There are many reasons why you might consider starting an online business: You own a storefront want to expand online; you're looking to break out of your 9-5; or you simply want to take a passion or hobby and turn it into income.
Starting an ecommerce business can be overwhelming. But proper planning can remove much of the mystery as you ready your business for online sales. Chip compiled a list of 10 essential to-dos for starting your online business, from researching your initial ideas to ensuring repeat customers become the bulk of your business.
First and foremost, it’s important that your customers have a seamless, low-friction experience with the product or products you offer. That means ruthlessly evaluating your website and looking objectively at your own goals to determine what’s realistic. Technology itself is another key factor to consider: An online business requires a great website that easily converts browsers to paying customers.
Today’s most successful ecommerce businesses rely on software for everything from individual customer relationship management and service availability to the inventory of physical goods. By choosing your software carefully, you can avoid costly headaches down the road.
You’ll also want to become well-versed in subjects like conversion rates that can communicate how well your business is performing in the ecommerce space. More importantly, all of this data will give you ample opportunities to keep growing and fine-tuning your business strategies.
Keep reading to discover 10 essential elements to starting a successful ecommerce business.
insta_photos // Shuttestock
There are many reasons why you might consider starting an online business: You own a storefront want to expand online; you're looking to break out of your 9-5; or you simply want to take a passion or hobby and turn it into income.
Starting an ecommerce business can be overwhelming. But proper planning can remove much of the mystery as you ready your business for online sales. Chip compiled a list of 10 essential to-dos for starting your online business, from researching your initial ideas to ensuring repeat customers become the bulk of your business.
First and foremost, it’s important that your customers have a seamless, low-friction experience with the product or products you offer. That means ruthlessly evaluating your website and looking objectively at your own goals to determine what’s realistic. Technology itself is another key factor to consider: An online business requires a great website that easily converts browsers to paying customers.
Today’s most successful ecommerce businesses rely on software for everything from individual customer relationship management and service availability to the inventory of physical goods. By choosing your software carefully, you can avoid costly headaches down the road.
You’ll also want to become well-versed in subjects like conversion rates that can communicate how well your business is performing in the ecommerce space. More importantly, all of this data will give you ample opportunities to keep growing and fine-tuning your business strategies.
Keep reading to discover 10 essential elements to starting a successful ecommerce business.
Research is key to any prospective new business project. Is your idea unique or are there already a number of competitors you must worry about? Think about what makes your business different. Why not study what your competitors are doing and consider offering special or additional services to make your business stand out. If early on you determine the market for your specific idea is too crowded, you’ll have the opportunity (and time) to come up with a different idea with a higher likelihood of success.
vectorfusionart // Shutterstock
Research is key to any prospective new business project. Is your idea unique or are there already a number of competitors you must worry about? Think about what makes your business different. Why not study what your competitors are doing and consider offering special or additional services to make your business stand out. If early on you determine the market for your specific idea is too crowded, you’ll have the opportunity (and time) to come up with a different idea with a higher likelihood of success.
Beta testing—or trying out limited launches as tests—is essential in the ecommerce space, Prior to your hard open, start out with a limited product launch so you can gauge public interest. Another option is to host focus groups—which could be family and friends—and get feedback on your product and website ahead of the full launch. By identifying any obvious pain points or friction in the process, you can make necessary tweaks ahead of a full product launch and not the other way around.
88studio // Shutterstock
Beta testing—or trying out limited launches as tests—is essential in the ecommerce space, Prior to your hard open, start out with a limited product launch so you can gauge public interest. Another option is to host focus groups—which could be family and friends—and get feedback on your product and website ahead of the full launch. By identifying any obvious pain points or friction in the process, you can make necessary tweaks ahead of a full product launch and not the other way around.
You may think that your only options are to break into your piggy bank or that rainy day fund to start your business. But, there are many grants and small business loans available for someone just like you. Personal loans, no-string grants, and serious angel investors may all be options for you.
Andrey_Popov // Shutterstock
You may think that your only options are to break into your piggy bank or that rainy day fund to start your business. But, there are many grants and small business loans available for someone just like you. Personal loans, no-string grants, and serious angel investors may all be options for you.
You know you want to retire early, so choosing the right business model is as important as the products you offer. When evaluating your ecommerce platform, make sure it can scale with your business, offers tools that allow you to not only manage your inventory, but also your customers, shipping, and satisfaction. Reviews are a great way to build repeat business, so why not make sure your platform helps you gather customer reviews? Reviews are the new word of mouth! Especially if you are selling services rather than products.
