What do successful virtual stores look like? Check it out here!
With the rise of the internet just before the 2000s, many entrepreneurs sought to use the world wide web to expand or create their business. This tool was used as a means of promotion, sale and shipping to different places in the country (and later, the world), aiming to strengthen your brand and monetize through a successful online store.
Today we bring together two examples of success, in which we tell a little of their trajectories, from the foundation and difficulties to the triumph. Want to know more? See our article!
The challenge of creating an online store
In Brazil, we have the example of Marcio Kumruian, founder of Netshoes. Together with his partner, Hagop Chabab, they had started a business, a physical shoe store in Sao Paulo, in the year 2000.
Working alongside a college, they considered taking advantage of the student movement around the area and trying to get their first clients.
To expand, in 2002, both partners decided to open their internet venture as a way to increase the company's sales.
Across the hemisphere, Chinese Jack Ma, creator of one of the world's largest e-commerce companies, Alibaba, founded his first online company in 1995 after visiting a friend in the United States, Bill Aho. In the US, Ma met Bill Aho's son-in-law, Stuart Trusty. It ran one of the first US providers, the VBN.
Ma wondered how he could use technology in his homeland. When he returned, he created China Pages, where his goal was to help companies in the country look for customers to sell abroad.
The successes and mistakes in the venture
For Brazilians, the beginning was not easy. In its first month, the store was unable to sell any products.
The movement began to emerge only in the third month, when they closed a sale of a pair of shoes. The following month, they sold two pairs. Sales rose gradually and in 2007 made the difficult choice to close their only physical store. Although friends and family of the duo found it crazy, Kumruian saw that it was necessary to focus only on e-commerce.
The Chinese were not so lucky. Even with the hard work of visiting his customers knocking door to door, Ma was pressured to form a joint venture with Hangzhou Telecom. The deal caused the government to take control of his company, prompting him to look for a job again again at Infoshare, an online advertising agency set up by the Chinese Ministry of Commerce. The work was not enough, and after 14 months, Jack Ma decided to undertake again.
In 1999, Jack created Alibaba along with 17 friends. The group was meeting in their apartment at the Lakeside Gardens condominium in Hangzhou.
His new mission was to set up a kind of online meeting room where Chinese companies could negotiate with their customers: distributors and dealers from different parts of the world.
The idea caught the attention of banks such as Goldman Sachs and Softbank, which decided to fund the project with an investment of $ 20 million, increasing the venture's growth.
The search for results
In both trajectories, entrepreneurs encountered several challenges, but with persistence, they achieved great results.
The Brazilian company currently reaches revenues of more than 1.3 billion reais per year, although still not making a profit.
To stay on top, the company invests all the value it receives to improve its brand, whether by bringing competitive pricing, outreach and improving customer satisfaction.
Across the world, with the expansion of new products and services, Alibaba Group is valued at over $ 25 billion.
To achieve these great results, both companies focused on customer engagement. Bringing quality into your products and providing good service to them.
One of the main ways to improve customer relationships is through a well-developed website that offers a pleasant experience where users can quickly find products in different categories and feel safe when making a purchase.
Know any similarly successful online store stories? Comment below!