With ecommerce being a booming industry, it’s easy to see why so many people want to take advantage of this. Starting an ecommerce business offers more than a few benefits, with some of the most notable being:
- Run your business from anywhere.
- Relatively low overhead costs.
- Develop an international customer base.
- Potential for high revenues and profits.
The benefits of opening an ecommerce business make it tempting. It’s far from a breeze, though, and you’ll need to put a decent bit of work into it.
You’ll need to know exactly what you’re doing if you want to see success. As obvious as this is, it’s easy to overlook more than a few parts of this. The right steps are vital to kicking off the right way, and it’s worth making sure you take them when you’re starting off.
How Much Does It Cost to Start an eCommerce Business?
One of the first areas to be aware of before you start an ecommerce business is cost. You’ll need to have an idea of how much you’ll need to spend on everything. While it costs noticeably less than a brick-and-mortar business, it doesn’t mean you wouldn’t have any expenses.
So, how much does it actually cost? Well, there’s no clear cut answer on this, and it depends on multiple factors. That being said, there are more than a few costs to be aware of:
- Order Fulfillment – ecommerce fulfilment is one of the more notable running costs you’ll have. This includes packaging and shipping, with the cost adding up to more than you would’ve thought. Factor this into your overall pricing to make sure you’re not operating at a loss.
- Licenses and Permits – Most businesses need licenses and permits to operate legally, and ecommerce businesses are no exception. There’s always a cost associated with these, and there’s no way to get around it. Thankfully, they should be minimal fees when you’re getting them.
- Product Inventory – Putting together an inventory of products to sell is the most expensive part of starting an ecommerce business. You wouldn’t just have to pay for the cost of the products, but also warehousing them. Aiming to keep this small at the start is recommended before scaling everything up.
- Website Essentials – Your ecommerce business naturally needs a website, and this comes with multiple costs. You’ll have to pay for the domain name, platform, and hosting from the start. While these aren’t the largest expenses you’ll have, they’re still worth being aware of from the outset.
Make sure you’ve the funds available to cover these costs from the start. Once you start making sales and revenue, it’ll get more and more easier.
Outside of funding, there’s plenty of other factors involved in starting an ecommerce business. By taking the right steps, you should make sure everything’s sorted. Some steps are more important than others, making it worth diving into them from the start. Seven of them stand out.
Starting an eCommerce Business: 7 Steps to Take
1. Do Your Market Research
Market research is an essential part of starting any business. It helps you find out as much as possible about your target market and your main competitors. Armed with this information, you can create more informed decisions when you actually start your ecommerce business. Take the time to do it.
Be as comprehensive as possible when you’re doing it. The more you know about potential customers, the better your decision-making will be. It’ll also help you figure out how you can stand out from your competitors and outperform them. It’ll be essential for your operations going forward, so you’ve no reason not to spend time on it.
2. Pick an eCommerce Model & Products
What many budding ecommerce entrepreneurs don’t realize is there are multiple ecommerce models they could use. These all offer their pros and cons, making them all worth considering. B2B, B2C, C2C, and C2B are some of the more obvious of these. Figure out which one works best for your needs.
Your market research can help you make this decision. Don’t overlook the products you’ll sell while you’re at it. There are countless options on offer, especially if you’re not making them yourself. You’ll have the main products you want to sell, but it’s also worth considering a few complimentary products, too.
3. Create Your Business Plan
A business plan is essential for a company to see success, no matter which industry they’re in. Take the time to put this together. Your ecommerce model and products will tie into this, but there’s a lot more to it than that. It’s a comprehensive outline of how you’ll start and run your ecommerce business.
Sales and marketing strategies, daily operating procedures, and more will all be a part of this. Even your financing will be a significant part of your business plan. Take the time you need to put it together and make sure it’s as comprehensive as possible.
4. Decide On a Name & Branding
You’ll already know your ecommerce business needs a name. Don’t just decide on this on a whim. Instead, you’re better off taking the time to actually think about it. Your name will need to be relatively descriptive while also being memorable for your potential customers. Figure out what works best for your business.
Then there’s your branding. This is what helps set you apart from your competitors. It includes your business name, logo, and much more. See it as your overall visual identity, and take the time to make it eye-catching and appealing to your target market.
5. Register Your Business
Once you’ve decided on your name and branding, you’ll need to register your ecommerce business. You wouldn’t be able to operate legally until you do. While this isn’t complicated, there are multiple factors involved in it. As part of your registration, you’ll need to decide on a business structure, for example.
Then there’s getting your employer identification number and any permits and licenses you’ll need to operate. These will take some time to get, but they’re a vital part of the process. Try to get started on this as early as possible so you can start your ecommerce business relatively soon.
6. Develop Your Website
You’ll naturally need a website to run your ecommerce business, and it’s always worth putting some time and effort into this. There are multiple factors to be aware of with this. You’ll need to pick an ecommerce platform to use, decide on a URL, set up hosting, and more.
This is all just to set up your ecommerce business. After that, you’ll need to develop content for it. An about page, contact page, product pages, and more will always be a part of this. Then there’s any blog sections you’ll want to create. Spend time creating each of these and making sure they’re high-quality.
7. Launch & Market Your eCommerce Business
Now you’ve all of the above taken care of, you’re on the verge of launching your ecommerce business. All that’s left is to actually click publish on your website and get going. Once you’ve made your website live, you can get started on making sales and actually running your ecommerce business.
When you’re doing this, don’t overlook the importance of marketing. It’s vital to bringing in website visitors, which can then turn into customers. Effective marketing is essential from the start, as it lets you gain traction among your target market. With the market research mentioned above, you shouldn’t have a problem finding the right strategies to use.
Tips for Starting an eCommerce Business
Alongside the right steps, using a few tips can help with starting an ecommerce business more than you’d think. They’ll help you make sure everything goes as smoothly as possible. Some ecommerce tips can even help make your business more successful.
The more effective of these are:
- Start off with a limited number of products so you can master ecommerce before growing.
- Focus on a unique selling point to help your ecommerce business stand out.
- Schedule product drops to help generate more interest for product releases.
- Offer free shipping to give potential customers an extra nudge to buy from you.
- Keep up with trends so you can capitalize on them and build a customer base with them.
Added to the steps above, these could help you start an ecommerce business the right way. You’ll end up having the best possible chance of success. You’ve no reason not to use them from the start.
Summing It Up
If you’re thinking about starting an ecommerce business, you’ll need to be prepared to put the time and effort into it. It takes a decent bit of work, and this could take time. A lot of budding entrepreneurs overlook this, and they end up not seeing the success they wanted to see.
By putting the time and effort into the right areas, you shouldn’t have anything to worry about. You’ll start your ecommerce business the right way, and there shouldn’t be anything getting between you and the success you want your ecommerce business to see.
