How to start an eCommerce business – Starting a business is always a rough journey. The same goes when you want to start an eCommerce business. Nevertheless, the goal of setting up an eCommerce website is attainable now than ever. E-commerce businesses are businesses that provide customers with goods or services in exchange for money over the internet. The most well-known example of eCommerce site is Amazon. Online shopping has grown extensively since last year. Therefore, depending on what kind of eCommerce business you want to start, this might be the right time to proper research on it. E-commerce businesses do not need any brick and mortar location thus offering great flexibility, affordability and opportunity for many enthusiastic entrepreneurs. So the question stands, How do you start and eCommerce business ? Well, this guide is here exactly to answer all of your questions-
- Research the marketplace and find your niche-The first step is to learn who your competition is? What the marketplace like? What are the chances of people is buying your products or service? Etc. Look into different factors and investigate the eCommerce area you are interested in and make some decisions with regards to your niche specific business. You’ll want to perform a proper competitor research and find a space where you think you can establish your brand and become successful in selling your products or services.
2. Select your business name– Once you have created a plan regarding your eCommerce business, the second step is to select a name. Now, you might ask what is so difficult about choosing a name for your business? The difficulty is the eCommerce marketplace is an over saturated marketplace and to stand out from all the other businesses you need a unique name that the customers can remember easily. After selecting a unique name, you have to choose your legal structure. You should consult an attorney for advice on the best option for your business as you want your business to be legitimate.
3. Apply for an EIN- Then you have to apply for an EIN or better known as employer identification number. It should be said that not all businesses require EIN. So do your research and if you need one apply for the EIN.
4. Get business permits and licenses- Now for the really important papers and I mean the legal permit that you definitely need to start an eCommerce business. Every business needs a legal license or permit you need to operate legally within an area. If you have already established your eCommerce business as a general partnership then you don’t actually need to register your business with the location. For other types you will definitely need to register for your business and receive a general operating license. So do your research and check if you need a proper license in your area or not to start an eCommerce business legally. Some other types of licenses that you might need are –
Professional and trade license.
Sales tax permits.
Health, safety and environmental permits.
Building and construction permits.
5. Select your eCommerce platform and create a website- Now you are legally able to create a website and start your eCommerce business. See I told you this wasn’t going to be as easy as it sounds. Just like a physical address for a brick and mortar store, a website is like a digital address for your eCommerce business. It’s what the customers will see first. Think of a domain name that matches with your business name. It has to be catchy so that the customers can remember it and visit your website often. Now to choose your eCommerce platform. There are several eCommerce platforms today each giving different features. These platforms will let you create and launch your online store and also customize your design, manage inventory, take and ship orders and so much more. The most well-known and trusted ecommerce platforms are Shopify, WooCommerce, Squarespace, Magneto etc.
6. Develop your products or services- You have finally set up your website and are ready to sell but have you developed your products and stored a sample to start selling and get your business started? You have to source the products you are going to sell and you should research on what is the best way to product your products at a low cost. Then you need a place to store your products where the products won’t be harmed or damaged. You need to properly manage your inventory because as seasons change your warehouse might not be a safe place for your products.
7. Market your eCommerce business website- Finally, this is the last step and it’s called marketing. You have everything set up and are ready to sell but does your customer base know you have opened an eCommerce website? You need to sell yourself on social media like Facebook, whatsapp, twitter, snap-chat, Instagram, YouTube etc. You need to stay relevant on social medias constantly updating what’s new about your business or is there a sale going on or did you add a new product to your inventory. Let the people know about your business and the people will gladly visit your eCommerce business if they need your products. On a side note if you’re not tight on a budget try using the ads system in these social media platforms. It will help your business stand on its own feet faster. Also using ads help you reach your specific customer base that needs your products.
With that being said, we hope this blog was helpful to you in starting your own eCommerce business and you are a successful eCommerce business owner now. Remember that nothing comes easily in this world and with patience comes victory.
CPH IT Solution
A IT Service Provider Company