Starting an eCommerce Business in 2020
It's no surprise, or shouldn't be, that eCommerce has become such a big industry. So big that in 2019, consumers spent $601.75 billion online. Whether it be purchasing groceries, household products, or tech gadgets, people are using the internet to shop. And why wouldn't they? From the luxury of your couch, you could press one button and have that item at your doorstep the following day.
If you've been considering starting an eCommerce business, here are some things to consider:
1. Pick Your Niche and Find Products
As you can see, these are the top five online shopping categories worldwide throughout 2020 so far. When starting an eCommerce business, it's essential to look for an industry with minimal entry barriers and high product demand. During your research phase, look for a niche that you like and can scale. After all, you wouldn't want to be starting a business and selling products that you don't like, right? I think not.
2. Develop a Business Plan
Every business, whether it be a traditional or eCommerce business, needs a business plan. Without a plan, you're setting yourself up for failure. You need to define your business, whom you sell to, what makes you different, what you will charge, your marketing strategy, and much more. Parts of your plan will change as your business scales, but your original business plan will best be used as a starting point and adjusted as you go.
Here's a great article from Shopify on how to write an eCommerce business plan that you'll use.
3. Build Your Online Store
This step is critical. This part of the process is where you or a web design agency will build your website. Your website will be your greatest asset when starting an eCommerce business, so you need to ensure that it's well designed, easy to use, and scalable. Your website should be built on a platform with eCommerce functionality, like Shopify, Wix, or WooCommerce. Once your website is designed and built, ensure that all functions work properly by testing them out yourself. Place a sample order and make sure that you receive the order too. Now that you have your online store, you can now market it.
4. Market Your Store
Now for the fun part, it's time to start marketing your eCommerce business. There are so many ways you can do this and so many different channels that you'll succeed on. It's better to start small, try new things slowly, and evaluate which things work for you and which don't. Facebook Ads are highly effective for eCommerce businesses because of their low cost and high return on ad spend (ROAS). If you're going to give Facebook Ads a try, make sure you set-up your pixel so that you can retarget users around the internet! Once you begin trying new marketing strategies, remember to think for today and the future. If you're building a business for the long-term, you'll need to focus on the long-term too.
5. Perfect Your Customer Service
Unlike traditional brick and mortar businesses, eCommerce businesses deal with everything online and over the phone. Like all businesses, you need quality customer service to keep your clients happy and taken care of it. In eCommerce, you'll mainly be dealing with customer complaints, returns, order tracking, and other kinds of scenarios, but understand, excellent customer service can make or break how successful your eCommerce business is. So, with that said, make sure you hone in on how you can perfect your customer service for your eCommerce business.
eCommerce is an excellent area of business to be in, especially right now. If you're considering starting an eCommerce business and need a website designed, The Dillon Ross Group can help! Get in touch with us today.