Starting an eCommerce business might be tempting, especially since the pandemic hit and many people changed their purchase behavior. Starting an online business might seem like an easy process, but actually, there are many things to consider in order to create a success story out of it.
There are few things to consider before starting your eCommerce store that can save you a lot of money and time in the process.
Let’s jump to the list for eCommerce excellence.
1. Market Research
This is the most important part before you start your eCommerce business. The idea behind your eCommerce can make or break your business plan, which is why it is important to establish thorough market research before choosing a niche.
There are several types of eCommerce stores, such as:
• Selling your own products
• Re-selling from third-party vendors
If you are starting an eCommerce store that will feature your products, you need to find out more about your competition. By researching your competition, you’ll find a way to approach your business idea and create a unique approach different from your competitors.
You have to understand that once you start an eCommerce store selling your products, there is no going back. You’ve already invested in production, packaging, and transportation, so it is much more difficult to take a different turn.
On the other hand, re-selling products from third-party vendors is a more flexible option that will enable you to change your niche if things don’t work out. This business model is commonly known as dropshipping, and it is very popular for Shopify users.
The dropshipping model is not something new, and many people think it is a thing of the past. However, it is proven that dropshipping is still profitable in 2020 and still will be in 2021.
2. Choose a Niche
This is a very important step that you need to consider before you start your online store. You can either go with a general store or a more specific niche. Each type of store has its own advantages and disadvantages.
For example, a general store will include products from different categories, which will increase the number of potential customers. However, it is hard to target the right people with this model. On the other hand, niche stores are better for targeting your potential customers.
Many experts will suggest starting with a niche store just because you’ll have a better chance of success. A Niche store is also great when you are starting an eCommerce store with a limited budget for marketing.
3. Contact Sellers
If you choose to go with the re-selling eCommerce strategy, you need to contact sellers in order to make sure that they will support your website when it starts selling. There is nothing worse than choosing a bad seller that cannot respond to your demands. It will instantly crush your reputation.
That’s why it is important to establish good relationships with sellers after you choose the niche.
4. Choose an eCommerce Platform
There are many eCommerce platforms that can support your business idea. The type of eCommerce platform will determine your business procedures. The most commonly used platform from online stores is Shopify and WooCommerce.
Shopify offers many helpful tools with a beginner-friendly design that will let you start an online store without any knowledge. It is important to know that they have transaction fees and a monthly subscription for their services.
5. Choose the Right Pricing Model
There isn’t a specific rule about pricing models on eCommerce stores. It all depends on the product and its competitors. If you have a unique product that cannot be substituted with something else, you get a chance to determine your own price. However, in most situations, that is not the case.
If you are re-selling items, you need to establish a profit margin that goes along with your competitors. One of the mistakes that new eCommerce business owners make is not including the costs of subscription, fees, and shipping into the product price.
The typical eCommerce store has a profit margin of 20-60%, depending on the product. However, you should establish research and find the right pricing models before you start your business.
Final Words On Exceptional Ecommerce
Starting an eCommerce store might look very simple, but it is a complicated process that needs a lot of knowledge in order to be successful.
If you are new to the eCommerce business and want to check out more tips, you can go to HelpCenterApp and improve your knowledge before you start your online business. Click here to access their help desk and they will guide you through that process: https://www.helpcenterapp.com/
