10 Steps to Starting an E-commerce Business

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After reading a beginner’s post by Robert Kiyosaki, regarding starting an e-commerce business in 14 minutes, we decided to test out his theory and see if we can really build a business in the timeframe he referenced. We currently do not have an e-commerce business and we’re up for the challenge, this is what we found.

 

Building an e-commerce business can be challenging in the beginning as the first step require you to first narrow down what you are going to sell.  The wealth of knowledge provided by just doing a quick Google search is pretty amazing. While each niche or product line involves its own approach and requires a different mindset. Here are a few steps to successfully launch your business.

 

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Business name 

Choose a name that is memorable, something catchy and not too long. It can include your name or the purpose of your business but make it something that is easy to spell and remember.

Picking the Right Vendors

Competition is part of the game. It’s essential to pick and shop around for the best quality and prices for the products or materials you want to use or sell to create your products. You want to make sure you begin to build a lasting relationship that is not only visually appealing but also functional for growth.

 

Early Marketing Strategies 

Begin by first plugging in your e-commerce product idea(s) into Google Trends and Google Keyword Planner. This will allow you to see if your ideas are trending upwards or downwards. You can use this information to diversify your product list to pick items that perform better when it comes to quality and customer approval. This will then allow you to conduct small paid marketing campaigns to improve site traction and site purchases, plus   — you guessed it — paying customers.

 

Invest in Software

As we live in a time, where people are looking for instant answers and gratification is essential to invest in the right technology to allow your business to run smoother. Shop around for software that also you to customize and provide a wide range of options to your customers. As well as features that will help you with management, email inquiries, inventory and customer relations. There are many options to choose from pick something that makes third-party integration easy when launching your site.

 

Stock your inventory 

An Inventory management system can be a beneficial tool when building your e-commerce business, it can allow you to manage your inventory in real-time and to record sales when they are made, saving you from over selling or over ordering your product. It can be tricky in general, to determine how much is product is really enough but it’s important to pay attention to your sale history. An inventory system can help with accuracy, timing, product delivery and financial reconciliation. Whether you’ve got a warehouse full of products somewhere or your inventory lives in your garage, make sure you’ve got enough to launch. Pay attention to how your sales increase so you can be smart with future orders.

 

Stay compliance 

Once you launch your e-commerce business, things are going to move swiftly be sure to keep track of annual filing, fees, taxes, and permits put deadlines on your calendar to stay on top of them. Staying compliant, helps you stay focused to improve and grow your business. Ensure your e-commerce business success by setting up automated systems that simplify the process for you and keep you compliant and on track. Avalara is a cloud-based tax and compliance automation technology that simplifies the tax table process to keep your taxes calculated and compliant.

 

Brand Awareness

To promote and drive traffic to your website, you need to generate an audience, the most effective was is through local ads via social media. Set up a budget for each ad created in order to target individuals or groups. Enticing sales can drive traffic as well as offering a variety of ways to buy. While most shoppers pay using a debit or credit card, by simply adding PayPal can expand your prospecting audience. Email promotions are another effective way to drive repeat traffic so be sure to capture emails through a subscription list. A great email subscription to use is mail chimp. Mail Chimp is free up to 2,000 subscribers. As a beginner to business we recommend you start with a free email marketing tool like mail chimp.

Related tip: Free 15 + Page Marketing Guide workbook

Return policy

Your return policy is a fundamental part of your e-commerce business and buying experience for your customers. Make sure to use clear, simple language so shoppers can effortlessly understand it. This will make the transaction smoother and also for repeat business.

 

Test and Modify

Trends, technology, and consumer tastes are constantly changing at a fast past, don’t be afraid to change in order to adapt for long-term success in your e-commerce business. Conversion Rate Optimisation (CRO) is a great resource to continuously test tactics, messaging, and graphics. Compare your process to your competition, consumers are always looking for the lowest price for a product before purchasing it, get analytic provide different offers during the week via the website and through email. It’s vital to learn as much as you can about your customers, reach out to your shoppers and make their experiences on your site exceptional,

 

Rising Cost

While it’s tempting to go the cheaper route when choosing an e-commerce builder, there are some fees that are unavoidable and some are worth the investment. Sites such as Shopify and other services might charge you additional percentages on purchases if you let customers pay by credit card. These transactional fees can are between 1-5% based on volume. There are other third-party fees that you may need to also consider to boost sale such as email marketing, inventory management, and other key software for marketing to increase your ranking during online searching as well as loyalty and subscriptions for customers. Not to mention hosting your e-commerce business every month.

 

We concluded it takes way more than 14 minutes to create and establish a decent e-commerce business and brand. Especially if you haven’t put any prior thought into your business. While most e-commerce software can get you up and running in no time, without the need to code or manually install anything. Some customizations and additional functions may require some tech skills and more time when you’re just getting started, most solutions can be set up in just a few steps and take almost no work to maintain. As many sites such as Shopify or Magento offer website templates and DIY website-building tools, so you can drag-and-drop your way to launching an online store. To build a successful e-commerce business takes time, without the right information, you can end up running in circles with a product you love, only to find out shortly after that nobody else loves it, like you. So before you go out to purchase business cards and throwing money let alone hours into your business make sure the need is there within the marketplace and you have the capacity and capability to meet it. Depending on the kind of business you’re in, it might make sense to start the e-commerce side of your company before even considering any brick-and-mortar setting. There are some key differences in this approach as opposed to a traditional business. Be sure to take the time to research theses steps and make the investment to emerge your business on an ever-growing platform. We hope you found this post helpful, Happy Reading!!

 

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Starting an E-commerce Business

 

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Build your legacy today!

Best,

Melissa & Rodney

Co-Founders, Diamond Legacy Group

 

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2 Responses

  1. Tijana
    | Reply

    This is an excellent article as I think to myself often, should I be using my blog as the conduit for a product/service or should I supplement my blog with a product or service. I like this as it takes into consideration some things you should probably research before taking that next step. Whilst I don’t think I am at that point yet, I keep thinking about it so I think it must be something that I will naturally progress to.

    • Melissa & Rodney Diamond
      | Reply

      Thank you for your comment, you definitely can use your blog as a conduit for products and services but be sure to provide lots of value before asking your audience to purchase anything, they need to find you and your site trustworthy before they think of purchasing anything. stay consistent and do your research and don’t be afraid to take the leap it may not come naturally sometimes you have to get in the ring shake things up to see progress.

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