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The buzz of starting an ecommerce business is taking up on everyone’s nerve. Unlike past days, things have changed a lot. The online business model that started back in the ’90s has gone through different re-engineering processes. The haphazard life of eCommerce websites has passed from different phases. Somewhere, it has shown resistance against the merciless waves of search engines while on another end, these platforms have witnessed booming phase too.
Taking a look at the successive growth of online sales, one can easily understand why eStores are getting high? why is that every other search query on the internet is, that how to make money online?
Let’s be honest that people of all ages are now looking for ways to make money. They want to make money but without walking even a single inch from their doorstep.
Isn’t it amazing?
But, there’s no wonder that the technological advancements and the growing number of eCommerce website builders are making it possible.
In an event, you are also inspired by the success stories of online entrepreneurs and want to build an online store for your business then there are certain points that should be kept in mind before starting an eCommerce business.
Let’s take a look at these.
Things to Know Before Starting an E-commerce Business
Broader Niche Means More competition
It is really common for newcomers in the market to see sale potential in a broader niche like health, Fitness or technology.
Of course, there is a lot of volumes and people are looking for stuff.
But, along with that, there is also a tough competition that is waiting for you right around the corner.
For a starter, choosing a broader niche and trying to make money out of it will probably never work.
We are not saying it is impossible, but it is definitely not a wise decision.
Here is a detailed guide by Stuart Walker from Niche hacks to find the right niche for your e-commerce business
Instead, you should focus more on targeting a really small group of people with common problems and try to solve their problems. Once you have developed your name and brand authority in that market, then you can start to expand your business for a broader audience and attract new customers in a more competitive market.
Decide What, Who and Where You Want to Sell
It’s not like you will start selling things all of a sudden without having a solid plan.
First of all, make sure that what you want to sell. Until you are not sure that what you are going to sell and to whom, you will never make it long. Once you’re sure that what you want to sell then the next thing is to determine the audience. Who do you want to sell your products? You can segregate your audience based on
For any business, targeting the right place is the key to success.
Why is it important to determine the market place?
because, if you’re not sure about your areas then it will be hard for you to devise your strategy.
Moreover, for an eCommerce business, it is equally important to ascertain these things at an early stage.
Explore the Market and BenchMark Your Competitors
Competitors are the driving and the motivational force for any business.
They let you set your sails in the right direction. Before starting an eCommerce business make sure that you’ve done all the necessary research and have compiled the list of your competitors.
Benchmarking your competitors and performing a detailed analysis of your competition and what they are doing from day one or at a pre-stage ensures that you’re cleared in your vision.
Test the Idea on a Small set of Audience
Haste makes waste and this sounds pretty true with the online ventures. Sometimes, the enthusiasm of online entrepreneurs overwhelms them so much that they launch their eCommerce website all of a sudden.
They won’t test their site fully and eventually end up with the disparity and zero conversions.
For online store owners, it is better than they should first launch the beta version of their eStore among their social circles. These social circles should be used as a test case to find out all the ifs and then of the website.
When you become confident that your site in error-free and that it is good to go, you should only then launch it.
Here are a few things you can do to test the idea of your e-commerce business before going out in the market:-
- Do a Soft Launch of your Idea
- Ask around your circle what they think about your e-commerce business idea
- Take part in the forums and discussions
- Do a questionnaire survey in your target market
You Need to Have Patience and a LOT OF IT!
It’s quite deceiving at first looking at other successful e-commerce businesses that generate thousands of dollars every month.
But when you actually start the e-commerce business, things are not as you would expect.
It takes a lot of time for an online business to grow and start generating sales. you would have to spend hours promoting your business to make your first sale.
So need to be consistent with what you do and it will turn out to be good. Other successful businesses we see have also been through this stage. The only reason they are making high profits today is because of their consistency with work.
Be Ready to Spend Money On Promotions
Alright! so you have made a perfect e-commerce website, added all your products, Created your social media accounts now what?
Just waiting for a customer to come to your store and buy from you would be the worst thing you can do.
it’s just like living in a forest with no supplies and expecting that someone might come looking for you. Trust me You will probably die before anyone does.
You need to go out to the people and let them know that you exist. You would have to spend money on promoting your products and business.
Here are a few things that can help you get started:-
- Start a Facebook ads campaign
- Start posing your offers on groups were your targetted audience mostly hangs out
- If more people are looking for your product on Google start a google ads campaign
- Partner up with other established businesses and start an affiliate offer
- Pay influencers in your niche to Promote your audience. Influencer marketing can find you some really nice leads and give you great buyers for your products
You Need to Plan on Where You Want to Spend
Spending all your money on a single go will not bring some good results but the fear of bankruptcy and insolvency. Often online entrepreneurs will spend a huge amount on promoting their eCommerce business with a hope that they will get the return. However, getting back yields often take time and newly started eCommerce business owners do not wait for that long.
Instead of waiting for the fruit to reap, they think if investing more and more will get them leads as well as conversions which is a very wrong approach. So it is better that think wisely and not to invest a lot of money in your early days.
Things Will Not Be as You Have Planned
Of course, we have seen online videos and tutorials on starting a successful online business. It looks really easy and most people think that if they do exactly as mentioned in those guides, they can also be successful and start earning from day one.
But that’s not true!
E-commerce business strategies and results are different for everyone. What works for one person might be the biggest nightmare for the other.
So you should be ready for disappointments and learn from them instead of losing hope.
The best way is to create different strategies and test them out. If it gives you good results, add it in your “Do it Again” list and if it doesn’t work for you, Well, Don’t do it!
Be Ready for Criticism
When you step into the online world you think you have a great product and people are going to love it. But the real world scenario is different and when you take your product online, it is shown to all kinds of people and everyone has their opinions.
A small little mistake can lead to an insult that goes viral and leave a bad image of your brand.
Having a negative image is way easier than creating a positive influence. Even if your services and products are great, there is still going to be people criticizing your idea.
So make sure you have done the homework and have everything planned out to tackle such scenarios.
Last But Not Least – Choosing the Right eCommerce platform
It’s up to you whether you build a custom eCommerce website or use some eCommerce website builder. In any case, make sure that you have selected the right platform. We ask you the right one because your online store has to go a long way. You are not starting ecommerce business to shut it down the very next day, so choosing the right shopping cart platform will help you in coming up from many of the miseries.