Did you know that more than 55% of US consumers prefer to shop online in 2022? This is a 10% jump from 2020 reports.
As online shopping continues to be popular, more businesses are moving to online models.
Are you interested in becoming a digital business owner? Keep reading to learn the steps to starting an eCommerce business.
Research eCommerce Business Models
Starting an eCommerce business involves researching different business structures. You can choose from digital product sales, a service-based business, software, physical products, and more.
Drop shipping is a great choice for those that can’t invest heavily at the beginning. If you want to have your own warehouse, invest more upfront and consider wholesaling.
Selling on Amazon is a popular option but you’ll want to utilize Amazon seller accounting.
Identify a Niche
An eCommerce business that has too many categories and products isn’t going to succeed. Identify a niche to gain customers and make a profit.
Choose a competitive area that still has market room. Skip anything dominated by major brands. Get as specific as possible to face less competition.
When you identify a niche, you can create buyer personas to figure out who you are selling to. Without a niche, it will be hard to validate your target market.
Register Your eCommerce Business
Before setting up your eCommerce store, you’ll need to figure out a few more details. These are the steps you’ll need to take to register as a business entity:
- Choose a store name
- Obtain business licenses
- Get your employer identification number
- Find the right vendors
- Create a logo
Registering your business provides you with legal protections and tax benefits so it’s important not to skip this step.
Pro tip: Staying consistent with your branding comes with a lot of advantages. For example, you don’t need your legal business name and site name to match, but matching them creates trust and builds brand credibility.
At the very least, choose a name that fits your niche.
Finalize Your Business Plan
Every business, even an online business requires a detailed business plan to get started. If you’ve followed the above tips, you should have a head start on your business plan.
Include your target market, product niche, brand name, etc., in your plan. In addition to these details, include a startup budget, loan amounts, and estimated monthly expenses.
Financial management is essential when starting a business. Calculate your break-even point by projecting your revenue and expenses.
Create an Online Store
The last step to becoming an eCommerce business owner is to create an online store. Register your domain name, design your website, and choose an eCommerce software program.
Evaluate logistics like website features, loading speed, payment compatibility, user-friendliness, and more before going live.
Starting an eCommerce Business Explained
Starting an eCommerce business takes a lot of work despite what some people may think. Although these steps seem basic, getting through them all takes time and dedication.
If you have the skills, ideas, and funding for an eCommerce business, use this guide to get started today. Don’t forget to come back for more tips on this website.