1. Ecommerce is built on repeat customers.

There are so many websites on the interent. You need to ask yourself why someone would choose to do business with you. If you're selling products online it's critical to take care of every customer. The cost to acquire a new customer is so high you'll most likely never make money off the first sell. It's the returning customer that is going to make your business. On the flip side - if you win a customer online chances are they will keep coming back to you rather than take a chance on yet another online business.

2. Don't compete on price.

Competing on price online is a deadly game. The internet has created a business environment where commodities can be bought and sold with absolute efficiency. If you compete on price alone you won't have enough margin to win repeat customers and there will always be a competitor who can under cut you on price. Time and time again I've seen this death spiral. Set your prices at a level where you can take care of the customer. Focus on building value in your products and differentiating yourself from competitors. That usually means working harder at first. It will be worth it in the end.

3. Be wary of so called experts.

When it comes to online businesses there are more experts than there are successful businesses. Realizing that in itself should help you understand how you need to be wary of people who claim to be an expert. If someone is claiming to be an expert at something ask them to show you proof of their work and then verify that proof. True experts rarely sell their services because it usually makes more sense for them to apply their knowledge than to teach it.

4. Don't focus on the competition.

All too often I see people get hyper focused on what their competitors are doing. I suppose this is natural because it's easier to take ideas from a competitor than it is to have an original creative thought. The truth is your customers will tell you exactly what you need to do. Listen to what the customers are saying they want and not what the competitors are doing.

5. Customer service is an investment and not an expense.

As I mentioned earlier. Having a successful online business is all about repeat customers. A lot of people make the mistake of thinking online businesses need less customer service. They may actually require more. You need to look at every contact you have with a customer or prospect as being an opportunity to win that person to your side. Stay organized and do exactly what you're telling the customer you're going to do. You may not always turn a profit on a customer right away but in time they'll tell their friends and come back again and become profitable for your business.

If you have't yet launched a website go to WebStarts.com and make a free website today.