Aug 27, 2012

Ecommerce: Start with a Digital Location

The American dream, at least for me, is the capability to capitalize on the intrinsic values of entrepreneurship. In the digital age, entrepreneurship goes hand in hand with ecommerce. This blog could literally be one hundred pages detailing the exact aspects of how to market your ecommerce business. Luckily for both of us, this is a blog and not a book, so therefore I say forget about the marketing plan for one second and lets think about the true tip of the spear - your domain.

What’s the golden rule of retail? Location, location, location. In this case, a tangible location equals keywords a.k.a. domain verbage. Picking good domain verbage is truly a progressive marketing tactic for ecommerce when it consists of snippets of both your company name and industry, or better yet just your industry and a powerful selling verb. Forget about brand saturation if you have a small budget and focus on the most efficient way for search algorithms to calculate that you are more likely to provide a better user experience than other companies who are dumping millions into search campaigns. Work smarter, not harder. 

Take into consideration for a moment a unique and quirky company name such as oh I don’t know… ‘Amazon’, which, up until the last decade or two, was mainly associated with deadly fish and incredibly large snakes. This same word now sits on top of a multi billion-dollar search marketing industry in regards to individual product promotions. Why? Because Amazon’s marketing budget is ridiculous. So how can the average Joe wanting to start an ecommerce venture circumvent such an issue? The answer is by getting a smart location. Amazon may be the Walmart/Target/Sams/every thing you may ever need all in one spot super center, but its all advertising and no property management. This means that yes, Amazon may sell Spalding volleyballs via various enterprise level vendors, but if you are a digital reseller of Spalding and own the domain, guess what, your ahead of the game, even if your official business name is something totally different than Spalding.

There are two overall points to make about digital locations. First, domains are an ecommerce ecosystem in of themselves in that domain “flipping” can be an extraordinarily profitable business, so never limit yourself to what you make money off of in an Internet enterprise. Second, consider the fact that every successful franchise business in the world spends an incredible amount of money and time prospecting new physical real estate. In the digital world, you do not necessarily have to inhabit domains that are close to your active ecommerce site’s verbage. However, if you own a bunch of domains (real estate) that closely resemble it, especially with different suffixes (.net being the most worthwhile to buy), then you can expand your territory with out much overhead and prevent copycats from poaching search traffic.   

As with any business, you will not be rewarded without taking a risk. Just make it a smart risk.

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