The e-commerce landscape continues to grow at a significant rate. As the volume of e-commerce transactions rises, so too has the number of entrepreneurs aiming to break into the space. But as many fall into the trap of moving and launching too quickly, what is the solution?
Narek Vardanyan is the co-founder and CEO of product development ecosystem TCF and product validation platform Prelaunch.com. Here, he uses his expertise to explain the importance for entrepreneurs to validate their ideas before launching their products.
In recent years, the world of e-commerce has experienced a significant surge in activity. With the rise of online shopping, more and more consumers are embracing the convenience of purchasing goods and services from the comfort of their own homes. This has created a vast digital marketplace where entrepreneurs can launch their products to the mass market.
The influx of entrepreneurs turning to e-commerce to launch their projects for the mass market has become increasingly common in recent years. The desire to quickly acquire customers and establish a presence in the ever-growing digital marketplace is driving more entrepreneurs than ever before to launch their products online.
However, while the benefits of e-commerce are clear, launching a successful online business requires careful planning and execution and, most importantly, pre-launch concept validation.
Validation is the process of testing a product idea in a controlled environment to determine customer interest, identify potential problems, and ensure that the product meets customer needs. This is crucial for e-commerce businesses because failing to properly validate an idea before launching can lead to costly consequences, both financially and reputation-wise.
Idea validation is the first step
Firstly, idea validation allows entrepreneurs to understand their target market and customer needs. You need to make decisions based on people’s actual behaviour and make sure that the data you’re tracking is coming from the right types of people.
By gathering feedback from those individuals, entrepreneurs can gain insights into what’s popular among their target audience and determine which products are most likely to be successful in the marketplace. This can help entrepreneurs avoid costly mistakes early on while also allowing them to build their target market more effectively.
For instance, let us say an entrepreneur aims to launch a new vegan snacks line. They may discover their target audience is seeking high protein content snacks or looking for gluten-free options. By comprehending their customer needs and target market, entrepreneurs can create products that meet customers’ expectations, gain competitive advantages and harness the e-commerce world.
Understanding your product’s ideal price
Validation can also help entrepreneurs ensure that their product pricing meets customer expectations.
The digital marketplace is highly competitive, and prices can drastically change from one day to the next. This makes it essential for entrepreneurs to understand what their customers are willing to pay for their product or service. Validation processes can help entrepreneurs determine the right price points that meet customer expectations while still turning a profit.
By conducting market research and gathering feedback from potential customers, entrepreneurs can determine the right price points that meet customer expectations while still turning a profit.
The feedback can reveal whether customers are willing to pay more for high-end features or are looking for budget-friendly options. By grasping their customers’ price expectations, entrepreneurs can price their products effectively and gain a competitive advantage in the e-commerce arena.
How to effectively validate your e-commerce product in 2023
Gone are the days when entrepreneurs had to rely solely on traditional methods to validate their e-commerce ideas. Thanks to modern technology, entrepreneurs can now utilise platforms like Prelaunch.com to validate their ideas without spending a fortune on focus groups, costly tools, and other resources. By using these digital tools, entrepreneurs can access a wider audience and gather feedback from potential customers around the world while still maintaining control of their budget.
Below are 4 tips that can help entrepreneurs have a successful validation process:
1. Create a landing page
Entrepreneurs can make a huge impact on their business when they assess customer interest and gauge demand properly. But how? Well, one way is by creating a separate landing page for each offering and conducting thorough testing in the market. For projects on Prelaunch.com, we make tweaks one parameter at a time to see what sparks greater interest and works best. You can make changes to pricing, messaging, visuals, and anything else while tracking your audience’s behaviour.
2. Set up the pre-order system
If you’re trying to try to find out whether your users are serious about buying the product they see on the page, run a pre-order. The reservation model introduced by Prelaunch.com platform is a savvy way to measure product market interest. The user sees the product and is interested in it. You can offer your customers a discount if they put down $10 today and pay the rest later. This not only measures their buying intent but also helps you compare your user engagement against benchmarks to see how well you’re doing. As a result, the e-commerce owners will end up having two large lists: of people who are interested in their product and people who are their potential customers.
3. Analyse your data and benchmarks
After laying out the page and setting up the pricing system, it’s time to get those visitors coming in and start diving into the data. The Prelaunch.com platform tracks over 35 data points in total. We see how long visitors spend on the page, whether they’re asking questions or commenting, what parts of the page they interact with, and more. With this data, you can gather important insights and make informed decisions about your product.
4. Build community
To succeed as an entrepreneur, it’s critical to gather feedback from potential customers and build a community of early adopters. Conducting surveys can provide valuable insights into your target market, including which features are important and what they’re willing to pay. Social media campaigns are another effective way to engage with your audience and build a following. Finally, don’t forget actually to talk to your customers and seek out their feedback. With these strategies, you can better understand customer expectations and refine your product for success.
‘Taking the time to prelaunch products’
In conclusion, the e-commerce world is rapidly evolving, and it’s becoming increasingly important for entrepreneurs to validate their ideas before launching their products. By leveraging the right tools and resources, entrepreneurs can successfully validate their e-commerce products before launching them in 2023. This is essential for ensuring customer satisfaction, growing revenues, and gaining a competitive advantage in the market. Taking the time to prelaunch products.