If you want to be your own boss and take charge of your future, then starting an e-commerce business could be the best decision that you ever made. Besides, consumers are increasingly buying products online and the tools and knowledge that you need to reach them are more accessible than ever. There is never been a better time to start an e-commerce business than right now. For beginners, starting an e-commerce business can feel overwhelming. So this article will offer you a simple blueprint on how to start an ecommerce business. It will take you from choosing a product all the way to making your first sale.
By the end of 2021 worldwide retail e-commerce sales will reach $4.9 trillion. And according to NASDAQ by the year 2040, as much as 95% of shopping will be facilitated by e-commerce. Needless to say the future free commerce is incredibly bright. So if you want a slice of that pie, let’s get started.
KNOWING WHAT PRODUCT YOU ARE GOING TO SELL DIRECT TO CONSUMER.
For many people, this is one of the hardest parts and a lot of would be business owners stop here, after becoming overwhelmed by the sheer amount of choices available.
Now, before we get to powerful techniques for finding profitable products, we need to lay our foundation by identifying the problem we are trying to solve. Start by writing down a problem statement and brainstorm multiple products that could serve as a solution.
For example, let’s say the problem was that many people find it more difficult to stay focused and productive while working from home. Potential solutions could be a productivity journal, a desk organizer, blue light blocking glasses or noise canceling headphones. Now, it’s time to turn our attention towards the internet, to learn more about these markets and populate our list with more potential products.
Here are some great avenues for discovering products.
As the world’s largest trend community, Trend Hunter uses data, artificial intelligence and real humans to identify consumer insights and new opportunities. Then we have Reddit and as the front page of the internet, it showcases forums about pretty much every topic under the sun. Diving into niche specific subreddits can help you unearth some pretty interesting product ideas.
This can be as basic as looking at trending hashtags on Twitter and topics on Facebook, or as advanced as using social listening tools like Buzzsumo to identify and monitor trends over time. You can also gather inspiration by checking out what’s popular and trending on other marketplaces browse sites like Amazon Etsy and eBay, checking out their curated list and other categories that showcase current customer demand.
Now look at your product list. By now, it should be pretty substantial.
- First, exclude any products that are too large or heavy, these are going to be pretty expensive to ship and are not a good place to start your e-commerce journey.
- Don’t choose any products that are too fragile, or you stand the risk of losing money on refunds if the product breaks while in transit.
- Avoid any products that have excessive regulations, these will be a hassle.
- avoid perishable products, this one is obvious.
- Lastly,cross off any products that are too easy to buy locally.
Once you’ve done this, you should have a shortlist of products. And now it’s time to do some deeper research to help you start an ecommerce business.
UNDERSTANDING YOUR MARKET
You see, before investing any significant amount of time, money, or energy into your venture, you need to have a good understanding of the market.
What is the competition like in the space
- Narrow down your product idea by running a competitor analysis. The more you understand about the competitive landscape before you start your business, the less potential surprises you’ll face later on.
- By evaluating the strengths and weaknesses of your competition. You can begin to formulate how you can give your company an advantage. To do this, simply run a Google search and take a look at the top ranking sites. You can also use a tool like SEM rush to identify competitors at a glance. Good competition confirms there’s an existing demand for what you plan to sell.
- When conducting a competitor analysis, make sure to take note of these thing
who their target customers are?
what market share do they currently own?
What is their main differentiator or unique value proposition or unique value
add for their business and products?
What are the key features and benefits that they highlight in their sales materials?
What are the price points for products across different marketplaces?
How do they approach shipping?
What are their marketing tactics?
What is their social media engagement and what social channels are they using?
Have they received any funding or venture capital and take a look at their customer reviews.
The language used around products and any recurrent complaints.
Make sure not to skip these steps. It’s impossible to differentiate yourself as a business without knowing who your direct competitors are and what makes you different.
B. how much market demand is there?
- Don’t make the beginner’s mistake of building a business on a hunch. To do this, run the products through Google trends. This will give you a good idea about how search interest is growing over time. The goal is to see if your product is trending upwards in interest. BuzzSumo to better understand how many people each day are talking about your potential product.
- Be sure to check the geographical concentration of the searches. This can help you identify where your customer base would be most heavily concentrated.
- And lastly, be sure to take note of seasonality. Does search interest dramatically change at different points in the year? This is something you’ll definitely want to know.
3.NAMING YOUR ECOMMERCE BUSINESS
First, a good business name should give your customers at least an idea of what you sell or the service you offered. Let’s leave totally abstract names like SAMSUNG to the big business. Us small business people should pick names that are much clear and direct.
The first place you can go to is some of the popular business name generators. Yes, I really do advise you to use automated AI-powered tools to help you come up with a business name. It’s easy to use and generated some spot on names to start your own ecommerce business.