With the rise of social shopping apps like Instagram and Shopify, it has never been easier to start a business. If you’ve got a passion for something, all you need is an idea and some creativity to really get it off the ground.
However, with the proliferation of new tools and opportunities, the old-fashioned way of setting up a store can seem overwhelming.
Here we will walk you through everything you need to know about starting an e-commerce store to help you get started with minimal issues.
Ways to Start an Online Store
If you have a good idea for a product or service, there are several ways to get started. Let’s go over some of your options.
Marketplaces
It’s always a good idea to put your products on platforms like Amazon. With the biggest marketplaces earning over $2 trillion in revenue, there is never a shortage of shoppers.
Marketplaces are great for exposure, but often charge high fees for third-party sellers. However, there are some advantages to using Amazon. First off, Amazon is consistently ranked as the top-rated e-commerce site in customer satisfaction. This is likely because Amazon has a reputation for great customer service, and you don’t have to worry about fees and returns.
While it may seem difficult to get started on Amazon or any other marketplace, there are plenty of helpful tips online to help you get set up.
Dedicated E-Commerce Platforms
While marketplaces like Amazon are great for making sales, they don’t typically offer many options for customization. By choosing to use an e-commerce platform, like Shopify, WooCommerce (powered by WordPress) or Salesforce Commerce Cloud (for larger enterprises), you can set up your store however you want (within reason).
When selecting an e-commerce platform to host your online store, it is crucial to find one that meets your specific needs. Some platforms are primarily designed for dropshipping (utilizing services like Oberlo), while others offer more advanced features, such as automated payments and shipping labels. Take a look at your specific needs and the product(s) you offer, then choose the appropriate platform. Most dedicated e-commerce platforms offer trials to ensure it’s a good fit for your store.
Build Your Own Site
If you want to start an online store because you’re passionate about a certain product or service, then it might be best to build your own website.
Building your own website can be beneficial if you want to establish a brand and have complete control over your customer relationships. There are numerous advantages to taking this route – it enables creative, brand-centric design and gives your company a strong sense of authenticity.
However, building your own site isn’t easy, so you may want to consult with someone who knows how to do it well.
Choosing a Selling Method
With numerous tools available today, there are various ways to launch a new business.
While most new e-commerce businesses choose one category to focus on, try out different methods until you find something that works. Here are some ideas for laying the foundation of your e-commerce business.
Dropshipping
Dropshipping is a popular option among e-commerce stores because it can be set up in just a few days. Once your store is live, you can copy your products directly from your inventory.
Dropshipping is great for starting out, but after you’ve made some sales, you may want to consider other options.
Reselling
While dropshipping can be a great way to get started, you may not want to focus on it forever. For every product that is sold using dropshipping, some money is going out of your pocket.
You can avoid the dropshipping fees and still make money by reselling some of your products. This way, you can also eliminate the middleman and minimize any mistakes in the process.
Arbitrage
Another popular selling method is arbitrage. Arbitrage simply means buying products at a lower price and selling them at a higher one. By using this method, you can earn more on every product without incurring excessive production costs.
Arbitrage is an effective strategy for scaling your business. However, it can be dangerous as well – you need to be careful not to overpay on the products you buy.
As you can see, you have a few options when it comes to sourcing and selling products.
Niche & Product Research
Once you’ve decided what you want to sell, it’s time to look for products that match your niche, and research new ones. If you choose the wrong products, your business will soon face a loss of customers and revenue.
You can begin with Google Trends or look through Amazon to check product ideas, and then move on to researching e-commerce sites that already offer the products you like.
It’s also a good idea to discuss with friends and family what they like and develop a wish list before deciding where to start.
Research Competition & Create a Business Plan
Before you start your business, it’s important to research some of the most desirable competitors. By comparing their online sales, growth potential, and social media presence, you can develop a strategy to outperform them, as well as identify aspects of their strategies that should be emulated.
For example, e-commerce stores that focus on kid’s toys tend to do well in communities with large numbers of parents. Stores that sell travel items generally perform better in the largest cities due to the high demand for flight tickets.
Find Suppliers
Once you’ve decided what you want to sell, it’s time to find reliable suppliers to work with.
You can find suppliers through business directories that match your industry, relationships you have established, or by researching businesses in your category. Alternatively, if you are seeking large suppliers in the hopes of reselling their products, create a list of products you would like to retail on your site and initiate discussions about a potential retailer relationship with the supplier.
Once you have identified suppliers, you need to establish payment terms and shipping methods. Remember to order test products and verify their quality yourself, or you may regret it later.
Manage Shipping
Shipping is an area in which you can easily lose money. It is crucial to understand the costs of all your shipping methods and select the most affordable and convenient options for your customers.
Shipping fees vary depending on the size and weight of a package. You should use a tool like UPS or FedEx to determine which service is best for your business. Remember that some customers may perceive the shipping fees as too high, so consider offering free shipping as a way to attract them.
Promote Your Products
Once you’ve made your first sale, it’s time to start drumming up traffic. While an SEO strategy may take some time to take hold, you can start with pay-per-click advertising and social media posting to drive immediate visibility.
Ads on Facebook, Instagram, and LinkedIn can help grow your following and pique people’s interest in what you have to offer. Alternatively, you can upload a product catalog to start bidding on via Google Shopping or use a mix of search and display ads through Google Ads.
Starting Your Store
Starting an e-commerce business isn’t easy – but it’s a great way to make a living. If you can find products that cater to a niche and attract customers who want them, then your business can be highly successful.
Your goals for your e-commerce business will also change as you move forward. Some businesses start out with the dream of earning millions in annual sales, but over time, they realize that their actual goals are more modest. Whatever you decide to do, remember that it’s essential to be adaptable. If you’re unsure where to start, consider consulting with more experienced individuals or following entrepreneurs who share their insights on how they achieved success and leverage their expertise.
If you’re currently trying to decide what is the best e-commerce strategy for your business, don’t hesitate to reach out to us [email protected]. We’ll happily take a look at your site, services and/or products and provide an honest assessment of what will work best for your budget.
