6 Steps To Start an Ecommerce Business in 2023

An ecommerce business sells goods, services, and funds over the Internet. Starting an e-commerce business is a lot like starting any company: You’ll need to create a business plan, get licenses and permits, and set up dedicated finances. You’ll also need to choose an e-commerce website builder, source your products, and market to online customers.

6 Easy Steps To Start An Ecommerce Business

Follow these six steps to get your e-commerce business up and running.

1. Define your e-commerce business idea

The first step in starting any business is to create your idea. Online business ideas can include selling physical or digital products as well as professional services. Whatever you choose, you’ll want to define your e-commerce business model and write a business plan that outlines your niche.

During this process, you’ll start to ask a lot of questions:

• How will you get your products or services to your customers??
• What sort of licenses or permits do you need?
• ?How much will it cost to get your business up and running?
• How will you foot that bill??

Your business plan should answer these questions and provide a road map for the coming months.

2. Set up your business

Once you've solidified your e-commerce business idea, the next step is to set your company up for success.

This includes back-office steps like:

• Choosing a business structure: There are benefits and drawbacks to each of these entity types, so talking to experts may be helpful as you choose the one that’s right for you.

• Naming your business: Consult your local secretary of state's website as well as the U.S. Patent and Trademark Office to ensure that you're not choosing a name that belongs to another company. Check to see if your potential business domain name is available as well.

• Applying for an employer identification number (EIN): You can get an EIN from the IRS for free online or by mail, fax, or phone. Not all businesses need an EIN, but having one can help you separate your personal and business finances.

• Getting licenses and permits your city or state requires: This probably includes a business license, and if you perform services, you may also need an occupational license. Check your state or local government website for requirements for your area.

3. Source or develop your products

Next, you'll need to source the products you're going to sell. If you’re selling physical products, you may need to make them yourself or work with a manufacturer.

A key decision at this point: Are you going to order products in bulk and keep inventory in stock? If so, you’ll need to think about storage space and raising capital to order goods upfront. However, you’ll have the power to ship items yourself.

Other businesses choose to rely on dropshipping, in which products are manufactured or sourced at the time the order is placed. In general, dropshipping may keep your overhead costs lower, but it can be more difficult to manage since inventory levels and shipping will be out of your hands.

Other options for sourcing e-commerce products include:

• White-labeling, or ordering items in bulk from a manufacturer and then branding them with your company’s identity.

• Print-on-demand, or paying a third party to print your company’s designs on merchandise like T-shirts, mugs, and posters. Print-on-demand normally functions like dropshipping, in that a customer places their order, then the manufacturer creates the product and ships it directly to the customer.

• Retail arbitrage, or buying discounted items from retail sellers and listing them in your own store at a markup.?

If you're selling professional services, you might just have to describe and list what you offer on your business website. Still, you’ll need to figure out how much to charge and decide how many clients you can see each day or week.

4. Set up your e-commerce website

Your e-commerce website will be your storefront. It’s where your customers will learn about you and your business, browse your products, and make purchases.

The easiest way to set up a website is to use an online store builder. These platforms can walk you through the process of launching your website, from buying a domain name to managing your inventory to taking credit card payments.

Popular e-commerce website builders include Wcart, Webnexs, and Bigcommerce.?

If you’re a very small business or just experimenting with online sales, a Wcart e-commerce website builder may be a good place to start. You will list unlimited products and access more robust suites of tools — which can help with things like shipping label printing, order management, and sales analytics.?

In general, Wcart online store builders should be simple enough for someone without web development experience to navigate. But most offer the option to pay a professional designer or developer if you don’t want to build the website on your own.

The best e-commerce platform for you fits into your budget and is appropriate for your skill level.

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5. Figure out order fulfillment

Order fulfillment is the process of getting customers’ purchases in their hands.

Ecommerce website builders offer shipping label printing, which is the first step in the fulfillment process. Some also offer the ability to add shipping costs to customers’ orders at checkout.

If you choose to handle order fulfillment yourself, research shipping rates so you have a sense of how much it’ll cost. Look for an online store builder that can help make the shipping process easier or research shipping software providers like Shippo.

Note, that e-commerce may connect you to customers across the world. If there are places you’re not willing to ship to, make that clear on your website.

6. Market your e-commerce business

Now that you've started your online store, you're ready to start serving customers — as long as they can find your products.

Your small-business marketing strategy might include:

• Omnichannel commerce in which you list your products on third-party marketplaces like Amazon and Instagram. Some e-commerce website builders can help facilitate this.

• Influencer marketing is where you pay popular social media creators to plug your products.?

• Social media content or paid social media ads.

• Optimizing your business website for search engines.

• Sending email campaigns to past and future customers.

Wcart ecommerce website builders include marketing features, which can help you do things like to create social media ads or send emails to customers when they’ve abandoned their carts.?

Final Thoughts

Launching a successful ecommerce business in 2023 requires a well-thought-out strategy and meticulous execution. By following these six essential steps, entrepreneurs can navigate the dynamic online marketplace. With dedication, adaptability, and a commitment to staying informed about industry trends, aspiring ecommerce entrepreneurs can position themselves for growth and profitability in the ever-evolving digital landscape of 2023. If you have any queries related to starting an ecommerce business, don't hesitate to contact our ecommerce expert team

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