Caught in the Original Plan
The plan from the very beginning was to use JuJuFire as a way to make money and to teach us everything we would ever need to know about South African eCommerce.
We focused on selecting the best online shop platform, the most suitable payment gateway and ensuring that the UX (User Experience) was minimalistic and inviting.
Our mistake was that we got too caught up in learning about eCommerce and ignored other ways to sell our product. We failed to see that value of selling our products through established retailers who, despite squeezing your margins, can be a great way to enter a market and establish the brand.
Physical stores still dominate the retail market. If we had used their distribution networks as compliments to our online shop from the very beginning we would have introduced more people to our products. This would have resulted in higher cash flow. With higher cash flows we could have invested more on advertising our online shop.
Failing to use this already established channel put us in the trap where we couldn’t spend more on adverting because we didn’t have cash-flow, and we didn’t have cash-flow because we couldn’t advertise our website.
by Craig Rivett