How to Build a Successful E-Commerce Business in 2024?
E-commerce has become increasingly popular for businesses thanks to their ability to sell products online. If you are undecided about opening your e-commerce store, this guide is what you need.
I have noticed in the last two years that more than 60% of the internet is active with E-commerce stores, giving the market a market cap of $5 billion. I established at least 3 different E-commerce stores. To make your process more precise and lag-free, I created a guide to help you get started with your E-commerce store. It helps you set up your E-commerce store with minimum amount of time and capital, without requiring any technical knowledge.
How to Start an E-Commerce Business Step-by-Step
Below is a step-by-step guide on How to Start an eCommerce Business.
Step 1: Find the Right Market Niche and Market Size.
The first step in opening an E-Commerce store is to find the niche in which you want to start your business. There are many factors to consider when choosing your business niche. Some of these are market demand, scalability of the business, market size of the product and much more.
To get started, you must first choose a big niche where you can build your business on a larger scale. When you see your business growing over time, it helps you expand it.
You also need to check the demand for the products you decide to sell in the market. This lets you know product details and potential customers.
You can check the scalability of your niche and whether you can expand your business if you get the chance.
These are a few important steps you need to follow if you want your e-commerce business to be successful.
Step 2: Research and Outline Your Business Model
Once you have chosen your business niche, you need to understand the ins and outs of the niche and the outlines of your business model.
Some of the most important things to consider are:
- What are the barriers to entry?
- What are the risks involved?
- How do get traffic?
If the product is digital or service-based, what is the profit model of the business?
You need to be clear on exactly how your business model works. Pet care, courses, rentals, tour bookings, etc. If you choose complex business models such as
You must determine the barriers to entry of the business you choose. You should plan a strategy to overcome obstacles, if any.
Every business will have some risk associated with the products it chooses to sell. For example, let’s say you run an e-commerce business dealing with perishable goods, and cold storage needs extra care. This is a big risk, if the product is not stored properly, it may spoil.
When starting a new business, it’s important to gain interest from potential customers; This is most necessary to make some profit in the initial stage.
Again, when it comes to service-based E-Commerce services, you should plan a strategic profit model. The earning model must be such that it is accepted by the customer, that is, he is ready to pay you.
Step 3: Get your Tax Number and Obtain Permit licenses for your Store.
Getting a Tax Number in India
To get a tax number in India, you must first become a member of the Revenue Administration’s (GST) website. After becoming a member, you can apply for a tax number from the “Tax Identification Number Inquiry” page. The documents required for application are:
- Original or notarized photocopy of identity card or passport
- Certificate of residence
- Professional or business registration
After you apply, your tax number application will be evaluated, and the tax number will be sent to you via e-mail or SMS.
Obtaining Permit Licenses in India
To do e-commerce in India, you must first obtain the necessary permits and licenses. These permits and licenses may vary depending on the field of activity of your business.
In general, the permits and licenses required to conduct e-commerce are:
- Registration certificate in the Trade Registry Gazette
- Operating certificate
- Self-employed or tradesman certificate
- Electronic commerce activity certificate
- Registration Certificate in the Trade Registry Gazette
The registration certificate in the Trade Registry Gazette is the document showing that you have registered your business in the Trade Registry Office. To obtain this document, you must first prepare the articles of association of your business. After preparing the articles of association, you can apply to the Trade Registry Office.
Operating certificate
The activity certificate is a document that varies depending on the field of activity of your business. For example, you will need a license to operate retail. To obtain an activity certificate, you must first register with a professional chamber appropriate to the field of activity of your business. After registering with the professional chamber, you can apply for an activity certificate.
Self-Employed or Tradesman Certificate
A freelance or tradesman certificate is a document showing that your business carries out freelance or tradesman activities. To obtain this document, you must first register with a professional chamber appropriate to the field of activity of your business. After registering with the professional chamber, you can apply for a freelancer or tradesman certificate.
Electronic Commerce Activity Certificate
An electronic commerce activity certificate is a document showing that your business conducts electronic commerce activities. To obtain this document, you must first become a member of the Revenue Administration (GST) website. After becoming a member, you can apply from the “Electronic Commerce Activity Certificate Application” page. The documents required for application are:
Tax identification number.
- Registration certificate in the Trade Registry Gazette
- Operating certificate
- Self-employed or tradesman certificate
After you apply, your application for an electronic commerce activity certificate will be evaluated and your document will be sent to you via e-mail or SMS.
Permit and License Obtaining Process
The process of obtaining permits and licenses may vary depending on the field of activity of your business. In general, the process of obtaining permits and licenses can take several weeks.
