Are you curious to know what ghost commerce is? If yes then just stay with me till the end of this article and continue reading.
Here, in this article, we will talk about what is ghost commerce, how it works, and a few of its benefits and drawbacks.
With the perks of social media and digital marketing, more and more people are heading towards online platforms for their shopping needs.
While various types of eCommerce involve creating a website to buy and sell goods whereas ghost commerce goes a step further.
Ghost commerce uses these channels to market and sell products without physical inventory.
That is why, ghost commerce is becoming more and more popular since it has low entrance barriers. Ghost commerce is more effective for businesses that focus more on branding and marketing instead of logistics.
So, just stay with me till the end of this article and gather more information about ghost commerce.
Happy reading!
What is Ghost Commerce?
Ghost commerce is an online product selling strategy that involves advertising, marketing, and selling products and services without the need for a physical store.
Unlike, other e-commerce strategies, ghost commerce cuts the need to manage an online store. So, in the ghost commerce strategy, there is no need to create a store on Shopify and Amazon.
This online selling strategy shares similarities with dropshipping, influencer marketing, and affiliate marketing. However, what makes Ghost Commerce different from the others is the flexibility it offers.
Ghost commerce allows businesses to showcase and offer a wide range of products and services without the burden of inventory management.
However, recently, ghost commerce has become one of the most effective methods for generating online revenue.
Because of its cost-effectiveness, and ease of implementation, ghost commerce has become a highly sought-after method for businesses.
Having a website, or online store, a frequent presence on social media, and quality content, you can kickstart your journey with this approach.
How to Start Ghost Commerce UK?
Here are a few simple steps to start ghost commerce in the UK.
Step 1: Choose a niche and audience:
Choosing the right niche is the pillar of a successful ghost commerce business. You need to focus on a particular product or industry that you are passionate about.
You need to gather more knowledge about your chosen niche and market accordingly.
Then you need to identify your target audience and what their interests about. This helps you tailor your content to appeal to your target audience.
Step 2: Online Store Setup:
If you want to launch a ghost commerce business, you must ensure your online presence.
You can utilize one of the popular eCommerce platforms to create a website, add product listings, and ensure a seamless shopping experience for your customers.
Step 3: Supplier Selection:
Choosing the right suppliers crucial for a ghost commerce business setup. Suppliers play a vital role in the success of the ghost commerce business.
Partnerships with reliable and reputational suppliers and retailers ensure smooth operations of your business performance.
You do not need to handle or stick products directly as a ghost commerce business owner.
Instead, you can make a partnership with the suppliers and dealers to offer dropshipping service on your behalf. These suppliers or retailers will keep all the records of stocks and handle inventory.
Step 4: Set Up Payments Methods:
Setting up payment methods is crucial for smooth transactions and offering a frictionless shopping experience to customers.
You can offer a variety of payment options to your customers, it will help you maximize revenue potential.
So, you must look for a payment gateway that integrates your eCommerce platform and also supports a wide range of payment options.
A variety of payment options include credit cards, digital wallets, and alternative payment options.
Step 5: Execute Marketing Activities:
Marketing is the backbone of any successful ghost commerce business.
Effective marketing approaches are effective for driving organic traffic to your online store, increasing brand awareness, and generating sales revenue.
You can implement a comprehensive marketing strategy to attract new customers, engage existing customers, and build a loyal customer base.
Step 6: Use Data for Continuous improvements:
In the fast-paced world of ghost commerce business, data is one of the most valuable assets for you.
By leveraging data analytics and insights, you can gather more insights about customer behaviour, marketing effectiveness, sales trends, and website performance.
You can make data-driven decisions to identify areas for improvement, optimize your strategies, and ensure growth for your sales.
Step 7: Customer Delivery:
When your customer gets the product, they think it was sent to them by the online store. So, you must ensure that the packaging does not show the name or any details regarding your supplier, as per your agreement.
Pros and Cons of Ghost Commerce:
Pros:
Passive Income:
If you can properly set up your ghost commerce business, it will help you generate a passive income stream as most of the processes are automated. So, a ghost commerce business is a good side gig for individuals skilled in influencer marketing.
Flexibility:
Adapting to current trends and audience preferences, you can switch products or niches of your ghost commerce business. After setting up your store, you can feature as many products as you like if they perfectly match your store’s goals. You can list the items on your site if your supplier has them in stock.
Scalability:
Thanks to the absence of a physical store and inventory, you can easily adjust the scale to meet demand. This approach helps you easily respond to market shifts and customer needs. Thus, you can ensure your business remains competitive.
Cons:
Narrow Profit Margins:
As a ghost commerce business owner, your income will be limited to a fraction of the profit margin. So, it means your earnings can be, lower compared to running your store and selling your products.
Dependence On Third Parties:
When approaching a ghost commerce business, your inventory control is limited to some extent. Because you need to rely on suppliers and manufacturers for product delivery.
This means you are dependent on their reliability, and this may lead to customer dissatisfaction.
Reputation Management:
You are the direct face of your ghost commerce business, so you are responsible for maintaining your brand’s reputation.
However, we have earlier discussed that you do not have direct control over the delivery of your products to the customers. So, you must carefully choose reliable and trustworthy suppliers to maintain customer trust and satisfaction.
Conclusion:
Nowadays, ghost commerce has become a more and more popular business strategy. The ghost commerce business approach symbolizes the paradigm shift in the e-commerce landscape.
Here, in this guide, we have provided every aspect regarding what is ghost commerce and how it works.
by understanding and embracing this innovative approach, ghost commerce businesses can position themselves for success in an evolving online marketplace.
