If you’re looking into starting an eCommerce business, you’ve picked a great time. Global eCommerce retail sales are forecast to rise by 16.8% in 2021 to $4.921 trillion, climbing by 25.7% in 2020, according to eMarketer.The COVID-19 pandemic has accelerated the shift to online retail, and sales are growing rapidly.
It can seem daunting to launch a new business from scratch, but we’ve got you covered. Here are the basics you need to know about how to start an eCommerce business.
Decide on Your Business Model
Once you’ve decided to start selling a product online, you need to decide how you’ll sell it. Will you sell directly to consumers, or will you supply other businesses? Which method will you use for sourcing stock – will you use dropshipping, print on demand, or private labeling?
You should have a clear idea of how you’ll sell your products and who you’ll sell them to before you start operating. You need to have an established way of sourcing stock to avoid selling out of products and losing momentum.
Find Your Niche
It’s unlikely that your eCommerce company will become the next Amazon, so it’s important that you target a specific niche market to run a profitable business. Conduct market research to find opportunities that are not dominated by bigger businesses.
Identify your target customers and design your brand to attract them. Your business will be successful if you can build a loyal following for your brand in an undersupplied market.
Create a Business Plan
It’s vital to set out a business plan that acts as a roadmap for how you’ll operate and expand your business. It will help you to set the priorities for your business and avoid common mistakes.
The plan should detail your business objectives and how you intend to achieve them. It should include your key market research, marketing strategy, and financial projections.
If you need business funding, a tailored plan will also help you with getting a business loan from lenders or investors.
Register Your eCommerce Business
You need to register your eCommerce company name, register for taxes, and obtain any operating licenses or permits you need before you can start trading.
Decide on the most appropriate company structure for your business, whether you’ll operate as a sole trader, limited company, or a partnership with someone else. Open a business bank account to manage your company finances.
Set Up Your eCommerce Store
Register the domain and hosting for your eCommerce website. Select an eCommerce platform such as Shopify, BigCommerce, or WooCommerce and set up your online store.
Add your product listings and other content to the store, and you’re ready to start selling.
Market Your eCommerce Website
Once your business is ready to start making sales, you need to implement your marketing plan to spread the word and attract customers.
Search engine optimization (SEO), pay-per-click (PPC) ads, email marketing, social media, sponsored content, and affiliate marketing are all effective methods.
Follow These Tips for How to Start an Ecommerce Business
Now that you know how to start an eCommerce business, you can get started right away. Be sure to do your research and write a detailed business plan so that you have a strategy to keep you on track.
For more advice on running a business, check out the Business Talk section on the blog!