People planning to sell services associated with events must choose between personal and corporate clients. At first, corporate clients may be simpler and more predictable to do business with. That simplicity will help you scale and serve these same customers again and again.
fizkes // Shutterstock
You know you want to retire early, so choosing the right business model is as important as the products you offer. When evaluating your ecommerce platform, make sure it can scale with your business, offers tools that allow you to not only manage your inventory, but also your customers, shipping, and satisfaction. Reviews are a great way to build repeat business, so why not make sure your platform helps you gather customer reviews? Reviews are the new word of mouth! Especially if you are selling services rather than products.
People planning to sell services associated with events must choose between personal and corporate clients. At first, corporate clients may be simpler and more predictable to do business with. That simplicity will help you scale and serve these same customers again and again.
Design a website that makes buying your product easy. The functionality of your site is as important as the products and design itself. The more intuitive and easy-to-use your website is, the fewer clicks it will take to close the deal.
Lifestyle Travel Photo // Shutterstock
Design a website that makes buying your product easy. The functionality of your site is as important as the products and design itself. The more intuitive and easy-to-use your website is, the fewer clicks it will take to close the deal.
Find your customers in the places they shop. Early on, word of mouth and reviews can help carry your business. But eventually, virtually everyone must diversify and start investing in new customer channels. Maybe that takes the form of sponsored content with the right influencers on Instagram, or developing a Google Adwords plan and investing strategically to stretch your ad dollars as far as possible. Set key performance indicators for these channels and let the results help you decide what to do next. You may need to keep tweaking language, placement, and more to get the most value.
Canva
Find your customers in the places they shop. Early on, word of mouth and reviews can help carry your business. But eventually, virtually everyone must diversify and start investing in new customer channels. Maybe that takes the form of sponsored content with the right influencers on Instagram, or developing a Google Adwords plan and investing strategically to stretch your ad dollars as far as possible. Set key performance indicators for these channels and let the results help you decide what to do next. You may need to keep tweaking language, placement, and more to get the most value.
Upsells and promotions are a key factor that goes hand in hand with having a high-conversion website. Recommended add-on products are key to upselling in e-commerce. Let customers choose extras that add value, the same way they’d like to grab a candy bar or magazine from the checkout rack at the grocery store. If you’re selling physical goods, consider offering a quantity discount or placing a discount code in your social media to help track the response rate to those posts. For services, consider extras or discounts that will add value to customers’ experience with you. That could be event insurance, package deals that cut the hassle, or even a free spa service with a certain minimum spent.
Canva
Upsells and promotions are a key factor that goes hand in hand with having a high-conversion website. Recommended add-on products are key to upselling in e-commerce. Let customers choose extras that add value, the same way they’d like to grab a candy bar or magazine from the checkout rack at the grocery store. If you’re selling physical goods, consider offering a quantity discount or placing a discount code in your social media to help track the response rate to those posts. For services, consider extras or discounts that will add value to customers’ experience with you. That could be event insurance, package deals that cut the hassle, or even a free spa service with a certain minimum spent.
Using content to broaden your audience can be a shortcut to better relationships and longer-lasting customer impact. It might take the form of an information-rich blog you use to build public trust in your brand or a YouTube channel where you release consistently funny or valuable material. The U.S. Chamber of Commerce suggests you set key performance indicators and then set goals to track them. Do you want to accumulate a certain number of followers on Twitter or TikTok? Do you need a certain number of click-throughs on your blog posts? Be realistic yet ambitious with these goals.
Canva
Using content to broaden your audience can be a shortcut to better relationships and longer-lasting customer impact. It might take the form of an information-rich blog you use to build public trust in your brand or a YouTube channel where you release consistently funny or valuable material. The U.S. Chamber of Commerce suggests you set key performance indicators and then set goals to track them. Do you want to accumulate a certain number of followers on Twitter or TikTok? Do you need a certain number of click-throughs on your blog posts? Be realistic yet ambitious with these goals.
There are pros and cons to consider for every step in starting a business, but what software you choose can be particularly intimidating. That’s partly because there are so many “ready-made” solutions that can plug and play for ecommerce, like Squarespace and others. But you still must link your sharp-looking website and ecommerce with inventory and other internal factors that may require a different solution. Especially as your volume of business increases, you may need dedicated operations software along with customer relationship management software like Salesforce. All of these pieces must work together for your business to operate at its best.
