8 Tips For Starting An Online Business

Going by the numbers of statistics portal, Statista, global e-commerce sales for the retail sector are projected to exceed $3 trillion in 2019, involving purchases from nearly 2 billion users. Retail e-commerce sales have grown by as much as 23.3% this year compared to 2018. As per Adobe Analytics’ holiday shopping report of 2018, up to a third of last year’s Black Friday sales were made online with the use of a smartphone. In addition, stock exchange Nasdaq predicts that by 2040, up to 95% of all purchases may be made exclusively online. All these imply that exciting times await entrepreneurs—and for some, it couldn’t be a better time to shift from brick-and-mortar dealings to digital entrepreneurship.

Running an e-commerce business may be easier and cheaper than having a physical storefront: you’ll be paying less overhead, you can transact outside of traditional office hours, and you can take your entrepreneurial work virtually anywhere you go. However, e-commerce can also be challenging because there’s a lot of competition. Trends have shorter life cycles, and if you aren’t at the top of your game all the time, your offerings can easily become obsolete. 

The same hard work, patience and forward thinking that go into opening a traditional brick-and-mortar business should be applied, albeit in different ways, to operating an e-commerce site. With that in mind, here are some useful pointers on how to start your own e-commerce business, and how to profit in the same way the world’s biggest e-commerce players are profiting.  

1.     Identify which products to sell direct-to-consumer. The first thing you will need to do is to define your line-up of products to sell. Aside from it being easy to produce or supply, you should be passionate about your choice of products and aim to select products that offer value or solve specific problems that other products do not solve or solve as well. 

2.     Draft a business plan. Once you’ve determined which products you will be selling, develop a business plan in the same way you would if you were opening a physical storefront. Have your team strategize with you on how to reach customers; how to manage your budget; and how to identify (and eventually beat out) your ecommerce competitors.  

3.     Choose the right ecommerce platform. Your e-commerce platform will serve the purpose of organizing and displaying your products, just like a physical shelf would; that’s why it’s important to put some thought into which platform to use. Subscribe to one that’s affordable, scalable and compatible with major payment gateways and other customer service features such as chat engines that you need.

4.     Build your own e-commerce brand. Once your e-commerce plans have begun in earnest, you will need to start building your brand or fleshing out what will distinguish you from your competitors. Make decisions on your logo, your brand message, your brand colours and your domain name. For best results, you should get web designers and copywriters to brainstorm with you on different options.

5.     Harness the power of SEO. Another area where it would help to have information from experts is search engine optimization (SEO). SEO specialists can help you conduct keyword research, build links to your e-commerce site elsewhere on the web, and give advice on how to make your products more searchable ahead of thousands like them. 

6.     Link to reputable payment and shipping options. Don’t launch your e-commerce website without ironing out two important concerns: payment and shipping. Ensure your site is linked to safe payment gateways that your customers can use for transactions; and that, once payment is made, their items are shipped to them on time. Depending on the product type and amount, you may choose between drop-shipping from the product’s manufacturer or partnering with a third-party logistics (3PL) provider to handle inventory, packaging and shipping for you. 

7.     Invest in sound e-commerce analytics. For quicker and more accurate decision-making in your business dealings, you will definitely want to invest some time and money into e-commerce analytics. You’ll learn about how many visitors came to your site per month, how many products you sold, and how high your conversion rate is—and you can tailor your upcoming decisions to improve those. 

8.     Market aggressively. Lastly, don’t forget to tap as many relevant channels as you can when your ecommerce site is live and functional. You can use both traditional advertising media, like print ads, along with social media to grow awareness about your site. Make sure you’re visible to your target market—for example, if you sell tools and hardware, tap your local network of tradesmen in construction or electronics; if you sell health products, reach out to a customer base that’s similarly concerned with sports, healthy eating or sustainability.  

If you’re looking for more ideas on this, explore How To Start an Ecommerce Business From Scratch In 2022, a step-by-step guide about starting an e-commerce business from scratch.

E-commerce is often a make-or-break scenario for entrepreneurs. On the one hand, competition and the quick evolution of technology could sink a person’s entrepreneurial dreams. On the other hand, a vast market, massive earning potential and greater longevity than physical storefronts can catapult humble business ideas into something extraordinary. Heed the tips above to be on the winning side of this equation, and to add to the world’s number of e-commerce success stories.