Like the brick and mortar business, one need to learn before starting the e-commerce business as well. Still, setting up the e-commerce business sis way more easy and approachable. With the ecommerce site, the businessmen will get the chance to approach a larger audience and bigger working area.
First before learning the way to start an ecommerce business, one should understand what ecommerce business is? E-commerce business can be defined as a business type where the order, and delivery of the goods and service are done over the internet. The size of the e-commerce business varies from retailer shop like Amazon or Flipkart to wholesaler site like Etsy or many more.
The online business these day have gained much popularity and the trend for shopping online is increasing at a very fast pace. As per a survey, extensive growth has been seen in the field of the e-commerce business. And, the growth of the e0commecrec business is accelerated in the pandemic time.
In order to prevent the contraction with the corona virus, many people prefer to stay at home and shop online instead of making queue in the offline shops.
For those thinking for bigger goals, the e-commerce business can prove to be the best option. Unlike brick and mortar shops, with e-commerce business entrepreneurs gets more affordability, flexibility, and many more opportunity. It is best option for starting your business in different part of the world without being present there physically.
But the question is how to set up a e-commerce business? This guide on creation of the e-commerce business will help you a lot in starting and setting up your online store. In this guide, we are present you step by step simple instructions for starting up your online business and run it easily over the internet.
How to start and set up an e-commerce business?
Following is a complete guide on how to start an e-commerce business and run it:
Research for the space for the e-commerce business and figure out your niche
Before starting the ecommerce business, one should make proper research. Like before starting a offline brick and mortar business, you make research for finding the area to select, the niche of the business, and what to serve the customers, the same way, in e-commerce business also, there is need to find out the area where you want to serve the customers and the niche what you want to serve the customers.
For example, if you want to start your offline restaurant, first you make research for the location here you want to setting up your restaurants. The same way, in online store also, you need to first figure out the area where you want to serve.
Also, before setting up an e-commerce store, you need to decide your niche that what your online store is going to offer. Find out if youa re going to sell the service or the goods. In the case of product, are you selling physical product or the digital product? Are you going to manufacture the product by yourself or going to source it from somewhere else? Along with deciding all the above decisions, you will also need to take the decision for the business model. Like do you want to offer your product as retailer or wholesales? Or you want to sell the products in the form of single physical product, or in the form od packages, or subscription, or anything different?
Along with the above mentioned questions, you will also need to think for the pricing or the discounts you are planning to offer to the customers in the beginning phase of your store or in the long terms. Though, in e-commerce, there are vivid opportunities but the same are competition as well. In order to compete your competitors, you should also research for the competitors, their strategies, their weaknesses, their strengths, etc.
Name your business and choose a legal structure
The next step after deciding the niche and the working area is to name your business and shape it in a legal business entity. Choose a perfect name of your business. The name of the business should indicate the motive, work, or the goals of the business.
After this, select the legal form for the business like sole proprietorship, partnership, or any other.
Though the application for EIN number is not required, still having the EIN number will help you in separating your business and personal finances. Via IRS, you can easily apply for EIN for free, either via email, online, phone, or via fax.
Get the permits and licenses for the business
Once applied for EIN, you will get the license o operate your online store in a particular area. For sole proprietorship business model or the partnership business model, there is no need to register your e-commerce business with the state unless you decide to fill a DBA in order operate the business legally under a specific business name.
Select the platform for the e-commerce business and create your website
There are several platforms like Shopify, WooCommerce, SquareSpace, Magento, and many more allowing the business men or the entrepreneur to create their e-commerce website and run it over the internet.
Source for the product
Once you have started your e-commerce store, now there is need to either source your products or manufacture the products to sell them online. You must have made the decision for sourcing the product much before creating the website. You can either manufacture your product or source it from third party and sell it on the online store.
In the case of service, list and describe them on your business site.
Promote your e-commerce site
This is the last step where you need to market and let people know about your online store. You can adopt different types of marketing strategies including the digital marketing, Google ads, social media ads, and many more in order to promote your ecommerce site.
The bottom line
So these are some steps to create and run the e-commerce site.