Beginner’s Guide to Start an Ecommerce Business in 2021
- December 15, 2020
- Posted by: Manju Rai
- Category: Business & Digital Marketing Tips
Ecommerce business is on the rise. Every day more and more users are turning to the internet for their daily needs. According to a post, eMarketer.com anticipates the eCommerce sales to be around $3.914 trillion in 2020. Such statistics are compelling more and more businesses to go live and start hunting for their target customers.
However, most of them fear technology involvement as they are not familiar with the entire setup. With the continuous development in eCommerce platforms and web development applications, setting up an online store is not a big deal.
To help you understand the process, I have drafted this post with multiple steps. Read, understand, and apply each step to have a strong foundation for your eCommerce business.
Settle on an eCommerce business model
As a beginner, you may know some of the basic eCommerce business models such as physical products, online services, or digital products like eBooks and Courses, etc. these are the core classifications, but quite deep to explore. Before you choose the products to sell, you may need to explore the variety of models you can choose. Select a business model that matches the nature of the product or service you aim to deal with.
For example, a grocery store can sell its products straightaway on an eCommerce website, or sell in bundles, or create packages of varying items. Similarly, they can switch to a subscription-based model where they would like to offer a set of grocery items to a consumer every week or month in return for the subscription they choose.
Understanding it is not difficult, but considering it before starting an eCommerce business in 2021 will surely help you built a business with a better structure.
Choose a niche
Have your research around multiple niches to choose the one you are an expert in. there are hundreds of eCommerce websites that are created by copying a market leader. They don’t have a focal point in serving their target consumers. All they know is that a specific website is making money from this niche and we make it too. This approach is not going to work for all.
Have an eCommerce niche where you have a value proposition. For example, setting up a store with multiple categories and hundreds of products won’t make it a competitor of Walmart. You will have to gain trust and credibility in beating the giants, which may otherwise take years. If you intend to start an eCommerce website for the UAE, you need to consider professional eCommerce website design Dubai services, it is also important to know about the successful businesses and their approach towards moving from the start.
Break the competition by choosing a niche that is less competitive so that you can become an authority in it. For example, you can set an undergarments shop for plus size women only and expand as soon as it becomes popular. You must niche down your business so that your store names comes first in their minds when they need that specific item or service.
Evaluate your business idea
You should not test the depth of a river by putting both of your feet. By the time you decide on a niche and business model, you may be super excited to launch the product. However, it may cost you more if you do not validate it before going live.
Validating a business idea starts with understanding the target market. You can never expect a herd to be your visitors as there is a concerned audience for every product or service. Find that target audience to reach them in a better way. Seek their interest in your products and it may help in validating your business idea
Create a persona of the target audience. Find the ideal customers for the product you sell or the store you represent. People will come and interact with the additional value you offer. For example, opening a farm and selling organic milk will surely attract health-conscious people, who will be willing to pay a price higher than the rest of the milk suppliers in the market. Try different marketing techniques to validate the idea and proceed only if the results are prospective.
Think about a store name and register it
You think about any name that may or may not represent the nature of your business. Store name can be anything easy to pronounce, understand, and remember. To legally protect your store and the creative name you suggest, you must register it with the local and national authorities
Acquire licenses and certification
Every trade is regulated by its concerned body. Search for the authorities and ask the criteria for running such a business. They may either arrange a certification or license after a thorough inspection of your business operations. They do have multiple checks and standards to measure the quality of products or services you would like to offer on the eCommerce website. Be sure to abide by them to receive a no-objection certificate.
Get recognized as an employer
As a store owner or entrepreneur, you just need to hire employees for different responsibilities. Their appointment, appraisal, and payroll may require you to furnish an employer identification number. This identification may help you create a business bank account with arrangements of transferring salaries and wages straight to employees’ accounts and maintain social security data.
Partner with reliable vendors
Plan a brilliant supply chain management partnering with reliable vendors on your defined terms. Selling products online may often put you in more competition than the conventional businesses that’s why you have to have the best quality products and available when needed. Find multiple suppliers and have your terms documented so that you can save consumers’ stack in any situation.
Setup an eCommerce website
Once you are done with the research and product selection, move on to set up an eCommerce website with all the formal documentation and registrations. Let me guide you about each step in detail.
Choose the right eCommerce platform
You can create a website on any platform. However, when it comes to building an online store, you have to be more careful about its speed, performance, and security that’s why you must select a platform that suffices your needs.
Magento, being the oldest and reliable eCommerce platform, comes first to mind. However, WooCommerce and Shopify are also worth considering for creating an eCommerce website. Other options include Squarespace, Wix, Volusion, 3dCart, PrestaShop, Opencart, BigCommerce, etc.
The selection of an eCommerce platform is followed by hiring an expert web design and development company. You can decide to build a custom website or installing an attractive theme according to the available finances. Themes are cheaper to buy in comparison to coding a website from scratch.
Most of the eCommerce startups prevent such costs and the worries of managing credit card payments by setting a store on a marketplace such as Amazon, eBay, Newegg, Walmart, etc. Start putting your products as soon as you set up an online store. Configure email marketing as well so that you can automate follow-ups with welcome, thank you, and product suggestion messages.
Bring customers to your online store
Every store needs exposure to attract visitors. You may plan a digital strategy to ensure the products or services are highlighted on effective channels and reach the right audiences. Try SEO – search engine optimization, social media marketing, pay per click ads, and lots of other digital marketing strategies.
To know which marketing method is trending and bringing promising results, you must follow the experts, listen to their podcasts, read their blogs, and take part in webinars. This will help you understand the process so you can easily hire and supervise a professional.
Starting an eCommerce business is not a complex concept these days as you have got access to the latest web application technologies and experts around the globe. The key to success lies in the selection of a unique product or offering a service that is not offered before. This is followed by a skilful presentation of the eCommerce business on its website to gain consumer trust, help them navigate, and meet their expectations.
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