Nowadays literally anyone can build their pages to show off their goods and services online. That’s the beauty of eCommerce. Since the concept was invented in 1991 from the sell and buy a policy, millions of businesses are taking up their humble abode at the websites.
You must consider starting an eCommerce business because it has tremendous advantages over the traditional brick and mortar business. If you’re probably wondering how to start an online eCommerce business then check out the things you must be aware of before diving into the ocean of starting an online store.
Why Do You Want to Start an Ecommerce Business? Is it Profitable?
Whether you’re a normal person working a 9 to 5 job or an investor with a bit of extra cash coming out of your pockets, eCommerce is a great field to get into, especially right now. Let’s start with the question of why eCommerce business and
Well, eCommerce has seen a rapid growth rate of nearly $1.6 trillion at the end of 2018 and it’s predicted to rise higher in the coming years. Obviously, when you’re planning to start a business it’s wise to follow the trends and where it seems to be slanting towards right?
Also, the setting up cost is downright low compared to your traditional brick and mortar business. In online stores, you can build a storefront at your own domain name and visibly sell your products all over the globe.
And of course, it’s profitable, generating revenues as 80% of today’s generations are making purchases online. When you’re thinking about starting an online eCommerce business it is extremely important to know what is SKU number?
It is a great idea to be aware of how to use SKU code, it is generated even if you use the software.
Why most of the online eCommerce businesses fail? Is it due to Competition or Product?
The main reason behind the failure of 80% of the eCommerce businesses is due to selling the wrong products and lackluster marketing plan that fails to beat the competition out of the way.
From the beginning, if you’re selling the product that no one wants then you’re in trouble and will be webbed in a tough situation. Growing your ROI is extremely important and without the best marketing plan, it will go down the drain.
Online eCommerce store fails mostly because of the product which is not up to date or very irrelevant to the advanced ideas of competitors.
How to start a successful eCommerce business from scratch? 5 best eCommerce business ideas in 2020
Let’s take a glimpse at the proven sequence of steps to starting an online eCommerce business that can guarantee your success.
How to start an Online Business?
- Always look for the market first and then the product. Because of your product only work if it has the target audience who are in a position to buy it. Find a need that needs to be fulfilled and then start a business.
- The online strategy mainly depends on the appealing sales copy formula that makes the visitors follow through the process of purchasing. Hence, the sales copy must arouse interest with an interesting headline and create urgency to purchase.
- Now you’re prepared for a small business web design. Keep it short and simple because you only have 5 seconds to grab the attention of your potential customers.
- Using a search engine to generate traffic is a terrific way of gaining customers to your website. PPC ads are the easiest path to get traffic to your brand new website.
- People love information, especially the free ones, so provide it and include a link to your website with expert content that they may find it useful.
Check out the 5 best eCommerce business ideas for 2020 that you can benefit from
#1 Startup eCommerce Business Idea- Online Learning Platforms
#2 Startup eCommerce Business Idea- Online Grocery and Foods
#3 Startup eCommerce Business Idea- Social Media Consultancy Business
#4 Startup eCommerce Business Idea- ECommerce Service Provider
#5 Startup eCommerce Business Idea- Selfie Drones
So be aware of all the opportunities in the digital world.
Things you must be aware of before starting an online ECommerce business in 2020
Starting an online business is neither a slide in the park or rocket science. There are certain norms and things that you need to be aware of before starting an eCommerce business, let me walk you through it!
Without the appropriate eCommerce business plan, the business won’t succeed. Ensure that a proper amount of research and planning is done before launching your business
Understand the Customer
Mastering the skills of marketing and sales is immensely necessary. Researching the demographics and psychographics can help you keep track of what exactly the customer needs that can prompt him to buy your product.
Pick the Perfect Product
After concluding the outline of the business and choosing the niche, it’s time to get particular about the type of product you’re going to make available in the market. It is the most important part to forward your business launching.
Advertising and planning the email list
Once all your products are perfectly ready for sale it’s time to make the iconic move i.e advertising. You must be aware of advertising strategies to promote your brand new established business.
Maintaining the Business Activity
Figure out all the strategies and procedures to maintain your business in a smooth manner. Take care of technical aspects, promotional strategies, inventories related things stay on top.
What are the Benefits of an online eCommerce Business?
The first advantage you can have over the traditional business by choosing eCommerce business is you don’t have to be limited by geographical locations. Because eCommerce on mobile has resolved all restrictions of geography.
Another positive fact is that the eCommerce business enjoys lowered costs. So these additional costs that we are saving can be used to provide the customer with discounted prices.
On top of that eCommerce business is beneficial in enabling deals, bargains, coupons and group buying. It also eliminates traveling time and cost.
How must does it cost to start an online eCommerce business? Is it worth spending?
The average cost for building an eCommerce store includes $5000 to $10000 for a professionally built eCommerce website. A domain name may cost around $2 to $20 per year. Hosting may cost $300 per month.
And yes, it is worth spending that money because there are many things requires to develop and launch a business and sometimes it can be a quite expensive and time-consuming process.
How to list the products in your online store? What is SKU and why every product needs to have it?
After going through the most critical step of setting up your online store you need to think about listing your products online. The first step to source your products in your online store is, after getting registered, deal with reputable distributors, wholesalers, and manufacturers to list your products online.
Most of the times the business reputation alone does not help you in opening all the doors. You can source your products by drop shipping, trade shows, and client references.
Now let’s see what is SKU and what is SKU numbers?
Retailers use a kind of coding system to keep track of their inventory and to track their sales. By definition “ SKU (stock keeping unit) is a number assigned to a product by a retail store to identify the price, product options and manufacturer of the merchandise.”
What is SKU number? Simple, it is a series of numbers that track distinct information related to that product.
Every product needs to have SKU because it helps online stores to pick items to display as “suggestion” when you are shopping by way of using SKU.
What do people think about eCommerce business? According to internet research and people’s review
According to people’s reviews starting an eCommerce business online has tremendous benefits because they feel much relaxed for not having to stand in a long line of queues or being placed on hold forever in traditional stores.
People are extremely happy to realize that they don’t need to physically travel to the stores located in a remote area instead can purchase it via their computers or mobiles.
Ready To Start Your Ecommerce Business?
You have got the elbow and time to launch a profitable online store with a few thousand dollars of investment initially. Running a lucrative online eCommerce website doesn’t have to be an obstacle and struggle for you if you followed these progressive steps.
Having done all these steps upfront, your eCommerce business will soon skyrocket. There’s nothing more noteworthy of starting a business from nothing and watching it blossom.
Do you need business licenses for an eCommerce site?
Yes, all companies do require a business license, be it online or from a traditional store on the side of your street. Businesses have to apply for a business license so that the government can keep track of all the enterprises.
How much does it cost to start an eCommerce business?
On average to start an eCommerce business it may cost around $5000 to $ 10000 dollars. Because a lot of things need to be set up to get the website up and running.
How much does an average eCommerce store make?
According to various reports and average eCommerce, the site can make around $150,000 in monthly revenue. After three years it may bring a revenue of $1 million too.
Do I need LLC for my online business?
No, you don’t need an LLC to start your own online business. Although you can decide if you want a Limited Liability Company or not.
How can you be successful in eCommerce?
You can be successful in eCommerce if you completely focus on the users and stop rushing the launch as it will be one of the biggest mistakes you can ever commit.