The future of eCommerce looks evergreen with the increasing number of flourishing businesses. Brick and mortar stores are rapidly being supplemented or replaced by online versions of their businesses. And now, they face even stronger competition from eCommerce stores. Global retail eCommerce numbers reflect this sentiment as well. Online retail sales are expected to touch $6.8 trillion by 2023 – a 385% jump from a mere $1.4 trillion in 2014.
So, if you’ve been considering building your own eCommerce business, now is the right time. Here are 5 points that can help you build your eCommerce business from scratch.
1. Choose Your Niche
Knowing what you want to sell is very important. However, when it comes to selling online, the possibilities are virtually endless. So, pick a niche where you can contribute best. For instance, all the ‘products’ sold by eCommerce businesses fall into one of these four categories: services, digital goods, physical goods, and subscriptions. So, you can choose one of these or even combine a few of them to create your unique niche.
2. Select the Correct eCommerce Model
Most people tend to start their eCommerce business with a B2C model. But if you’re interested in making a mark in the eCommerce space, you’ll need to broaden your horizons. There are as many as ten different types of online business models available. In addition, it is also important to pick the right revenue model for your business. For example, you can consider warehousing, drop shipping, wholesaling, and other options.
3. Make Your Business Plan & Identity Your Main Priority
You need to make sure that your business stands out from the remaining players in the market as the competition is plenty. Therefore, you need to have a solid business plan and branding. With branding, ensure you cover the three key basics – the domain name, website, and logo. To work out your eCommerce business plan, make sure you take care of the following aspects.
- Product sourcing
- Managing inventory
- Financial management
- Sales, marketing, and operations
4. Build Your eCommerce Store
To make sure that you build enough customer base, ensure to build your online store while keeping the following parameters in mind.
Should be intuitive
Your online store should be easy to use – both for you and your consumers. A complicated onboarding process or consumer journey can lead to many customers either dropping out or not returning to your website.
Should be instructive
The more information people have about the product or service they want, the more likely they will purchase the same.
Should be adaptable
Cross-platform compatibility is important as different customers may access your platform from different sources. Therefore, ensure your site is mobile-friendly and desktop-friendly.
5. Promote your eCommerce endeavor
Understanding the aspects of business promotion can be time-consuming. There are two ways to promote your business and increase traffic. You can pay to increase the traffic, or you can earn it over time. Earning traffic is harder and takes longer. Here are some ways in which you can build organic traffic over time.
- Have an active social media presence
- Focus on SEO
- Invest in content marketing
- Capitalize on user-generated content
These strategies produce great and sustainable results for your business. Use a mix of paid and organic strategies to reach your goal.
How to Maximize the Revenue For Your eCommerce Business?
If you have the first-mover advantage in your chosen niche, your sales numbers are inevitably going to be good, at the very least. But, if you are yet another player in the field, you will need a solid sales plan for your business.
Always Respond to Your Audience
Engaging with your customers on different social media platforms such as Facebook, Instagram, Twitter, and LinkedIn is important. Ensure to respond to your customers and stay active on these social accounts.
Emails are a Great Tool
Email marketing can generate the most ROI for your business. So, make the most out of emails to improve your customer base and increase revenue.
Your Web Page Must Be Unique
Personalize the pages on your website to make your business stand out. You can personalize many aspects of your online store.
Make Use of Time-Sensitive Incentives
Creating urgency among your target audience can be beneficial to your business. For example, if you have an ongoing sale, make sure to notify your customers about the timeline. If the sale is coming to an end, make sure that you reach out to your customers, emphasizing the same.
What You Offer Must Be Irresistible
Customers most definitely love discounts, freebies, and surprise offers. So, offer repeat customers or new customers an unexpected discount or a buy-one-get-one offer. There are many ways in which you can incentivize your customer.
In a Nutshell
So, if you’re just getting started with your eCommerce business, there are a thousand things to take care of. But, if you follow the setup process in an organized way, you can experience an increased customer base and higher profits in no time. In addition, it can help to study the processes used by successful entrepreneurs in your niche to gain inspiration. Moreover, make sure you stay focused on your core idea as it can help you reach your ultimate vision for your business.
About the Author: Mark B. Goldfinger is the Senior Director of Growth at unybrands, an e-commerce acquirer which builds and exponentially grows brands operating on and off Amazon. He has amassed over 14 years of experience in various fields ranging from e-commerce to commercial real estate to banking. Before joining unybrands, Mark worked with WeWork, one of the biggest startups in the world, helping them expand globally as their Head of Global Expansion.