An eCommerce business is a business model in which buyers and sellers exchange goods and services with consumers over the internet. Here's how to launch your eCommerce business and reach many customers online.
What is eCommerce?
An eCommerce business is a business model in which buyers and sellers exchange goods and services with consumers over the internet. Two common types are Business to Business (B2B) and Business to Consumer (B2C) eCommerce. B2B sellers focus on selling products that other businesses might need, while B2C focuses on selling products to customers (or the end customer).
8 key steps to launching your eCommerce
eCommerce businesses are flourishing. The global eCommerce market is expected to reach USD 5.7 trillion in 2022 globally. This figure is estimated to grow over the next few years, showing that borderless eCommerce is becoming a profitable option for online merchants.
If you're starting from scratch, here are the key steps to tackle, and below we'll go into much more detail.
- Research your business idea to arrive at a product that will meet customers' needs.
- Validate your product idea by talking to potential customers.
- Think about how you'll sell and ship your product to online customers (11 tips for choosing the right product).
- Source products by procuring inventory or through your own production.
- Choose online sales channels, which may include global channels such as Amazon, eBay, the local OLX, your own website, or both.
- Build your online store and add products.
- Prepare an eCommerce fulfillment strategy for delivering orders to customers.
- Attract customers with eCommerce marketing and promotions and other ways of growing your business.
Launching an eCommerce business can be very daunting. It doesn't have to be. Yes, there are a lot of considerations about what and how, but you've got this. As you'll soon see, many online companies started small, selling only one or two products online and growing from there. Mojbrend started with one or two shipments a day and grew to thousands a day.
If you're thinking about launching your own eCommerce store or looking for advice and ideas for the transition from a conventional to a digital business, this guide (and checklist) is for you.
- Launching an eCommerce business from scratch
- Running your online business
- Marketing and product promotion
How Mojbrend grew from a side business into a regional brand.
Did you know that Mojbrend, an eCom platform for the authorized sale of global fashion brands U.S. POLO ASSN., TOMMY HILFIGER, CALVIN KLEIN, REPLAY, MARVEL, DISNEY, DIESEL and others, started as a small business during the pandemic in BiH? Ema Avdić and Elvis Pivić initially ran the business of digitalization and the development of digital sales in companies that are franchisees of the aforementioned brands, and during the pandemic launched what became Mojbrend. As sales took off, the team expanded. Today Mojbrend is a regional eComm platform for the authorized sale of global fashion clothing and footwear.
How to launch an eCommerce business from scratch
Here's how to go from dreaming about your million-BAM idea to running your own eCommerce business.
Step 1: Research your business idea
Before you start building a store, research your business plan so you can make decisions more easily and efficiently. To develop the business plan, we advise using the Business Model Canvas.
There are several ways sellers decide which products to sell or make. Here are some common decisions to make when trying to launch your eCommerce business.
Find a pain point or challenge worth solving
Finding a problem/need to solve for a certain type of customer is key to successful ventures. Some ideas – however innovative – can fail when they don't have customers to support them.
What problem or challenge do you want to solve? Who feels that pain point the most? Who would be most excited about solving this challenge?
Think about the challenge your product may face. Identify the users who will truly appreciate what you're trying to create and keep them first. This will guide your priorities.
Be attentive in order to find great product ideas
You don't have to go far to find a good product idea. People often sell to a familiar group because it's much easier to spot problems and quickly determine needs. Think about your interests to identify product opportunities for people with similar interests or hobbies.
Questions to ask yourself when looking for product ideas
The easiest place to start researching your business idea is in your immediate environment. Find out the goals, aspirations or challenges of the people around you, and then find products that will help them. If you're attentive, you can come up with ideas for your business that you can then research online or seek advice from us about.
- What pain points or problems do you have that you want to solve?
- What shortcomings or complaints do you have about the products you currently use?
- What trends in the world have you noticed that you can capitalize on?
- What comments do you hear from friends or family members about the products/services they use?
- What activities do you enjoy doing?
- What products would help improve those activities?
