There is probably nothing more satisfying than starting a business from scratch and watching it grow.
While the eCommerce industry is booming, especially in this Pandemic season, there are also new competitors popping up every day, making it extra challenging to launch a new business into the market.
And because of this, even the most brilliant eCommerce business ideas can flop if you aren’t familiar with everything you need to know to be successful in the eCommerce industry.
So, if you’re planning to start your first eCommerce business, then it’s extremely critical to know everything about it from the very beginning.
Fortunately for you, I’ve put together a list of 7 things that you must know before taking any action towards setting up your eCommerce business.
What You Need to Know Before Setting Up Your First eCommerce Business
Growing a successful eCommerce business requires a strong foundation from the beginning. And there are many things you need to take into consideration.
Here’s a list of all the important things you need to know before planning to set up your first eCommerce business.
1 – Competition is Extremely Tough
Ever since the eCommerce industry has witnessed a boom in the past decade, it is getting more and more competitive with every passing day.
According to research, there are more than 20 million eCommerce stores live on the internet.
However, you should not let this data discourage you. Instead, you should use this information to uplift your entrepreneurial spirit as well as creativity to think out of the box, which brings us to the next point.
2 – You Need to Stand Out from Competition
Since there is a stiff competition going on in the eCommerce industry, it has become vital that you come up with something that consumers can’t find anywhere else, something which differentiates you from the competition.
So, before doing anything, you need to put on your thinking cap and start thinking about all the unique selling points for your products.
You need to come up with something that really differentiates your brand from others, whether it’s an entirely new product or an added benefit that will draw potential customers in.
On the other hand, if you simply plug the same kind of products (or use a tired, outdated message) in an already saturated market, you most certainly won’t reach the revenue levels you seek.
3 – Effective Marketing is a Must
After you’ve come up with a completely new and innovative product/message, the next thing you need to do is create an effective marketing plan for your eCommerce business.
Having an effective marketing plan in place is essential because it will help you put your products in front of the right people who are most likely to purchase them.
Now, coming up with an effective marketing plan is surely daunting, but just like anything else, it will become easier once you break it down into smaller parts and work on it step-by-step.
For instance, the first thing you need to do to come up with an effective marketing plan is to start by identifying your target market.
- Are your products for teenagers or the older generation?
- Global, regional, maybe a specific locale?
- Are men or women more likely to purchase your products?
- What economic demographic does your target fall into?
Ask these questions and more to truly understand your target audience. By knowing your audience, you can tailor your marketing plan to suit your target customers.
4 – SEO is Key
You might already have heard this a million times, but the importance of SEO in the eCommerce business still cannot be understated.
SEO basically helps to rank your webpages in search engines and drive organic traffic to your web store.
So, how should you use SEO to your advantage?
Well, the most important thing you need to do is find all the relevant keywords for your eCommerce business and use them (appropriately) throughout the written content on your online store.
Besides this, regularly updating the content also contributes to ranking in higher positions in search engine result pages.
The goal should be to rank on top positions to get the highest clicks from potential customers.
However, just ranking on #1 position alone won’t get you the success you want.
Recent studies have revealed that 21% of internet users often click on more than one result – whether by opening multiple tabs at once or going back and forth through each page individually.
In simple words, you can still win customers in your market even if you don’t rank #1 in search engines with the help of quality content. This leads us to the next point…
5 – Content is Extremely Important
In addition to having an effective marketing & SEO plan in place, you also need to take care of the content, both visual as well as written, on your online store.
Now, many eCommerce business owners believe that if you’re selling a good product, then it will speak for itself.
But in reality, just listing your products on your eCommerce website and hoping that the right customers will magically find you is one of the biggest mistakes you can make.
In this competitive market, having word-perfect content is absolutely critical.
In fact, the best eCommerce companies invest heavily in content marketing. And you should too.
6 – Visuals Can Multiply Your Results!
As we discussed above, content is extremely important to drive traffic to your online store and sell your products.
And visual content, specifically, can really do wonders for your eCommerce business.
For example, you’ll obviously need images of your products to showcase what you have to offer.
But, in addition to this, you can also add images in your blog posts, create video tutorials to showcase how your products work, create infographics that deliver a lot of information about your brand as well as products, and distribute it as much as possible.
7 – Selecting the Right eCommerce Platform is Vital
One of the ways to make sure that your eCommerce store really stands out from the crowd and helps to provide a phenomenal experience is by choosing the right eCommerce platform that suits your needs.
Now, there are a handful of eCommerce platforms available in the market. But, Magento 2, by far, has always been my number personal preference.
In fact, Magento 2 is probably the only eCommerce platform that offers tools to build a truly flexible eCommerce store that matches all kinds of unique business needs.
And because of its flexibility, Magento 2 has been used by all sizes of eCommerce companies, from startups to leading brands like Nike and Coca-Cola.
Plus, there are hundreds of Magento 2 extensions available in the market that allows you to enhance the user experience of your eCommerce store.
Success always takes time.
It’s highly unlikely that your first eCommerce store will become an overnight sensation.
There will be a lot of obstacles you’ll have to overcome. But as long as you remember all these important things we discussed, you’ll most definitely succeed in the business.
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