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How to Start an Online eCommerce Business?
Table of contents
If you aspire to start an online eCommerce business, you are right on the spot. With over 33% of the world’s population shopping online, eCommerce is now a $6 trillion industry and will reach the $8 trillion mark by 2027.
Indeed, the growth of eCommerce apps is still a very profitable business today. The trend of customers shopping online has given businesses a once-in-a-lifetime opportunity to reach a global market. Thus, investing in an eCommerce business is a perfect opportunity to penetrate and dominate the global eCommerce market.
Let's take a look at the latest online eCommerce stats:
Additionally, as technology advances, mobile shopping is growing in popularity. For this reason, it is essential for businesses to offer seamless and user-friendly mobile shopping experiences through mobile apps.
Whether creating a new app from scratch or improving an existing platform, value, usability, and a customer-centric approach are essential. When implemented properly, your eCommerce app may boost growth, build long-lasting relationships with your target audience, and raise brand awareness.
In today’s guide, we’ll delve into important strategies and considerations when starting an online eCommerce business plan. Let’s get started!
What is an eCommerce Business?
An eCommerce business is a company that buys and sells products or services over the internet. These businesses reach customers through websites, apps, social media, and online marketplaces.
They range from small, one-person operations to large global companies and may use a single website or multiple sales channels to connect with buyers. Common examples of eCommerce businesses include software providers, clothing retailers, and subscription services.
Let’s understand eCommerce business with an example –
Suppose, you love to craft handmade candles and want to sell them online instead of physical shop. Unlike traditional stores, eCommerce businesses don’t need a physical location. And you can operate your business online via website or apps.
Here people can visit her online store, browse the candles, add their favorites to the cart, and pay through her site. You ships the candles to the customers. This setup lets her reach people all over the country (or even the world) without needing a physical storefront.
Step-by-Step Guide to Launch an eCommerce Business
Following, we've listed steps to start an online eCommerce business with the right roadmap. Let's learn:
Step 1: Research Your Market
Adopt a journalistic approach when you’re researching your market. It will help you dig deeper and uncover data and insights to build a successful eCommerce strategy.
Check the following table to know how to research your eCommerce market to cover all aspects of it:
| Research Points | Details |
|---|---|
| Define Your Objectives | Determine what you want to achieve with your research (e.g., understanding customer preferences, identifying competitors, exploring market trends). |
| Identify Your Target Audience | Create buyer personas by gathering demographic data (age, gender, income) and psychographic information (interests, values). |
| Analyze Market Trends | Use tools like Google Trends and industry reports to stay updated on emerging trends and consumer behaviors in your niche. |
| Conduct Competitor Analysis | Identify your main competitors and analyze their websites, product offerings, pricing strategies, and customer reviews. |
| Gather Customer Insights | Utilize surveys, interviews, and focus groups to gather direct feedback from potential customers about their needs and preferences. |
| Explore Online Forums and Social Media | Join relevant forums and social media groups to observe discussions about products similar to yours. Pay attention to customer pain points and desires. |
| Study Industry Reports and Statistics | Refer to resources like Statista or Nielsen for comprehensive data and analysis of your industry. |
| Evaluate Pricing Strategies | Research the pricing of competitors and analyze customer reactions to different price points. This helps you identify competitive yet profitable pricing. |
| Understand the Regulatory Landscape | Familiarize yourself with any legal regulations and compliance requirements related to eCommerce in your region (e.g., data privacy laws, consumer protection). |
| Monitor Technological Changes | Stay informed about technological advancements that could impact your eCommerce operations, such as payment processing systems, logistics, and marketing tools. |
| Analyze Sales Channels | Evaluate different sales channels (e.g., your website, marketplaces like Amazon or Etsy) to understand where your target audience prefers to shop. |
| Compile and Analyze Your Findings | Organize the data you’ve gathered, identify patterns and insights, and use this information to refine your business strategy. |
Step 2: Develop a Business Plan
If you’re starting an online eCommerce business – it is essential to create a comprehensive business plan. It works as a roadmap that outlines your business goals. Some of the reasons are listed below:
- Clarifies Your Vision and Goals
- Defines Your Target Market
- Helps in Decision-Making
- Attracts Investors and Funding
- Identifies Potential Challenges
- Facilitates Business Structure and Organization
- Builds Credibility
Check the following table to to develop your eCommerce business plan:
| Section | Description |
|---|---|
| Executive Summary | A brief overview of your business, including your mission statement, key objectives, and the products or services you offer. |
| Business Description | Detail the nature of your eCommerce business, the market need you’re addressing, and how your business stands out from the competition. |
| Market Analysis | Conduct thorough research on your target audience, industry trends, and competitor landscape to understand the market dynamics. |
| Organization and Management | Outline your business structure (e.g., sole proprietorship, LLC), management team, and roles of each member, if applicable. |
| Marketing Strategy | Define your marketing approach, including branding, pricing, promotion, and distribution channels. Describe how you will attract and retain customers. |
| Product Line or Services | Describe the products or services you will offer, including details about their benefits and how they meet customer needs. |
| Sales Strategy | Explain how you will sell your products (e.g., through your website, marketplaces, social media) and your sales tactics. |
| Funding Request | If seeking funding, specify the amount you need, how you will use the funds, and potential future funding requirements. |
| Financial Projections | Provide projected income statements, cash flow statements, and balance sheets for the next three to five years. Include assumptions that support your projections. |
Step 3: Choose Your Business Name & Logo
Choosing your business name and logo is a foundational step that shapes your brand identity and influences customer perception.
