Introduction
Starting out with a new ecommerce business can be a daunting task. There are so many things to think about and you want to make sure that everything is done correctly. In this blog post, we will go over 6 great tips for brand new ecommerce sellers on how to start selling online.
Define Your Niche
There are many different types of ecommerce sellers and choosing one niche can help a new business grow quicker than going for everything at once. Understanding which subcategory your products fall under will give you an idea about the type of customer to target, competition levels in that area, and marketing channels available to reach them. For example: if you're selling clothing then it's best to focus on fashion; if you sell design furniture it would be most appropriate to concentrate on interior designers because they are more likely to come across these goods first hand as opposed to someone who is looking for clothes or jewelry (i.e.; retail stores).
Defining a niche is also helpful because it creates focus. You will be able to better build your ecommerce site, create a marketing plan and offer customer service because you know exactly what type of products you are selling. One way to find a niche is by answering the question "What am I passionate about?" or "What do I know most about?".
Avoid defining too narrow an ecommerce niche as it's more difficult for customers to find on search engines like Google so they can't browse through all different types of clothes if you sell only dresses for example.
By narrowing down your ecommerce niche, then using that information in conjunction with data from both Amazon and Etsy research tools such as Alexa Pro, Compete Rank and Merchant Words Elite, you'll have everything needed to make informed decisions when launching your ecommerce site.
Know What Sells Well Online And Off
Ecommerce is a growing industry. There are steady or strong growth opportunities in ecommerce sales because every year more and more people use the internet for purchasing goods and services. Sellers should understand market trends, research their competition's prices, know what sells well online and offline to best determine where they can carve out their niche within an increasingly crowded ecommerce marketplace.
The first step in researching your product offerings (or those of competitors) is understanding which products have demand that is either consistent or increasing over time.
What items are currently popular on Amazon? How about Facebook ads? Or Google Ads - all three platforms offer insights into trending topics, help you learn more about what customers want so you don't miss any potential opportunities to sell.
What are your competitors selling? If you sell ecommerce products online and see that certain items have consistently higher demand, it's time to start taking a closer look at those opportunities in order to carve out your niche within the market.
New ecommerce sellers should be aware of what their risks might be as they enter this business, including how much capital or collateral is needed for ecommerce startups (e.g., inventory, storage space). These risks vary greatly depending on the type of ecommerce business you plan on starting. Understand all of these factors before making any decisions about opening up an ecommerce store.
Choose The Best Platform For You And Your Ecommerce Store
What Ecommerce Platform Or Marketplace Should You Use?
This is a question that comes up often when talking about ecommerce. There are many options and as such, it can be tough to make the decision on which one best suits your needs. The three most popular platforms for ecommerce stores are: Shopify, BigCommerce, and WooCommerce.
Shopify was launched in 2004 by Tobias Lütke with two goals in mind: "to create software that makes running an online store easier" and "for us to learn from building our own business." Today they have over 500k+ customers worldwide who sell more than $45 billion every year through their store fronts powered by Shopify's technology . This has been achieved thanks to its intuitive ecommerce platform that is not only easy to use for new ecommerce sellers but also provides a robust set of tools and features for companies who have been in the ecommerce game longer.
BigCommerce was founded by Noah Glass, Christopher Farmer, and Jeffrey Smith with the goal "to be the leading global commerce technology provider." The company has more than 350k+ customers worldwide who use their ecommerce software which powers over $35 billion worth of sales every year . Their platform offers everything you need to build your store front including online marketing services; web hosting; email marketing; credit card processing as well as affiliate programs.
WooCommerce was created by Matt Mullenweg with his intention being "a free WordPress ecommerce plugin to sell anything online." WooCommerce is a free ecommerce platform that offers the basics for running an ecommerce store. You can upload your products, customize them with images and descriptions, set prices and manage inventory through their easy-to-use interface.
Online marketplaces are another popular ecommerce option for business owners. They provide more traffic than any other ecommerce channel so they should be considered by new sellers when choosing where to start selling online . These platforms have been designed specifically as storefronts where you don't need any programming knowledge or technical know how to create your own shopfront; there's little maintenance required; and all transactions happen on these sites which eliminates many customer service issues (e.g., refunds). There are two they ecommerce marketplaces worth considering: Shopify's own ecommerce marketplace and Amazon.
Shopify provides their ecommerce sellers with a free store on their ecommerce marketplace where they can start selling without any upfront costs . They also offer many features such as extensive marketing support, unlimited bandwidth for your products so you don't have to worry about hosting fees, no inventory storage required (e.g., Shipmate) , social media tools that let customers shop directly from Facebook or Twitter feeds; and the ability to promote in-store discounts through banner ads on other stores which is perfect for seasonal promotions or special offers . This platform should be considered by new ecommerce sellers who want an all-inclusive package but it comes with limitations like not being able to sell ebooks, DVDs or MP-protected content.
Amazon is the world's largest ecommerce marketplace and it should be considered by both new ecommerce sellers who are more comfortable selling on a trusted platform as well as those looking for additional traffic. For many ecommerce stores, Amazon has emerged as their biggest competitor . It offers free storage space for your products whether they need to be shipped in bulk (eBay) or small parcels (USPS) which helps take away some of the logistical burdens that come with running an online store; customer service support via phone call; and one click shopping through Alexa voice assistant devices like Echo Show which makes purchasing items simpler than ever before. The downside? There can be significant fees associated with selling on Amazon so it should be used as a backup marketplace for ecommerce stores that are more established .
