Do you desire to get the profit pie of your market off bricks and mortar? The ecommerce business approach is the way to go, and it’s taking the business world by storm. With many customers shopping online, it’s undeniable that there is a bright future for the online business.

Check around; ecommerce is taking over the retail world. Many brick-and-mortar stores are closing up. They can’t match the competition of the online operating brands. Starting your online shop now is an excellent investment.

But you need to know what’s required to get your business running swiftly, efficiently, and at a reasonable cost. So, let’s dive into factors you need to consider BEFORE opening that online store.

Know What You’ll Sell

Deciding what you’re going to sell is the primary step into starting your business. You probably have thought about it and have various ideas. But try to narrow down your product selection to a specific niche. As a starter, this will help settle on a particular product and grow your business slowly, meaning, after introducing your product of choice to your niche, you can expand, add more products and reach a broader market.

That said, allow your passion to guide you; business is easier when you sell what you are familiar with and passionate about. Also, remember to evaluate your competition and focus on offering unique products. Setting yourself apart will give you a competitive edge in the ecommerce industry. Find out more information here.

Have the Right Business Insurances and Licenses

Like a physical store, you have to operate legally and also protect your business from unexpected misfortunes. Your online shop will be an independent entity recognized by the law. Meaning your business’s loan can’t be processed under your personal identities, nor will you be personally liable for litigations related to the company. Not to mention, customers and vendors tend to deal with registered businesses. So, acquiring the proper legal permits ensures you’re compliant with the law and also aids in winning customers’ trust.

Above all, you’ll need to save your business from costly liabilities. Make sure you get business insurance. If unsure of what legal permits you need and the right insurance cover for your business, consult Smart Business Insurance to get the right advice on your product insurance.

Prioritize Credit Card Processing

What mode of payment will you accept? Nowadays, shoppers want to be able to pay via credit card. This makes credit card processing a vital aspect of ecommerce trading. Through this service, payments will be debited from the customer’s account and credited to yours faster and conveniently. Moreover, these transactions take place electronically.

To survive in online trade, you must allow credit card transactions. Otherwise, you can forget about improving sales and achieving efficiency in this competitive industry. If you must know, accepting credit cards legitimizes your online business, translating to increased sales and cash flow.

Have the Right Mode of Shipping

Do you want to buy the inventory straight from the manufacturers at a discounted price and handle the shipment to your customer, or would you like to work with manufacturers who can ship the product directly to the customer (drop shipping)? Of course, each of these options has its pros and cons. Either way, you’ll incur shipping fees. But keep track of the product delivery costs to establish your profits per sale.

Different scenarios will demand you use either of these two shipping options. So, you will need to keep inventory and also have reliable drop shippers. So, purchase the stock and handle the shipping where it benefits you and opt for drop shipping whenever it proves to work to your advantage. To survive in online trade, aim at offering convenience, quality, and affordability.

Have an Expected Profits Analysis

Evaluate the market to establish your potential profits. Come up with a detailed cost analysis of your product, all the way from sourcing to delivery. Consider:

• The cost of buying the product– from the manufacturer or wholesaler

• Shipping cost

• Credit card processing charges

• Delivery period

• Website fees

• Storage costs, if any

Deduct all these costs from your product selling price to find out if the business is worth it. Or if there is a need to seek cheaper alternatives. More so, if you should increase your selling price. Remember, to survive in business; you need to make good profits. However, it doesn’t mean you should increase the cost of your sales. Negotiating discounted prices with your manufacturers, wholesalers, business insurance providers, and drop shippers can help improve your profit margin.

Have a Clear Return Policy

A return policy is a must-have for your ecommerce business. Both your team and your customers need to be aware of how you treat a return order. For instance, what should the employee do upon receiving a return order?  Plus, what conditions mandate a customer to return an order, and what are the subsequent terms.

Having a detailed return policy will help build customers’ trust and avoid confusion among your team. That way, your business will run smoothly, and you’ll have good connections with your customers. Ensure your return policy aligns with what you are selling. Some products are not resalable once returned, meaning you’ll be at a loss if you accept a return on such products.

Perfect the Website Design

A website is a doorway to your ecommerce business. It is where you showcase your products and allow consumers to peruse through and complete their shopping. Ensure you add a cart to your business site to enable your customers to shop easier and faster.  Luckily, there are many excellent options that you can maximize to build a unique ecommerce website.

You don’t have to be an expert in creating business sites. Most of these website designing options are easy to learn and come with a detailed and precise guide on how to go about building your website. Besides, you can hire a competent website designer to create your ecommerce business site.

