We live in a connected world where selling almost anything online is possible. The landscape wasn’t that different 50 years ago when Gary Dahl sold a Pet Rock (yes, you read that right, it’s a stone that is your pet) and made millions of it. Now, you can sell a picture of a digital rock (like an NFT) and make millions of it.
However, these extreme examples had perfect market conditions and were one-hit wonders. It just strengthens the concept that you can sell anything online, as long as you know how. In this guide, you’ll learn how to start an ecommerce business.
Find the right product to sell
The first and most challenging part of starting an e-commerce business is finding what to sell. There are so many things you can pick. It can be baby cameras, pool noodles, car detailing equipment, toys, or literally anything else under the sun. You can even create your own product or service. The only problem is you have paralysis by analysis. Any option you pick comes with a specific niche, user persona, and pros and cons. You need to know that once you bite, you need to be able to chew the decision.
You can use online tools to check which products or services are bestsellers for the year. Then, it’s time to create an offer and see if it’s profitable. Nobody likes low margins because that means you’ll be scraping by. Ideally, you’ll have a profit of 50% of everything you sell. In a perfect scenario, you need to choose something that has an extremely high demand. Think of toilet paper and masks during the pandemic. No matter which brand it was, people just kept buying. As soon as you source the product, it’s time to move to the next step.
Research the market
People are buying soft drinks constantly. That doesn’t mean you should try to be the next Coca-Cola. That’s just not going to happen. You need to check the market and see how many competitors you have. If it’s super crowded, or if a couple of monopolies dominate the niche, you’ll have a hard time establishing a brand.
But if you find a niche that’s just picking up, there’s the potential to strike gold. Audit the entire situation and see all of the external problems that could happen. If they’re easily mitigated, you should go full speed, no brakes. Learn as much as possible about the target audience and highlight their characteristics, demographics, psychology, and interests, and craft an ideal buyer persona. When you know who the product is for, you have a business.
Build a website
Most people are scared to start an e-commerce business because they don’t know how to build a website. They think about it for months or years, and when they get over the line and try doing it, they realise it only takes a few hours. Platforms like Shopify, Wix, and WooCommerce can solve your website-creation problem in less than a day. Think of them as no-code tools where you just plug and play text, images, videos, and voila, you have a website.
The main mistake people make when creating a website is not paying attention to cybersecurity. You have to get a domain and an SSL certificate. That’s an absolute necessity. Next comes using a virtual private network (VPN). This is a cybersecurity tool that protects your browsing and encrypts your data. It’s super important for keeping hackers away. You also need a reliable VPN app for your devices because if hackers gain access, they can compromise your computer and wreak havoc. Do your best to brush up on the best cybersecurity practices, and you’ll be fine.
Get traffic
Once you create your e-commerce store, you’ll discover that starting a business has never been easier. However, you’ll also realise that it’s never been harder to stand out from the competition. You’ll just waste your money without a proper sales and marketing plan. You need to test out which channels work the best. Search engine optimisation (SEO) doesn’t take any money, but it takes months to produce results. Paid ads give instant feedback, traffic, and leads, but they cost money. Influencer promos are great for brand awareness but cost even more money than ads.
Marketing is all about experimentation. You need to be okay with 70% of your strategies not working. That’s why you need to set a budget and eliminate the thought that you’re just burning money away. Eventually, one campaign is going to click, and it can propel your e-commerce store to profit-land.
Social media
If you’re not on social media, you don’t have a business. It can work as your entire marketing and sales channel if you know how to use it. Based on the nature of your product or service, you can choose anything from Instagram, Facebook, TikTok, YouTube, or X.
But the trick is to use one platform and focus on that one. Newbie entrepreneurs tend to overextend by trying to cover all the social media platforms, and they end up burning out. Instead, pick the one that works best for your competitors, or for you personally, and go from there.
Provide an exceptional customer experience
When someone buys from you, it’s up to you to make them want to be your repeat customer. Call them on the phone and thank them personally.
Include a handwritten note with the package you send them. Give them an extra product as a gift. Do everything in your power to get that word of mouth going. Because when it picks up, your business will blossom.
