You don’t need a revolutionary new product idea to sell things online. In fact, you don’t even have to manufacture your own products to start your own ecommerce business.

Various business models put product development, manufacturing, and order fulfillment into the hands of others—and profits into yours. One of these models is the resale business model.

Becoming a reseller is a great way to launch a small business and start selling online without beginning at square one. Read on to learn how to become a reseller, and get some tips and ideas for running a successful reseller online shop.

Table of contents:

1. What is a reseller?
2. How to become a reseller
3. Best places to find suppliers for your resale business
4. Five reseller business opportunities
5. Start your reselling business today

What is a reseller? 

A reseller is a business that purchases products from manufacturers, liquidators, or other retailers and then sells them to its own customers. A reseller business permit—also known as a resale license, resale certificate, or tax exemption certificate—allows resellers to purchase certain items free of sales tax, including:

• Items to sell at wholesale
• Items to sell at retail
• Ingredients or components to manufacture and sell things

Reselling is essentially a form of dropshipping, where companies source products and materials from a variety of suppliers and make them available to consumers via an online store. This business model makes it easier for the average consumer to find and purchase products.

Many resellers also provide a value-add for the customer experience. For instance, buying directly from a supplier isn’t necessarily easy, and often requires minimum purchase quantities. By contrast, resellers can sell items individually to customers (at a markup), as well as create a branded customer experience. Those elements may be as simple as in-depth product descriptions and reviews, a customer loyalty program, and customer support.

A reselling business has a number of benefits and can be a profitable business model, especially if you have niche expertise. You can launch an ecommerce store faster when you don’t have to go through all the steps of product development and building an audience.

Reselling is also a viable business pursuit for people who like and have success with marketing.

Because product reselling is a common type of dropshipping, it can be difficult to attract customers when you’re starting out as a reseller. If you can plan and execute effective marketing strategies, your reselling business is more likely to achieve success.

Straight product reselling is great for someone who has specific expertise or knowledge of an industry or demographic. For example, someone who knows about animal behavior could create a dropshipping business around the different toys that are best suited for pets.

How to become a reseller

1. Register your business. Get a business license where your business operates and/or is incorporated. In states outside of where a business is registered, you’ll need to have foreign qualification.
2. Research state laws and regulations. Many states will let you use an out-of-state reseller’s permit to avoid paying sales tax on resale items. However, some won’t honor out-of-state permits. Research state law before buying across state lines, both for in-person and online sales.
3. Gather your application materials. Once you know what you need to register and submit your application, prep all the necessary documentation for your reseller business.
4. Get a resale permit. File for a reseller business permit in each state where you buy and sell goods. You might also have to pay associated fees.

Sales tax laws vary by state, and each state has its own sales tax rates. In some states, local sales taxes must be collected, too. According to the Tax Foundation, 45 states and the District of Columbia collect statewide sales taxes, and 38 states collect local sales taxes. To find out your specific requirements, it’s best to check with your local jurisdiction.

In the United States, a business with a reseller permit doesn’t pay sales tax on the products it purchases for sale. However the reseller does have to collect sales tax from its customers and send it to the state.

Like a business license, you take out a resale permit wherever your resale business operates. So, if you incorporate in Florida, but have an online store, shipping location, or factory in Delaware, you’ll need a Delaware reseller’s permit. If you buy and sell goods in multiple states, you’ll need a valid permit in each.

Best places to find suppliers for your resale business 

To find a supplier for your resale business, start with identifying what types of products you want to sell and what kinds of customers you want to sell them to. Then you’ll need to determine if you want to find a supplier that operates like a distributor, providing wholesale products to you, or like a dropshipper, supplying products and handling order fulfillment.

To search for reseller business suppliers, you can browse online directories, do a Google search, or ask for referrals from within your network. Here is a list of product sourcing apps perfect for Shopify merchants. Each serves as a directory that makes it easy to find products to sell online. You can access a variety of products across all kinds of categories, such as electronics, toys, and cosmetics.

You can also start a reselling business by partnering with well-known dropshipping websites like Worldwide Brands, SaleHoo, Doba, and AliExpress (see our complete guide to AliExpress). Browse their websites to see what kinds of products are available for resale.

Five reseller business opportunities/ideas

Reselling opens the doors to a lot of new business opportunities, as you don’t have to invest in product development and manufacturing. These qualities also make reselling a great home business or side hustle, which you can eventually turn into a full-time job.

Here are five ideas to get you started with a reselling business.

1. Dropshipping business

You can start a dropshipping business, which gives you the ability to offer a wide range of products without stocking any inventory. In a dropshipping business model, all you have to do is market and sell the products. Your dropshipping supplier handles everything product-related, from product development to warehousing and tracking, and even through to order fulfillment.

Dropshipping is a low-risk business model because it doesn’t require investment in inventory, not to mention the costs associated with storing that stock. Plus, the supplier handles the fulfillment process for you, so you don’t need staff or a space to ship goods to customers.

2. Sneaker business

Shoes offer resellers a wide range of niches—from athletic shoes to stylish heels to trendy sneakers and everything in between. People always need shoes, and you can keep things fresh by launching seasonal designs. There’s ample opportunity to resell shoes and make a tidy profit doing so.

