Last updated - July 8, 2021
An eCommerce business could sell both tangible and intangible products or services and furthermore reaches out to millions of people all over the world. From startups, small companies through big brands, there are a great number of enterprises that could benefit from eCommerce websites where they could sell their products and services. In the highly competitive world today and where a convenience-focused society, consumers no longer want to venture to the streets to buy. Rather they want to shop from the comforts of their homes, which makes eCommerce a flexible solution.
Nothing is more rewarding than starting a business from nothing, watch it grow and most of all to set it up in such a way that it will last in the coming decade.
Setting up a robust eCommerce business
It all begins with a robust and stable foundation for an eCommerce business to last for decades.
Choosing the platform
The first thing to do is to choose which platform to use for running an eCommerce business. This defines everything that you do as a business. Amazon marketing systems, for instance, are different from other eCommerce businesses, thus before anything else, you must define your platform.
There are two approaches, such as developing your own eCommerce store using Magento, WooCommerce, Shopify for selling products or using a platform like Amazon. Both have advantages and disadvantages to every approach.
Identifying the niche
The eCommerce market is vast. This means that there are many opportunities for customers, but a lot of competition for business as well. To stay ahead of the competition, it’s necessary for you to determine your niche. With a very wide business that covers different categories without real focus is very hard to market.
To succeed, choose your niche and be an expert in this field. When it comes to choosing a niche, consider going for products that are in demand, otherwise you’ll struggle with sales. Take into consideration your own interests since this hopefully would be something you work on for some time.
Determine the target market
Before embarking on an eCommerce business, another critical step is to know the target market. This determines an array of factors in running your business, from the development of products, prices to marketing strategy. If you are not sure of your target market, begin by creating an ‘avatar’ of the ideal customer. Think about that as an individual and describe the individual as much as you can, such as gender, age, geographical location, profession, shopping habits, lifestyle, and more.
The business name in eCommerce usually is the same as the name of the store, thus you would want to make this a robust name that reflects the brand. It should be something that relates to your niche. It does not have to be overly literal however. For instance, if you are selling car parts, you need not name your business as ‘Jack’s Car Parts’.
It should instead be something that’s auto-related. Furthermore, make sure to tie your business name back to the target market and make certain that it’s something that appeals to them.
Legalities in order
Before you proceed, make sure to sort out all legal paper works. Even for a fully online eCommerce business, the requirements are the same as setting up a brick-and-mortar store. They differ depending on location, but in general you would have to register with a relevant government body and get the necessary licenses. When you have launched your business, you should also report your income and profits to the tax department.
Finding the right suppliers
Depending on what kind of online store you have, the process of finding suppliers for products greatly varies. If you want to be an Amazon FBA seller, you would have a different relationship with suppliers than if you’re packing and shipping the products yourself. In all instances, having the right products and the best price and quality is critical. Consult at many suppliers as you can to find the right ones.
Formalizing the market strategy
To any business, marketing is critical and eCommerce marketing is no exception. You should formally lay out your marketing strategy to attract customers and determine how to market your business. If you’re selling on a third-party platform, this should include how you go about optimizing your listings to rank well in the search results. You would want to have visual elements such as logo confirmed and digital marketing outreach techniques.
The eCommerce space is plunging ahead. It is indeed a profitable venture. It has turned into an inevitable trend due to the fact that it’s an effective way of broadening your business. Whether doing business for yourself or for an enterprise, eCommerce is a great choice. Many suppliers opt to open eCommerce platforms where they operate and make profits. Furthermore, the platforms could also make profits via their services.