A Step By Step Guide to Starting an Ecommerce Business in 2021
We’re all familiar with online shopping and use certain websites on a daily basis. For customers, online shopping is no less than a blessing as they can order things they like within minutes. Even for business owners, eCommerce is a cash cow. If started right, an eCommerce business can help gain great financial benefits.
The eCommerce industry is at an all-time high due to the global pandemic. This has led to more businesses taking interest in this industry. If you’re one of those, this blog is for you. Our step-by-step guide will help you take steps in the right direction. It will also help you clear out any confusion that you may be having in your head.
Step #1: Examine Ecommerce Business Models
Research is the fundamental step to starting any business. You cannot just jump into the deep end of the pool and expect to excel. Today, you call sell just about anything on the internet. From digital products to physical and fragile goods, the online shopping world is humongous. So, make sure you research different business models and then proceed with the rest of the steps.
A great way to do this is by reading case studies. Reading them will give you an idea of how to get started, what challenges you will face and how to deal with them. Not researching enough can impact your business structure. If you are not sure how to begin, just consult a professional and give ‘research’ as much time as you can.
Step #2: Niche Research
Before contacting professionals for eCommerce website development services, you need to focus on what you want. Don’t just straightaway copy Amazon or eBay and fill your store with dozens of products and categories.
Choose a niche that suits your budget and opens doors for success. Identify successful companies that are working in the space you’re interested in. Don’t choose a niche that is already crowded or dominated by reputed brands. We suggest drilling down to a specific niche, where you won’t face much competition.
Selecting a niche also allows you to undertake other niches that are related to but not the same as your niche. It enables you to work together with other businesses, opens doors for cross-promotion, and enhances your customer base.
According to us, you should choose a product category with at least a thousand keywords. Additionally, we recommend picking a niche that has the potential to do well on social media. This way, you can easily step into affiliate marketing and gain financial benefits from it.
Step #3: Choose Your Target Market and Product Ideas
After identifying a business model and niche, we’re sure you may be tempted to pick the products to sell. Not yet though! Before you hop into the product ideas, decide on a persona. No one will buy your products if you don’t really “know” your product.
Ask yourself questions like:
● What does my online store portray?
● What is my target audience?
● What should be my brand’s name?
It is vital for you to envision a brand image that is consistent. To determine your target audience, use Facebook. It is easy to use, accurate, and allows you to filter detailed demographics.
As a business owner, you need to ensure that your online store’s persona matches your products and customer expectations. After determining what brand image you want to portray, think up product ideas. Start with one product idea first and then look for more. This means, you will start with low investment and you’ve tested the waters, you can move to affiliate marketing.
However, you need to be certain about the product you choose. Conduct thorough research on it and try getting a feel for the product. You need to understand the product in and out before choosing to sell it. Doing so will prepare you to answer customer questions and concerns.
Step #4: Registration
After persona-identification building comes brand building. For that, you need to take a few steps.
Business Registration: Select a business name and get it registered. Hire a lawyer if you aren’t familiar with the process and they help you deal with all the legal and tax procedures.
Choose a Store Name: Yes, your business name and store name do not have to be the same. But it is important to keep them consistent. No matter what you choose should suit your niche, not a random one that you choose at the last minute.
Get Licenses and an Employer Identification Number (EIN): Every business should working on getting official licenses before opening doors for customers. You should also have an EIN, even if you do not intend to hire any employees. It acts like your business’ social security number, a number that is used to identify your number. This number is also crucial for filing other essential paperwork.
Apply for Permits: For permits, you need to check the rules and regulations of your country, state, or city. Again, take legal help if you are not sure about how to get such things done.
Look for Vendors: An online store means selling products online. This means, you need not one but multiple vendors to deliver products to your customers. Hire vendors that have been in the market for years and understand things. If it takes time to find the right vendors, let that be, do not make a hasty decision in this regard.
Logo Designing: Logo services as your brand’s unique identity. Get in touch with dynamic website design professionals who will not only take care of your website but also the logo. They will make sure the website’s color palette is in sync with the logo.
Step #5: Business Plan Completion
Now that you know how your business will look to your customers, it’s time to finalize the business plan. This includes determining your budgets, monthly expenditure, and loan requirements (if any).
Management of Finances: Finance management is the most significant aspect of a business. You need to figure out your product sourcing, staffing, marketing, logistics, and more.
Inventory: Management of inventory does not involve storing products in a garage and selling them online. You can also rely on fulfillment centers for inventory management. There are various companies that can store products for you. It’s a great move especially if you have a large inventory.
Step #6: Make Your e-Store
Last but not least, get your domain name and the right eCommerce software. Make sure you analyze the website’s loading speed, payment gateways, device compatibility, SEO-friendliness, etc. To handle all this, you can hire a website development company or invest in a theme that has all this covered for you already.
You need to think about scaling your eCommerce platform as well. Since it is an online store, it will require more exposure. It doesn’t just involve adding products and content, but a lot of other things to catch the audience’s attention. So, you need to have an email marketing and automation plan in place that includes thank you emails, and discount coupons. Remembering all this will help you drive traffic and conversions.
We hope this blog helps you begin your eCommerce business journey. If you need any more explanation or have any doubts, let us know. Please reach out to our professionals at Digital Hub Solution through email@example.com. We’re available 24/7 and would be happy to help you set your eCommerce business.