Let us help you understand how to start an eCommerce business. Much like starting any business, starting an eCommerce business is not easy.
How to Start an Ecommerce Business
Before we get into how to start an ecommerce business let us understand Why Should You Start an Ecommerce Business?
Some of the reasons for starting an ecommerce business are:
- All Business Schools teach that it is important to examine trends and to move into growth markets. Worldwide, the ecommerce market is growing at the rate of 10 to 25 percent per year. Its still not too late to start ecommerce. The opportunities are growing by the day.
- For brick-and-mortar businesses, location is of primary importance for both visibility and sales. For ecommerce, you set up an ecommerce website at your own domain and sell your products to the entire world from one online store.
- Most entrepreneurs have other business ideas they would one day love to explore. Once you have built up a successful ecommerce business, selling it may provide you with the capital you need to move onto greener pastures.
How to Start an Ecommerce Business
Much like starting any business, starting an ecommerce business is not easy. Let us break down how to start an ecommerce business into the following simple steps:
- Research the ecommerce space for your product or service.
- Research your competition and Conduct a Competitive Analysis
- Choose your ecommerce platform and create your ecommerce website.
- Market your ecommerce business.
Step 1: Research the ecommerce space and find your positioning.
To start an ecommerce business, you must perform the necessary research. If you were to start a retail store you would look at different locations, product options, and store layout themes.
Similarly, for an ecommerce business you will need to investigate the ecommerce area you are interested in. Once you have gathered data you will have to make decisions specific to your business. The kind of decisions you need to take are:
- What exactly your ecommerce business is going to offer.
- Will you be selling products or services?
- If you are selling products, are they physical or digital?
- Where will you source your products?
- What will be the pricing of your products?
- Will you sell in singles or packs or wholesale?
- What are the Promotions you need to run?
- How will you get your products or services delivered to your customers?
- What will your startup costs look like?
- Are there legal or other regulations on your product or service that you need to keep in mind?
Once you have the answers to the above questions you can start to create and write your ecommerce business plan. This ecommerce business plan will act as a roadmap and guide you on how to successfully reach your customers.
Step 2: Research your competition and Conduct a Competitive Analysis
ECommerce business means more competition than the brick and mortar business. Therefore, it is essential to perform competitor research analysis and find a space where you can establish your brand.
Keeping an eye on your competitors helps you anticipate shifts in the market. You can spot new trends, successful tactics and stay on the cutting edge of what works in ecommerce. You cannot compete effectively without knowing your competitors. Similarly, you cannot differentiate yourself if you do not know what makes you different.
Step 3: Choose your ecommerce platform and create your website.
Like a physical storefront, your website will be the face of your business. Your website is what your customers will see first and what they will use to browse and purchases your products or services. Creating your website is one of the most important parts of starting your ecommerce business.
These are the major activities you must take to build a successful ecommerce website:
- Finalize your domain name
- Choose an ecommerce platform
- Build your website
- List your products / services on the website
Step 4: Market your ecommerce business.
Your website is up and running. You have your products / services listed on your online store. You are ready to start acquiring customers. Now to start selling online you need to properly market your ecommerce business.
Once you start receiving orders, you must keep track of which marketing tactics are working and which are not. Remember you are investing money in online advertising and communication.
Your success is important to Origin Consultants. If you need us to start your ecommerce business please contact us.