Nowadays, internet technology is everyone’s way of staying connected, shopping, and doing transactions. In almost everything that must be done, most of us want everything done faster, made it easier to access. With this demand, the e-commerce industry is exploding.
Before, doing shopping and transactions online was just for luxury and convenience; now, it has become a necessity. Given the current situation, the e-commerce industry is in demand, as this is the primary resource for purchasing the things we want and the things we need. For a while now, the e-commerce industry is steadily growing. If you’re like me who is into e-commerce, this might be the best time to start venturing into a business in this industry.
What Exactly is E-commerce?
Also known as internet or electronic commerce, E-commerce is the term used for referring to the selling and buying of either services and products through the internet. E-commerce also includes the transfer of data and money to execute any type of transaction.
Steps to Start an E-commerce Business
Building a business in the industry of e-commerce is more than coming up with a brand name, building a website, starting to sell products online, and writing product listings. Here are some steps which you can follow if you are going to start an e-commerce business from scratch.
Research Business Models in E-commerce
The first, most essential part to starting any business, is doing research. Just like other businesses, growing an online business is full of risks and is an investment. You must first establish an understanding of the different business models before even deciding what you would want to sell online. Dropshipping and single product category with affiliate marketing are examples of business models.
Start your E-commerce Niche Research
With opening an online business, choosing a niche is essential. Start this process by identifying companies that are already established and successful in the industry of e-commerce. Make sure that the area you search. The absence of competitors may indicate that there is no market as well. Skip any niche that is dominated by big brands and avoid picking any overcrowded niches.
Validate Product Ideas and the Target Market
Now done with business models and niches, this would be the right time for you to think about the products and/or services that you want to sell. But, before this, identify first your target audience in order to narrow down your choices of the products and/or services to sell. Establish as well your foundation of who you are, what your brand can offer, and who are your ideal audiences.
Register the Brand Name and make your Business official
Though the legal business name and site name shouldn’t necessarily be identical, both being consistent, however, has benefits. For the incorporation of the business, there are tax benefits and legal protections which shouldn’t be skipped. With making it official and registering the brand name, there are some that you have to do:
- Pick the store’s name
- Register the business
- Get the business license
- Get your Employer identification number
- Apply for permits and business licenses for operating
- Research and go find the right vendors for your business
- Create the logo, go for the colour to make visuals attractive
- Finalise the E-commerce business plan
At this point, you must have already established your vision and what the business will look like. You’ve already registered the business, now have a brand name, and came up with a logo. Now, what you have to do next is to sketch and write your business plan and start determining possible monthly expenses and the startup budget. Finance is probably an essential aspect of any business. So, you must be able to classify the expenses and determine whether you are on the right budget for you to start.
Create the Online Store
Once you found your business legally registered and you started visualising the designs, now you have to establish the actual online store. At this phase, we must be able to register any relevant redirect URLs and your official domain name. The design and logo that you settled on will be needed here in building the online store.
Attract Customers and Strategise Marketing
After being successful with all the previous steps, now is the time where you will have to drive in customers and market the services and/or products that you offer. Come up with a marketing strategy that will be effective and helpful to the recognition of your business. Remember, the customers are the backbone to any business. Without customers, there will be no one to purchase and avail. To sell and market your products, look for expansion areas, and think beyond the site that you have established.
The E-commerce market of UK
It is best to invest and start an online business here in the UK as it is growing and in-demand at this moment. The UK is recognised for having one of the fastest and largest growing e-commerce markets. Our region also has an attractive market that immediately appeals to anyone who wishes to set-up an online business. Additionally, the e-commerce market of UK is diverse, which makes finding a lot of niches is possible and won’t be hard.
The UK has the largest E-commerce in all of Europe and is the 4th largest in the whole world. Display of the revenues show increasing double-digits on a yearly basis as retailers/sellers are mostly turning to increase investments on building-up operations, and the UK’s citizens are mostly turning to purchase and shopping online.
e-Commerce is an industry that is growing in popularity. With this, many want to establish one of their own. I would say that for those who wish to start an online business from scratch, you must make sure that you did extensive research on the market in order to make sure that you will be on the right track. Establish your understanding and have a vision of what you want to offer and what it will look like.