Use keyword research tools to spot trends and opportunities
When it comes to online sales, your passion won't necessarily lead to success. You have to figure out whether customers want the product. Use online tools such as Google Trends to research trending products/services, look for questions customers might have and determine what their current solutions are. Look at the list of eCommerce businesses in BiH and/or the best sellers on OLX, Amazon and eBay to spot opportunities for niche-specific products.
Here's how to find product ideas
The product/service already exists, now what?
If your idea or product is already on the market, don't worry: you have several options. Namely, you may be able to offer the same product at a more competitive price or offer a better alternative product. In addition, the fact that the product is already on the market confirms market potential – that's a good sign!
Read customer reviews of existing products/services to find out where your competitors fall short. Check complaints and look for patterns in customer behavior. Then do research and determine how much solving the problem might cost.
Step 2: Validating your product idea
The more time you invest in product validation, the greater your chances of success. After precisely defining your business idea, research how similar products perform and what potential customers might look for.
Talk to potential customers to validate your idea
One of the simplest and most cost-effective ways to figure out whether your idea is worth realizing is to talk to people. When you recognize a problem worth solving, talk to the people who feel the pain or frustration the most. Never validate your idea and product with your family members, friends or people who are subjective toward you!
By creating a Canvas Persona, you can determine target customers and, through social media, reach out to a small group of people to understand whether they face the problem you're trying to solve and find out how they currently cope with this challenge.
Offer to buy coffee for 5–10 people in exchange for 30 minutes of their time. Use your meeting to talk about the challenge and see whether the pain point is something they'd pay money for or something that doesn't bother them. Avoid mentioning the product you have in mind, as this can affect the answers you'll get. Instead, focus on how they feel about the challenge/problem/need, how they currently cope with it and whether they would pay for someone to solve their problem. If so, how much would they be willing to pay? Asking these questions can help you understand whether there's an audience for the product and how much your product/service might cost.
Step 3: Source your products or design an e-service
Once you understand what you're going to sell and whom the products/service will serve, the next step is to find a way to obtain the products or design the development of the service.
Good products/services will help your new online business thrive. The key is not only to choose the right product or service, but also the right suppliers for the problem or need you're solving. Here are several options for sourcing products or developing a service for eCommerce.
Resell existing products or services
Reselling is a popular choice for selling online. Namely, as was the case with Mojbrend, many product merchants to this day do not have developed digital sales channels. Your determination and knowledge of digital sales can help you contact suppliers who are not present online, order products and sell online. Also, there are profitable global businesses based on the so-called dropshipping model, where linking products and sales is done through integration tools, where the customer buys a product from you, and the distributor ships directly to your customers when products are sold. Finding and building relationships with quality suppliers can not only lead to more affordable sourcing, but can also ensure a stable supply chain for your business in the future.
Follow trends in other markets
Many business ideas are based not on developing or reselling a product or service, but on creating an offering or solving a problem based on business models that exist in other markets. It's important to follow trends and launch them locally in a timely manner. Sarajevo City Card was launched by the Tourism Association of Sarajevo Canton - Visit Sarajevo, modeled on world and European metropolises that have existed in markets for many years. The project offers a single electronic card for entry to most city museums, public city transport, a cable car ride and discounts at hotels and other attractions. Sarajevo City Card is available through an eCommerce module through which you can buy the Sarajevo City Card 24 h and Sarajevo City Card 72 h. cards.
Step 4: Choosing online sales channels
You have many options for selling products online. Creating your own website and setting up a branded eCommerce store on your own domain, or selling products on an existing eCommerce website such as OLX, Amazon, eBay—or choose both options!
Setting up your own domain and eCommerce website
Efforts such as SEO optimization, social media marketing or online advertising can help increase traffic and sales, but they will require time and resources. You'll also need a process for handling orders and fulfillment when orders start coming in. This can be challenging to take on while trying to run your business. If you decide on your own web store, feel free to contact our Agilitas team and we'll be happy to help.
