As the Covid-19 pandemic has slowly reshaped our world and habits, more people have begun to shop online. As a result, it comes as no surprise that the global eCommerce market is expected to hit $5.1 trillion in 2026, making it one of the fastest-growing sectors today.
For anyone with an entrepreneurial spirit, there has never been a better time to launch an eCommerce business. With the technological advances and digital evolution, eCommerce is something that anyone can do with ease, as it is an affordable and flexible business option. However, this makes the competition fierce and intense, and you must be well-prepared before launching your new business venture.
If you’re looking to become a successful owner of an eCommerce business in 2022, here are some tips on how to get started.
Look at eCommerce Business Opportunities
Whether you are looking to launch an FBA but aren’t sure how to start an Amazon business or you want to build your online store from scratch, the possibilities for new eCommerce owners are virtually limitless. Prospective eCommerce entrepreneurs can now take advantage of a variety of different tools and resources to simplify and improve all aspects of their business operations.
Those who are new to this industry should know that there is a myriad of ready-made solutions and tools to help you set up your online store and your job is to explore and identify those that could be a good fit for your business model. Regardless of whether you want to focus on B2B, B2C, or both, the business opportunities in eCommerce will meet your needs as long as your business model aligns with your business plan.
The first thing you should do when starting an eCommerce business is to figure out exactly what you want to sell and to whom. Finding the right customers is key when it comes to starting a successful business.
Most people launch online stores because they want to sell the products they love. It’s essential to be passionate about the products you’re selling but determining whether there is a market for your products is imperative too, as it will help you avoid costly mistakes down the road.
The best part of eCommerce is that you’re able to reach customers in every corner of the world so keep this in mind when you’re conducting your research. Do your best to reach out to your ideal clientele online over a wide geographic area and speak to as many people as possible.
Decide on Product Range
Once you’re gathered valuable information from your ideal customers, you can begin to put together the actual range of products you wish to sell. Don’t get carried away with the idea that you have to start with everything at once.
Begin small, even if that means offering only one item, as this can be a great way to get started and learn as you go. There is no one formula for success, so keep trying new things, see what works and what doesn’t, and most importantly learn from your mistakes.
Before sending products to your customers, you must figure out how they’re going to be packaged and sent.
The packaging must be sturdy as nothing makes customers angrier than receiving a damaged item. If the item is moving inside the package, ask yourself whether you need additional protective materials. You can also mail an item to yourself and check the condition that it arrives in.
Many customers will appreciate if you use recyclable and zero-plastic packaging and if you want to keep packaging costs lower, resist the temptation to use branded packaging. You’ll also leave a good impression if you personalize your packages and add interesting elements such as stickers.
Check Your Prices
Once you complete all of the abovementioned steps, calculate your profit margin for every item that you’re planning to sell.
Include all the costs involved, from the item itself, the packaging costs, and even the cost of your time spent preparing the item. Ideally, you should have a profit margin of 60-70% but many businesses, especially resellers, will have a profit margin that stands at 50% or even lower.
This might make things harder for your so try to look for ways to increase the profit margin. The profit generated from each sale has to cover every single other cost in the business, so you have to make it a priority to maintain it at a reasonable level.
Starting your eCommerce business might feel overwhelming at first, but focus on what the customers want, identify products, and make sure the numbers make sense. This will allow you to make sure your eCommerce business idea comes to life in 2022.