Are You Ready to Own Your Own E-Commerce Business ?
Do you have what it takes to build a profitable e-commerce business? Do you want to start and grow your own e-commerce business but lack the cash or experience? Or maybe you're just an aspiring entrepreneur looking for new opportunities. Whatever the case may be, this post is for you.
We’ve got all the information you need about building your own e-commerce business. We’ll cover all of the steps from starting up, product research, and social media marketing to taxes and pricing strategies. You'll also find out about some of the best tools out there that will save time and money in building your company.
What is e-commerce?
E-commerce shops are online stores that sell physical items for purchase. E-commerce sites can be set up to offer just about anything, including fashion, electronics, food, music and more. E-commerce is another form of “doing business online”, but it isn't the same as creating a blog (although some blogs are actually e-commerce sites).
What do I need to start an e-commerce business?
Your main requirement to start an e-commerce business is a website. These days, you can get your own website for cheap; there are many companies offering basic websites for $5 or less per month.
As with any business, there are a few other things you’ll need as well. You’ll want to make sure you have a computer or laptop, internet connection and some kind of payment processor for accepting customer payments. All of these things will cost money up front including domain fees, site hosting and any other bells and whistles you may want to add to your ecommerce website.
What should I sell?
As with any business idea, the first thing that pops into your head is not always the best choice. Before you start shopping around for product suppliers, do some market research first so you can be sure that what you’re selling will actually sell.
What is market research?
Market research is simply exploring what’s already out there. The goal of the process is to uncover demand for a specific product or service. You can do your own survey, using social media for example, or you can pay a company to do it for you. There are lots of places where you can conduct research like consumer surveys, Facebook marketing and more. You’ll also need to determine how much money you’re willing to spend on inventory when starting your business; this will change the type of product that you sell.
Without market research, there’s no way of knowing whether a product will be popular enough for you to be successful selling it online. We suggest you check out this online market research tool for additional information.
How much money do I need to get started?
There are a few ways you can start an e-commerce business with little to no money at all. If you already have an existing website, for example, and you just want to add products, this can be done for free using a shopping cart software like OpenCart or WooCommerce.
The best way to start selling online is by using Shopify. Shopify gives you everything you need out of the box -- including hosting, payment processing and even free shipping labels. You also have access to thousands of apps that can help your business, like social media marketing and inventory management apps. Start off with a 14-day free trial, no credit card required.
The best thing about Shopify is that it’s completely customizable. You can start with a basic free plan and upgrade later if you want more features or a more professional website design.
If you don’t want to use Shopify, there are many other options out there like Volusion, Bigcommerce and Webgility. Here are a few online market research tools that will help you compare features and pricing plans between different e-commerce platforms.
What else do I need to look at?
Taxes are an important aspect of any business. You'll need to think about how you want to be taxed, and what you'll be required to pay. For example, if part of your business is purchasing supplies from another country, you may be liable for tariffs.
We also recommend that you check into whether you can deduct any business expenses on your tax return, like computer equipment or travel expenses. If all goes well with your e-commerce business, you’ll end up making a profit at some point and can avoid paying taxes on it until then!
Pricing is another consideration when starting an e-commerce business. There are many different methods you can use, but the best one is to take the time to figure out what your competitors are doing. You’ll want to come up with a price that's competitive with other online stores, and that also allows for a profit margin. Keep in mind that your prices may fluctuate over time; for example, if you buy raw materials from overseas, you can adjust your prices hourly or daily based on market conditions.
For ideas and inspiration for your own e-commerce business, check out the Business Ideas section of our website. It has hundreds of articles about marketing, social media marketing, managing inventory and more!
Remember...
N o one said it's easy to start an e-commerce business. You will need to work hard, and be smart about the decisions you make. Don't just jump in thinking that if you build it, they will come.
Don’t get discouraged if your first attempt doesn’t turn out as well as you hoped. Keep trying until you get it right!
We wish you the best of luck in your new e-commerce business!
The first step to starting your own e-commerce business is figuring out what kind of products or services that YOU want to sell. Once you do that, the fun part begins...
We will be covering many different e-commerce business ideas in this section of the website. As we write about each one, we will link them here for easy reference. If you have a specific type of e-commerce business in mind, feel free to jump ahead to it using the navigation above!
If you're looking for a more general "how-to" on starting an e-commerce business, here are some basics that will help you out:
How do I choose a business idea?
You may have been dreaming about your own e-commerce shop for years now. If that’s the case, congratulations! You’re already well on your way to realizing your dream.
Conclusion
The question you need to ask yourself now is: “Will this type of business interest me for the long haul?” If you’re still not sure whether or not e-commerce is the right choice for you, here are some ideas to help you make up your mind:
How much money do I need?
Starting an e-commerce business is a lot cheaper than opening a brick and mortar store. In fact, many e-commerce businesses can operate from home with as little as $500-$1000 USD. However, some require more than that to get off the ground.