10 Things to Consider Before Starting Your Own eCommerce Business

A practical guide to get you ready for starting your dream business.

Are you thinking of starting an online business? Is your entrepreneurial spirit coaxing you to take time off of your cubicle job and start an eCommerce website? Do you dream to be the next Jeff Bezos, Jack Ma, or a new trailblazing online megastar?

If you have been getting rosy reveries of owning a piece of pie of the ever-growing eCommerce empire – you are not alone. We all dream about starting something new, but it takes an iron-willed person to actually act on their dream, which sets them apart from people who let their imagination die. Kudos to you if you have already decided to take the plunge. Setting up a business is taxing – it requires time and preparation. But the good news is, good planning wins half the battle!

Below, we present a list of 10 things that you should be prepared on before starting your online business:

1. Pick Your Domain Carefully
If you are thinking of starting a business to mint money, you might be in for a sad realization. Businesses that are set up for quick money usually tank hard. Instead, you should choose a field that interests you so that you can stick with it for longer time and for reasons beyond money.

An aspiring businessperson should write a business plan elaborating on the modus operandi they are going to adopt. Do a thorough groundwork on pre-requisites like feasibility testing, deciding on a business model, domain name selection, etc. to build a strong foundation for your enterprise.

2. Have a Business Capital
Getting investments for your business is way easier these days than it was decades ago. A lot of startups get angel investment without much hassle, although they have to be really good at selling their business ideas to the investors. On the other hand, not all businesses are fortunate enough to get an easy funding, so it is important to have money ready at least for the initial investment. You can apply for a bank loan to funnel the initial cost, or use your rainy day savings (if you have one).

3. Build a Terrific Website
Just like brick-and-mortar shops, the virtual market is all about window dressing your business. In addition to making your website visually appealing, make sure it's user-friendly and responsive. If you have an e-tailer biz, take things slowly and push your plans about developing an app for later.
For m-commerce aspirants, however, things might be different as they would need to take the challenging-yet-rewarding minimalist approach.

4. Test Your Business
If you don't have any prior experience of selling stuff on the internet, open a store in big e-commerce sites like e-bay, amazon or etsy. This will let you test your own capabilities as a vendor and learn the practicals of branding, marketing and inventory management.
When you initially launch your own site, run it for a review among family, friends, friends of friends, etc. Ask for their honest feedback and implement changes before your site is up to speed.
Don't push things in the pipeline for a later time; conversely, don't overdo things at the beginning itself.

5. Decide on Payment System
Things become sensitive when money is involved, and especially if it is money coming from customers entrusting your business. Choosing a payment system is an important yet easy part of your business launch. PayPal is the hands-down winner when it comes to brand recognition and customer trust, although it comes with a costlier margin. To start with, create a merchant account with well-known and reliable credit card companies and over time, decide what works for your business.

6. Have a Competitive Edge
Is your website going to cater to the needs of a niche market? Or is it going to be the part of a mainstream consumer market? The convenience of online shopping is ubiquitous and buyers these days are spoiled for choices. You have to develop a Unique Selling Preposition (USP) that is going to help your website stand out in the competition. Start by asking yourself the following questions:

Why should a customer shop at my site? What different am I offering them?

Am I selling services and products at a price lesser than my competitors?

Do I have attractive deals to make cautious shoppers buy my products?

Can I deliver for free? Can I vouch for products or offer money-back assurance?

7. Localize your SEO
Marketing has evolved to become a different beast thanks to the advent of internet and search engines. It is very easy for naive consumers to be buried in the information overload on the internet and get distracted in the irrelevant clutter. Enter Search Engine Optimization (SEO), the surefire marketing discipline that offers you ways to get their unfazed attention.
Investing in SEO marketing will enable your website to be relevant among potential consumers. They can be a geographic demography or a cohort groups who are most likely to buy products your business is offering.

8. Email Marketing is your Friend
Time and again, there are arguments in the blog sphere about the efficiency – or worse, the demise – of email marketing. But the truth is, email still has a better reach among the audience; it is simple, affordable, and the most effective way to penetrate your client base on a one-to-one level.
According to Marketo, a whopping 77% users across various age groups prefer email marketing over other unsolicited marketing tactics. Done wisely, a subscription-based email marketing can enhance brand recall and persuade the customers to visit your site frequently.

9. Give a Top-Notch Customer Support
Customer experience is the eventual jury for any business' fate, and consumers are always a tricky group to deal with. Making sure that your customers are a happy lot is challenging because they are easily ticked off.
Your business should have a dedicated hotline to handle customer queries and solve their complaints. Also have contingency plans like referral programs, redeem points, free returns or a no-frills refund policy, etc. ready to ensure customer retention. Kowtowing to customers might be a taxing effort at first, but it earns your business a good reputation and pays off well in the long run.

10. Keep On Experimenting
The online business is witnessing an unprecedented momentum in terms of profit, and hence, a never-before-seen competition among vendors. Buyers' attention span is extremely short and they are bombarded with a paradox of choice.
In such a scenario, it's hard for any online retailer to earn a steady profit by banking on a single business strategy. Instead, you should be willing to reinvent your brand and revise your business tactics when necessary, while still playing by the market rules for staying competent. Business is a derivative success; trusting the process and doing the right thing will bring out desired results in due time, although you might have to settle for losses initially.

That's it! Those are the top 10 tips we have for you to start your online biz and rake big profits. Now brace up and take on the world. I will see you at the top!

Did you find anything missing from the list? Or do you have anything else to add? Let me know in the comment section below.