On average, an e-commerce store earns around $150,000, which shows it’s a lucrative career.
Starting an e-commerce business lets you turn your passion into a profit while reaching a global audience. But if this is a new area for you, knowing where to start can feel daunting. Perhaps you’ve always dreamed of opening an e-commerce business and you’re looking for a nudge in the right direction.
Sounds familiar? Luckily, we’ve got your back. Here’s how to set up an e-commerce business.
Find Your Niche
Before you sell products online, figure out your niche. This should be an industry that you have experience in, whether it’s selling handmade jewelry or pre-loved clothes.
Once you have an idea, research the marketplace to ensure it’s not oversaturated and there’s a demand. If not, there’s a risk you can’t shift products and your e-commerce space will fail.
Choose a Business Name
Your e-commerce store should have a distinctive name that reflects your brand’s identity. It’s also important to choose one that indicates your industry to capture the customers’ attention. Note, check your local secretary of state’s website to check if it’s available.
Further, apply for an EIN, otherwise known as an Employer Identification Number. This is key for separating his personal and business finances, which is crucial if a disgruntled customer tries to sue.
Apply for Licenses and Permits
Like any business venture, you’ll need the necessary licenses and permits to legally operate. But because most e-commerce stores are home-based, you’ll need different ones compared to a brick-and-mortar store. When that’s sorted, flesh out your business plan including your target market and financial goals to create your vision.
Decide on an E-Commerce Platform
Entrepreneurs are spoiled by the huge number of e-commerce platforms available. During your research, consider Shopify vs Amazon to decide which one is best for your industry. There are also other options like Magento, WooCommerce, and Squarespace if you have a current website.
An essential consideration is payment processing. You want a platform that integrates the software to the platform or has its own solution so that customers’ details are protected.
Figure Out Shipping
Shipping is a crucial element of your e-commerce store. Find a solution that supports the products you’re selling and works in your state. Then, you’ll know the speed you can offer to customers.
Market Your Business
Once you’re ready to open your digital doors, it’s time to market your business. Sign up your store on social media where you can build a community and raise awareness of your products. You should also invest in pay-per-click and Google ads to drive traffic to your e-commerce store.
Open Your E-commerce Business Store Today
Hopefully, you’re now ready to open an e-commerce business.
To run a successful venture, start by figuring out your niche and checking that the market isn’t overly saturated. Business owners should also apply for the necessary licenses and constantly market their e-commerce store to drive sales. Good luck!
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