5 Ways to Expand and Diversify Your E-Commerce Business | CO

If your e-commerce store has a steady customer base and positive cash flow, you might be ready to expand your business. Here are five ways to expand and diversify your business beyond e-commerce.

[Read more: Too Many Eggs in One Basket? How to Diversify Your Business Revenue Streams]

Open a brick-and-mortar store

Opening a brick-and-mortar store is a great way to complement your e-commerce business. A brick-and-mortar store can increase brand awareness and improve customer experience. Instead of browsing your products on a website, local customers can visit your store to ask questions and speak to your staff.

Your store's location can make or break its success. When researching different locations, consider not only the store's appearance but also accessibility. Will customers have easy access to parking? How much foot traffic will the area see?

Make sure your brick-and-mortar branding matches your ecommerce store. Without a consistent brand, your store will be less memorable and it will be harder to connect with customers.

Partner with other brands

Brand partnerships help e-commerce companies leverage each other's strengths, share resources, and enter new markets – a win-win scenario for both companies, and customers benefit from new and unique services.

You can develop strategic partnerships by co-sponsoring events, co-developing new product lines, offering joint promotions, etc. Just make sure the other company's values ​​align with your own and that you have clearly outlined your goals and expectations for the partnership.

For example, Apple has a long-standing partnership with Hermès, and in 2023 the two companies launched the eco-friendly Apple Watch Hermès Series 9.

[Read more: 5 Small Business Owners on the Power of Local Partnerships]

Host an event

Another option is to host an event for your customers. Hosting an event allows you to connect with your customers in a new way and generate additional sales. Before planning your event, take the time to research your customers and find out if they'd be interested in an event.

Next, you need to decide what kind of event you want to host. If you decide to host a live event, you will need to find a suitable venue that will provide you with the support and facilities you need. If you choose to host a virtual event, do your research and find a reliable platform to host your event.

And most importantly, promote your event thoroughly. You can use email marketing, social media, and paid advertising to increase registrations for your event.

Offering digital products

If you sell physical products in your e-commerce store, another way to diversify is to offer digital products. Digital products have a huge market potential and much higher profit margins than physical products. And unlike hosting an event or opening a brick-and-mortar store, digital products have lower upfront costs.

The types of digital products you offer will depend on your business model, but some options you can choose from include:

• template
• Online Courses
• Paid Membership
• Printable
• E-book

If you don't want to create a digital product, you can also become an affiliate for other companies' products.

Offering subscription-based services

Many ecommerce businesses now offer subscription-based services to generate recurring revenue. You can offer a monthly subscription box similar to Dollar Shave Club or Birchbox, or you can offer a more curated monthly subscription like Stitch Fix.

First, determine which products are suitable for a monthly subscription. Look for products that customers buy regularly and that are perceived as having high value. From there, you can develop different subscriptions with a tiered pricing model. Also, look for ways to offer additional benefits, like early access to new products or members-only discounts.

[Read more: 4 Subscription Pricing Models for Small Businesses]

CO— aims to provide inspiration from leading, respected experts. However, before making any business decisions, you should consult with an expert who can advise you based on your individual circumstances.

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Published April 4, 2024