Consider the Sales Tax

What is sales tax? The percentage amount added to the product cost when selling to the consumer. Physically located stores are not new to sales taxes. Well, the ecommerce industry has always been a gray area, but not anymore.

In addition to business insurance, online traders are now expected to collect sales taxes. So, plan because you may be required to submit sales taxes once your business is up and running. Meaning, you’ll have to collect sales tax from your customers and submit them to your local city.

Start Your Ecommerce Business Today

You now understand that starting an ecommerce business is not a walk in the park. The above factors are just your primary concerns but very critical. The odds are that you’ll stand a chance of not surviving in this market if you proceed without taking the above factors into account.  These are the core basics to starting your business on the right footing.

Running an online business is no joke. Some days you are on a considerable high and some days, you will find yourself scrambling for the next penny to success. Whatever the situation is, you must find the right tools and technology that can help propel your business in the right direction. While everyone will discuss and highlight the e-commerce best practices, not many people highlight the common mistakes that business owners do.

Here, we are going to highlight a few of them to help you check and reassess things.

Choosing the wrong e-commerce platform

When you are determined to start your own online business, especially an e-commerce business, choosing the right platform is the key. The right e-commerce platform will help boost your business; however, the wrong one will end up pouring water over all your efforts. So, to make it big, you need to start analyzing and researching things. Note down what kind of products you offer, the kind of business plans you want to indulge in, and also the way the platform showcases your products.

Having no idea about the target audience

Marketing your products to random people might get you one or two lucky customers but it is not a sustainable business idea in the long run. This is where you need to define your target audience and what they can do for your business. Successful eCommerce sites know and identify their target audience and market their products to them. If you aren’t doing that, you are likely wasting your efforts and money on marketing, all for waste.

Invest in web design

If your e-commerce website isn’t scalable and easy to navigate, you are already going to lose out on a lot of prospects. Utilize a website design that offers room for future growth. The majority of the time, this is what people miss out on. If you want to expand your website and business in the future, you need to think of the same today. Integrate features and elements that can propel the growth of your business in the future. If you aren’t good with web development, get a professional to do it for you.

Complex Navigation

If your e-commerce platform is complex with too much happening on the home page, chances are that you are going to end up losing a lot of potential customers. Avoid using confusing or complex terms in your website and instead, keep the UX simple and minimal. This is enough to make your website stand out from the lot. Optimize the user experience so the customers can navigate through and find the right products for their needs.

Starting your e-commerce business is no joke. Not only do you need to be mindful of the products you are selling, but you also need to avoid doing the basic mistakes that take your business downhill. We have shared some of the basic yet quintessential ones, so make sure that you are mindful of the same before you end up starting your business.

Regardless of the industry you’re in, there are probably at least a few conferences in your area each year that you can attend. As an entrepreneur, it’s important that you stay informed about everything that’s happening in your industry. You should also always be looking for ways to introduce your brand to consumers. You can do both of these things and much more at small business conferences.

Learn from the best

The beautiful thing about being an entrepreneur is that you don’t have a boss. You have the complete freedom to work on your own schedule and work on any projects that you want. Although you may not have a boss telling you what to do, there are some authority figures that you should listen to and take advice from.

Small business conferences are a great way to meet influential people in your industry and talk to them about various subjects. If you’re new to being an entrepreneur, feel free to ask people with more experience how they overcome certain setbacks and challenges. You should attend conferences to learn more about your industry and then use that knowledge to grow your business.

Market your brand to potential clients

Aside from attending the conference and listening to influential people speak, you can also attend the event as a vendor. This will allow you to market your brand to potential clients and reach new demographics. Attending a small business conference or trade show can be an excellent way to directly engage with consumers and get them interested in your company.

If you have any ideas for a new product or service, you can use the conference to promote it and see what type of reaction you’ll get. To do this effectively, all you’ll need to do is create a few prototypes for the new products. Certain companies also hire iPads in bulk for small business conferences. They offer discounts to attendees who test your prototype and leave feedback on a tablet.

If you want to be a vendor at an event, make sure you also hire a few people who’ll engage with people at your booth. This strategy may help you both increase your sales and develop successful products that you’ll sell in the future.

Networking opportunities

Nowadays, you can easily get in touch with customers, clients, and other business owners online. However, there is something special about attending small business conferences when it comes to networking. People who attend these events come with the intention of meeting new people and are much more open to talking than they’d be online.

Simply through socializing at the event, you may encounter people that’ll help you completely transform your company and take it to another level. You may discover new customer leads, start working on joint ventures with other businesses, and even get new supplier contacts.

In case you’re looking for new employees, the conference might be a good place to find them. Talk about your company and what you envision for it in the future. In case you spark interest of experts in your field at the event, they might consider joining your organization.