5 things to consider before starting your Ecommerce Business

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Since the inception of internet, businesses have taken a steep curve that has changed the way products are placed in the marketing. Online business set up offers a tremendous opportunity for both small and large business owners who look forward to establish a business for the global market. In order to create a successful online business, it is important that you understand the basics of e-commerce, which refers to the handling of commercial transactions through the internet. Research shows that small businesses are rapidly expanding their businesses through e-commerce, peruse the infographic below:

how small business are engaging in e-commerce

The power of ecommerce enables you to sell online without worrying about the geographical boundaries that usually restrict business owners from dealing with global audience. Here are the 5 things that you need to consider before starting your ecommerce business. But before we go any further, consider the following infographic to understand what things can kill you during your early days as a startup owner.

18 Mistakes That Kill Startups

1. Create a legal entity

Starting an e-commerce store with far more easier than setting up a traditional business; however, an e-commerce store or business requires the same set of legal procedures as the conventional business set up. The first thing that needs to be done is the formulation of legal structure of the business; who is responsible for business dealings, hiring professionals, and how to conduct everyday operations, etc. Buy your domain, copyright your material, choose a payment gateway, and create a strong web presence that is resistant to online frauds.2. Start with a business plan

An e-commerce business requires far less documentation than the traditional business, but it doesn’t mean that you don’t need a plan. A solid business plan will help you create a strategic outline for your business that will align your resources with your goals. The following image shows the important components of an online business plan.

Business Plan & Strategy

3. Understand your resources

E-commerce businesses cannot survive without technology. From the site development and design of the website to the payment security and everything in between, e-commerce businesses require advanced technological applications that make online trade safe and easy. So before starting up, make sure that you understand the resources available to manage your e-commerce store.4. Prepare for product placement

Internet has made product placement extremely easy for those who understand the digital techniques to create product visibility. Before finalizing everything for your e-commerce store, make sure that you have a product placement strategy in place. It is important to remember here that digital product placement is a completely different ball game than the traditional product placement; you’ll need to utilize digital marketing techniques such as guerrilla marketing, email marketing and affiliate marketing to successfully place your product in front of your consumers.5. Have a digital marketing strategy in place

Digital marketing is a broad term that entails various internet marketing domains that include, but are not limited to, social media marketing, search engine marketing, content marketing and viral marketing. Peruse the digital marketing pyramid below.

The Digital Marketing Pyramid

Digital marketing in combination with the above-mentioned elements contributes to the overall success of your e-commerce business. It is important to understand that e-commerce businesses greatly differ from traditional businesses when it comes to generating leads and making sales. Digital marketing allows you to build a strong brand awareness campaign that significantly contributes towards product visibility that ultimately leads to substantial sales.

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