Two decades earlier, launching retail businesses certainly involved finding the ideal physical premises. Thanks to technology innovations nowadays entrepreneurs can sell to customers without ever leaving home.
It’s little wonder that eCommerce in the UK has soared in recent years, fuelled by greater internet availability and the rise of smartphones and tablets. As per research, nearly half of all retail sales occur through eCommerce.
However, before we deep-dive into the world of online selling, it’s crucial to plan the journey ahead. This guide takes you to the key stages, offering a practical checklist to build an eCommerce business from the ground up. An eCommerce agency can quickly design and set up your online store to sell a few or several products.
What is eCommerce?
Essentially, e-commerce is- any commercial activity conducted electronically over the internet. This means buying and selling of goods and services online, typically via the internet. This involves transactions between businesses and consumers, or between businesses. eCommerce is facilitated through digital platforms like websites, mobile apps, or online marketplaces.
What is eCommerce platforms?
This is a software application that powers businesses to sell goods and services online. They are pre-equipped with technology tools and IT infrastructure necessary for building and managing an online store.
This means they have readymade lines code powering features for product catalogs, inventory management, payment processing, and more. They act as the digital storefront and backend system that facilitates online transactions.
Globally, Shopify, Magento, Bigcommerce, and WooCommerce are the leading eCommerce platforms.
How do eCommerce platforms work?
eCommerce platform lays the foundation for quickly launching storefronts. They are simple to use and allow technical and non-technical users to design websites, add products, have handy cart functionality, and more.
Online Storefront: Allows businesses to create a visually appealing and user-friendly online store for customers to browse products.
Product Management: Users can add, update, and organize product information. This includes uploading product descriptions, images, and pricing.
Inventory Management: Capabilities to track stock levels and keep products available for purchase.
Payment Processing: Offers secure online payments through various methods like credit cards, online payment gateways, wallets, etc.
Order Management: Processing and fulfilling customer orders, including tracking shipments and managing returns.
Marketing and Promotion: Tools to run targeted marketing campaigns, track sales, and analyze customer behavior.
Customer Relationship Management (CRM): Merchants can manage customer interactions, collect feedback, and offer support to key issues.
Analytics: Data tracking and reporting that allows businesses to understand their online sales performance and make well-informed decisions.
Integrations: Interconnect with other business systems, such as accounting software or shipping platforms.
How much does an ecommerce website cost uk?
When starting any undertaking, the budget plays a vital role in the final output. The main expenses for setting up and running an online store depend on the following factors:
eCommerce model – B2B/B2C/C2C/D2C
Key business products or services
Target market, whether national or international
Planned marketing strategies
Operational expenses
A top Magento agency can help you build online stores at a cost-effective budget.
7 Simple Steps towards running an eCommerce business
1. Research and Niche Selection:
You need to determine the specific product category or market you want to focus on. This is an important step as it will help you decide on physical markets for sourcing products and selling them online over your platform.
Based on the product demand and supply, you will need a well-devised strategy for the minimum and maximum stocks and expected ROI from your business. You should also conduct deep market research to analyze the target audience, understand their needs, and identify potential competitors.
2. Business Planning and Legal Structure
This is about building a comprehensive document outlining your online store’s goals, strategies, and resources needed to succeed. It’s crucial for both starting and managing the venture and helps attract investors or secure funding.
Business Planning for E-commerce:
Market Research: Identify your target audience competitors and understand the industry.
Business Model: Define your business model (B2C, B2B, etc.) and how you’ll sell your products.
Product Strategy: Outline your product offerings, sourcing, and inventory management.
Choose a business name and legal structure: Register your business and obtain the necessary permits and licenses.
Marketing and Sales Plan: Detail your online marketing strategies, sales processes, and customer acquisition.
Financial Projections: Estimate costs, revenue, and profit margins and plan for cash flow management.
Operational Plan: Map out your logistics, fulfillment, and customer service processes.
3. eCommerce Platform and Store Setup
Choose a suitable eCommerce platform that will fulfill business current needs and also help you grow with the rising sales and customer base. The top tips for creating an ecommerce website advocate for choosing a suitable platform, a vital step towards business success.
The right platform lets businesses customise websites, add product listings, and set up payment and shipping options with ease. Consider several factors like value for money offered and whether the selected platform lets you scale for making the best choice.
4. Product Sourcing and Fulfillment
Find reliable suppliers or manufacturers for your chosen product category. This is followed by negotiating favorable terms, and managing the logistics of shipping and returns. This process involves research, supplier evaluation, and strategic partnerships.
You also need to establish a fulfillment strategy by determining profitable ways to handle orders and shipping. Weigh the pros and cons of handling fulfillment in-house over using a third-party logistics (3PL) provider. Alternatively, consider utilizing a service like Amazon’s Fulfillment by Amazon (FBA).
5. Marketing and Sales
Implement suitable strategies to promote your business and reach your target audience. This is a multifaceted approach, involving product pages optimization, leveraging social media and email marketing. Many companies implement SEO (search engine optimisation) methods and personalized customer experiences to drive sales. Once everything is set up, launch your online store and start selling your products.
6. Ongoing Optimization and Growth
Track your sales, website traffic, and customer engagement. This data can help you continuously optimize your store, marketing strategies, and customer experience, driving growth.
Conclusion
Starting an eCommerce business can be overwhelming, but breaking down your projects into milestones helps to steer success. An eCommerce agency can help you launch successful sites over the best technology platform.
