can be outsourced, brand development, marketing, selling and service are key factors for you to consider

Here are some tips

1. Think Global. No need to restrict you brand to a local market. Specially if the domestic market is small or not willing to pay the price for your products
2. Make local. This means you should have a future plan to produce some or whole of your product(s) inside your biggest markets. This would evolve over time as you would initially produce in one location while you establish your brand. However when demand picks up it would make sense to consider indigenous production inside your largest markets
3. Get an experienced cross border ecommerce team. Ecommerce is like a razor. It can cut you badly if not operated properly. Have the right entreprenuerial team in place. Hands on, results focussed and accountable
4. Have the right margins. Most ecommerce businesses don’t make significant or any money because the business managers have not factored in realistic costs. Factor in the cost of customer acquisition, cost of intermediary marketplaces, warehousing, fulfilment, product returns, customer service , legal, team and other costs. Sourcing to selling should be a ratio of atleast 1:6 if not more
5. Prioritise repeat purchase products. With low consumer loyalty and high competition and the ease for new competiors to copy your ideas, it would be good to have a product range that has a short lifecycle and higher frequency of repeat purchase
6. Invest in Marketing, Customer Acquisition , Customer Service and Online Reputation Management. Unlike brick and mortar brands, internet only brands have to depend on a lot more factors that affect their success — financial as well as reputational. Not only should you keep adequate money for these initiatives, you should also invest in a good leadership team that is appropriately skilled and focussed and empowered
7. Be Vigilant. Internet only brands have limited distribution channels. Nothing should come in the way of growth. In the competitive world, don’t be surprised if your competitors have a ‘Consumer Panel’ making purchases of your products and posting negative reviews
8. Have good relationships with Online Marketplaces. These relationships will help you forge good marketing deals and also help you resolve issues
9. Keep on innovating. As the internet allows you to access new markets , your product development and management teams need to continuously innovate and adapt, and improve & enhance the product offering to existing and new customers

You can create great value for your business by creating a successful and profitable internet only brand .

The author is an ecommerce entrepreneur associated with www.ndcommerce.in and www.tigerpug.com.sg