New Jersey–based Shopify merchant Packer Shoes started as a small neighborhood custom shoe shop. The company has grown since its humble beginnings in 1907, largely thanks to its omnichannel approach. Now, in addition to reselling sneakers from household name brands like Adidas, Packer Shoes offers its own designs as well.

3. Vintage boutique

If you’re thinking about how to start an online boutique for reselling, you’re on the right track. The used goods resale industry is huge: in the US alone, there are more than 20,000 stores that sell used goods, amounting to a combined annual revenue of about $17.6 billion. A vintage boutique is a great way to take advantage of this reselling business opportunity.

When sourcing vintage goods for your reseller business, you can go by the traditional definition of goods that are older than 50 years and younger than 100, or you can take inspiration from vintage trends. COAL N TERRY does the latter with its vintage clothing collection.

You can resell vintage clothing, antique furniture, or any knick-knacks you can find at garage sales, yard sales, thrift stores, or donation centers. The key to a successful vintage reselling business is to learn what items people look for, and the price points they’re willing to pay. For example, vintage Corningware is in high demand for a niche market of customers.

4. Consignment 

If an online business selling vintage goods sounds appealing, consider taking this idea to the next level by opening a consignment shop. Consignment shops sell upscale or luxury used goods, and not everything is antique or vintage—some items are newer.

Love that Bag etc, for example, is a Shopify merchant that operates a consignment shop from its online store. Though Love that Bag etc is selling high-quality designer bags for less than they cost brand new, they’re more expensive than bags you might find at a vintage shop.

5. Subscription box

The subscription box reached peak popularity with brands like Birchbox, and remains a flexible business model for a reseller looking to establish a more predictable revenue stream. You can curate an assortment of goods and package them into a single box.

To start your own subscription business, first determine your target market and then look for goods that fit their wants and needs. You can assemble the goods in themed boxes and launch a new one each week, month, quarter, or whatever cadence you want to hit.

Start your reselling business today

Now that you know how to become a reseller, consider starting your reseller journey today. Because you don’t have to invest in product development, upfront inventory, or fulfillment, this business model is a low-risk way to dip your toes into operating an ecommerce business and owning your own shop.

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://shop.shopshipshake.com/register/business

This article originates from: https://www.shopify.com/blog/reseller-business

Do you want to start a profitable business and make money from it? Have you ever thought about a Shoe business? Do you know everyone needs at least one shoe so demand never goes down? In general, the profit margins are high in the shoe business. Why not learn more about the shoe business?

Everybody wears shoes. Girls even love collecting them so why not start a shoe business if you look at the prospect of engaging in a retail business? While a shoe business can require considerable start-up costs from you, the shoe business can be very profitable.

Here are some of the things that you will find interesting to know if you plan on starting a shoe business:

Where to Buy Shoes From?

You will need to look for wholesalers of shoes if you want to start a shoe business. The internet has a large database of shoe wholesalers but it is important that you verify the credibility of the wholesalers you will be dealing with. It is also best to get quotations from a number of shoe vendors so you will able to know the best and cheapest place to buy the shoes that you will sell.

Low-End Shoes or High-End Shoes?

When starting a shoe business, you will find it valuable to determine who your target market will be. This will allow you to determine what type of shoes you are going to sell. You can sell low-end shoes, high-end shoes, or both depending on what type of clients you expect to patronize your shoe company. Nevertheless, you will find it notable to know that you will be able to sell to more people if you sell low-end shoes. Your shoe store business start-up capital will also determine what type of shoes you will be able to sell.

Marketing and Selling

Selling shoes these days is no longer limited to opening a brick-and-mortar shoe store. Many shoe business operators have realized that selling their items on the internet through eBay and through their shoe market business websites can be very profitable. You just need to have a secure payment system and a delivery service provider that you can rely on.

You can provide a catalog of the shoe products that you sell on your website so it will be easier for your clients to choose from the shoes that you sell. While an online presence for your shoe business can help boost your sales, it is still important that you acknowledge the importance of a brick-and-mortar shoe business outlet because this is where you can display your products and sell directly to your customers. It is important that you choose a location where people can easily see and purchase your shoe store business products. Setting up a shoe outlet in a mall or in similar high-traffic areas would be a great idea.

FAQs

Q. Best place for opening a shoe retail store?
A. Here are some tips on selecting the location for a shoe shop
– Is there enough traffic? Traffic next to a theatre might be ample but not ideal for a shoe store. The best location will be a mall, where people are already in a buying mood.
– Look out for the existing shoe store and what is the requirement in the locality.
– Your store requires enough space for showing your items.
– Parking space is very important; people might not like to shop if they have trouble parking.

Q. How to increase the sales of a shoe store?
A. You can increase your sales by advertising, marketing, handing out coupons, promotional offers, increasing your inventory, meeting the public’s requirements, improving customer relations, etc.

