https://boomecommerce.com.au/wp-content/uploads/noun_Search_1555405.png100100Iain Calverthttps://boomecommerce.com.au/wp-content/uploads/Aussie-Ecommerce-Training-1-300x300.pngIain Calvert2020-07-07 17:01:362020-08-15 10:13:36If you’re changing eCommerce platforms you need an SEO migration
https://boomecommerce.com.au/wp-content/uploads/noun_growing_3353374-2.png100100Iain Calverthttps://boomecommerce.com.au/wp-content/uploads/Aussie-Ecommerce-Training-1-300x300.pngIain Calvert2020-06-30 16:37:082021-08-31 11:06:53What’s the average eCommerce conversion rate in Australia?
With that out of that way, how should display charging GST to your eCommerce customers?
A mistake we often see here at Boom Ecommerce is eCommerce stores adding GST to the displayed price of a product. For example…
When a business is selling to another business (aka B2B) that is expected, because the business can often claim it back.
However, when selling directly to a consumer, they can’t claim it back. Therefore $99.00 becomes $108.90.
Even though you have been upfront with your customer the price is plus GST and not everyone buying from you understands GST.
Therefore if you’re selling directly to a consumer (i.e. not a business) always quote your prices including GST.
It will save your customer service head aches later on.
Why do eCommerce businesses quote prices plus GST?
Many business owners are used to dealing with GST.
They are essentially collecting a 10% tax on everything sold in Australia then passing it straight to the tax office minus any GST they have paid for things they need to run their business.
Because of that, they never like to include GST in their revenue and charge it on top of the product price.
The issue is, end consumers don’t understand GST as well as them and it leads to confusion.
Long and short of it, if you’re selling to consumers include GST in your pricing to avoid annoying your customers.
https://boomecommerce.com.au/wp-content/uploads/noun_dollar_918997.png100100Iain Calverthttps://boomecommerce.com.au/wp-content/uploads/Aussie-Ecommerce-Training-1-300x300.pngIain Calvert2020-06-29 09:05:552020-08-23 21:56:20Should you quote plus GST on eCommerce pricing?
https://boomecommerce.com.au/wp-content/uploads/noun_youtube_897673.png100100Iain Calverthttps://boomecommerce.com.au/wp-content/uploads/Aussie-Ecommerce-Training-1-300x300.pngIain Calvert2020-06-26 09:10:002020-08-21 15:07:03How To Advertise Your Ecommerce Business In Australia
Passive income or businesses require very little input after being setup. Ecommerce businesses that last more then a few months require careful management, no matter what team and processes you put in place.
An example of a passive income is stocks and shares, for example you could buy an Exchange Traded Fund (Company buys all the top stocks in Australia, charges a tiny fee and you get the returns). With an ETF all you have todo is buy it, keep an eye on how it’s doing then report it in your taxes each year.
That is a passive for or income.
Ecommerce businesses aren’t passive. In a usual month you’ll typically need todo the following…
Upload new products
Write new products descriptions
Setup or manage advertising campaigns
Respond to customer enquires your team can’t handle
Process returns (Some fashion stores get 40% returns)
Quality check manufacturing
Manage cash flow to pay for everything
Even if you have someone or an agency helping you do each of these, you’ll have to manage all of them.
Is Ecommerce A Good Business Model?
If done correctly yes. They can generate a lot of cash (cash is better than profit on paper) and they can scale better than service based businesses, but not as well as online service businesses.
Don't Expect To Turn Up On Monday To Lots Of Orders
This is common misconception. Setup eCommerce site orders will follow and I just send them off.
That is the easy bit, it’s everything else llisted above that is hard.
Is Dropshipping Easy?
The dropshipping gurus selling course on Facebook Instagram would have you believe it is (for gods sake, don’t click them or it’s all you will see for the next month).
“Don’t deal with stock, just sell”
It is never that simple. Dropshipping means delayed deliveries (30-60 days), which means lots of customer complaints. You can’t control product quality and who sells it, which leads to price wars and decreased gross margins (percentage you’re left with after you’ve paid for the product to pay all your other bills).
Then if you do get a product that sells well, it might only last a few months, leaving you to search for the next “hit product”.