What exactly is an eCommerce business?
An e-commerce business is one in which buyers and sellers trade goods and services with customers online.
Ecommerce is a model of business in which consumers and sellers trade goods and services over the internet. Business-to-consumer (B2C) and business-to-business (B2B) eCommerce are two common types.B2C sellers focus on selling products to consumers (or the end customer), whereas B2B sellers focus on selling products that other businesses may require.
It can be overwhelming to launch an e-commerce business. It doesn’t have to be.
There are a lot of things to think about, but you’ve got this. As you’ll see in a moment, a lot of online businesses started small, selling just a few products and then expanding.
This guide and checklist are for you if you want to start your eCommerce store or if you want to move from a physical to a digital business.
How to Start a New E-Commerce Business. From a Million-Dollar Idea to Running Your E-Commerce Store
Here’s How to Get Started:
Step 1: Research your business idea
Research your ideas before building a store. This will help you make decisions quickly and effectively. Sellers can choose which products to sell or build in a variety of ways.
When starting an e-commerce business, these are some common choices to consider:
- Identifying a problem that can be solved for a specific audience is crucial for a successful business. Even the most innovative ideas can fail if they lack support from customers.
- What obstacle or issue do you want to overcome? Who experiences that pain the most? Who would be most enthusiastic about overcoming this obstacle?
For instance, do you intend to produce high-quality kitchen tools? Then loyal customers might be those who enjoy cooking. Are you selling yoga mats that are thicker and last longer? If this is the case, yoga teachers and students might be your most ardent supporters.
- Consider the obstacle your product might encounter. Focus on the users who will truly appreciate what you’re trying to create. Your priorities will be guided by this.
- You don’t have to look very far to find a good product idea if you are observant. Because it is much simpler to quickly identify issues and requirements, people frequently sell to a group that they are already familiar with. To find product opportunities for people who have hobbies or interests that are similar to your own, think about your interests.
Step 2: Validating your product idea
The better your chances of success are, the more time you spend validating the product. Research how similar products perform and what potential customers might be looking for once you have identified your business idea.
To validate your idea, talk to potential customers.
Talking to people is one of the simplest and cheapest ways to determine whether your idea is worthwhile. Talk to people who are experiencing the most pain or frustration once you have determined that there is a problem that needs to be solved.
Reach out to a select few individuals to ascertain whether or not they are confronted with the issue you are attempting to resolve and how they currently deal with it.
In return for 30 minutes of your time, make an offer to buy a cup of coffee for five to ten people. Make use of your meeting to talk about the problem and find out if they would pay money to fix it or if it doesn’t bother them very much. Don’t mention the product you’re thinking of because it might affect the responses you get. Instead, concentrate on how they perceive the difficulty, how they currently deal with it, and whether or not they would pay to find a solution. What sum would they be willing to pay, if so? These inquiries can assist you in determining whether the product has a market.
Step 3: Sourcing your products
Finding the right source for your products is the next step after determining what you will sell and who your products will serve.
Your new online business will succeed if you sell high-quality goods. The key is not only selecting the appropriate product but also the appropriate supplier.
A few options for sourcing e-commerce products are listed below.
- Resell already-existing goods
Reselling is a popular option for Amazon selling partners because it can be cost-effective and relatively simple to begin. You can find suppliers for products by searching online directories and listings. You’ll need to get in touch with the vendor, place an order for the products, and then ship them to your store or business. After the products have sold, ship them to customers. Not only can establishing relationships with suppliers result in more cost-effective procurement, but they can also ensure a stable supply chain for your company in the future
- Produce or build goods
Producing goods grants you design and quality control. However, scaling this method may be challenging. Handmade products in small batches are preferred by some sellers. This makes operations easier to manage. This option also enables sellers to charge more for their products due to the perception of handmade goods as being of higher quality.
Consider artisanal or custom eCommerce selling options like Amazon Handmade if this is the path for you
- Work with a manufacturer
Directly working with a manufacturer to create products can increase your growth potential, but it is also the most difficult route for a new seller to take. Finding the right manufacturer, working with them to build prototypes to your specifications, and eventually placing your first order will require time and money. After creating a new product, you can develop a distinctive brand that will help you differentiate yourself from the competition.
Step 4: Choosing an online selling channel
You can sell products online through a variety of channels. Choose to sell products on an existing eCommerce website like Amazon or set up a website and host a branded eCommerce store on your domain name—or do both!
- Setting up your domain and e-commerce website
SEO, social media marketing, and online advertising are all ways to increase traffic, but they take time and money. Once orders start coming in, you’ll also need a way to handle them and fulfill them. Taking on this when trying to run your business can be difficult.
- Selling on a pre-existing e-commerce website
Using a pre-existing selling website with a lot of traffic can help you start selling online more quickly and successfully. Before investing in your website, this strategy also gives you a chance to find out what works for sellers, get reviews, and make money.
Selling on an existing website also eliminates the risk of overspending on a product before you have established a customer base. Most e-commerce websites that are already up and running will have campaigns to get more customers to visit.
Step 5: Setting up your online store
Now that you know what you want to sell and who you want to sell it to, it’s time to start your business.
- Choosing a business name
Because your name will be used to represent your brand, choose something easy for customers to remember by typing.
Look at other brands in your industry to come up with names if you know exactly what you want to sell. Or, you might think of a name right away. It might work for rock stars, but you should stay away from numbers and complicated symbols. Maintain a straightforward and easy-to-pronounce brand name.
An e-commerce store’s branding will help it stand out in the market. It is essential to leave a lasting impression that will entice returning customers. You don’t want the product to get lost in a sea of rivals’ offerings that lack distinctive features.
- Building your online storefront
Getting orders is a great way to test your business idea. Better to get going as soon as possible!
- Creating competitive product listings
Customers will read product descriptions to determine whether a product will meet their requirements. Include everything a potential buyer needs to know to make an informed decision in your comprehensive description.
Be thorough, clear, and honest with your descriptions—inaccuracies can hurt your reputation, and cause complaints. However, descriptions need not be monotonous. Put yourself in the shoes of your customers and come up with entertaining and interesting explanations of how to use the products.