To speed up the process of obtaining permits and licenses, it is important to prepare the necessary documents completely and accurately. Additionally, you need to stay in touch with the relevant authorities to follow the process of obtaining permits and licenses.
Step 4: Create an eCommerce website.
After completing all the previous steps, the most important element of launching your E-Commerce store is creating a website. Shopify, WooCommerce, Big Commerce, Magento, Prestation, etc. There are multiple platforms to create an E-Commerce website.
For now, let’s take Shopify as an example. There are certain steps to follow when creating a Shopify E-Commerce website.
Shopify offers a 3-day free trial to help you get started with your e-commerce store.
After the trial period ends, you must choose one of the Shopify subscription plans according to your store’s needs.
Choose a name for your online store and prepare a logo.
Design your Shopify store with one of the free or premium themes available.
After completing the above steps, you need to add the official name of the store and its location. These are the basic steps you need to follow when setting up a Shopify account.
Step 5: Prepare Product Inventory
After the successful creation of the eCommerce website, you need to add products to the store. For this, you must have an inventory of the products you decide to sell.
Decide whether you will produce the products yourself or buy them from wholesalers. If you want to produce products, you must have a dedicated team and production units for production.
If you want to outsource products, ask for samples, and only outsource the highest quality products. This will help you retain the customer. It is better to outsource products when starting a store, as this can be complicated and risky if you choose to manufacture.
Step 6: Promote Your Products Online
There are various digital marketing options available to market your products. Some of these are Social Media, Search Engine Optimization, Email Campaigns, Google Ads, Facebook ads, etc.
Once you have successfully set up the Shopify store by following the procedure in step 4, you need to promote your products online to increase your sales. There are multiple marketing applications you can use to market your products. Some of the useful marketing applications you can use are AVADA SEO Suite, Plugin SEO, Social Shop Wave, Social Autopilot, Omnisend, Klaviyo, AdScale, etc.
In the beginning, you can choose a low-investment marketing tool or a free version of the tools to market your products. There are many people already selling the same products. Therefore, you need to have a Unique Selling Proposition to attract customers’ attention. Below is a brief overview of how you can benefit from the different types of marketing options available to you.
The best way to attract customers organically is through Search Engine Optimization. All you must do is create optimized content related to your products and publish it on your website. It helps you drive organic traffic to your website. Find out what keywords your potential customers use to search for your products. Create appropriate content using keywords. If you follow on-page and off-page SEO procedures, your content will be successful.
Social media is the best platform to attract the attention of the relevant target audience. It helps you build your brand awareness and allows you to reach many consumers. You just need to create engaging content. You can also help you gain maximum customers by integrating social media into your E-Commerce store.
Email Marketing is a great way to reach and find potential customers who can become your customers. With email campaigns, you can send informative content, articles, and product-related information pieces. Mail Chimp is one of the most used Email Marketing apps and it also comes with a free plan. Small businesses can try email marketing for free with the free version of MailChimp. Once you have your customers’ email addresses, you can also send them discounts, coupons, and discount offer that will increase your store’s sales.
Advertising your products with Google ads and Facebook ads is the most effective way to reach the maximum number of potential customers. It’s the best way to sort out who can see your ads by age, location, gender, and more. So, you can target the audience based on available demographic options. Advertisements are effective in covering a wide audience and increasing sales.
These are Marketing options you can use to increase your sales. When you use these platforms correctly, you will reach more people.
Frequently Asked Questions About E-Commerce Business
How much does it cost to start an e-commerce business?
To start an eCommerce business, you will need a custom domain name for your store, hosting, developer services, and maintenance services, and these are the minimum startup costs. If you want to start a professional e-commerce business, you can start with an amount between 15 thousand and 30 thousand.
How many types of eCommerce businesses can you start?
Four different eCommerce businesses you can start: B2B, B2C, C2C, and C2B.
Is e-commerce a profitable business?
Yes, eCommerce business can be very profitable, but you need to be patient to see visible results. Building a profitable e-commerce business can take six months to two years. Timing varies depending on the strategies you use to bring traffic to your website.
Am I too late to start my eCommerce business?
It is never too late to start an eCommerce business because, with the rise of online purchases, the eCommerce industry is expected to grow further in the future. You can start now but you must be patient to see the results.
Can I start an e-commerce business without any investment?
Many e-commerce business ideas do not require an initial investment. You can have a drop shipping business, print-on-demand business, etc. you can start. These businesses do not need much investment to get started.
