Bill Gates once said: “If your business is not on the internet, then your business will be out of business.”
E-Commerce sales in the United States hit a new high this year, reaching $870 billion for a 14.2% increase from last year and a 50.5% increase from last year. Out of all retail sales, e-com merce only makes up 13.2% which shows that there is still so much market and potential untapped in the eCommerce industry.
Do you want to join this fast-growing e-commerce industry? If so, this is a guide you should not miss out on by The Mad Brains– an expert in designing and developing ECommerce Stores using Shopify and MERN Stack technology for startups and businesses.
New site owners make some mistakes, such as choosing a cheap option rather than the best, and we are here to help you avoid that. So Without wasting any other minute, let us dive into the guide
1. Choose your niche
There are an endless number of products available in the market; the question is which product you are going to choose for your e-commerce site; it’s not technically possible that you go with all the products.
The first thing you need to do is narrow down the type of products you will sell in your online store. For Example, Amazon started with books as its first product.
Niching down also helps you target the specific market and customize your marketing and message based on your target market,
2. Do your research
You should never begin your e-commerce store without proper research; you should understand the various components of the e-commerce business, such as logistic, look for profit margins, build a business plan, understand your target market, and study your competitor before moving ahead.
3. Choose your product
Now you are clear with what niche you want to target, plus you are also clear with what e-commerce business is all about, its pros and cons, and everything. It’s time to choose your product; it can be anything: a book, fashion accessories, technology, or even a digital product.
4. Validate your product
Don’t just put all your money into your product; first, you need to pilot test your idea, talk to your target audience and understand whether or not they are interested in your product, take their feedback, and make necessary improvements before finalizing your product.
5. Decide how you'll get your product
In this digital age, there are plenty of options available for you; you can manufacture your own product or Purchase wholesale and resell it; if you don’t want to deal with logistics and manufacturing, you can go with dropshipping and even offer it digitally.
6. Write your business plan
A well-crafted business plan is an essential tool for any entrepreneur. By taking the time to outline your goals and strategies, you can focus on the specific steps necessary to make your business idea a success.
Not only that, but a business plan can also help you achieve short-term and long-term objectives. As Benjamin Franklin once said, “If you fail to plan, you are planning to fail.”
Your business plan Should include all the detail of your business, such as
- What your business is all about (Company overview)
- How you are going to sell/market your product (Marketing plan)
- What will be your revenue projection
- Number of Resources Needed
- Timelines and Goals
- How you are going to finance the Project
- Your Business Operations Model
7. Pick your business name and legal structure
Coming up with a name for your store can be one of the more challenging aspects of starting an ecommerce business. You’ll need to come up with a name that catches attention, communicates your brand and is available.
You can check for business name availability on your Secretary of State’s website. It’s better to run a search with the U.S. Patent and Trademark Office.
Coming up with a business name is an important first step in starting your own business. Once you’ve come up with a name, you’ll need to make sure it’s not already in use and register it as an online domain. You can use your domain name to build your online store and brand, making it easy for people to find you online.
When you’ve decided on the best way to structure your business, you can begin the process of registering your business name. This process can vary depending on your location, so it’s best to check with your local government office to find out the specific steps you need to take.
8. Apply for your EIN, permits, and licences
Applying for an Employee Identification Number (EIN) is a free process through the IRS that can help keep your personal and business finances separate. The number is usually assigned immediately, and you can apply for an EIN by mail or fax.
Please apply for any licences or permits your business will need to operate in your state. If you’re running your eCommerce business entirely from home, you won’t need the same kind of permits as a business that has a storefront. However, you must check with your state to ensure you comply with any regulations.
9. Create your online store
It’s time to create your online store, the first step toward success. The online store is as important as an offline outlet, and you should not go cheap. The Mad Brains is here to help you create stores built for ROI and conversions.
You first need to get a domain name for your online store, which you can quickly get from websites like GoDaddy.
Next is to choose the technology in which you want your eCommerce store to be in; there are two options available first is using a CMS like Shopify or WordPress, or you can go with custom e-commerce store development.
10. Market your new business
Once your store is ready, it is not beneficial if you cannot reach your potential audience and let them know you are in business. Here comes marketing. You need to invest in your marketing to maintain a positive ROI.
Let The Mad Brains handle all the Technical Stuff.
Running an E-Commerce store can be challenging as you have to deal with a lot of stuff such as logistics, product manufacturing/handling, Customer support, marketing, and a lot of other stuff.
We at The Mad Brains are expert in Ecommerce design and development, building a store that converts visitors into the paid customer, let us handle all your technology infrastructure so that you can focus on things that need more of your attention,
Frequently asked questions about eCommerce
How do I build an eCommerce business?
- Research what products you’d like to sell or can source to sell.
- Select your business name and register your business with the government.
- Obtain the necessary permits and licences.
- Choose an eCommerce platform and create your website.
- Load your products onto the site.
- Launch your brand and get ready to sell!
- But don’t forget to have an eCommerce marketing plan ready to be successful.
Is e-commerce profitable?
eCommerce can be a very profitable industry, but it’s important to strategize correctly and know what the market wants. The type of products you sell and your business model are both important factors in determining your success.
Is it hard to start an e-commerce business?
Starting an eCommerce business can be easy with platforms like Shopify enabling brands to create a professional website in no time. But this also requires hard work and continual market research to improve your online business blueprint.
What are the different types of e-commerce?
There are four traditional business models or types in e-commerce.