Once you have finalized your name and logo, registering your business is vital to ensure legal protection and compliance. Together, these steps help establish credibility and lay the groundwork for your eCommerce success.
Let’s understand how to implement this step:
Choosing your eCommerce Business Name
Your business name should convey what your business is all about. It must reflect your brand identify and therefore it should be catchy and resonates with your target audience.
Shopify, for instance means a blend of “shop” and “simplify” - the name implies an easy and straightforward platform for setting up online stores.
Check the following that you must consider when selecting your ecommerce business name:
| Tips | Description |
|---|---|
| Reflect Your Brand Identity | Your business name should convey what your eCommerce store is about. It should be memorable and resonate with your target audience. Consider using words that evoke the emotions or ideas you want to associate with your brand. |
| Simple and Clear | A straightforward and easy-to-pronounce name will make it easier for customers to remember and recommend your business. Avoid complicated spellings or overly long names. |
| Check Availability | Ensure the name you choose is not already in use by conducting a search on business registration websites and checking domain availability. |
| Consider Future Growth | Choose a name that allows for business expansion. For example, avoid names that are too specific to a particular product if you plan to diversify your offerings in the future. |
Designing your Logo
| Consideration | Description |
|---|---|
| Professional and Unique | Your logo should be professional, unique, and visually appealing. It should effectively represent your brand and its values. |
| Versatile Design | Ensure your logo works well in various formats, whether on your website, social media, or promotional materials. It should be scalable, looking good in both small and large sizes. |
| Color & Font Choices | Choose colors and fonts that align with your brand’s identity. Consider the psychological effects of colors—like blue for trust or green for eco-friendliness—to convey the right message to your audience. |
| Receive Feedback | Share your logo design with trusted friends, family, or potential customers to gather feedback. This can help ensure your logo resonates with your target market. |
Once you have finalized your name and logo, registering your business is vital to ensure legal protection and compliance. All these steps will help you establish your eCommerce business in the right direction.
Step 4: Select the Right eCommerce Platform
Choosing an eCommerce platform is crucial as it will be the backbone of your online eCommerce store. The right platform should be easy to use, scalable, and secure. Popular options include Shopify, WooCommerce, and BigCommerce.
| Considerations | Details |
|---|---|
| Ease of Look | Look for platforms with intuitive interfaces and customization options that don’t require extensive coding. |
| Features | Ensure the platform supports essential features like device compatibility, multi-channel integration, and analytics. |
| Scalability | As your business grows, the platform should allow easy addition of new features and products. |
| Security | Choose platforms with built-in security features, like SSL certificates and data encryption, to protect customer information. |
| Customer Support | Reliable support ensures any technical issues get resolved quickly, minimizing disruption to your business. |
Step 5: Design Your Online Store
A well-designed online store attracts and retains customers. Focus on simplicity, functionality, and a clear layout that leads users through the purchase journey seamlessly.
| Key Elements | Details |
|---|---|
| Intuitive Navigation | Categories and search options should be clearly labeled, making it easy for users to find what they’re looking for. |
| Responsive Design | Ensure your site is mobile-friendly, as mobile commerce is rapidly growing. |
| High-Quality Images | Use professional photos and videos to showcase products from multiple angles, highlighting details. |
| Clear Call-to-Actions (CTAs) | Use prominent CTAs like “Buy Now” or “Add to Cart” to guide users toward making a purchase. |
| Product Descriptions | Craft engaging, SEO-friendly descriptions that answer common questions and help customers make informed decisions. |
Step 6: Set Up Payment and Shipping
Reliable payment and shipping options are essential to customer satisfaction. Offer multiple secure payment gateways, and provide clear shipping policies.
