E-commerce has opened up exciting new opportunities for entrepreneurs to sell products and services online. But starting an online business can still seem a bit daunting, especially if you don’t have experience creating websites. In this article, we cover the basic steps for launching an e-commerce business from the ground up.
What is e-commerce?
E-commerce or electronic commerce refers to the buying and selling of goods and services over the Internet. An e-commerce business involves a company or entrepreneur selling products or services on an online platform to customers, rather than in a physical retail store.
Some key things to know about e-commerce businesses:
- They sell products and services through a website or mobile app, enabling transactions and payments to happen digitally. Popular e-commerce platforms include Shopify, WooCommerce, Magento, etc.
- Multiple e-commerce business models exist – sellers can have their own branded online stores, operate through marketplaces like Amazon and eBay, drop ship goods, create subscription services, and more.
- E-commerce opens up global reach to a business – customers can be located anywhere with internet access, rather than the geographical limitations of physical retail stores.
- It generally provides more flexibility and scalability to businesses. Inventory, staffing, and operations can be managed, automated, and expanded in a more cost-effective way.
- Setup costs vary widely based on factors like e-commerce platform fees, website development, payment processing, and fulfillment workflows chosen. Ongoing expenses are also there for marketing, customer service, etc.
In summary, an e-commerce business removes the geographical and physical limitations of running a store while empowering entrepreneurs to sell products and services to customers all over the internet.
Starting an e-commerce business on WordPress or Shopify does require some initial technical setup. Here is a step-by-step overview of the key tasks:
WordPress E-commerce Store
Domain Name – Purchase a domain name for your online store e.g. yourstore.com. Short, memorable, and relevant to your niche is best.
Web Hosting – Sign up for managed WordPress hosting to deploy your site quickly with automatic WordPress installation. Enable SSL certificate for security.
Install WooCommerce – It’s the most popular e-commerce plugin for WordPress. Search the plugins panel, install, and activate WooCommerce to get store features.
Pick a Theme – Choose an aesthetically pleasing theme designed specifically for WooCommerce stores out of the hundreds available. Configure theme settings.
Payment Processor – Activate payment gateways like Stripe or PayPal to accept online orders and process transactions from customers checking out.
Shipping Method – Connect shipping carriers like USPS, and FedEx to calculate real-time rates and print labels during the checkout process. Allows deliveries worldwide.
Shopify E-commerce Store
Get a Shopify Account – Sign up for a Shopify plan – Basic, Shopify, or Advanced based on your store needs and size. Includes free trial.
Customize Theme – There are dozens of professional themes available. Pick one aligned to your brand and tweak colors, fonts, and layouts, and add your logo.
List Your Products – Use the intuitive Shopify dashboard to create product listings with images, pricing, inventory count, variants, etc.
Configure Payments – Connect your desired payment gateways like PayPal, Stripe, or local providers. Accept credit cards with lower transaction fees.
Set Up Shipping – Link with shipping carriers to display real-time rates. Shopify makes it easy to manage inventory and fulfill orders.
Launch Your Store – Choose a domain or use the default Shopify one. Fine-tune additional settings and ensure everything looks/functions before going live!
Choosing the Right E-commerce Business Model
The first step is determining the right e-commerce model for selling your products. Some options include:
Dropshipping – Selling products shipped from a wholesale supplier directly to customers. No inventory or shipping costs for you to manage. Great for getting started!
Handmade Goods – Crafters and artisans can leverage sites like Etsy to open up small online boutique stores. It can be very profitable with the right products.
Your Own Branded Store – If you have the capital to stock inventory, creating your own unique online store allows you to control branding and retain higher margins.
Each approach has different costs, workloads, risks, and profit potential tied to it that are important to weigh.
Crafting a Compelling Ecommerce Brand
Branding is key – this helps your store stand out in the crowded online marketplace. Carefully craft your brand name, logo, and messaging to resonate with your target audience.
Consistency across your store design, social media, packaging, and more creates instant recognition for repeat business. Invest time upfront in getting branding distinct yet aligned with the products you sell.
Building a Functional E-commerce Website
Now it’s time to make your digital storefront a reality! Key elements include:
Optimized Product Catalog – Central area showcasing products in an intuitive, easy-to-navigate format.
Shopping Cart – Enables customers to select purchase quantity, get shipping estimates, and checkout.
Responsive Design – Mobile-friendly adaptation of store layout across all devices.
Leverage user-friendly e-commerce platforms like Shopify rather than coding a custom store from scratch. Plug-ins add advanced functionality over time as your business grows.
Payments, Taxes, and Other Key Considerations
Accepting secure payments in multiple currencies and calculating taxes, shipping, and refund processing all must be factored in. Research your accounting, inventory, and order management needs based on your e-commerce model selected. Scaling these operational tasks is vital as order volumes grow over time.
While launching an online store has gotten much simpler, careful planning and executing the core foundations well is still critical for any e-commerce merchant’s success. Follow this checklist to transform your ideas into a fully functional e-commerce business ready to generate revenue!