A Guide to Starting an E-commerce Business
Here is a step by step guide on how you can start an E commerce Business
Step 1: Establish what you want to sell.
- What you want your business line to be
- Products and service to deal in
- Manufacturers and Suppliers, or self-production
- Where to sell, and how to go about selling online.
- How to ship products from sources.
Step 2: Source Products and Find Suppliers.
- Check out Trade Group Websites.
- Ask for referrals.
- Attend Trade Shows.
- Search through online directories that will help you vet potential vendors.
- Read Vendor Reviews.
Step 3: Options and solutions for E-Commerce Technology.Take the following steps to enable you to set up an E-Commerce platform:
- Register your Domain by obtaining a website address from authorized registrant and observing any confusions that may arise with similarly named companies.
- Design and develop your own website and create an E-Commerce platform from scratch using a variety of website development tools.
- Host a Website. Enables you to make your website accessible via the internet by providing internet connectivity, email management, and other services related to running your business.
- Use of Hosted E commerce Platforms to take care of hosting and server maintenance.
- Self-hosted eCommerce. These solutions are open-source platforms that require you to host, implement, and maintain your store.
- Accept Online Payment. This gives the online shoppers the ability to purchase your products or services conveniently.
- Promote your business through digital marketing tools like SEO, social media and email marketing.
Step 4: Determine Payment method your customers will useThe primary factors when deciding on a payment gateway are the following:
- Fees – Each provider has their own rate card, and some providers may have fixed costs per transaction, while others have variable percentages and/or fees.
- Payment types – All payment gateways support credit card payments, but if you’re planning to accept non-traditional forms of payment such as crypto currency or bitcoin then you may need research on the supported gateways.
- E commerce Integration – Payment integration with your eCommerce platform, ensures that customers enter payment information and complete the purchase within the site, making their checkout experience much smoother.
Step 5: Measure Key Business MetricsLook into your E-Commerce data to measure results and performance. You can use google analytics to view the following metrics:
- Site Traffic – How many visitors are you getting per day, week, or month? How do customers find your site (e.g., search, social media, third-party sites)? Where are they located?
- Conversion Rate – Your conversion rate tells you if people are buying your merchandise.
- Customer Acquisition Cost (CAC) – Your CAC tells you how much you are spending to acquire paying customers. Its formula is the total campaign cost by conversions. CAC measures the effectiveness of your marketing and advertising efforts.
- Average Order Value (AOV) – Provide insights into customer behavior and spend. For instance, a low AOV could indicate that you are selling more of your inexpensive items, and you should ramp up your marketing and sales for your high-value products. It could also indicate people are not buying multiple items, in which case it may be time to ramp up your cross-selling efforts.