| Payment Setup | Details |
|---|---|
| Diverse Payment Options | Accept credit cards, debit cards, PayPal, and other local options based on your target audience. |
| Security | Choose payment providers with robust security protocols like PCI compliance to protect sensitive data. |
| Shipping Setup | Details |
|---|---|
| Shipping Rates | Offer free shipping, flat rates, or real-time shipping rates based on the customer’s location. |
| Order Tracking | Enable customers to track their orders to improve transparency and trust. |
| International Shipping | If shipping internationally, clearly outline policies, fees, and expected delivery times. |
Step 7: Implement Security Measures
Security is a top priority to protect customer data and build trust. Online threats like phishing and fraud require strong security protocols.
| Key Security Measures | Details |
|---|---|
| SSL Certificates | An SSL certificate encrypts sensitive data, such as credit card information, protecting it from hackers. |
| Data Encryption | Protects information by converting it into code during transactions. |
| Regular Software Updates | Keep your platform and plugins up-to-date to prevent vulnerabilities. |
| Fraud Detection Tools | Use tools to monitor for suspicious activity, especially during high-traffic periods. |
Step 8: Create a Marketing Strategy
Promoting your eCommerce business is essential to attracting and retain customers. With targeted marketing strategy will assist you to attract audience and grow your revenue more effectively.
| Marketing Strategies | Details |
|---|---|
| Influencer Marketing | Partner with influencers who have a well-established audience within their specific niches. |
| Content Marketing | Create blog posts, guides, and videos that provide value to your audience and drive traffic to your site. |
| Social Media Marketing | Engage with customers on platforms like Facebook, Instagram, and Pinterest. |
| Email Marketing | Build an email list to promote new products, sales, and updates to previous customers. |
| Paid Ads | Use PPC advertising, social media ads, and retargeting to drive targeted traffic to your store. |
Step 9: Launch Your eCommerce Business
Once everything is set up, it’s time to launch your eCommerce business. You can implement eCommerce marketing tactics that will help you to attract initial traffic and audience.
| Launch Tips | Details |
|---|---|
| Pre-Launch Marketing | Use a countdown on social media, share sneak peeks, or hold a giveaway to build curiosity. |
| Soft Launch | Consider a soft launch to test your site’s functionality with a smaller audience and iron out any issues. |
| Grand Launch | Once everything is running smoothly, officially announce the launch on social media, your email lists, and other relevant channels. |
Step 10: Monitor Performance and Adjust
Launching your eCommerce business is just a beginning and requires continuous work further. Regularly monitor your store’s performance to make informed improvements.
| Key Areas to Monitor | Details |
|---|---|
| Traffic & Sales | Track visitor numbers, conversion rates, and sales figures using tools like Google Analytics. |
| Customer Feedback | Collect reviews and feedback to understand pain points and areas for improvement. |
| Inventory & Fulfillment | Ensure stock levels are adequate, and fulfill orders promptly to maintain customer satisfaction. |
| Marketing ROI | Analyze the effectiveness of your marketing channels and adjust as necessary. |
3 Common Mistakes to Avoid When Starting an Online eCommerce Business
Of course, starting an online eCommerce business is a lucrative option. However, here’s also a bad news – 90% of e-commerce brands fail within their first four months of launching.
But why is that? It’s mainly because many new eCommerce business owners commit mistakes that leads to their downfall.
Below we’ve listed the top 3 mistakes that entrepreneurs should avoid when launching an eCommerce business. Let’s learn:
1. Not Really Knowing Your Product or Audience
“The companies that are successful are the ones that learn what customers actually want.”– Jeff Bezos
Understanding your product and audiences is the crucial step that you cannot miss. Assuming that customers will automatically show up once you’ve launched your eCommerce store is wrong approach.
Do you also have this assumption that customers will show up automatically on your eCommerce website?
Needless to say, it is a totally wrong approach. Without a proper research and understanding, you cannot be sure who needs your product or who doesn’t.
So, what’s the solution here? –
You must do comprehensive research to understand the connection between your products/services with target audiences.
Find out your target audience’s needs & requirements, interests & preferences, preferred platforms, demographic information, purchasing decisions, and more.
Additionally, conduct thorough market research before setting prices to ensure they align with current industry standards, rather than setting price tags arbitrarily.
2. Choosing Wrong Tech Stack & Tools
Having a robust tech stack & tools is the foundation of any successful eCommerce business. After all, it will determine seamless user experience, strong security, and customer retention.
It surely would cost you higher, however, it will also save your effort and time further ahead. In case, you want to expand or migrate to different platforms – you will have an easy way to do it without any frustration.
Here’s the solution that you can implement:
Select the right eCommerce platform that offers essential features and functionalities to support your growth and scalability.
