In order to succeed online, whether you have unique handmade items to sell or are interested in starting a wholesale or dropshipping business, it is essential to have a well-designed website that includes eCommerce functionality.
With the availability of many great code-free site builders and relatively low upfront costs, it has become easier than ever to begin an eCommerce business. In this article, we will demonstrate how to start an online store in eight simple steps. Start making your eCommerce business dreams come true today!
1. Pick a viable niche and define your target audience
One common mistake made by new business owners is not giving proper attention to the three components of selecting a niche when starting an online store. The initial step in this process is to identify the specific niche market you wish to cater to.
Profitability is the ability of a business to generate profit.
In order to create a profitable online store and gain a return on your investment, it is essential to choose a niche that is financially rewarding. If a product is costly to manufacture or obtain through wholesale purchase, its potential for profitability is low. Similarly, if a product incurs significant shipping expenses, it may be more suitable for in-person selling.
The ability to be easily found in a search.
In order for e-commerce stores to be successful, they must have sought-after products that people search for. If you want to establish an online store selling dog leashes, ensure that you focus on targeting the keyword “dog leashes.” Utilize SEO tools to identify the products that are in high demand by potential customers.
Passion is a strong and intense emotion or enthusiasm towards something or someone.
When considering your passions, think about what you enjoy discussing or investigating. If you are passionate about what you sell, you are more likely to persevere during challenging times. Additionally, you want customers to refer others to your store because you are knowledgeable in a specific field, product, or service.
When considering your niche, it is crucial to prioritize your target audience. It is essential to ensure that the products you offer are appealing to them and easily accessible for purchase. Avoid seeking opinions about your product from individuals who do not belong to your target audience.
2. Choose your product line
After determining your niche and target audience, the next step is to choose the product or service line for your online store. This decision can be challenging as it is crucial to avoid selling products that are either costly to manufacture or have no demand. In addition, it is important to ensure that you have the necessary resources, including storage and shipping capabilities, to handle your products.
If you decide to select a product that is already popular, how will you distinguish your product from the best in the market? Is it possible to enhance an existing product? What measures will you take to ensure that your online store becomes the primary destination for purchasing this product?
3. Decide on your business structure
At this juncture, you are likely feeling eager and restless to commence. Nonetheless, there are a number of legal matters that you must attend to in order to establish your business formally.
This involves an official filing that guarantees the recognition of your business by the government, as well as decisions that will impact your eligibility for business funding, tax responsibilities, personal safeguards, and other factors.
To begin with, it is crucial for you to make a decision regarding the structure of your business. Here are a few of the most prevalent business types:
A sole proprietorship is a business structure where a single individual owns and operates the business.
You and your business are legally and financially connected, making it the easiest type of business to begin. However, you are not permitted to function as an employer; instead, you manage and oversee the business as an individual.
is a type of business structure that offers limited liability protection to its owners.
By choosing this option, you can ensure your personal and business assets remain distinct, thereby reducing the risk associated with initiating a business. LLCs can be established relatively quickly and present several tax advantages for businesses.
The text to be rephrased: Partnership
If you are beginning a business with two or more partners, it is necessary to sign a partner agreement that will outline the distribution of responsibilities and profits. The partner agreement will document the roles, obligations, investments, and entitlements of each partner.
A corporation is a type of business organization that is legally recognized as a separate entity from its owners.
When thinking in a systematic manner, the following text can be rephrased while preserving its meaning: Typically, a corporation pertains to a well-established enterprise that incorporates both shareholders and employees. There exist different forms of corporations that can be established. An individual or a group of individuals can initiate the creation of corporations.
If you choose to establish your business as a sole proprietorship, there is no need for any formal action to create it. However, you must still complete an application for any necessary licenses and permits that pertain to your business and its location. Consult with the US Small Business Administration to ascertain the requirements.
According to IRS standards, from now on, you will be required to pay estimated taxes every quarter and may have to gather and submit online sales tax as well.
If you are considering establishing an LLC, partnership, or corporation, we advise seeking guidance from a business lawyer. Although we can provide a few suggestions, it is best to involve a professional who can ensure that all necessary details are meticulously attended to.
4. Pick an eCommerce platform
Once you have determined what products to sell and have established a method to obtain them, you have successfully completed half of the process.
The following step involves constructing a website where you will present your products. Your website represents your brand and offers the greatest level of control over your branding and the overall experience for buyers. Additionally, your website will be utilized for accepting payments and managing essential duties. It can also serve as a comprehensive solution that enables you to handle selling, marketing, payments, logistics, and procurement.
At this stage, it is crucial to locate a dependable eCommerce platform for hosting your site. Do not get distracted by the attractive features and functionalities of a platform. Be sure to thoroughly examine the inner workings and address any essential queries.
