Online shop - how to start an ecommerce business?
The e-commerce industry is developing rapidly. More and more services and goods are ordered via the Internet. Online shop is very convenient for customers, allow them to save time and compare products in different places. It is worth adding that opening your own e-commerce website is neither difficult nor expensive. Another advantage of e-commerce is its range. You can buy goods not only from local entrepreneurs on the Internet. It is easy to order products from all over the world.
What is e-commerce?
E-commerce is a relatively general term for all transactions carried out via the Internet. This includes banks, which operate accounts via the Internet, or electronic services such as Internet domain service. However, the main actors of e-commerce are shops and auction portals. Three types of e-commerce can be distinguished:
- B2B (business to business), which are transactions between entrepreneurs,
- B2C (business to consumer), concerning the situation when a customer buys a product in a shop,
- C2C (consumer to consumer), which concerns transactions between two consumers, usually selling second-hand goods on auction portals.
E-commerce can be defined not only as different branches of commerce. It also includes everything that accompanies selling on the Internet, such as advertising and payment systems.
How to set up your own online shop?
Anyone can set up their own shop on the Internet because the barrier to entry is very low: usually all you need to do is buy a web domain. You can create a visually appealing website with free software and a bit of self-determination. Dropshipping will allow you to offer your customers goods that you don’t have to keep in stock.
It is worth spending more resources on building and developing your e-business in order to achieve success in the market. Remember that your competitors are developing and investing in advertising all the time. If you want to attract consumers, you also need to use these tools.
Find a good idea
The more effort you put in at the initial stage of setting up your shop, the easier it will be to develop activities later on. In the beginning, you need to develop a plan and choose your industry. This is a key factor because finding the right niche will enable you to gain customers during the most difficult, initial phase of business development.
You need to research the market, but this cannot be the only action. The number of shops in an industry can be related to demand. Customers buy some goods much more often than others. The most important thing is to find an industry that suits you. This will help you become an expert in your area. You will gain the trust of your customers and build a recognised, valuable brand.
Start your own business
The sale of goods or services requires the payment of taxes. The company not only has to pay income tax, but also VAT. In order to run an online shop, it is necessary to set up your own business. Entrepreneurs can deduct the cost of purchased goods from revenues, which is an important tax benefit.
Running a business often requires buying the services of an accounting office. An accountant will efficiently manage all the documentation and optimise the tax returns, which gives the opportunity for significant savings.
Domain and software
E-shop is located on the Internet. For this reason, you will need to purchase a domain name, in other words: an address where your website will be located. You will also need a server – a place where information about the shop is downloaded. The server is available all the time so that customers can access your shop every day at any time.
You should also consider buying software. This is necessary if you want to develop in the future. Ready templates are cheaper and more accessible, but you will not create a unique website based on them. So you need to decide whether you want an original portal or a cheaper solution that will save you money on additional activities to attract customers.
Create valuable content
The key to success is the position in Google. Only the first few results that appear in Google are popular with users. Unfortunately, items outside the first page are viewed by a small percentage of Internet users.
For this reason, you must rely on content. Writing blogs or customer guides are important ways of demonstrating knowledge and building trust. What is more, these actions are important for Google automats, which will appreciate your shop and present it higher on the results list.
Is it worth having an e-shop?
If you want your shop to grow successfully, you must always be ready for additional costs. Especially in the first few months. It can take several months before an e-shop achieves the right turnover and starts generating a profit.
On the other hand, e-commerce can be truly advantageous. These include easy scalability of the business with the influx of new customers, great opportunities for business growth, low-cost advertising activities, and relatively low fixed costs. These benefits make e-commerce still an extremely attractive solution for many new entrepreneurs. Moreover, many stationary shops are choosing to move their sales to the Internet. Contact us HERE and be the next one.