Additionally, prioritize investing in strong security measures for your platform. Think of this as an investment rather than an expense, as robust security will protect your business from online threats, including phishing scams, financial fraud, and other cyberattacks.
3. Poor Website Design & Navigation
"Do you know web design influences 94% of all first impressions and poor design and navigation drive 38% of web visitors away. "
It is crucial to understand that website is the first thing that connects businesses with customers. Having a poor website design is an instant deal breaker.
If you’re starting an eCommerce business – you might be wondering – “why website design is important?”
Surely, you will get many answers to this question. However, the final takeway is that customers want an amazing user experience. In case you fail to provide that – you simply frustrating your customers with complicated design and navigation.
Here’s the solution that you can implement –
To create a user-friendly website, focus on a clean, organized layout with intuitive navigation that guides visitors effortlessly. Use clear menu structures, prominent search functionality, and well-placed call-to-action buttons to streamline the shopping experience.
Make sure your site is optimized for mobile devices, as a significant portion of eCommerce traffic now comes from mobile users. Lastly, Mobile site abandonment peaks with slow loading times. Therefore, keep load times fast, as slow-loading pages can lead to high bounce rates.
By prioritizing a seamless and accessible design, you enhance user satisfaction and keep visitors engaged longer, increasing the chances of successful conversions.
How Much Does it Cost to Start Your Online eCommerce Business?
The cost to start your online eCommerce business can vary widely, depending on factors like the platform you choose, the complexity of your website, marketing efforts, and product sourcing.
However, the estimated cost to build an online eCommerce business ranges from $15,000 to $120,000+ or above. If you want to know the exact cost to start your eCommerce business, get in touch with Apptunix experts.
How Apptunix Will Assist You to Build a Robust E-Commerce Business?
Apptunix, a leading eCommerce app development company, dedicated to helping businesses succeed in the fast-evolving digital marketplace. With Apptunix, you gain access to a team of eCommerce developers & designers experts who understand the nuances of eCommerce and are committed to transforming your vision into a powerful online presence.
Here’s how we make it happen:
- Customized Solutions to Fit Your Needs
- End-to-End Development Services
- Future-Ready Platforms with Advanced Features
- Proven Strategies for Customer Engagement
- Data-Driven Marketing and Support
Apptunix is more than just a development company—it’s a dedicated partner that supports you at every stage of your eCommerce journey.
With innovative solutions, customer-first strategies, and a track record of successful projects, Apptunix is committed to helping you build and maintain a thriving eCommerce business. Reach out to us to start your journey to digital success!
Frequently Asked Questions(FAQs)
Q 1.What are the Benefits of Starting an Online eCommerce Business?
Following, we’ve listed adavantages of starting an online eCommerce business.
- Wider Customer Reach: Access customers globally, reaching audiences far beyond local boundaries.
- Lower Operating Costs: Save on expenses like rent and utilities, making it easier to start and scale.
- 24/7 Availability: Sell anytime, offering convenience for customers and maximizing sales opportunities.
- Personalized Marketing: Use data-driven insights to tailor promotions and product recommendations.
- Scalability: Expand your product range or reach new markets more easily than with a physical store.
Q 2.How do I start a small eCommerce business?
To start, research your market to understand your target audience and competitors. Then, choose an eCommerce platform (like Shopify or WooCommerce), create a website, set up secure payment and shipping options, and launch your store. Focus on marketing and continually optimizing your site to attract and retain customers.
Q 3.Is eCommerce profitable?
Yes, eCommerce can be highly profitable if managed well. Success depends on choosing the right niche, effective marketing, strong customer service, and cost management. Many entrepreneurs have grown profitable online stores, but it requires careful planning and strategy.
Q 4.Which eCommerce is most profitable?
Some of the most profitable eCommerce niches include fashion, health and wellness, electronics, and home decor. Digital products and subscription services can also be highly lucrative due to lower overhead costs. However, profitability varies, so choose a niche you understand and that aligns with market demand.
Q 5.Can I start eCommerce with no money?
Yes, it’s possible! Options like dropshipping and print-on-demand allow you to sell products without upfront inventory costs. You can start by using free eCommerce platforms or social media marketplaces and focus on organic marketing (like social media and content creation) to minimize expenses. To start an eCommerce business at affordable cost, get in touch with Apptunix experts.
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Introducing Nalini, our tech-savvy content expert with 7+ years of experience in technical content writing. With a knack for making complex ideas simple, she turns intricate tech concepts into engaging reads. Whether you’re delving into mobile app development, AI, or blockchain, she is your go-to technical expert. Beyond the tech world, you’ll find her immersed in Anime, exploring mobile trends, or enjoying badminton and Foosball.
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