Last year, over 2 billion worldwide shoppers bought products online. Today’s eCommerce market is expected to reach over $5.5 trillion before 2022 is done. ECommerce sales make up more than 20% of all sales. Growth in eCommerce sales will increase by almost 25% by 2025. That’s why eCommerce is a leading way for companies to reach more customers.
Check this “ECommerce for Beginners” guide to help you learn how to launch an online enterprise. With this plan, your sales are sure to skyrocket past any expectations!
How to Start an ECommerce Business
Here are the tasks to follow on how to start selling online:
1. Identify a Niche
Companies should pinpoint what they want their eCommerce business to offer. It’s best to research their high-interest areas and ask themselves some of the following questions. Their answers to these questions will be the foundation for their business plan.
- Are we selling a service or product?
- Are the products digital or physical?
- Who/what is the source of our products?
- How will we deliver my products/services?
- Who would our competitors be?
- What will the startup costs be?
- Who can we ask for financial help?
2. Choose a Business Name
Choose a company name. Startups in the US should check with the US Patent and Trademark Office. They should also check their state’s secretary of state website to find out if they chose a company name already used by another business. Startups in Canada should check their provincial and territorial database to ensure their company name is unused. You can find a link to these databases on the Canada Revenue Agency (CRA) website.
3. Get a Tax Revenue Number/EIN
The next step should be to apply for an individual tax revenue or employer identification number (EIN). US applicants can apply for this nine-digit EIN through the US IRS office free of charge. In Canada, companies can also apply for their tax revenue number through the CRA.
4. Research Business License/Permit Requirements
ECommerce start-ups should also find out if they need to apply for a business permit or license. Some states and territories want startups to apply for home occupation permits to operate out of their house. Other business permits or licenses to secure could include a sales tax permit.
5. Pick an ECommerce Platform and Develop a Website
The next best eCommerce startup task is to choose an eCommerce platform and create a website. A company’s website is the first thing online customers see when they search for a name and browse for products.
The best eCommerce platform for small businesses is the one that lets the startup accept and ship orders, receive payments, and customize their overall design whenever they want.
6. Start Marketing the ECommerce Startup
Once a website is live, the next step is to create a marketing strategy to reach existing and new potential customers.
The best eCommerce startup marketing strategies include social media targeting, Google ads, and word of mouth. The best eCommerce platform for startups will also optimize a website for SEO to rank high on search engine pages.
7. How to Start an ECommerce Business: Last Thoughts
Once a company is live, it’s time to serve online shoppers! ECommerce startups should track their marketing strategies to see which one works best. They should also stay current on any changes to their state’s business license requirements.
Our top eCommerce platform pick is Shoplazza because their site is powerful yet simple. Shoplazza provides its customers with an all-in-one eCommerce platform. And they are market leaders in powering and empowering small business leaders on how to start an eCommerce business. They help take your eCommerce startup to its next best level.