Here is a Shoe Business Success Story Video for Young Entrepreneurs

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://bit.ly/3Cfdu4w

This article originates from: https://www.startupbizhub.com/How-to-Start-a-Shoe-Business.htm

While no two businesses are exactly the same, there are common steps entrepreneurs and potential business owners must take before opening the doors of a new company.

When it comes to launching a new business venture, the intrepid entrepreneur spirit hasn’t suffered in the wake of the COVID-19 pandemic. For example, according to the U.S. Census Bureau, a record 5.4 million new business applications were filed in 2021. It may be the right time for you, too, to embark on starting a new company. Before doing this, however, there are essential steps entrepreneurs need to take.

1. Identify a creative idea.

The most successful businesses all started from the same place: an idea. Think of a business idea as the seed of your company. You need that before you can begin adding fertilizer, watering and growing complementary plants. In other words, before you can do all the steps below, make sure you have a solid idea for your new company – it’s what your business hinges on. What is a unique service you can provide? Where is there a gap in the marketplace that you can fill? Consider these cheap business ideas for inspiration.

2. Write a business plan.

After identifying a business idea, experts agree that writing a business plan is the next step you should take. Creating a business plan displays a genuine level of commitment, but it also forces prospective business owners to answer essential and sometimes challenging questions at the start of the development process. A business plan is also the first thing any potential investor will request. It will give them a detailed overview of your proposed business venture, your level of industry expertise and understanding of the opportunity, and the financial requirements and potential upside. 

3. Choose a legal structure.

Selecting the proper legal structure for your business at the outset is critical, especially since it’s not an easy change to make after the fact. Each type of legal entity comes with specific requirements and restrictions, and only certain types of corporations may apply to your particular business needs. If you need help, a corporate attorney or experienced business accountant can offer timely and accurate advice for creating the proper legal structure for your proposed company.

4. Get your business registration, licenses and tax identification.

Once your business structure is in place, you need to register your business and obtain the correct licenses, taxpayer identification number (TIN) and employer identification number (EIN). There are various resources to assist with business names, filing incorporation paperwork, obtaining necessary licenses and registrations with your local municipality, and getting your federal tax information squared away. Aside from the IRS for federal tax matters, regional corporation commissions (typically at the county level) can assist any new business owner with meeting the regulatory requirements for each locale around the country. If you’re planning on hiring staff to help run your business, you’ll also need to apply for a federal tax ID or an EIN. Having an EIN will protect you and your identity, allow you to file business taxes separate from your personal taxes and help establish credit for your business.

5. Know your competition and the marketplace.

There’s nothing wrong with a bit of competition. It allows business owners to innovate and evolve their products and services continuously. Knowing your business’s market, what your competition is doing and how your company fits into this landscape is critical in establishing your business. Including this information in your business plan will showcase your thorough knowledge of the industry for your proposed company. Without this information, no serious investor will rise to the occasion, and it will be hard to stand out in the marketplace. Know your industry, know your competition and understand how your business will become a differentiator in the market.

6. Finance your business.

Unless you’re an accountant, have a degree in finances or are a sophisticated investor, you’ll need some help nailing down this part of your pre-launch planning. Investors will want to know how much money your company will have to begin with and how much it will need in the future. Regardless of where your revenue will come from, list it in your business plan. Will you use your credit cards and home equity to start? Will you need a loan to get started? Are you willing to give up a percentage of your ownership in exchange for cash? Will you have sales the day you open your door? These are all critical questions to address.

Tip: Find out the best business loan and financing options so you can make an educated decision on how to finance your new business.

No matter how you plan to finance your business, include that information in your business plan. There are many investors out there, and they’ve seen it all. Don’t assume that no one will invest just because you aren’t also bringing some capital to the table. Investors typically want to know three things:

• How much?
• For how long?
• What is the exit strategy?

7. Identify and secure a location.

Whether it’s a home office or an entire building in an industrial park, you need to know where your business will be located before you launch it. Prior to your first day of operations, you’ll want to have the following in place:

• Phone and internet service
• Business directory listings
• Utilities
• Lease or purchase agreement for your workspace

If you haven’t identified or secured a location for your business before meeting with investors, don’t fret. Investors, bankers and legal counsel generally don’t see the lack of a specific location early on as a dealbreaker or red flag.

8. Get proper insurance.

Selecting the right business insurance for your company is not a decision to make lightly. There are several types of insurance to consider, including health, auto, directors and officers, liability, performance bond, travel (including AD&D) and life. In addition to understanding the differences between the available options, it’s important to identify any local regulations that might require your type of business to carry certain types of insurance. For example, if you’re starting a carpentry or plumbing company, you’ll need liability insurance, which typically isn’t necessary for businesses in other industries. Learn what else you need to keep in mind when choosing business insurance.

9. Obtain legal counsel.

Whether you want to have in-house counsel or hire an attorney as needed, your business needs to have access to legal advice. You may need legal representation specializing in corporate, tax, intellectual property, labor, or international law. Wherever regulatory requirements demand compliance, asking a lawyer to review and sign off on this part of your business will save you time and money and protect you from potential legal ramifications.

