September 19, 2019
How to Make Money With an Ecommerce Store With Gretta van Riel

How to Make Money With an Ecommerce Store With Gretta van Riel


(upbeat contemporary music) Hi guys, Gretta here. So a common question that
I get asked again and again is how do you make money selling
physical products online? From my experience building
four e-commerce stores and making over eight figures selling physical products online, I’ve put together a framework that works extremely effectively. Now I worked with Foundr
to turn that framework into a course called Start
& Scale Your Online Store that thousands of entrepreneurs have taken and achieved some incredible results but I’ll chat to you
more about that later. So now I’m gonna take you
through some of the steps to get you on the way to making money selling physical products
online with an e-commerce store which I’ve taken directly out
of the Start & Scale course. So step one is to find a trending product and a point of difference. Step two is to look at the
viability and validate your idea. Step three is to manufacture
your product locally to begin with, then move globally. Step four is to create
your store using Shopify. Step five is to build an audience before you launch your store, and step six is to launch and scale. Okay, so let’s dive deeper
into each of those steps now. So step one is to find a trending product. There are a few different
ways you can go about this. Some really good places to
start to do your research are websites like Trend Hunter which you can search in niches
that you’re interested in and read about innovative products. Another option is looking
at websites like Kickstarter and which products and ideas are receiving a lot of financial backing. This also helps to validate your idea. The next thing that we want to do after we decide on our niche and product is to make it different. So while you don’t need to come up with some crazy new patented
idea or reinvent the wheel, you can make your product
different or better by changing a dimension
of an existing product to find your unique value proposition. The things that you want to look at here are the product’s design,
functionality, price, and time it sold for. So let’s take a mobile
phone case for example. To change the design we
might wanna use the trend of customization or personalization where you can add your
initials to the case like the brand The Daily
Edited in Australia which is worth around $30,000,000. To change the functionality you might wanna add a handle that you can slip your fingers through like the brand LoveHandle has. This helps with people who
often drop their phone, especially while using it
one-handed for a selfie. So when adding a functionality you should be trying to
solve an existing pain point of the product. When it comes to pricing
you want to consider whether you’re going for that
direct-to-consumer price point with products starting at
under $100 like Warby Parker or luxury pricing for higher exclusivity. And then moving onto time, the amount of time your
product is available. Some companies have done this
through limited edition models like Yeezy’s or a flash
sale model like Gilt. So that’s how to come up with
your unique value proposition. Step two is to look at the
viability of your product to be sold online and shipped worldwide and to validate your idea. So when looking at the viability of your product for e-commerce we wanna make sure that
your product is light, cheap to produce, and
high in perceived value so that you can have a good profit margin. This means that your product will also be financially viable. So you wanna consider these factors before beginning to
manufacture your product. The next thing that you want
to do is validate your idea. There are a few different
ways you can do this but I’d just get out there
and start talking to people and surveying them, not
just your friends and family but your actual target audience. To find your target audience you can create what’s
called a customer persona which you can Google
to find out more about. So now that we’ve got our
product idea and validated it we can move on to step three
which is manufacturing. What I recommend here is to create a prototype
of your product locally to begin with and even run
your first order or two with your local manufacturer and then decide to move globally. The reason to create a prototype
of your product locally before going overseas is that overseas manufacturers
in China for example are often great at copying a product but not as great at
creating one from scratch. This could be because there’s
a lot of back and forth and there might be a language barrier. Plus they’ll usually require much higher minimum
order quantities or MOQs and there’s always the risk
of working with somebody you’ve never met before
from another country, and I’ve learned this the hard way with my brand SkinnyMe Tea. We placed an order with
a Chinese manufacturer for 1.3 million dollars’ worth of tea and when it turned up
it was basically compost with metal bolts in it
and all kinds of bacteria. It cost another $14,000
just to throw it out and it cost an additional $80,000 when it had been held up in customs. It’s hard because I thought
I’d done everything right. I’d placed smaller initial
orders with the manufacturer and even met with him
multiple times in person before placing the order as I was living in Hong Kong at the time. So this is a strong lesson on why to manufacturer locally first and then only when you’re
confident you can go overseas and make sure that your
manufacturer comes well recommended. Step four is creating your online store and this is gonna be an easier one as I create all of my
online stores with Shopify. With Shopify you can pick a theme then basically create
your entire store yourself if you want to. You don’t need any technical knowledge, just a computer and an
internet connection. They have a big app store
where you can choose apps to add to your store for things like a abandoned cart recovery or specialised popups. I’m a huge fan of Shopify and we even won their Build a
Business competition in 2013 for SkinnyMe Tea and have collaborated with
them again more recently. I know the team well. They’re worth billions of dollars now and they’re the best
solution on the market. Step five is to build an audience before you launch your store and my concept of market product fit as opposed to product market fit. This concepts highlights the importance of building an audience or a market before you launch your product rather than the other way around. So building an audience
before you launch your product is a great place to start and where I started for all of my brands has been on Instagram. Instagram is still a very
powerful marketing platform where you can build an audience for free or with a very minimal budget. Over the last six years I’ve grown my combined Instagram following to over 16 million followers
across 25 different accounts including Vines with
5.7 million followers. Foundr actually runs the best
Instagram course on the market that teaches you step-by-step how to grow your Instagram following called Instagram Domination. So if you’d like to
find out more about that I’ll put the link in
the description as well. Okay, now we’re at step six,
which is to launch and scale. Before you launch you wanna
build an email wait list to email out to when you’re launching. What you can do is create a landing page and incentivize your
social media followers to sign up for early bird discounts or first access to your brand. What you want to do is build as much hype
and demand as possible before you launch your store. Once your store is live you
want to start scaling it. The two ways that you can
get more sales in your store is sell more to your existing customers or find new customers. So I’m gonna cover a couple
of techniques for each. So if you want to sell more
to your existing customers you want to look at ways
of increasing your AOV or average order value with
techniques like up selling and cross selling and focus on things like
abandoned cart recovery. To scale your store by
acquiring new customers you wanna focus on things like
social media marketing again, influencer marketing using a tool like my influencer marketing
platform Hey Influencers, growing your email marketing
list, paid advertising, content marketing, the list goes on. So that’s it guys. I’ve covered quickly step-by-step through how you can make money selling physical products online. If you wanna be guided through
my exact repeatable framework that I’ve used to start and scale my multiple e-commerce
brands again and again you wanna check out my course with Foundr called Start & Scale Your E-Commerce Store which you can find out more about in the link in the description. So thanks for watching guys and if you want more content
from myself and the Foundr team be sure to hit subscribe below. (upbeat contemporary music) – [Presenter] The Foundr
mission is to help you create an ass-kicking business and help you learn straight from the mouths
of world class founders. Get your free printed
edition of Foundr magazine featuring Sir Richard Branson. Just cover shipping and
handling at foundr.com/branson.

19 thoughts on “How to Make Money With an Ecommerce Store With Gretta van Riel

  1. Love the "million dollar manufacturing mistake" lesson from step 3. It's great to hear war stories from actual experience!

  2. What about registration of your brand name? This is essential, unless you like letters from laywers.

  3. hi Gretta your videos are actually a big learning for me, i can't afford to miss any of your videos thanks so much

Leave a Reply

Your email address will not be published. Required fields are marked *