The Ecommerce business industry is projected to grow to 6.54 trillion US dollars in 2022 as more people shop online worldwide and it is more becoming a necessity. For this reason, now is the time you should join the bandwagon and start your own Ecommerce business. However, learning how to start an Ecommerce business isn’t that easy, as well as setting up and maintaining an online store.
Get ready because you are about to learn how to start an Ecommerce business successfully.
What is Ecommerce Business?
Shopify defined Ecommerce as the buying and selling of goods and services and the transfer of money to execute transactions using the Internet.
There are four types of Ecommerce models:
- Business to Consumer (B2C) is the type of direct-to-consumer selling.
- Business to Business (B2B) is the transaction of a business with another business.
- Consumer to Consumer (C2C) is when consumers can trade with each other, typically in an online environment.
- Consumer to Business (C2B) is the type of model where consumers provide a product or service to a business that adds value, e.g., consumers write a review or promote a product online.
Top Reasons You Should Start an Ecommerce Business
Just like any other business, starting an Ecommerce business has a few trials and pitfalls. But there are a lot of good reasons why you should start an Ecommerce business today.
- Ecommerce business is an excellent source of income and makes you financially secure.
- Ecommerce is expected to rise from 8.9% in 2017 to just over 15% in 2022, totaling nearly $892 billion.
- Over 2.14 billion people worldwide are expected to buy goods and services online in 2021.
- You can use different kinds of payment technologies, making things easier for your business and customers.
- Setting up an Ecommerce business is cheaper and simpler.
- Help improve the global economy.
How to Start an Ecommerce Business
Starting an Ecommerce business takes more than choosing a brand name and deciding which products or services to promote. It requires hard work, research, and the right execution of ideas to successfully get your online business up and running.
Let us break down how to start an Ecommerce business.
1. Learn the skills needed to start an e-commerce business
Learn essential skills such as marketing and sales before starting a business. This is particularly useful if you intend to build an online store by yourself. But even if you were to outsource these services, having an in-depth knowledge of both areas will help you determine whether the strategies being implemented for your business are profitable or not.
2. Decide what type of Ecommerce model you want to launch.
Before you decide what to offer your customers online, you must first understand the valuation of Ecommerce business models which we have mentioned above: B2C, B2B, C2C, and C2B.
Knowing which model best fits you and your target niche is important because you will organize your supply chain based on this, and it will lay a good foundation for your business.
Below are the key questions you can ask yourself to come up with a decision.
- Who are you selling to?
- What types of products are you selling?
- How do you acquire what you sell?
- Why should customers buy from you?
3. Find a profitable Ecommerce niche
The main reason why you are starting an Ecommerce business is to earn from it. How do you increase the probability that your business becomes successful? You have to niche down. The more specific you are with your niche, the less competition you are likely to face. We are looking for “less competition”—and not “absence of competition.” Having no competition also indicates that there is no market at all.
4. Choose your business name and legal structure
You need to choose a unique business name, make your business memorable, and, most importantly, represent your brand well. Failing to find the right name for your business can result in business and legal problems. Below are some tips when naming your business.
- Avoid hard-to-spell names or unusual spellings of common words.
- Pick a name that will give your business some growing room.
- Do a trademark search and web search on your chosen name.
- Avoid names that are similar to your competitors.
- You have to make sure the name you want to use has an available domain and secure the “.com” domain name.
After you’ve selected and secured a name for your business, the next step that you should do is to choose your business’s legal structure. The business legal entity that you choose will have legal and financial implications for your Ecommerce business.
5. Register your business to obtain permit and licenses
Starting and operating an Ecommerce business does not exclude you from needing certain business licenses and permits. By doing this important step, you will have legal protection and tax benefits.
You can check with your state or local place what kind of sales tax licenses or home business licenses you need to get approved and start operating.
6. Finalize your business plan
A business plan is important because it will serve as your roadmap to guide your business. It will help you determine what possible roadblocks you may encounter, how your business will work and generate money, and most especially, how it will grow.
7. Create your online store
There are hundreds of Ecommerce platforms available for businesses. You need to carefully evaluate those platforms to decide which one is compatible with your business structure.
To help you decide which platform to use, the “eCommerce: Introduction To The Top 12 eCommerce Platforms” online course can help you determine which Ecommerce platform you should start selling from.
After deciding which platform to use, the next step is setting up and launching your online store. You can follow these tips to guide you:
- Write a product description that sells
- Use high-quality images
- Build a better social media presence
- Choose your payment gateway
- Plan your shipping strategy
8. Market your Ecommerce business to attract customers
With thousands of online stores, there is no guarantee that customers go flocking to your store, especially when your business is new in the market. You need to market your store. There are different variations of marketing strategies like word of mouth and social media ads. You can take advantage of the online marketing tool available within your platform.
Ready to start your Ecommerce business?
This is just a short guide on how to start an Ecommerce business. If you want to learn more and have an in-depth understanding of the ins and outs of Ecommerce business, Skill Success has tons of online courses from business to marketing. Visit their website today, and start your free access now.
Ready to learn how to start an Ecommerce business? Click here to get started.