10. Establish a web presence.

In addition to securing your business’s physical location, you’ll also need to establish a virtual presence on the web. First, you’ll want to register a domain name that matches your business’s name so you’re ready to build your website when the time comes. Then, once you’re ready to develop your website, research the options available to ensure you’re selecting the best website builder that will meet your immediate needs and be able to support your desired functionality in the future, such as online ordering capabilities. Enlist the help of an SEO expert before starting so that they can ensure your website’s design and content are fully optimized. You may also want to consider the cost of starting an online business when deciding which kind of company to start.

Tip: In addition to a website, set up accounts to build a social media presence for your business. A consistent username across all of your preferred social channels will build credibility for your business. Read more about the importance of social media for small businesses.

11. Use local and national business resources.

There are plenty of local, county and national resources to make sure your business name is available, verify the legal structure you’ve chosen is correct and in compliance with location-specific ordinances, and advise on the different business loan options and other funds available to entrepreneurs. You can also refer to resources provided by your local corporation commission, the Small Business Administration and the IRS throughout the planning process.

12. Create a marketing plan.

Writing a marketing plan that complements your overall business plan will help ensure your new business’s success. A fully optimized website should be at the center of your marketing plan, even if you’re planning a brick-and-mortar business. Review these additional tips for creating a marketing strategy for your business.

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://bit.ly/3Cfdu4w

The article originates from: https://www.business.com/articles/10-things-you-must-do-before-starting-a-business/

TikTok has seen explosive growth in recent years. It has not only become a destination for fun hashtag challenges and viral music trends, it also offers brands the opportunity to attract customers using TikTok for ecommerce.

Brands are recognizing how important it is to jump on this exploding global trend. That’s because no other social media platform has the level of engagement that TikTok earns from its users. Whether you’re a business owner selling your own products, an influencer monetizing your personal brand, or an affiliate entrepreneur partnering with businesses, TikTok is worth the investment.

In this guide, we’ll look at why you should consider TikTok for your ecommerce brand, along with tips to make the most of your presence on the platform and real examples of businesses winning on TikTok.

Why should you use TikTok for ecommerce?

TikTok is part of a larger trend of retail social commerce, an industry expected to reach $80 billion in the US by 2025. While this industry was growing on its own, TikTok has made a unique and significant contribution. This is especially because of the natural tendency of its users to engage in social shopping.

Take for example the viral hashtag #TikTokMadeMeBuyIt. Since its birth, the hashtag has generated 60 billion views (as of the time of this writing)—and it’s used by consumers, partners, and brands to discover new products and jump on hot trends.

Benefits of TikTok for business

Part of its success is that TikTok harmonizes a few key elements that make it stand out from other social platforms like Facebook, Instagram, Twitter, and Snapchat:

• Video content that’s short, snappy, and bingeable (though longer videos have also been introduced with success)
• A fun, lighthearted, authentic, and sometimes “messy” feel that isn’t overproduced and doesn’t have a salesy undertone
• A huge emphasis on trends, adding to its cultural relevance
• Appeals to a broad demographic. While Gen Z makes up the majority of TikTok users, other demographics are also increasingly becoming users of the platform.

Attracting TikTok users to retail stores

TikTok has made its mark on brick-and-mortar businesses too. For example, Indigo Books and Music, one of the largest bookstores in Canada, says that TikTok helped generate a “new demand lifecycle.” The company even included TikTok in a quarterly earnings report.

You can find versions of an “As Seen on TikTok” section in several big retailers, like Ulta, Barnes & Noble, and Trader Joe’s.

Another example is ice cream artist Dylan Lemay. His account originally started with videos of him throwing perfect scoops at his Cold Stone Creamery job. After Dylan saw some success, he started traveling and working in ice cream shops around the country. Now, he has more than 11 million followers—and opened his own retail ice cream shop in summer 2022. 

7 ways to grow your audience and increase sales with TikTok

1. Lead with entertainment, not a sales pitch
2. Strive for virality
3. Set up TikTok Shop to sell directly to fans
4. Engage your community through TikTok’s special features
5. Partner with influencers in your industry
6. Get more traction with TikTok ads or promoted posts
7. Use affiliate links to promote products and partners

Now that you know how incredible TikTok can be for brands, it’s time to get your hands dirty. These tips will help you build a TikTok ecommerce strategy, start creating content, reach your target audience, and publish TikTok videos that convert.

1. Lead with entertainment, not a sales pitch

Don’t just repurpose all your boring marketing content to TikTok. This is a unique social media platform with a certain “personality” to its posts. Even if you’re regularly churning out content for other channels, take some time to get to know the platform’s quirks and trends.

Dig deep into what your peers, competitors, and potential customers are looking at and talking about. Stay on top of what’s trending, including memes and popular hashtag challenges. And remember: Have fun with it. TikTokers log in to learn, explore, and discover—but above all else, they want to be entertained.

The more fun and engaging your content, the more likely you are to hit glorious viral TikTok status with one or more of your posts. If your brand voice permits, get silly with it. Consider the brand Habit. Among other fun strategies, Habit likes to make meme videos using its products as the stars. This one is inspired by a trending TikTok sound from the Netflix series Inventing Anna. 