Factors to consider when choosing an eCommerce platform
Features
Businesses that have a specific niche or expertise.
If you are considering selling CBD or have any other niche business idea, ensure that your platform has the necessary capabilities to accommodate your specific line of business.
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Is your website builder designed to be mobile-friendly? Will customers have a comfortable browsing experience when accessing your store on their smartphones? Can you process payments made through mobile devices? Given the increasing prominence of mobile commerce, it is crucial for your website to be responsive and compatible with mobile devices.
is the ability of a system, network, or process to handle a growing amount of work, or its potential to be enlarged to accommodate that growth.
To avoid potential difficulties in the future, it is advisable to select a system that can accommodate your business’s current and future needs. In order to do so, assess whether you will be able to effortlessly upgrade your plan to gain access to advanced features such as advertisements, pre-order options, and discount promotions. Additionally, ensure that your progress is not hindered by excessive fees, such as substantial commission charges tied to increased sales.
Ensuring security and dependability
Many sellers only consider the importance of security and reliability after experiencing a disaster, instead of prioritizing it from the beginning. Focusing on security and reliability should always be a primary concern. How can you prevent a website crash during a sudden increase in sales? How will you protect your online store from hackers, fraudulent transactions, and potential chargebacks?
Ensure that your eCommerce platform offers public key certification, such as SSL or TLS, which will enable your website to have a domain starting with https and establish trust with potential customers. Additionally, verify that your platform provides trustworthy and secure web hosting services that can handle unexpected surges in web traffic and maintain high uptime levels.
Rephrase: SEO refers to the practice of optimizing a website in order to improve its visibility and ranking on search engine results pages.
If you want your site to rank on Google, you need to have a strong technical SEO foundation first. After that, you can use tools to optimize your site according to your preferences. For example, Wix allows you to customize your meta tags, URLs, structured data markup, and other elements. Make sure to check the SEO capabilities offered by your platform.
5. Create your brand name and brand assets
After determining what you want to sell, the subsequent task is to select a brand or business name and develop your brand assets, including your logo. This process may be effortless for some individuals, while others may find it quite difficult.
Businesses often use domain name registrars like GoDaddy to search for available domains as a way to narrow down potential name ideas. This is because it is preferable for your domain name to align with your business name.
If you’re uncertain about how to start creating your logo, Canva is an excellent starting point. It provides numerous logo templates that are free and simple to customize. If you prefer not to design the logo yourself, you have the option to hire someone from platforms like Fiverr and 99Designs.
6. Register your business
In order to handle payments for your online store, you will require an employer identification number (EIN). To obtain an EIN, it is necessary to register your online store as a business within your state. Although you have the option to register as a sole proprietorship or corporation, it is typical for small businesses to register as a limited liability company (LLC). This choice provides protection for your personal assets in the event of any lawsuits against your company.
When creating a new company, it is important to consider the tax benefits of forming an LLC. To determine if this is the best choice for you, consult with your tax advisor. The process of registering your business differs depending on the state you are in, so it is advisable to consult your state’s Secretary of State for detailed instructions. Alternatively, you can simplify the process by using a business registration service such as LegalZoom.
7. Connect a payment provider
To earn your first dollar from eCommerce, it is necessary to determine the payment methods you will utilize. It is advisable to provide numerous payment options.
When was the last time you went into a store or restaurant? Chances are, you expected them to take credit cards or maybe even Apple Pay. But sometimes, you might come across a store that only takes cash. In that situation, you’re either in luck or out of luck.
Online, you can offer payment options such as:
Credit and debit cards
such as PayPal
Transferring money between banks
If you have a physical store, you can make the payment in person.
Purchase now, compensate later alternatives.
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There are different payment gateways available to choose from, also known as payment processors or providers. Payment gateways are responsible for ensuring a secure and successful transfer of funds. The suitability of certain gateways may vary depending on your location and type of business. Regardless of the one you select, your provider will require verification of your bank account before you can withdraw your earnings.
8. Tell the world
After setting up your online store, the next step is to promote it, as utilizing SEO to establish a business is crucial for your future plans. By marketing your products and services, you can attract immediate traffic.
There are various methods to advertise your online store:
- Add your brand to online directories.
- Work with influencers to promote your brand.
- Online advertising (e.g., Google Ads or Facebook Ads).
- Use content marketing to help your site get found online.
- Create social media profiles and become active on them.
- Referral or loyalty programs.
- Join an affiliate marketing program.
- Try word-of-mouth marketing.
To effectively promote your online store, consider your business and the products or services you offer. Implementing multiple strategies simultaneously is key to a successful marketing campaign. Experiment with various methods to determine the most effective ones for your business.
