Since its invention in 1979 by entrepreneur Michael Aldrich, E-commerce has made it easier for businesses to market their products to billions of customers worldwide. Starting your eCommerce business in the right way is necessary if you are looking to build a strong business foundation and attain steady financial growth.
This article will guide you on how to start an eCommerce business in 10 easy steps.
What is eCommerce Business?
An E-commerce business is simply the buying and selling of products and services through an electronic network(internet). It also includes the transferring of money and data through the internet.
10 easy steps to start an eCommerce business
Decide on your business structure
There are several business structures, choosing the one right for your intended business is necessary. Examples of business structures include Sole proprietorship ( you will be the sole owner), Partnership (one or more owners), Limited Liability Company(LLC), Corporation, and Non-profit. Your choice of a business structure should be one that will accommodate the liability you will incur, your tax status and more.
Choose your business model
What type of business will you like to operate? This is an important question. Will your business cater directly without the use of wholesalers or retailers to your consumer or will it be supplying directly to other businesses?
The various eCommerce business models are Direct to Consumer(D2C), Business to Consumer(B2C), and Business to Business(B2B).
While choosing your business model you should also consider how your business products will be sourced and distributed. It will help you to make a good choice.
Will it be a white label(bought and sold from another company but you can add your original design), private label ( Have your brand design and name but will be manufactured from a third party company), drop shipped ( bought from your store but orders will be fulfilled by your suppliers), wholesale to other businesses, or a subscription service? These are important questions you should consider before you make your choice.
Select the right products for your business
Picking the right products for your business is integral to your business success.
While selecting your business products you should consider their likelihood of being sold. Choosing trending products relevant to your potential customer’s needs and one that makes it different from what your competitors are offering will be beneficial to your business. However, it should also be one are passionate about.
You can discover trending products from online marketplaces or through internet keyword searches.
Decide on how and where you will get your business products from
This could be done by drop shipping, bought directly from a wholesaler, DIY or through partnership with the manufacturer of your intended product.
Considering if your business products will have to be customized, or require warehousing and inventory management will help your decision.
Discover and build your Unique selling proposition( USP)
Your USP is what will make your e-business stand out amongst its competitors. You should build your product price, quality and style to function appropriately in meeting your target audience’s needs despite their location.
Discovering your USP will also help in determining your product positioning and building your eCommerce business into a brand.
Write your eCommerce business plan
The success of every business is dependent on its business plan. In your business plan state how your eCommerce business is going to operate and outline how it is going to keep your potential customers and partners satisfied.
Pick your business name and logo
When deciding on your eCommerce business name and logo, you should choose one that is unique and captures your business essence and personality. Your eCommerce business name should be search friendly, unique and available as a domain.
Choose the eCommerce platform you would like to create your business store
This is a necessary step because your business must be on an eCommerce platform. Choose an eCommerce platform that has a flexible analytics tool and one that is equipped to operate your Ideal eCommerce store.
Register your business name and set up your eCommerce store
Register your business name on the eCommerce platform and with the appropriate commission that handles business affairs in your state. While setting up your online store provide clear and concise descriptions of what you sell through a well-structured online store layout, Call to Action(CTAs), and high-quality images of your products.
Manage your eCommerce business store to succeed
After setting up any business, proper management is necessary if it must actualize your business aims and goals.
You should employ a variety of marketing options(Social media) to advertise your products to your eCommerce business potential customers. You can use ads and also analytic tools to track your eCommerce business performance over time.