2. Strive for virality 

Let’s be real. The ultimate goal here is to create viral content that makes it across the globe and garners attention for your brand. Generally speaking, a surge of attention almost always equates to a surge in sales—whether it’s a quick, temporary pop or a sustained boost in your numbers.

If you’re lucky, you’ll be able to go viral thanks to some coveted user-generated content (UCG). This is where a user creates content that includes your brand or products. You can encourage customers to post UGC with incentives like discounts and other perks.

A great example of UGC is the story of catnip product Cat Crack: a video a user posted of their cat going crazy over the product gained more than 20 million views.

After the viral moment Cat Crack sales jumped from 510 units on January 10, 2021 to 2,673 units two days later.

3. Set up TikTok Shop to sell directly to fans

If you run an online store, consider adding TikTok as a sales channel. Many social media platforms offer ecommerce features, and TikTok is no exception. As a business account, you can apply to TikTok Shop and get features like a shopping tab on your profile, live shopping, and paid advertising.

Creating video shopping ads lets you insert product links directly into engaging content. This makes it an effective ecommerce tool. Your ecommerce brand benefits from setting up a TikTok store because of the way the social media platform has become a destination for product discovery and the genesis of trending products. 

4. Use TikTok features to connect with potential customers

TikTok has several features that create a direct communication channel with your viewers to learn more about them and build more meaningful connections.

One of them is the Q&A feature, which allows your audience to ask you questions directly through your profile, in the comment section of a video, or during a TikTok LIVE. Try having users ask you questions about you, your brand, and specific products you offer or promote.

Two other community-building features are Sitch and Duet. Stitch lets you “stitch” another user’s video into yours. Duet plays another user’s video next to yours in split-screen format. These tools have great viral potential. For example, sports brand Puma used Duet to feature another user’s viral TikTok fail. Puma then created a TikTok challenge to make their own Puma latte art while riding the wave of a viral video.

5. Partner with influencers in your industry

Like any other social platform, TikTok influencer marketing can be a boon for your ecommerce store. While there are thousands of creators ready to work with brands, make sure the influencers you choose—and the audiences that follow them—are aligned with your products. This will ensure that the sponsored content feels authentic.

A great place to start is TikTok’s Creator Marketplace. It’s a “matchmaking service” to help brands find the right influencers. Since this tool was developed exactly with this purpose in mind, you’ll find helpful features like creator discovery, campaign management, and reporting. There are a number of other marketplaces to find and connect with influencers, including Shopify Collabs.

Find influencers to drive sales with Shopify Collabs

Shopify Collabs makes it easy to partner with creators, promote your products, reach new customers, grow your sales, and track affiliate campaign performance all from Shopify admin.Discover Shopify Collabs

There are plenty of ways to partner with an influencer, such as:

• Have them create and post TikTok videos that include them using, promoting, and/or reviewing your products
• Invite them to host a contest or giveaway featuring your products as the prize
• Let them do a “takeover” of your brand’s account for a day or week make sure you take safety precautions and choose an influencer you can trust)
• Ask them to push their audience to your TikTok storefront
• Compensate them with free products, affiliate commissions, and/or a more straightforward cash-per-post arrangement

6. Get more traction with TikTok ads or promoted posts

Creating organic marketing content and building your following this way can be a lot of work. If you have extra budget and you’d like a boost to help reach your goals faster, TikTok ads or promoted posts are great options.

TikTok ads work much like ads on other social media platforms. Using the Shopify TikTok app, you create campaigns with specific objectives, then build your ads within them. Once the ads are live, use the dashboard in Shopify to track their performance and optimize.

If you don’t want to invest in full ad campaigns, you can promote individual posts. The Promote feature is fairly straightforward. Choose your budget and duration, as well as a few other settings, including whether you’re interested in getting more views, website visits, or followers.

7. Use affiliate links to promote products and brands

Creating an affiliate program can help you spread the word about your brand on TikTok by allowing other TikTok users to promote your products and earn a commission on sales. 

On the other end of the spectrum, affiliate marketing is a great way for those without a dedicated brand to earn some income while promoting your favorite products and businesses.

TikTok ecommerce examples from successful brands

Need some inspiration from the pros? Here are three examples of ecommerce businesses that are killing it with TikTok marketing and generating sales from the video-sharing social network.

Contour Cube

This ecommerce phenomenon is also helping brands get noticed. Sarah Forrai, the founder of Contour Cube, embraced TikTok to build awareness of and sell her face-contouring products. The brand’s TikTok account has grown to nearly 200,000 followers and more than 2.9 million likes across all its videos.

“We’ve been lucky with a number of videos reaching large audiences between one million to seven million views,” says Forrai. “This has driven a huge amount of traffic to our website and helped grow our online community.” Within three months of launching its product on TikTok, Contour Cube was approached by large retailers and found distribution partners, and is now stocked at THE ICONIC, Uncommon Goods, and Dolls Kill. 

