If you want to start an ecommerce business, you’re in luck. In 2021, retail ecommerce in the US was estimated at roughly 768 billion dollars—a figure that’s set to exceed 1.3 trillion by 2025.
Jaw to the floor? Ours too.
But despite what the hype might tell you, starting a successful ecommerce business doesn’t happen overnight. To build a thriving business, you need a strategy, a plan, and the right tools.
In this article, we’re going to show you how to start an ecommerce business from scratch.
Looking for the next great business idea? Look no further than ecommerce.
Not only can an ecommerce store be a fantastic form of passive income, but it’s also a great solution for entrepreneurs interested in remote or hybrid business models.
Talk about pandemic-proofing your business, are we right?
Here are some benefits of starting an ecommerce business:
Plus, you know, those figures we mentioned earlier.
And speaking of dropshipping, before you can get into the nitty-gritty of your business plan, you need to decide on an ecommerce business model.
So, to start, choose from one of the following options:
Need more info? Check out this resource for more information about each business model.
In step number two, it’s time to pick a business name.
While it’s important to choose a name you align with, don’t overstress it. Remember, even big-time businesses like Apple and Amazon started as simple names. Even if they chose names like Peach and Markets, would it have mattered? No. Business choices supersede anything else. You could use a business name generator as a brainstorming tool.
After landing on a name, decide on a business entity and formally register your new store. Your entity will determine specific obligations, such as personal liabilities and how you'll pay taxes, so choose carefully. Register your business with a lawyer or register with an online service.
Never solidify your business plan without conducting ample research first.
When conducting research, keep a firm eye on:
Refer to the research you conducted previously to finalize the products you’d like to sell. Pay special attention to in-demand products and underserved markets. For example, Eric Even Haim, CEO of the upsell and cross-sell app, ReConvert, says: Products don’t need to be the “next big thing.” Instead, you should “look for growing trends and markets where customers are underserved. Then step in with an excellent product and give them what they want!”
Still, stuck on which products to pick?
Check out these 12 strategies for finding a profitable product from Shopify.
You can also find market demand by conducting research on Google Trends and Trends.co.
Your research should help you pinpoint your target audience and how you can serve them.
In this step, hone in on your target audience and brand mission.
Start by deciding on an audience type, such as
Then, get even more specific.
For instance, if your audience type is B2B, break that down.
Ask yourself questions like:
Then, solidify your brand vision and mission. Where do you want your business to be in a year from now? Two years from now? Five years? 10 years? Finally, set micro-goals and long-term goals that can help you track your efforts as you begin your new business journey.
Now that you know what your business is and what it stands for, create your brand identity and solidify your value proposition. Your brand identity includes all of the visual cues your audience and stakeholders will remember about your brand. That includes elements such as:
After creating your elements, write your value statement.
Ask yourself, what sets you apart from other businesses in your niche. Why should your audience choose you? What unique value do you bring to the table?
Use the template who + what + how to create your value proposition.
Here’s an example:
“We help SaaS brands streamline accounting processes with our flagship virtual tracker.”
Now that you’ve positioned your brand for success, it’s time to get into the more technical aspects of setting up your new business. One of the most important tools you’ll need to run your ecommerce store is something called a Product Information Management system.
It may sound fancy, but a PIM system is simply a tool you use to track your product tags, titles, descriptions, pricing, and other key product information.
You’ll need specific product information to set up your store on Shopify, so be sure not to skip this step. Once you’ve chosen your PIM system, add your products, set your pricing, write your descriptions, and fill in other pertinent details listed in the link above.
While you might be able to run your ecommerce store relatively solo at first, you’ll eventually need a team if you want to scale—or, you, know, take a day off. To help you build out your business, consider hiring for roles like a sales outreach coordinator, a product manager, a copywriter, marketers, and virtual assistants. You can also hire for part-time roles or freelance roles if you don’t have a need for a full staff yet.
You’re almost done! In this step, it’s time to set up your online store with Shopify. And bonus! You can upload your product data from PIM service to your Shopify store, too. Cool right? With the Shopify website builder, you can edit free design themes, add products and copy, and choose from thousands of apps to customize your store. You can hire a Shopify Expert to help build your website or dig through Shopify’s educational resources if you’re a do-it-yourselfer.
And finally, to create a business that runs like a well-oiled machine, you need to create efficient processes that can carry you through all aspects of your operations.
Here are the top processes we recommend outlining and setting up:
And that’s it. You’re officially ready to launch your new business and serve your audience.
That wasn’t so bad, was it? Remember, all you need is a plan, a strategy, and the right tools.
Download this free white paper on how to find the best PIM for your business needs!