Launching a eCommerce web store for your business might sound a little complex, but it’s not as hard as you may think. If you are seeking a way about generating extra income you might want to look into starting an e-commerce business. Because U.S. online retail sales grew 12.6 percent to $176.2 billion in 2010, and they’re expected to reach $278.9 billion by 2015, according to Cambridge, Mass.-based technology and market research company Forrester Research.
We are going to go over the steps necessary to start your eCommerce store.
Choosing the Right Sector and Product
Choosing the correct market venue and product could be the hardest step for some and could cause frustration. Because choosing the right product to sell on the internet can have a major impact on whether or not your online eCommerce store is a success. You are going to have to do a little research to know what is the right product to sell?
A very important factor you must consider is, How much does the product cost? Is the product low enough or would it be a challenge to reach a positive ROI (Return of Investment). Also something to consider if the product is over $850 or more there is a good chance potential customers will want to speak with someone over the phone or thru a live chat session prior to purchasing. So if you are considering selling items in that range you are going to have to put in your spreadsheet a budget for customer support which requires added time and money, but can in turn pay for itself.
Something you also need to consider is what is going to be your cut on each sale? Just so you are aware that their are many products being sold online that have a margin a little over 30%. However this could change depending on the industry. For example electronics have some of the thinnest margins, while electronic accessories for devices are often marked with a big percentage. Make sure before settling on a product to sell, assure yourself that you know the margins.
What’s your cut on every sale? Many products sold online have a margin around 30-35% however this can change drastically depending on the industry. For example, electronics typically have thinner margins while phone accessories are often marked up 200%+. Before settling on a product, make sure you know the margins.
Availability in Your Local Area
Something to consider. Can you buy the product that you are thinking about selling locally? Because generally is will be easier to drive online sales on your eCommerce store when the product cannot be bought in locals store in your area.
Its important to determine what are your shipping costs. Because bigger and heavier products tend to have high shipping costs which can negatively effect your sales. Most customers want the free shipping or very low cost shipping thanks to Amazon, and they expect it. A high shipping cost could make a product hard to sell. Many retailers online combat this by including the cost of shipping into the price tag while offering free shipping. Keep in mind by increasing a price can decrease a sale. If you are just starting out make sure you look for products that are smaller and done require high shipping costs.
Its important that you are ardent about the industry you choose. Because starting and growing a eCommerce business typically comes with a series of challenges and frustrations. Being ardent for the industry you choose can be a great source of motivation to drive your eCommerce business to success. Its important to have a passion for the products you are selling.
Once you have made your decisions on what products you are going to sell. Your next step is to find who manufactures the product you want to sell. There are a few ways of finding manufactures that can save you time.
Search engines such as Bing & Google Shopping are a great resource because they only search for physical products sold on the internet. These two search platforms have also good information on who the re-sellers are, but also who the suppliers are. Make sure you pay attention to which manufacturer shows up in the search results.
There are many directories on the internet of suppliers that make it easy to find manufacturers. Some directories are better than others. Such as:
Alibaba – You can find quality manufacturers, suppliers, exporters, importers, buyers, wholesalers, products and trade Leads
Worldwide Brands – Thousands of wholesalers and over 10 million products
Wholesale Central – 1,400 supplies and over 700,000 products
There are many more manufactures your can find on the internet. Once you have build a list of manufactures your next stop should be to start reaching out to them to resell their products. Keep in mind that not all will want to work with someone who is just starting out and does not have a track record on sales. Keep in mind there are those out there that will work with you who will help you out in getting the paper work done so you can sell their goods. They will needs information such as your tax id, etc.
Deploying Your eCommerce Website
Once you have chosen the products your are going to sell and have a list of a few manufacturers you plan to work with, you need to get your website up and running. A helpful tip you want to do before you begin contacting them is to have put a coming soon page because it could be difficult to get a manufacturer on board when the website is empty with no products versus having a website launch in the near future.
Choosing the eCommerce Platform
Choosing the eCommerce platform is a very important decision you and your partner must make. Because the eCommerce platform manages all the products, categories, checkout process, and other aspects involved with a functional eCommerce website. This is where Fastcomcorp would come in and help you choose the correct platform. Choosing a platform can be a big hang up and choosing the wrong will hurt your online business. Also make sure you can get support from the platform you choose because you will need it sooner or later.
Choosing Your Hosting Provider
You also have to choose a hosting provider. Every website needs a domain name for their brand and server for hosting. However, eCommerce websites also need what’s called an SSL (secure sockets layer) Certificate to encrypt sensitive data such as credit card numbers and personal information. Your website has to be PCI compliant because if you are not and are caught your are legally liable up to in range of $5,000.00 to $500,000.00 which is levied by banks and credit card institutions. Also there is the possibility of a civil litigation from breached customers.
So is very important you choose wisely who is going to be your hosting provider. Because high performance on the speed of your website can drive sales as well. We encourage you to check Fastcomcorp Hosting Services. If you would like more information you can reach out to us at our contact page too.