Four Tips for Starting Your Ecommerce Business

Finnegan Pierson

The internet has made it easier than ever to start a business. Gone are the days where you need a building, a warehouse or even other employees! Nowadays, almost anyone can start a business by themselves from the comfort of their home and reap the benefits of being their own boss.

When starting an ecommerce business, it's important to still do the research and put in the time to prepare before launching. Figure out what you need to do and how to do it, and you'll be set up for success in no time. Here are some tips for starting your ecommerce business off on the right foot.

Make a Plan

Before creating your website, doing any design or even advertising, it's important to research and plan. All potential ecommerce business people should know how to build a business plan. This plan isn't just about the practical logistics of what to sell and how much to sell it for. Your business plan will also tell you what story you want to tell to customers and how you want the culture of your business plan to look.

Once you create your business plan, it's the bedrock of your organization. Make sure to stick to it and not go off-script too much: if you need, you can always revise the plan, but a business operating with some kind of plan will always work better than if you just decide to wing it and see what happens.

Evaluate the Market

The internet is hardly new, and the reality of starting an online business in today's day and age is that someone else will already be doing what you plan to do. The question is, how will you do it different? Better? More ethically? 

To figure out what will set you apart from your competitors, you first have to research your competitors. Who are they? What is their brand message? What do they sell, and for how much? Once you've determined who you're up against, you can determine how you will set yourself apart from the competition. 

Learn the Law

Online commerce is governed by a wide range of regulations, laws and codes, just like brick-and-mortar business. The key to success in the online world is to know the ins and outs of the law. You want to make sure your business is run properly and doesn't run afoul of any regulatory boards or government agencies that might get in the way. Find out how to properly comply, and you'll be sailing smoothly.

One great way to make sure you've covered all of your bases is to retain a legal counsel or other regulatory expert. If you have a friend or family member willing to work pro bono or for relatively little, you can get access to an expert who will tell you which pitfalls you must avoid. Retaining the services of a qualified expert can help you avoid a legal or financial headache in the long run.

Measure Your Success

You've got an online business set to launch with a good plan and a solid niche. You're even compliant with all the laws. When people start buying your product, how will you know if you're a success? What are your next steps?

Good businesses identify key performance indicators (KPIs) that demonstrate what's going well and what isn't. Use measures like sales figures and online engagement to determine if you're a success or if you're struggling, and make changes as needed. KPIs are useful in setting a baseline so you can continually improve your ecommerce business.

Thanks to the internet, starting a business is now easier than ever, but it's important to still know what to do to be successful. With the right combination of research, know-how and measurement, you can create a successful ecommerce business that allows you to be your own boss, set your own rules, and live your own life the way you want to live it.