How to Start an eCommerce Business
What is eCommerce business?
Today everyone wants to know what the process of e-commerce is. And how can profit be earned by starting e-commerce? E-commerce business is a business in which products and services can be bought and sold through the internet. In this business, customers and sellers sell and buy goods through digital platforms. To start an e-commerce business, it is necessary to prepare a precise plan and work on that plan in a systematic manner. Some steps have been described to start an ecommerce business, on the basis of which it will be easy to start an ecommerce business.
10 steps to start an e-commerce business
- Market research and planning
- Get the business registered.
- Business bank account/payment gateway
- GST (tax) registration
- Product branding
- Determine product pricing
- Create an online platform for product selling (website or Amazon, Flipkart, meesho)
- Product delivery and packaging
- Determine customer category
- Marketing
Make a Business Plan
Make a plan to start a business, keeping in mind the important resources like cost capital, selection or collection of products, labor cost, etc.; prepare a precise plan on paper, then determine the order of implementing that business plan and make every possible effort to complete the steps of the plan within the stipulated time frame.
Market Research
For e-commerce businesses, understand the need of your chosen product for the customer and ascertain how much demand there is for your chosen product in the present and future and for which category of people your product will be useful and what the market price of your chosen product is and how much profit margin can be obtained.
Business Registration
In starting an e-commerce business, business registration will give legal recognition to your business. This process registers the business in government records, and by submitting the necessary documents to make it legal, permission to do business is obtained from the concerned department, which will give an identity to your business.
Business Bank Account
When you sell your product through e-commerce, you need a bank account to receive the price of the product, so you will have to open an account in a recognized bank in the name of your business so that you can easily transact your e-commerce business.
GST or Tax Registration
A GST certificate to start an e-commerce business is an official document issued by the government to businesses that are registered under Goods and Services Tax (GST). This certificate confirms the valid registration of your business under the GST network, and the GST certificate is essential for the legal recognition and smooth operation of your business. It ensures transparency in business and “tax compliance” with the government.
Product Branding
To sell a product in the market, it has to be prepared in such a way that the product packing, product image or video, product description, quality, etc., are easy to understand, and the customer is attracted towards your product, which will increase the curiosity of the customers to buy that product. If the branding of the product is good, then more customers will buy that product, and in this way there will be a high possibility of increasing the demand of that product in the market.
Product Price
Product pricing is an essential aspect of any business as it determines the appropriate price for a product or service. It involves evaluating various factors such as production costs, market demand, competition, and profit margins. The goal is to set a price that maximizes profitability while remaining competitive in the market. By carefully determining the right product price, businesses can attract customers, generate sales, and achieve financial success. The objectives of product pricing include earning profit, attracting customers, competing with the competition, etc.
Create eCommerce Platform
You can earn profit by selling products by registering your e-commerce business on various e-commerce websites. In today’s time, many popular e-commerce platforms like Amazon, Flipkart, Miso, Alibaba, Swiggy for food products, Zomato, etc. are popular. Here, lakhs of people, small and big, startups are earning profit by selling their products and are selling products to customers sitting at home.
E-commerce Store on WhatsApp
An e-commerce store on WhatsApp is a great option for businesses. It is simple, affordable, and also a personal way to connect with customers. By using it properly, you can easily grow your business rapidly at the local level. You can sell your product to more customers, in which you will get the facility to keep your product in an organized way in the business WhatsApp e-store, and whenever your customers see and buy your product through WhatsApp, it will grow your business more.
E-commerce Business Website
You can also create your own eCommerce website for your business where you can list and offer your products to customers in the way you want. When you decide to sell your products through your own eCommerce website, then you also have to understand that customers visit your website, and for that you have to do SEO of your eCommerce website or connect with a good digital marketing agency that can help you in creating the best eCommerce website for your product.
Product Packing & Delivery
Packing: In e-commerce business, products are delivered to customers for thousands of kilometers as per their orders, in which packing of the product is very important; your product is packed in such a way that the chances of breakage of the product are reduced and your product can be delivered to the customers safely.
For packing the product, you can also evaluate the products available in the market so that you can get a proper and safe way of packing your product.
If the customer does not receive a safe product, then there will be more complaints from the customers, and you may have to face many difficulties in the e-commerce business. To avoid such problems, you need to pack your product safely and correctly.
Delivery Resource
When you are doing e-commerce business, you can deliver your product to the customers through any delivery agency, or you can also get the product delivered to the customers through the e-commerce platform on which you want to sell the product, for which you will have to pay some amount. When the e-commerce platform through which you are selling the product delivers your product at its level, it will be easy for you. You just have to pack the product safely and send it to the respective e-commerce store, which will be easy and safe for you.
Target Customer
Selecting the right target customer for any product of your eCommerce business is a key to achieving success in business. This can be done correctly based on demographics, customer behavior and preferences, and psychological aspects. By targeting the right customer, you can increase the sales of your product and increase the product brand recognition.
Customers can be targeted for e-commerce products based on these 10 steps.
- Understand customer demographics
- Identify customer needs and problems.
- Study customer behavior and preferences.
- Understand customer shopping habits
- Consider price sensitivity.
- Customer fit with the company’s brand
- Competitive analysis
- Focus on long-term customers.
- Feedback from customers
- Customer preferences obtained from smartphones and social media
Marketing of e-commerce products in e-commerce business To deliver your product to the right targeted customers, you can use various digital channels and techniques that will increase the reach of your product to more people. You can market your e-commerce product by using methods like social media marketing, email marketing, SEO (Search Engine Optimization), paid search ads (PPC—Pay Per Click), content marketing, product listing sites and marketplaces, discounts and offers, free shipping and easy return policy, customer reviews and ratings, affiliate marketing, etc.
Conclusion
There are several systematic steps to start an e-commerce business and achieve success in this business. From market research and proper business registration to choosing the right product and pricing, completing each step is essential to making the e-commerce business profitable.
Understanding customer demographics, targeting the right customers, and attracting them by providing quality product branding and packaging is also essential. Additionally, using digital marketing techniques like social media marketing, SEO, and paid ads can help increase product sales and reach a wider customer base.
A proper e-commerce platform, such as joining popular marketplaces like Amazon and Flipkart or through your own website, is the key to selling products efficiently in an e-commerce business. Especially for small businesses, using WhatsApp as an alternative or on a personal level is also a cost-effective way to connect with customers, and ensuring safe packaging and timely delivery further increases customer satisfaction. By executing these steps effectively and consistently engaging with customers, e-commerce businesses can increase sales, build their product brand recognition, and achieve long-term success.
