6 Steps for Starting Up an eCommerce Business
Starting a business can be incredibly challenging but a lot of fun. E-commerce is one of the fastest-growing sectors. The business-to-business e-commerce market is expected to grow 20% over the next five years. By then, e-Commerce will be worth over £9 trillion.
If you want your share of the spoils, then you need to start up an e-Commerce business. Take a look at these six steps for getting into e-Commerce.
1. Research Potential Partnerships
Starting an e-Commerce business can mean putting in a lot of arduous work and long hours. You can take the pressure off yourself by delegating some responsibilities to other businesses. This lets you can concentrate on the bigger picture.
Ensure you are working with partners who can enhance your business. Design Hero are e-commerce website designers specialising in WordPress websites and being UK e-commerce web development experts in general. Their talented team of web designers for e-commerce can boost any business’ online presence and generate consistent sales leads. They also won the Digital Marketing Agency of the award for Scotland at The Prestige Awards this year, so you know you’re getting quality work done by experts.
2. Think of Lots of Business Ideas
Do not get stuck on one idea from the start. Think long and hard about the e-Commerce market and what you can bring to it. Take some time to build a list of options for yourself and consider how scalable they are. You want to build a business that can grow.
There are a lot of different factors that should influence your decision, some start-up businesses are more expensive than others. Your initial capital investment will price you out of some ideas you have. Look at all the pros and cons and settle on your unique business idea.
3. Develop an e-Commerce Business Plan
There is a lot for you to research before you can begin trading. Look at the marketplace you are going to enter and try to find a niche for you to fill. See what your competitors offer and how you could give customers better value.
E-commerce is a competitive arena, but business is booming. A unique idea with the right implementation has the potential to become a successful business quickly. Look at how you and potential partners could maximise your entrance to the marketplace and build a reliable and reputable brand.
4. Perform a SWOT Analysis
You should look to perform a SWOT analysis. The SWOT analysis is one of the oldest tools in business, and it is still used every day by small businesses and multinational giants for one simple reason; it works.
It is not just handy for analysing your own business, but also your competitors. You can use this tool to take a deeper look at any existing competitors in the marketplace and identify areas where you can outperform them.
This can help inform your business plan. Learning from the mistakes and inefficiencies of your competitors will help you to build a better business. It can also help you to tempt away some of your competitor’s customers and make them your own.
5. Try Your Competitor’s Service
If you are going to be entering a competitive marketplace, and in e-Commerce, you will be, then you should do some market research on your competitors.
Buying their products and going through their customer experience for yourself can be highly informative. It gives you a benchmark to beat and gives you a good idea of what potential customers will expect from your company when you begin trading.
6. Pick the Right Business Model
With a good idea ready to be developed, and an analysis of the market and your potential competitors, you are nearly there. The right business model will have a significant impact on the initial success of your business and how you enter the market. There are four main models to choose from in e-Commerce.
Business-to-business (B2B) is an ever-expanding sector of e-Commerce. Supplying other businesses with products or services is always in demand and a highly competitive market. Business-to-consumer (B2C) can be very lucrative to a well-organised start-up. Selling products to consumers is easy to do through other businesses like Amazon, eBay, or your website.
Consumer-to-Consumer (C2C) is a small sector of e-Commerce dominated by a few big names. If your business will facilitate transactions or sales between consumers, like eBay or PayPal for example, then it is a C2C business.
Consumer-to-Business (C2B) is a business model for individuals who supply their services to other businesses. This could be organizing freelancers or temporary workers to handle excess workflow. Pick the right business model to suit your business plan and do some research. Look at how other successful businesses have used these models to succeed and what you can do to copy them.
E-commerce is competitive, but a lot of fun. It can also be very profitable if you run your business the right way. These six steps should help you make the best start so your business can grow and succeed.