“Launching on TikTok catapulted Contour Cube into the mainstream, and for us, we were truly surprised by the huge engagement from what we thought was a niche idea,” says Forrai. “TikTok has since become our primary marketing platform, accumulating over 30 million views to date, which is amazing for a startup like us.”

Glow Recipe

Glow Recipe takes a different approach to TikTok ecommerce. The Korean natural skin care brand uses a link-in-bio tool to send its followers to a curated collection of all its content.

This collection includes shoppable links for the products featured in Glow Recipe’s videos, so its followers can buy items directly on its website, as well as access other important links for its business. 

Glow Recipe also takes advantage of the #TikTokMadeMeBuyIt trend, which has become a popular marketing tool for businesses promoting products and services. This simple hashtag gives social validation to users who are deciding if they’re ready to make a purchase.

GymShark

Challenges are one of the biggest trends on TikTok, with many brands using them to earn UGC and build a reputation with the TikTok community.

One of those brands is GymShark, a fitness apparel, and accessories retailer that creates unique hashtag challenges that are in line with its aspirational workout-focused content. 

Its #gymshark66 challenge, which asked users to transform their body within 66 days for a chance to win a free year’s supply of GymShark goods, garnered over 45.5 million views, 1.9 million likes, and 12,500 comments.

Naturally, the entries also included participants who regularly wear GymShark apparel. These entries gave exposure to the brand’s products and helped maximize its credibility and sales. 

Now is the time to step up your TikTok ecommerce game

A social commerce revolution is happening, and TikTokers have a front-row seat. As you’re creating content for your TikTok videos, have a strategy in place to maximize the results and drive more traffic to your site and convert fans into buyers.

Create fun, timely, and relevant content. Build relationships with your audience and key influencers. Explore TikTok’s helpful tools and features. If you can entertain and connect with your potential customers, you’re already paving your path to growth.

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://bit.ly/3Cfdu4w

The article originates from: https://www.shopify.com/blog/tiktok-ecommerce

Understanding your customers is critical to success. It allows you to create messaging and offers that resonate with your audience, rather than guessing about their preferences and needs.

And taking it a step further, segmenting customers into groups based on similarities, helps you develop a deeper understanding of those groups. You can then build targeted campaigns addressing each segment’s specific needs. Pretty cool, right?Click here to start selling online now with Shopify

So, what exactly is customer segmentation and how do you do it? Let’s take a look.

What is customer segmentation?

Customer segmentation is the process of dividing customers into groups based on common characteristics so companies can market to each group effectively and appropriately.

In business-to-business marketing, a company might segment customers according to a wide range of factors, including:

• Industry
• Number of employees
• Products previously purchased from the company
• Location

In business-to-consumer marketing, companies often segment customers according to demographics that include:

• Age
• Gender
• Marital status
• Location (urban, suburban, rural)
• Life stage (single, married, divorced, empty-nester, retired, etc.)

Why segment customers?

Segmentation allows marketers to better tailor their marketing efforts to various audience subsets. Those efforts can relate to both communications and product development. Specifically, segmentation helps a company:

• Create and communicate targeted marketing messages that will resonate with specific groups of customers, but not with others (who will receive messages tailored to their needs and interests, instead)
• Select the best communication channel for the segment, which might be email, social media posts, radio advertising, or another approach, depending on the segment
• Identify ways to improve products or new product or service opportunities
• Establish better customer relationships
• Test pricing options
• Focus on the most profitable customers
• Improve customer service
• Upsell and cross-sell other products and services

How to segment customers

Customer segmentation requires a company to gather specific data about customers and analyze it to identify patterns that can be used to create groupings.

Some data can be gathered from purchasing information—job title, geography, or products purchased, for example. Some of it might be gleaned from how the customer entered your system.

An online marketer working from an opt-in email list might segment marketing messages according to the opt-in offer that attracted the customer, for example. Other information, however, including consumer demographics such as age and marital status, will need to be acquired in other ways.

Typical information-gathering methods include:

• Face-to-face or telephone interviews
• Surveys
• General research using published information about market categories
• Focus groups
• Loyalty program data
• In-person conversations
• Customer reviews
• POS data
• Customer support interactions
• Purchase history
• Online analytics

With Shopify’s segmentation tools, you can collect this data directly from your online store traffic. Discover powerful insights about your customers by creating unique segments, and then reach out with personalized campaigns to drive sales.

Shopify also includes some default customer segments and templates to help you get started. You can refine, add, or even remove customer segments over time as your business evolves. Build your customer segments in the editor on the Customers page by adding filter names, operators, and values.

Using customer segments

Common characteristics in customer segments can guide how a company markets to individual segments and what products or services it promotes to them.

A small business selling handmade guitars, for example, might decide to promote lower-priced products to younger guitarists and higher-priced premium guitars to older musicians based on segment knowledge that tells them younger musicians have less disposable income than their older counterparts. Similarly, a meals-by-mail service might emphasize convenience to millennial customers and “tastes like mother used to make” benefits to baby boomers.

Once you’ve identified your segments, list their shared characteristics, paying careful attention to pain points and desires. Lean into those commonalities when developing your segmented marketing strategies and promotions. You don’t have to offer every promo to every customer—send your promos only to those who will be interested. A discount on dog food surely isn’t going to drive any sales from your customers who don’t own dogs, for example. So consider creating a segment of dog owners and only send those promos to them.

