There is a very famous quote that goes, “The best time to plant a tree was 20 years ago. the second-best time is now.” It holds more true than ever in the case of setting up an eCommerce business. Because of the pandemic, the eCommerce business sector has received a massive boost. According to the experts, the eCommerce business is expected to grow exponentially.
CAGR is a significant factor that plays a role in determining the rate of growth. The expected CAGR in the span of 2022 to 2027 of the eCommerce industry is 27.4% and the market can soar as high as US$ 55.6 trillion by the year 2027.
Now that you have a better understanding of the potential of the eCommerce business sector, we are sure you would be looking forward to starting at the earliest.
Now that you’ve decided to foray into the eCommerce business, you may wonder how to overcome challenges such as changing trends, cut-throat competition, etc. Well, you need not worry, we have got it all covered for you.
Here are 8 simple ways that can help you in your journey to start an eCommerce business that grows when you are starting in 2022.
- 0.1 1. Research Extensively On The Products To Sell Online
- 0.2 2. Choose Your eCommerce Business Model
- 0.3 3. Validate Your Business Idea And Target Market:
- 0.4 4. Take That First Step- Register Your eCommerce Business
- 0.5 5. Make an eCommerce Business Plan:
- 0.6 6. Build Your Online Store:
- 0.7 7. Making your Business an Irresistible Deal:
- 0.8 8. Track Your Progress- ‘Progress Over Perfection:
- 1 Wrapping Up
1. Research Extensively On The Products To Sell Online
The first crucial step before you start to implement any business idea is to research in-depth about it. The more insightful your research is, the better it gets while you start your own eCommerce business.
Before you jump straight off to researching various business plans, you should first research what product you want to sell and to whom. If you have a thorough understanding of the market and your customers, you are bound to choose the best business plan that can contribute significantly to the growth of your eCommerce business.
When you are researching products to sell online there are two kinds of products that you must mainly target.
- A highly demanded niche product that is growing
- Commoditized products of excellent quality and high demand
- A highly demanded niche product that is growing- When you are targeting a highly demanded niche product, you cater to a small but significant consumer base. This can prove to be helpful when you are starting from scratch. When you build your online store for a niche product, you essentially save a lot of time compared to setting up an online store for a larger number of products. Pricing for niche products is also usually high, which yields higher margins, thus making it a profitable venture. If you are choosing to go with niche products you have the benefit of guaranteed profits and lesser time consumption.
- Commoditized products of excellent quality and high demand- Commoditized products are products of high demand which everyone needs and has an existing larger consumer base. The market for these products is mostly B2C, with extreme competition. You have to be very good with your marketing strategies to beat the competition. You can blend in both the products- niche and commoditized according to the priorities of your eCommerce business.
2. Choose Your eCommerce Business Model
As you have clarity over what products you want to sell, you should now figure out where you want to sell – the target market for your online business and what business model to use.
Having a clear idea of what market you are targeting will allow you to stay focused and make continuous progress when you start your own eCommerce business. There are various models for the market you target that can be classified as business to business, business to consumer, consumer to business, direct to consumer, etc. You can also choose to go for dropshipping, wholesaling, subscription services, white label services according to the potential of the product and the market that can best cater to sell online.
In 2022, you must have a concrete business model only then you can sustain an eCommerce business.
3. Validate Your Business Idea And Target Market:
If you are thinking having a business idea and products are enough for you to start selling online then you are in a grave misconception. Imagine you started selling online just to realize the market does not need your products or the products need to be modified. It won’t be a pleasant experience, would it?
Thus, you need to validate your products and the business idea in your target market. There are several ways you can do it like you can take consumer surveys, create focus groups and have a productive brainstorming session or even create a buyer’s persona. You can do it in any way that suits your eCommerce business but you must not overlook this crucial step as it gives you a real-time check of your online business before launching it.
4. Take That First Step- Register Your eCommerce Business
You are now ready to take the first major step to start your eCommerce business.
Yes, you heard it right. Once you are sure about the product, market, and business model you should get your online business started by registering it. When you are registering your eCommerce business, make it a point to brand yourself from the very start. Choose the name and logo of the company that aligns with your brand. A strong brand building can market itself proficiently, making your venture successful. There are various legal processes that you must carefully complete such as applying for certain business licenses, getting your employer identification number, etc.
5. Make an eCommerce Business Plan:
If you want a business that not just sustains but keeps growing, the solution to that is to have a strong eCommerce business plan.
A business plan must include all the factors that affect the business and the way it is to be managed. It is a systematic organization of how your business must function. This includes all the departments functioning, logistics, financials, inventory management, etc.
When you have a solid business plan you have a system in place that makes the business function smoothly. It is considered as a blueprint of the business that not only keeps you prepared for daily functioning but also the adversities the business might face. As we have seen, the pandemic is affecting the offline business badly, which makes us understand the value of having a business plan for your online business.
6. Build Your Online Store:
The final step that gives your online business a face is when you build your online store.
There are different ways you can build your online store, the most popular among all is having your website.
WorksLeader is one of the most preferred eCommerce platforms. It has different features that can boost your eCommerce business. As you have a lot of options to choose from, you may get confused. We suggest you choose the platform which has the priorities of your online store aligned with the features of the platform.
Here are some must-have features you should look for:
- Domain Name
- Customizable user-friendly website templates
- Responsive Web Designs
- Built-in SEO tools that drive traffic to your website
- Excellent Customer Support through emails, calls, live chats, etc
- Should have eCommerce marketing features that boost sales.
- Must be PCI compliant
- Low Processing and transaction fee
There are several other features that you would want to have in your online store.
Also Read- WorksLeader – Ecommerce Online Store Builder
7. Making your Business an Irresistible Deal:
Even when you have the perfect business idea and an online store you are likely to fail if you are not marketing it the right way. You need to have strong marketing strategies that can make your eCommerce business grow in the competitive market. The goal is to have continuous traffic to your eCommerce website.
The marketing can be done in two ways:
- Organic Marketing.
- Paid Marketing.
Organic marketing includes SEO optimization, email marketing, social media marketing, link building, etc. On the other hand paid marketing consists of influencer marketing, affiliate marketing, running ads on social media, etc. You can draw out the marketing plan that works out for you which can be a blend of both or either of them.
If you are to start now, we suggest one must-have marketing strategy – a strong SEO-optimized website. Your website must rank well and it should reach the maximum target audience.
8. Track Your Progress- ‘Progress Over Perfection:
Nobody wants his business to just sustain, every business owner wants his business to grow exponentially with time. To grow continuously, one must track his progress religiously at every stage of the business. It provides you valuable insights that can give you inputs that you can inculcate and make necessary changes.
There are many user-friendly analytics providers in the market. From a beginner’s perspective, the two most preferred ones are Hotjar and Google Analytics. These analytics tools are said to be easy to use and accurate in providing insights. You can try these or any other analytics tool you are comfortable using.
Setting up an eCommerce business can sound like a daunting task as there are so many things to look after. But once you break it down into different sections and work on it with focus, you will soon find your flow in the process.
We hope you find these steps useful, wishing you good luck with your journey of having your own eCommerce business.