Multichannel Sellers is the term given to businesses who use ecommerce platforms like Shopify or WooCommerce and online marketplaces like eBay, Etsy, Tictail or Rakuten. For these companies they can often get better pricing by selling their products in multiple channels which maximizes margins while reaching new audiences through different marketing efforts. This strategy also enables them to offer customers flexibility when purchasing items such as being able to purchase an item during a sale at one time but have it shipped from another channel (eBay).
Choosing what platform you want to sell your store's products is not easy because there are many ecommerce options for ecommerce sellers. It's important to assess your ecommerce goals and choose a platform that will help you achieve them now as well as in the future.
Get Clear About Pricing, Inventory, And Shipping
Pricing is arguably the most important part of pricing and it's one that entrepreneurs often get wrong. There are two pricing strategies: cost-based pricing and value-based pricing. The first strategy focuses on making a profit from each sale, while the second looks to make more revenue over time by attracting new customers with lower prices than competitors. Cost-based pricing has some flaws and drawbacks such as pricing too low and pricing inconsistently. Value-based pricing is a better strategy for entrepreneurs because it focuses more on the long term value of each customer and pricing higher. You should price according to the value you provide, not just what it costs to produce a product.
Getting your pricing right is also important from a customer's perspective. Price too high and customers are less likely to purchase, pricing low might lead to increased competition or pricing inconsistently pricing might lead to pricing confusion. Price according to what customers are willing and able to pay, but also consider the cost of production when pricing products.
Inventory management is another key component of any ecommerce business as inventory not only impacts profitability but can also affect customer satisfaction levels when out of stock items cannot be fulfilled in time frames promised during initial purchase interactions. Be sure to have an appropriate amount of inventory depending on what products need less frequent replenishment (like high-end jewelry) and what items require replenishment more often (low priced fashion accessories).
Forecasting is an important part of inventory management and helps predict the demand for a product. Demand can be forecasted by looking at industry trends, pricing patterns over time, and pricing based on customer need. Forecasting helps avoid overselling products or running out of inventory, by analyzing trends in sales velocity, pricing, and inventory levels.
Shipping is another critical component of any ecommerce business. Customers today often expect free shipping to be included with purchases, which means you'll likely need pricing strategies that will cover the cost for this addition or consider partnering with a third party fulfillment partner like Shipmate so customers can enjoy a seamless shopping experience. It's also important to keep in mind that different customer segments may have different expectations for carrier type and speed--for example, same day delivery might be standard practice on certain products purchased by millennials but less common among baby boomers. Be sure your strategy considers these differences too!
Create An Effective Marketing Strategy To Promote Your Products On Social Media Channels Like Facebook Or Instagram
Marketing is an important part of running an ecommerce business. You'll want to make sure that your marketing efforts are effective and efficient.
To promote you ecommerce products, use ads on Google or Facebook which work great for promoting listings. You can also advertise through social media channels like Facebook and Instagram with promotions that showcase product images from the website, links to items you're selling, offers of discounts or free shipping, and more.
If you are marketing your product on social media channels like Facebook or Instagram make sure to use optimized posts that include keywords for marketing purposes. You can type in the keywords such as "ecommerce" "marketing," etc., into a search engine or Google AdWords Keyword Planner tool to find out which keywords are most popular and how much they'll cost to advertise on.
Make sure that you're marketing efforts are targeting the right audience as well, so use social media channels like Facebook or Instagram which will work best for your product in order to increase followers and make sales at the same time. High quality images and catchy written content can help draw more eyes to your products and brand
You should also be marketing through other marketing channels like marketing emails or in-person marketing to ensure you're reaching all your potential customers. This is how your customers find your ecommerce store and brand and it is important to reach as broad of an audience as possible.
Keep Track Of Finances With A Spreadsheet Or App Like Quickbooks Online
- Ecommerce is a business and should be treated as such. There are many aspects of ecommerce that need to be tracked, so it's important to know what you're doing when it comes to basic accounting.
Ecommerce businesses should keep track of their business finances and expenses in order to make informed decisions about the future. It's important for ecommerce sellers to understand how much they're making, as well as how much money is going out or being spent on a monthly basis.
So here are some tips that will help you be more effective and keep up with ecommerce finances:
- Track your expenses using a spreadsheet or app like Quickbooks Online.
- Save receipts for taxes. It's important to know what you're spending on so that it can be accounted for when the time comes to file taxes, but also because they may have valuable information about purchases (e.g. Amazon e-receipts).
- Set a budget and stick to it. Ecommerce businesses need to know how much money is coming in on a monthly basis, as well as what they're spending out of pocket each month if their profit margins are small or negative (e.g., due to high shipping costs from expensive ecommerce products).
Many times a ecommerce store can be managed financially on your own, but if you are having issues with your accounting or finances sometimes it can make sense to seek professional help. There are ecommerce accountants and ecommerce business coaches who can help you manage your finances in a way that is more efficient. At the end of the day the ultimate goal is to have a healthy profitable ecommerce business!
Conclusion
With all of these tips in mind, starting out with a new ecommerce business can seem less daunting. So what’s the best advice that you could give to someone who is just getting started? Give it your all! Don’t let anything stand in your way and don't be afraid to ask for help when you need it. We hope this blog post has given you some great insights into how to start selling online from scratch - we wish you success on your journey! What's one tip that helped get you through those early days as an entrepreneur? Let us know by commenting below!