The main idea behind customer segmentation is you don’t need to send every promotion to every person all the time. Instead, send targeted promotions to relevant audiences.

Additionally, you can put customers into multiple segments—you don’t have to pigeonhole everyone into just a single group. For example, people in your dog owner segment may also be in your parents’ segment.

Customer segmentation can be practiced by all businesses regardless of size or industry and whether they sell online or in person. It begins with gathering and analyzing data and ends with acting on the information gathered in a way that is appropriate and effective.

Customer segmentation examples

Examples of customer segments to build include:

• Geographic: Dividing customers by location or region. For example, you might market bathing suits to your Florida-based customers year-round, whereas advertising winter coats for your New York–based customers may be more appropriate in colder months.
• Demographic: Putting people together by age, gender, marital status, and other demographic information. One example could be a bookstore creating a segment for parents and advertising children’s books to them.
• Behavioral: Grouping your audience by purchase behavior, usage patterns, customer loyalty, etc. These segments get more complex and interesting. A hair care brand could create a segment of customers who have only purchased shampoo and not conditioner, and then create promos around the conditioner for that segment.
• Psychographic: Dividing your audience by attitudes, values, lifestyle, etc. Another more complex segmentation option: You can create segments of customers who love animals or people who love to travel, for example.

Start segmenting your customers today

Customer segmentation is a great way to kickstart your personalization strategies and develop promotions and campaigns that directly relate to your target audience. And it’s easier than ever with Shopify’s native customer segmentation tools.

With these tools, you’ll understand your data better and be able to act on it for free from the same secure platform you use to run your business.

Customer segmentation FAQ

What does customer segmentation mean?

Customer segmentation is the process of dividing a customer base into distinct groups of individuals that have similar characteristics. This process makes it easier to target specific groups of customers with tailored products, services, and marketing strategies. By segmenting customers into different classes, businesses can better understand their needs, preferences, and buying patterns, allowing them to create more personalized and effective marketing campaigns.

What are the 4 types of customer segmentation?

1. Demographic Segmentation: This type of segmentation divides customers into different groups based on shared characteristics such as age, gender, income, occupation, education level, marital status and location.
2. Psychographic Segmentation: This type of segmentation divides customers into different groups based on their lifestyle, interests, values and attitudes.
3. Behavioral Segmentation: This type of segmentation divides customers into different groups based on their purchase history, usage patterns, brand loyalty and response to marketing campaigns.
4. Geographic Segmentation: This type of segmentation divides customers into different groups based on location, such as country, region, city or neighborhood.

What is customer segmentation example?

Customer segmentation is the practice of dividing customers into distinct groups with common characteristics. Examples of customer segmentation include geographic segmentation (dividing customers by region), demographic segmentation (dividing customers by age, gender, marital status, etc.), behavioral segmentation (dividing customers by purchase behavior, usage patterns, loyalty, etc.), and psychographic segmentation (dividing customers by attitudes, values, lifestyle, etc.).

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://bit.ly/3Cfdu4w

The article originates from: https://www.shopify.com/blog/what-is-customer-segmentation

You’ve worked hard to ensure all boxes are checked for a successful product launch: you have a beautifully designed website, saved enough to cover three months of operating costs, and hired a virtual assistant to handle simple tasks you don’t have time to take on. What could possibly be risky about this business?

No matter the precautions you take, all businesses involve some risk. These may be internal risks from employee errors placing incorrect inventory orders, or external risks from a new competitor selling a lower-priced version of your product. By learning about the types of business risks you could face and how to address them, you can be better prepared with a contingency plan that helps ensure your business’s longevity.

What is business risk? 

Business risk is anything that could expose you to financial loss, reputational harm, or failure. To assess business risk, examine all pertinent legal, financial, and operational information relating to your business and take any necessary action to prevent or minimize negative outcomes. 

Most business owners design a risk management strategy as part of its business continuity plan, which helps protect your business from disruptions such as flooding of your warehouse after a hurricane or a viral video about a negative customer interaction. The strategy includes identifying risks, assessing them, taking steps to avoid or reduce risks, and, in some cases, accepting risk as part of the normal course of business.

Depending on the particular industry, business owners’ risk management strategies might include having comprehensive insurance coverage, minimizing debt, or retaining lawyers to address legal issues.

What causes business risk?

Business risks come in many forms. Examples of events that could cause business risks are:

• Natural disasters. Flooding, storms, wildfires, and other natural disasters can cause business loss.
• Human error. A production mistake, for example, might result in a recall or warehouse overstock.
• Regulations and laws. Rule changes or failure to comply with regulations or laws could impact business operations or financial performance.
• Uncertain financial or economic conditions. Global or national financial crises may affect business solvency, increase exposure to credit risk, and lower profits and revenue. 
• Tariffs and currencies. Changes in tariffs and trade policies, or fluctuating currency exchange rates, can impact risk. 

