The online business space has reached truly astounding heights, with the eCommerce industry projected to reach 4.89 trillion in 2021. With so many opportunities for aspiring entrepreneurs, it’s no wonder so many online stores spring up every day.
But, starting an eCommerce business doesn’t always guarantee you’re going to make it big in the industry. In fact, a colossal 90 percent of online businesses shut down within 120 days of opening.
It’s a cold statistic, but one that shouldn’t dampen your spirit if you’ve been thinking of trying your hand in the eCommerce sector.
In today’s guide, we outline seven crucial factors you need to consider when starting your first online business. This way, you can give your business the best chances of success in a highly competitive business place.
1. The Products or Services to Sell
One of the fatal mistakes new eCommerce store owners make is simply mimicking what other businesses in their geographical area are offering. The trouble with doing so is that you’re running the risk of stiff competition from already established businesses.
So, what should you do instead? Try running through exhaustive research to establish actual needs in your market for a unique product or service. For those who already run a brick-and-mortar business, you can opt to simply start selling products online from this business.
Find a way to make your idea unique and likely, even when your brick-and-mortar store stocks the same product as your competitor’s. For instance, if you run a gift shop, you can start to take online orders and deliver to your clients’ doorsteps at a charge.
2. Your Target Audience
Now that you know what product or service to offer, it’s time to research your target customer. What you want to know is their buying preferences, demography, culture, geography, and the computing devices they love to use.
Knowing your target audience helps you plan your eCommerce marketing strategy accordingly. For instance, if you sell women’s clothing, you’ll need to target an audience that’s made up of women who live in your town. Their demography may vary depending on the specific women’s dresses you stock.
3. Mode of Payment
An important part of running an eCommerce business is choosing a convenient mode of payment for your clients. Most businesses add credit card processing as their preferred mode of payment.
The good news is that there are now numerous reliable businesses that make it easy to easily collect money online through credit card processing. Notable options include PayPal, Stripe, Apple Pay, and Square. Decide which one works best for you.
4. Product Quantity
The next step in opening an eCommerce business is to come up with an estimate of your target audience’s buying capacities. This should be easy for a regionally targeted business. All you need is to compute it with the data available locally on trade centers.
What if you’re thinking of a global territory? That gets more complicated. However, you can still get this data by running a competitor survey and other confidential resources to get an estimate of how much they sell.
The goal here is to find out how much you’ll need to invest in your eCommerce business. With that information, you can arrange your final resources accordingly.
5. Inventory Management
Establish whether your product requires storage space. If it doesn’t then, you don’t need to worry about warehousing, inventory storage, and stock tracking exercises.
But, if inventory management is going to be an essential part of your eCommerce business, then you can opt for helpful software that helps make this task a breeze.
Consider such tools as SELLERISE to help with the ranking of your inventory in leading eCommerce platforms, such as Amazon.
You can also invest in relevant stock tracking tools that help ensure your products don’t run out just when your customers need them the most.
6. Order Tracking
Order tracking helps your customers track the status of their orders as soon as they’ve made it. Depending on the stage of shipping, clients can modify or cancel their orders.
There’s order tracking software that helps with the handling of orders and the relevant procedures, including sending emails automatically and accordingly. Investing in such software helps you cut costs on human resources.
The final stage of planning your eCommerce business is deciding how much to charge for your product or service so you turn a profit.
Count the price tag of each of your products or services depending on your investment, your ongoing expenditure, the development and management of your eCommerce site, and the profit you need to sustain the growth of your business.
Note that mimicking the prices of your competitors will not provide your business with the boost you need nor will it help if you’re frequently changing your prices. A more sustainable approach is to come up with a solid pricing policy.
Starting an eCommerce Business Shouldn’t Be a Huge Hassle
Starting an eCommerce business requires you to consider a number of factors to ensure its success. You need to consider what product or service to sell, as well as your target customers, your competition, and much more. By carefully planning for each of these factors, you can set yourself up for success.
Would you like help in ensuring that your eCommerce products or services are instantly visible to your customers on Amazon? Please schedule classes today and discover more about what we can offer you.