Canva
There are pros and cons to consider for every step in starting a business, but what software you choose can be particularly intimidating. That’s partly because there are so many “ready-made” solutions that can plug and play for ecommerce, like Squarespace and others. But you still must link your sharp-looking website and ecommerce with inventory and other internal factors that may require a different solution. Especially as your volume of business increases, you may need dedicated operations software along with customer relationship management software like Salesforce. All of these pieces must work together for your business to operate at its best.
Managing customer relationships is a key piece of ecommerce business strategy. For many brands, building loyalty means figuring out a way to stay in a customer’s field of vision. That can be through emailed coupon codes or other deals offering added value for those who click. It could also be a company newsletter full of relevant information and fun extras. Especially for businesses that rely on repeat bookings or regular sales, staying at front of mind is key.
This story was produced and distributed in partnership with Stacker Studio.
88studio // Shutterstock
Managing customer relationships is a key piece of ecommerce business strategy. For many brands, building loyalty means figuring out a way to stay in a customer’s field of vision. That can be through emailed coupon codes or other deals offering added value for those who click. It could also be a company newsletter full of relevant information and fun extras. Especially for businesses that rely on repeat bookings or regular sales, staying at front of mind is key.
This story was produced and distributed in partnership with Stacker Studio.
Have you ever heard the expression “No guts, no glory”? Making your own business starts with guts. If you’re someone who likes to take risks and has great ideas, starting your own company could be for you.
There are different kinds of companies that you could start. You could start a company producing something you invented, like an iPhone or a mobile app. Or you could start a company that licenses the brand of an existing company, such as McDonald’s or Subway. Companies like this are called franchises.
Between the two of us, we’ve started mobile gaming companies, owned franchises and created biotechnology companies from patented inventions. One of us is an analytical geochemist – someone who measures chemicals – with inventions including a chemical detector that measures metals in air, which in turn allows us to find and remove bad metals like mercury from smokestacks. This and other inventions were spun into a new company with her students. The other of us has started companies that provide everyday goods and services, from building houses to hosting birthday parties. Even though the companies we started are very different, both of us are what are called entrepreneurs.
Entrepreneurs are those who start a company, identify needs and bring together the people, materials and money required to meet that need. Everything you buy is to meet a need you have, and somewhere, some entrepreneur started a company to meet your needs. Whether you’re going solo or have a team, you can be an entrepreneur and start your own company.
Starting your own company
There are five basic steps to starting your own company:
1) Need: The first step is identifying the want or need you intend to meet. What do you hear people saying that they love? What do they complain about? What do you always say would make life easier? Once you figure out what people are yearning for and who exactly your target customers are through some market research, then you’re ready for the next step in starting your company.
2) Idea: The second step in starting a company is coming up with an idea that meets the want or need you identified. Is it an invention that takes out the garbage? Is it a better hamburger? A great idea that meets a want or a need can be complex, like a smartphone, or it can be simple, like bottled water.
3) Product: The third step is figuring out how you will provide the product or service. Will you create and sell a new kind of hamburger, or will you offer an existing kind of hamburger where it isn’t currently available? If you plan to create and sell something all on your own, you will found a startup. If you plan to offer something that already exists in a new area, you would buy into a franchise.
4) Setup: Next, you’ll set up your company. There are many resources available to help you do this. The first thing you will do as a startup is become a legal entity, or a business on paper. This step may require an attorney, because there are many structures your business could take, and you will need to choose the right one. Then off to the bank to set up an account so you can start receiving money and paying your bills.
5) Market: Lastly, you will need to market your product. Whether you find your own customers or hire someone to do it, you’ll need to let people know that you have a product or service that is worth paying for. You can have the best company in the world that makes the best products, but your potential customers have to know about it in order for you to be successful. With all of this information in mind, you’ll write a business plan that provides the details of your product or service as well as your plan for funding and growth. The plan answers all of the questions of who, what, where, why and how. The more detailed this information is, the more likely someone will want to invest in your ideas and help grow your company.
Before we dreamed of being entrepreneurs or starting companies, we were kids who were curious, asked lots of questions and wanted to make the world a better place. Starting a company is a great way to do that. The company you start may literally change the world.
So don’t delay; the world is waiting for you.
Hello, curious kids! Do you have a question you’d like an expert to answer? Ask an adult to send your question to CuriousKidsUS@theconversation.com. Please tell us your name, age and the city where you live.
And since curiosity has no age limit – adults, let us know what you’re wondering, too. We won’t be able to answer every question, but we will do our best.
The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.
Whether big or small, if you see something that people need, you can start a company. Tony Anderson/Stone via Getty Images
Starting your own company takes guts. ljubaphoto/E+ via Getty Images
