A Winning Formula for Starting an E-Commerce Business

e-commerce

Starting an e-commerce business, unlike starting any run of the mill business may be much easier than you could think. It may not even require you to have the goods you intend to offer to the market, but let’s not get ahead of ourselves by looking at the nitty-gritty issues before seeing how we get there in the first place.

If you’re thinking about how to start your own e-commerce business and still have the jitters, fearing that you might fail, you have come to the right place. This article will lead you through the nooks and crannies of getting started.

Look for Reliable Vendors    

The survival of any business depends on reliable suppliers who are ready to avail goods upon request. Vendors who fail to do so will cost the business lost revenue in terms of lost customers whose needs have not been met in time. Remember that while the business will have an online presence, it will be accessible to anyone who has an internet connection; some of whom may be a long-distance away from your center of operations.

A reliable vendor, therefore, would be one who easily bridges the gap between your business and the would-be consumer. Furthermore, a reliable vendor should be one who offers competitive prices vis-à-vis other players in the same niche as yours. After all, the key benefits for a consumer purchasing goods through e-commerce are its convenience and the reduction in the cost of goods as compared to the traditional business concept.

Apply for Permits and License

A business without a license is considered illegal in any country around the globe. For an online business, working without a permit or license would make it difficult for the government to:

  • keep tabs on tax revenue accruing from the business
  • know whether the business is operating from a definite locality.

Without a business permit, the business would be liable to tax evasion charges. Therefore, it will be necessary for you to obtain a permit to operate from any given locality, and having a license would go a long way to show that the business entity is a legitimate taxpayer. To this effect,

  1. your business name should be registered
  2. you should have an employer identification number
  3. your business should be registered with the state labor agencies
  4. you should have a sales tax permit, and
  5. you should obtain permits specific to the industry in which you intend to operate

Maximize Your Marketing Ideas

Succeeding in an online business is also dependent on the sales volume and the number of repeat clients that the business has. To this end, it would be beneficial for the business to:

  • track the behavior of and understand the client while also responding in real time according to the client’s preferences
  • concentrate on fast-moving items
  • make the e-commerce website mobile-friendly
  • have live chat
  • build trust
  • offer free shipping, etc.

Secure Your Domain Name and Website

The internet, as you may have come to realize, is home to both well-meaning and ill-minded individuals. Being privy of the latter, it is necessary to take precautionary measuresagainst the unauthorized modification of your domain name or even the unintentional loss of your website. This can be done through:

  1. using a registry lock service
  2. adding domain privacy
  3. using antivirus and spyware software
  4. ensuring that the site is SSL certified
  5. having a firewall that restricts unauthorized access to the website, etc.

Choose A Memorable Business Name

A business name that can be easily remembered is one that can be equally easily returned to. When one thinks about a business name such as aliexpress, it isn’t one that can be easily forgotten. It is also easy to link the business name to the kind of products that the business deals in. For you who are thinking of starting an e-commerce business, it would be an advantage to the business if you could think of a name to which you could easily refer your friends and relatives. Chances are that once other people get to learn about the existence of your business, they will not have a hard time figuring out what the name is after their initial visit.