The advantages of selling on your own domain and eCommerce website for new and existing eCommerce businesses include:
- Every invested effort stays with you, because you're building your own brand
- Every customer you reach stays in your database
- Since eCommerce is not sufficiently developed in the region, you have a great opportunity to become the first when your product and service are searched for on popular internet search engines
- All the necessary information is available online, along with tools that can help you create your own eCommerce website in a few clicks
Selling on existing eCommerce websites
Using an existing sales website that already has traffic can help you start selling online successfully sooner. In addition, this strategy gives you the opportunity to learn what works for sellers, get reviews and generate revenue before investing in your own website. Selling on an existing website also eliminates the risk of investing too much time and money in a product before you've built a customer base.
If you're new to eCommerce, you may want to start small and expand. Selling on your own domain can allow you to customize the entire website and online experience, but that requires work and you'll have to compete online to bring customers to your store.
Step 5: Setting up your online store
Once you understand what you're going to sell and to whom, it's time to launch your business. What you should keep in mind is that eCommerce is a business, and therefore it's necessary to:
Choosing a business name
Your company name will represent your brand, so choose something memorable and easy for customers to type and remember.
If you have a clear idea of what you're going to sell, come up with names by looking at other brands in your industry. Or a name may come to you right away. Although that can work for rock stars, it's best to avoid numbers and complicated symbols. Keep the brand name simple and easy to pronounce, just as we did for our projects Mojbrend, Sarajevo City Card and others.
Branding will help the eCommerce business stand out in the market. It's important to create a memorable impression that will attract repeat customers. You don't want the product to get lost in a sea of competitors without special characteristics.
Building your online store
A great way to validate your business idea is to start receiving orders. The sooner you start, the better! Here are tips to help you build your store efficiently.
Creating a competitive product listing
Product descriptions are what customers will read to decide whether the product will meet their needs. Write a detailed description and include everything a potential customer needs to know to make a decision to buy from you.
Incomplete or inaccurate descriptions can lead to complaints, increase returns and damage your reputation, so be thorough, clear and open. However, descriptions don't have to be dry. Put yourself in the customers' shoes and come up with fun and interesting descriptions of how they can use the products.
Launching and running your online business
Once you've set up your online store, it's time to take care of running your business. You can create a good online experience in multiple ways. Having accurate product descriptions, fast checkout, timely delivery and a simple return process is a great start. A good number of reviews from other customers will also go a long way.
eCommerce fulfillment: storage, shipping and returns
How will you store, ship and handle product returns? When you start building your online business, create a delivery process and return policies. To keep things simple, it may be best to find a space that is affordable and cost-effective for storing and shipping products. As your business grows, you can consider using third-party services to help you store, pack and ship products, as we do with our partner Integralog d.o.o. Sarajevo.
Regardless of which solution you choose, periodically check your eCommerce analytics to manage inventory. Analytics is also where you can assess account performance by tracking orders, evaluating customer service and returns, running promotions and advertising, and more.
Once you're familiar with your store's analytics, you'll be able to understand how visitors interact with your store. Tracking analytics will also give you great information on how to diagnose and solve problems in the customer experience of shopping online.
eCommerce marketing and product promotion
eCommerce marketing is vital to help you launch and grow your business. Running marketing and promotional campaigns will help you reach a wider audience regardless of which sales channel you use.
There are so many available channels for promoting products that choosing one can be overwhelming. Here's a brief introduction to each of the options available for eCommerce.
If people can't find your product, they won't be able to buy your product.
Advertising and promoting your online storefront
Online store owners can run advertising campaigns through social media and/or Google to get in front of the right customers. Advertising can boost product sales by encouraging reviews and increasing sales from interested customers. Regardless of who does your marketing, whether an internal team or an external one, if you don't create a marketing funnel, your advertising won't bring quality, but very likely only quantity. Remember, everything you do should have a sale/conversion as its result!
Social media marketing
Given the large number of consumers who visit social media websites, adding one or two social media channels for promotion and outreach can help raise awareness of the brand and product. To make the most of your time and effort, build a social media strategy for how you'll promote your business, communicate with social media users, court social media influencers and publish content. Start with a plan to set yourself up for success.
If you have additional questions about the eCommerce business, get in touch and the coffee's on us...
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