Starting an eCommerce business is intimidating. You have to run an online store, advertise your goods, and process orders — just to name a few of business owners’ many tasks.
The good news is that you don’t have to do everything yourself. Find an eCommerce service that does the work for you.
That’s the power of connective eCommerce. And while it’s not right for every new company, it’s a game-changing tool for businesses looking to break into the online retail market without a substantial financial investment.
What’s connective eCommerce?
Connective eCommerce leverages modern technologies to streamline the online selling process as much as possible. You sign up for a website like Shopify or Etsy and let its integrated payment processing and shipping options do the work. Then, you have all the time you need to focus on the craft while the platform handles most logistics.
This framework uses automation, third-party logistics, and digital marketing to reduce the overhead of a traditional retail model, making it easier for people who wouldn’t otherwise have the resources to launch a shop.
Starting an online shop for handmade goods is one example of connective eCommerce. But alternatively, some sellers use dropshipping as their primary fulfillment method, partnering with suppliers on sites like AliExpress and Worldwide Brands to build their online store. With dropshipping, sellers don’t keep their products in stock. Instead, they purchase items from a third party and ship them directly to customers. This lets store owners offer a wide range of products without holding any inventory.
Is connective eCommerce legitimate?
This business model might sound too good to be true, but connective eCommerce is a perfectly legitimate — and highly practical — approach to online retail. Starting a business this way isn’t a get-rich-quick scheme. It requires a thoughtful, strategic approach that, when done correctly, offers a sustainable way to build and grow an online business.
Let’s look at one massive success story: Gymshark. Founded in 2012 by Ben Francis and a group of friends, the company used Shopify to set up its eCommerce store, simplifying its sales and marketing strategies. By initially adopting a dropshipping model to sell supplements, the team minimized financial risk and scaled operations based on demand. Today, Gymshark is a global brand with millions of customers and a valuation of over $1.45 billion.
The 4 benefits of connective eCommerce
A connective eCommerce strategy works for budding entrepreneurs and established businesses looking to expand their online presence. Here are some ways this option can transform your eCommerce business into a lean, efficient, scalable operation.
1. Adaptable strategy
Adaptability is one of this method’s biggest selling points. With connected eCommerce platforms and services, you can adjust offerings and marketing approaches dynamically to stay relevant and competitive. It’s much easier to pivot than with a traditional business model.
2. Fast market entry
Connected eCommerce platforms like Shopify offer user-friendly interfaces and integrations that make setting up a store for rapid market entry easy. This speed to market means you can jump on trends and opportunities almost immediately, gaining a competitive edge.
3. Low hiring necessities
Since the connected eCommerce model automates or outsources much of the operational workload, there’s no need to hire a big team. Third parties handle functions like order fulfillment, customer service, and inventory management, allowing you to operate efficiently with a lean team.
That’s not just a benefit for your labor budget. It also simplifies management. You can focus on core business activities like marketing, sales, and product development without getting derailed by administrative tasks.
4. Reduced upfront costs
Starting a business from the ground up used to require a hefty initial investment. Connective eCommerce minimizes these upfront costs by eliminating the need for physical storefronts, large inventories, and extensive warehousing.
The 4 challenges of connective eCommerce
The connective eCommerce model does have its complexities. Here are some of the most common challenges and some practical solutions for overcoming them.
1. Dependency on suppliers
If you’re dropshipping, strong relationships with suppliers make or break the business. To keep customers happy, work with manufacturers that offer consistent product quality and timely delivery.
Vetting the companies you work with and establishing clear communication channels reduces the risk of acquiring unreliable inventory. Look for suppliers with strong ratings and reviews and set clear expectations about product quality and delivery times. It’s also wise to diversify your suppliers so you still have products in case one causes problems.
2. Adjusted customer expectations
Dropshipping often means customers experience longer shipping times. Be transparent about delivery timelines and practice proactive customer service, offering regular updates on order status to keep shoppers in the loop. A good return and refund policy also builds trust and encourages repeat business.
3. Technology integration
Effective connective eCommerce requires integrating different technologies and platforms, which is tricky without the right technical expertise. You might find it worthwhile to invest in comprehensive, user-friendly eCommerce platforms and tools that simplify integration. Temporarily hiring an expert to set up the shop can also help get it right the first time.
4. Profit margins
Connective eCommerce cuts a lot of upfront costs, but you still have to deal with marketing costs, platform fees, and payments to suppliers. To keep the business running, review expenses regularly and look for cost-effective solutions that make sure you’re earning more than you’re spending.
How to implement a connective eCommerce strategy
If connective eCommerce sounds like the solution you’ve been looking for, all that’s left is creating an implementation plan. Follow these steps to get started.
1. Identify the target market and products
You can’t make a plan to sell products until you know what they are and who you’re selling to. Start by doing some market research to understand customer needs, preferences, and pain points. Then, choose a few items that meet these needs and have good potential for profitability.
Pairing tools like Google Trends with keyword research and competitor analysis will give you holistic insights into market demand and trends. To increase your chances of success, look for a niche with high demand and low competition.
2. Find reliable suppliers
Next, find suppliers who consistently provide high-quality products. Platforms like AliExpress, Oberlo, and SaleHoo connect you with vetted suppliers. Be sure to establish clear agreements about product quality and return policies to avoid issues down the line.
Remember, you can still supply your own products if that’s what you prefer. While dropshipping is common, the beating heart of connective eCommerce is about the tools, not where you source items.
3. Choose an eCommerce platform
Now it’s time to choose an eCommerce platform to build an online store on. Look for functions like scalability, customization options, and good customer support to make sure the platform meets your needs.
Shopify is a popular choice because it’s easy to use, packed with features, and offers an extensive app ecosystem. For ease, your platform of choice should integrate seamlessly with any other tools and services you use. Fishbowl, for example, integrates with Shopify, Salesforce, and UPS to manage inventory and distribution.
4. Build your online store
When designing and building an eCommerce store, keep user experience in mind. Make sure the site is mobile-friendly and easy to navigate. Include high-quality product images, detailed descriptions, and customer reviews to help shoppers feel confident buying from you.
5. Market the business
A comprehensive marketing strategy drives traffic and sales. Try using a mix of paid traffic (like Google Ads and Facebook Ads), content marketing, and social media to maximize your budget.
Remember: Building a strong identity is essential for long-term growth. Use visuals and copy that match your brand and ethos so customers know who you are and why they should buy from you.
6. Implement inventory management software
Solid inventory management is key to bringing products from you or your supplier to customers’ hands. Implement an advanced inventory management system like Fishbowl’s — ideally one that integrates with an eCommerce platform. Fishbowl optimizes inventory tracking, order fulfillment, and production efficiency to meet customer demands without overstocking or understocking.
Keep your inventory in check with Fishbowl
Fishbowl is here to help you feel confident in your connective eCommerce business. It’s an all-in-one inventory management solution designed to control stock, warehouse operations, and manufacturing workflows. Fishbowl also integrates with QuickBooks to promote financial visibility. Request a free demo today to revolutionize your online selling experience.