E-commerce is one of the fastest-growing online industries in the world. The industry had revenues reaching $3 trillion worldwide in 2019 and accounting for more than 11% of retail sales in the US ($154 billion). The industry is attracting millions of entrepreneurs worldwide to create their own e-commerce enterprises.
However, it can be a challenging business venture when you consider that you have thousands of competitors, all of which have the same advantages as you have. But by following these suggestions, you can start your e-commerce business successfully. Here are some things you should know and do when starting an e-commerce business in 2021.
Find Your Niche
The main problem that most e-commerce business owners have is that they want to sell everything on their site. Although it’s a good idea at first, it can be very risky. The main benefit of selling all kinds of products on your site is that you can get a wide array of consumers visiting it. However, this can leave you to overextend your reach.
With so many products for sale, you’ll have problems with resupplies and branding. Furthermore, you’ll be competing with e-commerce giants like Amazon and Alibaba. If you don’t know Amazon, has a 40% share of the overall e-commerce market in the US. That’s almost half of the entire industry. You don’t want to compete against that. So instead of having all kinds of products for sale on your site, you’ll be selling niche products at a higher quality when compared to the big enterprises.
Do your research first regarding the different segments of e-commerce. Each segment has its own market share and estimated revenue, and you don’t necessarily have to pick the ones with the highest numbers. Find a segment that you feel comfortable with, a segment that you are knowledgeable in.
Once you’ve found a particular category, consider it your niche and primarily sell those kinds of products on your site. Concentrate on quality over quantity because that will be the main reason why consumers will be visiting and returning to your site.
Construct a Consumer-friendly Site
Once you’ve found your niche, it’s time for you to construct a friendly website for your target audience. You can make the experience more streamlined by concentrating on the main products you want to sell. You can also hire a web designer to do this job if you want it to go smoother. If you want, you can always join web-hosting sites like Squarespace. They have e-commerce website templates that you can use, and they also provide a payment platform for your site. There are many ways to go about this, so make sure you choose the way that you are most comfortable with.
Join an E-commerce Platform
If you don’t want to spend too much on creating a website, you can always choose an e-commerce platform of your choice. Amazon, Shopify, and many other platforms out there can help you with this. They give you the necessary things you need to start an e-commerce business. But this comes with a catch: they get a percentage of your sales. This percentage can depend on the website, but if you start adding it all up, they can get a sizable chunk of your revenue. Another disadvantage is that you still need to spend a decent amount of money to get your business known on these sites. Sure, you might no longer be competing against industry giants anymore, but you are competing against other retail shops out there. Some of them are the biggest brands in the market.
Think about the advantages and disadvantages and which one fits with your current business model. If you’re having a hard time choosing, you can always hire a consultant to help you out.
Find a Consultant
E-commerce is a big industry with many ins and outs, and there’s only so much you can learn from this article. When starting a business in this sector, you must get advice from a professional consultant like Robert Brazell. They have the expertise and knowledge in running e-commerce shops and can give you insights that only experts in the industry have.
Furthermore, consultants like Robert can also give you suggestions on easily running your e-commerce business during its start-up. They can give you the advantages and disadvantages of creating your own site. They can also explain to you how much you can save if you join an e-commerce platform instead. You can get a lot of information if you hire a consultant, so don’t hesitate.
Here are some ways you can start an e-commerce business this year. There are many ways to approach this particular industry, so make sure you do your research and choose the way that makes the most sense for you. Remember that the more comfortable you are with your business, the more likely it will succeed.