An E-Commerce Business 101

An E-Commerce Business 101

How to start it in 5 steps

Salome Mikadze's portrait
Salome Mikadze
COO at Movadex
An E-Commerce Business 101

People love to spend their money. People love to spend their money even more when it’s easy. So, the place they go to is the Internet where there are million spectacular options, the most tempting deals, and unlimited time to make a purchase. That being said, more than 260 million people buy from online stores in the U.S. alone. Statista 2022 is the perfect time to start an e-commerce business in 7 straightforward steps.

What is e-commerce?

E-commerce, or electronic commerce, is a business model, according to which people and companies can purchase or sell products/services online. It takes place on various gadgets, including smartphones, tablets, and laptops. E-commerce businesses do not necessarily replace brick-and-mortar stores but can act as complementary, often more profitable, channels.

Most popular e-commerce business models

Depending on the target audience, available budget, marketing goals, and overall strategy, companies land their choices on particular models to generate profits. models

5 steps to start an e-commerce business

Step 1: Find a product to sell There can be no business without a product or service. Therefore, the first and foremost step is to decide what the e-commerce store will offer to customers. It’s also important to determine how the business will obtain its product and deliver it in the most convenient way possible. product Step 2: Do a research According to wpforms, there are 12-24 million e-commerce sites out there, and more are created every day. Hence, it’s hard to avoid brutal competition unless a proper research is conducted prior to starting the business online. Knowing who the main competitors for a certain product/service are helps stay up-to-date on smart techniques and approaches that sustain the loyalty of customers and attract new ones. Strep 3: Set it up Coming up with the following elements happens at this stage: - a name - logo - website - sales channels. The way a brand appears on the market matters because it can influence how people feel about the business. A quality website/webpage, unique name, and a logo that stands out boost the image of the company. The smart combination of various sales channels makes it possible for new customers to find out about the brand and choose its product/service. brand Step 4: Get ready to launch Now, this is the time to figure out a shipping strategy in detail. Shipping services can be highly expensive but if there is an intricate approach behind it, it’s possible to cut down the costs. It’s crucial to find well-priced couriers, think of appropriate packaging, and plan out the labor for sending the product. Of course, shipping wouldn’t be the case for an online service. Step 5: Market it After the launch, sufficient resources and time should be dedicated to marketing. Otherwise, how will the customers know about the company? There are various marketing strategies that could work for an e-commerce business but social media marketing (SMM) became a go-to option in the last few years. To generate needed traffic and attract new customers, it’s necessary to excel in an SMM strategy. marketing Starting an e-commerce business might be a tricky path but worth the tremendous success that comes after. Following the five steps will ensure that the process is organized and solely aimed at making customers happy and the business profitable.