How To Start an Ecommerce Business: Build, Launch, Profit

An ecommerce business is a store that sells products online. It's a great avenue for new entrepreneurs — you can run your online business from anywhere, and you don’t need a brick-and-mortar store that people walk into. 

The advantage of an ecommerce store is that it is open 24/7 and accessible from anywhere with an internet connection. 

You can sell a variety of items on your ecommerce store, ranging from handmade goods to clothing to digital products like ebooks and courses. In fact, major corporations like Amazon sell almost everything you can think of.

When you set up an ecommerce store, you can use special tools to help you add products to your website, take payments, and handle orders. Your customers can browse through the products, select what they want and pay online. Once the order is confirmed, it’s shipped right to them. This is an excellent option for those who want to start a business with minimal investment.

Starting an ecommerce business is an exciting journey, but there are a few things you’ll need to do to get your shop up and running. Here’s what to know.

1. Research Ecommerce Business Models 

Starting an ecommerce business begins with understanding the different available business models.

Examples include: Business-to-business (B2B), business-to-consumer (B2C), and consumer-to-consumer (C2C). 

Take dropshipping, for example. With dropshipping, you sell products without keeping them in stock or in a storefront where you manage inventory. Other models include print-on-demand and wholesaling. 

Researching these models can help you find the best fit for your business goals and budget. It also lets you decide how involved you want to be with product handling. 

This first step sets the foundation for your online store. It guides the rest of your decisions in the steps that follow.

2. Choose Your Niche

Selecting a niche is a crucial decision when launching an ecommerce business. It involves identifying the specific area you want to focus on. You can choose to sell handmade crafts on Etsy, offer high-tech gadgets on Amazon, or use eBay as another popular platform.

When choosing a niche, consider what you are interested in and what can attract customers. Look for areas with high demand but not too much competition.

For example, if you love fashion, you could start a boutique that sells eco-friendly clothing. Or, if you're into gaming, you could sell customized gaming accessories. Understanding the needs and interests of your target audience will help you make an informed decision.

Choosing a niche can help your business stand out and increase the chances of attracting loyal customers.

3. Create a Business Plan

Creating a business plan is a key step in starting your ecommerce business — it serves as a roadmap for your business’s future. 

A well-written business plan should clearly outline your business idea. You should also include how you plan to manage your business, your goals, and how you intend to achieve them.

To begin, define what you plan to sell and who your target customers will be. Provide details about your target market and competition. Plan how you will sell your products, whether it be through an ecommerce platform like Shopify or Amazon, or through your own website.

Your business plan should also detail your marketing strategy. This includes content marketing such as social media and email marketing to attract customers.

You should also include financial projections in your plan, detailing the costs and expected revenues. This plan will guide your decision-making and may even help you secure funding if necessary.

4. Determine Your Shipping Method

When it comes to shipping, it's important to consider the impact it has on your pricing strategy and customer satisfaction. You'll need to choose a shipping method that works best for your business and meets your customers' expectations for delivery times and costs.

There are a few different shipping options to consider. Direct shipping involves sending products straight to customers from your own storage. While this method gives you full control over the shipping process, it does require space for inventory.

Dropshipping is another option. With this method, products are shipped directly from the supplier to the customer. This eliminates the need for inventory and can be a great option for new businesses with limited upfront costs.

Third-party logistics (3PL) services are also available — these companies handle your inventory and fulfill orders on your behalf. This can be a time and cost-saving option as your business grows.

Remember that each method has different costs and levels of control. Choose the shipping method that fits your business model and meets your customers' expectations.

5. Build Your Ecommerce Store

To build out your ecommerce store, choose the right platform — this is where your store will live online. 

There are many platforms you can choose from, but Shopify and WooCommerce are two of the most popular. They’re user-friendly and versatile, and they also provide free templates that let you add features to your store.

After deciding to create your website, the first step is to choose a domain name. It is best if the name reflects your business identity. It is important to focus on creating a user-friendly website, as customers appreciate a good user experience.

When setting up an online store, it’s super important to make it clean, easy to navigate, and quick to load. Starting with a simple design is a great idea as it helps to showcase your products well. Additionally, make sure your store is mobile-friendly, since many customers prefer shopping on their phones. The key to a successful online store is its functionality.

In order to make your products more attractive, add high-quality images and clear product descriptions. Setting up categories that make sense and including a search bar can help customers find what they need quickly and easily.

Secure your website by using SSL certificates. This makes your website safe for payment processing. This builds trust with your customers. 

Make sure your checkout process is easy, too. You want to make it as simple as possible for people to buy your products. A complicated checkout can make you lose sales.

Remember, your ecommerce website is your digital storefront. Make it welcoming and easy for customers to use, and they will return for more.

6. Start Marketing Your Business

Marketing your ecommerce business is how you drive traffic to your small business. 

Here’s how to market your ecommerce business:

Branding

First, create a strong brand. Your brand is how customers recognize and remember you, so pick a catchy business name and a memorable logo. Use consistent colors and fonts on all your materials to make your ecommerce store look professional. Your brand should showcase what makes your products special.

Sales Strategies

Plan your sales strategies. Offer deals like discounts or free shipping to attract first-time buyers. You can also set up promotions for special events or holidays. Think about offering a loyalty program — this can keep customers coming back.

Digital Marketing

Use digital marketing, like social media ads or Google ads, to reach more people. 

Use platforms where your target audience hangs out. If you sell fashion items, Instagram might be perfect. If you offer professional services, LinkedIn could work better. Social media marketing is a key part of an overarching marketing strategy.

SEO

Search engine optimization (SEO) helps people find your store when they search online. Use keywords that match what people are searching for — put these keywords in your website’s text, like product descriptions and blog posts. Make sure your website is easy to navigate, as a good user experience keeps people on your site longer, which in turn can help improve your search rankings.

Marketing doesn't stop once you start. Keep testing different strategies. See what works and what doesn’t. Always look for new ways to reach customers and improve your sales. Consider growth tools to keep your business scaling.

7. Launch Your Ecommerce Store

Launching your ecommerce store is an exciting step. Make sure everything is set before you go live. Double-check your website’s design and functionality. 

Ensure all links and payment processes work, and set up customer service tools to help with any questions or issues.

Start by telling everyone you know about your launch. Use email, social media, and even old-fashioned word of mouth. Consider offering a special promotion to attract your first customers, like a discount or a special gift with their first buy. 

Make your store’s opening day big with many shares and mentions online. Get ready to welcome new customers.

8. Outline Profit Projections

Outlining profit projections is key in planning for your ecommerce business's success. This step helps you understand potential earnings and expenses. Start by estimating your sales. Base this on market research and your target audience's buying habits. Consider the pricing of your products and how many you might sell each month.

Next, calculate your costs, including the price of goods, shipping costs, web hosting, and marketing. Don't forget to factor in software or platform fees — services like Shopify or WooCommerce have fees.

Compare your expected income to your costs to see your projected profits. This will help you adjust your business plan to increase profitability. 

Review these projections as your business grows and market conditions change. This practice will guide you in making informed decisions to boost your conversions.

Starting an ecommerce business is a great way to expand your reach and scale your profits. 

Whether you’re new to the world of entrepreneurship or are getting started on your next venture, visit Founder OS for more information on leveling up your online business. Subscribe to the Founder OS newsletter for weekly insights and tips on business growth.