6 types of business risk

There are six major types of business risk that can affect how you do business. 

1. Financial risk

Financial risk is any situation or factor that jeopardizes a business’s finances and operations. Depending on the sector and a startup’s capital structure, financial risk could be caused by: 

• Too much debt
• High interest rates on loans
• Insufficient cash flow from sales 
• Poor investment strategies
• Inflation

2. Strategic risk

Incorrect assumptions about the success of a business’s product or service can lead to strategic risks, which involves your ability to execute key business objectives. Examples include: 

• There is little or no market demand for a product or service, like a $100 smart shampoo dispenser or a nail salon for pets.
• A brick-and-mortar shop operates out of a beautiful historic building, but its landmarked designation doesn’t allow for expansion to accommodate business growth. 
• A startup is creating an app, but in its pursuit of perfection, another startup builds it first. 

3. Operational risk

Operational risks are ones that have an impact on a business’s activities and daily workflow. You may face operational risk if you:

• Don’t consider your supply chain and business logistics needs working together holistically—proper supply chain management can help ensure your products are produced and distributed on time 
• Are lacking or have insufficient business insurance, which can leave your business exposed to losses from manufacturing breakdowns, product malfunctions, natural disasters or legal damages, among other issues 
• Have inadequate information technology (IT) protocols in place when computer systems fail 
• Hire employees that repeat human error due to insufficient training, causing harm to productivity 

4. Compliance risk

Compliance risk is either failing to qualify for or obtain the correct permits and licenses to operate in accordance with state or federal regulations or laws. Or, it’s being in noncompliance with industry laws and regulations. If you fail to take compliance risks or regulatory risk seriously, your business could be fined, shuttered, or reputation harmed. Actions that might be considered compliance risks include:

• A factory illegally dumping manufacturing byproducts into a local river to avoid waste treatment costs
• Food companies not adhering to health regulations to prevent consumer illness 
• Discrimination against job applicants based on gender, race, nationality, religion, or ethnicity, which is illegal under federal law 

5. Reputational risk

Reputational risks include actions, behaviors, or events that hurt public opinion of your business. Examples of things that could put a company’s reputation at risk include: 

• Social media postings of conflicts or hostile interactions between customers, business owners, or staff 
• Failing to honor a return policy or guarantee, selling defective products, or poor customer service
• Companies that experience a cyberattack or customer data breaches

6. Global risk

International businesses may experience global risk when they don’t follow the laws or respect the customs of the countries in which they operate. If your business is involved in international commerce, you may be exposed to geopolitical events such as wars, border conflicts, and elections that could harm your company’s ability to operate profitably and efficiently. Global risks can include:

• Overseas labor disputes
• Gas price hikes
• Border conflicts 
• Fluctuating currency exchange rates
• New or increased sanctions, tariffs, and taxes 

7 ways to minimize risk to your business

There are seven steps you can take to manage your business risk:

1. Calculate risk

The best way for a business owner to measure business risk is to conduct a risk analysis that assesses possible threats or adverse events that could hurt your business. A risk assessment may include making budgeting decisions, analyzing future costs, and estimating future sales.

2. Stay in compliance 

Staying in compliance with regulations can help ensure that your business avoids fines and penalties, can continue operating, and wins and retains the trust of customers. Compliance strategies include offering training for employees, consistently monitoring industry regulations, and documenting all compliance efforts.

3. Review the company’s finances to manage debt 

Regularly review your company’s financial picture to know when to spend and when to cut costs. Taking this approach can assist in managing debt. More specifically, you can:

• Avoid maxing out business credit cards
• Consider business financing options such as low-interest community development financial institution (CDFI) loans that lend money to small businesses that may be considered risky for conventional banks 
• Track and monitor cash flow and expenses regularly
• Keep financial obligations, including making on-time monthly payments toward any debt obligations 
• Keep a lean budget and low overhead costs
• Save three to six months of operational costs to minimize liquidity risk

4. Buy insurance coverage

Wildfires, hurricanes, floods, among other natural disasters happen, and equipment like ovens, sewing machines, and refrigerators break. Or, you may lose income due to theft or experience a data security breach of your customer information—there’s insurance options for that, too. To help protect yourself, thoroughly research the types of small-business insurance policies available, and pick the ones that best suit your needs. Together with a business continuity plan, you can be better prepared should a business disruption occur.

5. Cultivate a loyal customer base 

When customers know they are valued, they are more likely to become repeat buyers. Ways to cultivate customer loyalty include:

• Honoring return policies and money-back guarantees
• Creating loyalty programs 
• Addressing any customer complaints or negative online reviews

6. Diversify suppliers and vendors 

A diverse group of suppliers and vendors ensures that your business can continue if one suddenly goes out of business or experiences supply chain disruptions. 

7. Hire experts

If you don’t have the expertise or time to perform certain specialized tasks, hiring professionals could be the solution to keep your business running smoothly. For example, consider hiring accountants, financial experts, or ecommerce consultants to help with financial and compliance responsibilities and prevention of security risks. 

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://bit.ly/3Cfdu4w

The article originates from: https://www.shopify.com/blog/business-risk