Why branding is crucial for e-commerce

When we talk about a brand, the first thing that comes to mind is the logo, company colors, or similar visual aspects of the business. The truth is a brand goes way beyond what we can see. 

While colors, shapes, and aesthetic aspects are the mental image people have of your business, other associations may trigger the practical memories consumers have of your business and psychological perceptions they may consciously or unconsciously keep about it.

For example, in the practical aspect of your brand, a former customer will remember if your service worked as advertised or not. In the psychological aspect, they would evoke how the interaction with your products or services made them feel.

While this may sound simple, it’s very powerful when it comes to making or breaking a company. A study published in the Journal of Applied Development Psychology showed that by age two, children knew the symbols of between 8 and 12 brands on average, even if they were not sure what products the brands sold. Just imagine if people brought you into conversation because you’re their first thought when talking about something they did, bought, ate, experienced, or liked. What would be their first choice when a purchase decision arrives? Who would they refer their family and friends to? That’s the power of branding in business! 

Now, let me put this in the perspective of e-commerce to emphasize its importance.

1) Good branding sets you apart

Do you know how many e-commerce businesses there are in the world? Believe it or not, there are more than twenty million (Shopify alone hosts 500,000), so if you don’t differentiate and stand out, you’re already limiting your opportunity for growth. A company with an eye-catching logo, a brand message, and visual elements that complement the message, is always more likely to win customers over those that just set up a store and expect to acquire a good market share.

2) Emotional connection is the next level

You can acquire customers by investing a load of cash in aggressive marketing, but that would most likely turn your business into a one-off sale. If you create trust, you’ll not only sell once but get loyal returning customers. Rather than just putting the product in front of your target audience, focus on building an experience that resonates with them.

3) A strong brand shows you are well-established

People judge books by their covers, it’s natural. When your company’s branding is weak you unconsciously deliver the message that you are not fully organized and established. Your buyers will most likely never see your face or hear your voice, but your brand can be your social proof and make all the difference in them deciding to click that “Shop Now” button or going elsewhere.

I hope this advice resonates with you so you can focus on building a stronger brand for your business.

- Austin Wright

Austin Wright is the founder of The California Beach Co. and franchisee to multiple Anytime Fitness Centers. He has a passion for entrepreneurship, real estate, and health & fitness. Austin and his teams believe in delivering quality and value, creating best-in-class products, great relationships, and higher retention along the way.