Emily Newton is the Editor-in-Chief of Revolutionized, an online magazine showing how technology is disrupting many industries.
There has never been a better time to own an eCommerce business, but knowing how to start and grow one can be challenging.
Success in eCommerce depends on your business’s ability to stand out and form genuine connections with your customers online. Having a plan to start and scale your eCommerce business will make sure you have a strong foundation from which to grow.
Getting Started in eCommerce
Before you can scale your eCommerce business and expand, you will need to get off on the right foot. In many ways, starting an eCommerce business is much like starting a conventional business. However, there are some unique challenges and considerations that come with starting an eCommerce business.
Find the Right Niche
The first step in starting any kind of business is identifying the niche your business will focus on. This is a twofold challenge: you need to find the niche your products or services will be in and the niche of customers you hope to serve. When starting an eCommerce business, you also need to consider virtual niches, such as online communities.
To identify the right niche or niches for your eCommerce business, you will need to carefully consider the products or services you plan on offering. What problem are they meant to solve? How will they improve the lives of customers? Who might benefit most from buying what you have to offer?
Register Your Business
In order to start and scale your eCommerce business, you will need to take care of some important technical steps. Every business needs to be legally registered in the U.S. and eCommerce businesses need to have a registered domain name.
You’ll need to apply for a federal employer identification number (EIN) for tax purposes. Your state will have its own unique registration requirements, as well, so make sure to check with your local Department of State for details. Usually, business registration can be done online.
Make sure to verify that your business has a unique name, as well. You can check to see if another business has a name similar to yours by visiting your state’s online database of businesses.
Create a Strong Business Plan
One of the most important, but challenging, parts of starting a business is creating a business plan. This is an important step if you want to be able to scale your eCommerce business down the road, since your business plan acts as a foundation for how you will operate and grow.
There are different ways to approach writing a business plan, but most include a few core components. Examples of common components include:
- A company description
- Market analysis
- The legal and organizational structure of the business
- Your marketing and sales strategies
- Financial projections.
Set aside plenty of time to write and do research. Investors, lenders, partners, and other stakeholders will appreciate a detailed and thorough business plan.
When starting and scaling an eCommerce business, you’ll also need to take into account things like inventory management and shipping. For example, the specific type of boxes you use for shipping is an important part of your business, financially and logistically. Similarly, you’ll need to research things like shipping carriers and costs as well as storage space for goods or supplies.
Get Your Website Set Up
If you want to start and scale your eCommerce business successfully, your website should be one of your top priorities. The first thing you’ll need is a domain name. Choose one that’s easily recognizable and identifies your business’s specialty. When you purchase and register your domain, you’ll be able to confirm that no one else is already using the name you want.
When you are just getting started in eCommerce, you’ll want a web hosting provider that offers convenient web design tools and accessible customer service, especially if you don’t have previous web design experience. Take some time to research web design basics while you’re setting up your site. The UX (user experience) of your website will be a major factor in how it performs in search engines and whether or not customers trust your business enough to make a purchase.
You’ll also want to ensure you have reliable cybersecurity. When you’re starting an eCommerce business, you’ll need more than consumer-level antivirus software. Cyberattacks have skyrocketed since 2020, so your office or home office will need strong defenses to keep your customers’ data safe.
Make a Scaling Strategy
As you iron out all of the initial details, you may begin thinking about scaling your eCommerce business. Early on, it’s important to focus on getting a good start first and foremost. It’s a good idea to have an idea of where you want to go, though, and how you plan to get there. Your scaling strategy will give your business a direction to grow towards.
Form Connections in Your Niche
One of the best things you can do to scale your eCommerce business is network. Forming a community within your market or niche will help build up a good reputation that will allow you to expand and reach more customers. There are a few ways to network as an eCommerce business.
For example, working with relevant influencers is a great way to build trust with potential customers. If you run an eCommerce business that sells craft supplies, you might do a sponsorship with an influencer who runs a successful crafting blog or YouTube channel.
Similarly, you could connect with local groups, even if your eCommerce business doesn’t have a physical storefront.
Adapt to SEO and Algorithms
When scaling an eCommerce business, SEO (search engine optimization) and algorithms can either be your best friends or your worst enemies. Search engines are how many people will discover your business. You’ll need to adapt as the algorithms for search engines and social media change. Stay up-to-date on SEO and continually work to optimize your site for search engine performance.
This is where the initial UX design for your business’s website becomes extremely important. The appearance and functionality of your site have a major impact on how trustworthy it appears to customers and algorithms alike.
Think of UX and SEO the way you might think of presenting yourself in a boardroom. You want to demonstrate that you are professional, trustworthy, and knowledgeable. Adapting to SEO, algorithms, and web design needs is how you do this in eCommerce, and it’s vital for growth.
Bring in the Right People
Part of scaling your eCommerce business is physically growing your team. Scaling successfully relies on bringing in the right people to help your business reach its goals.
It is possible to find good talent as a small business. Focus on identifying areas where you could most use help and search for people with the right balance of skills and mindset. Remember: new skills can be learned on the job, but interest in your audience and enthusiasm for your business is harder to find. So much of scaling an eCommerce business is about having a supportive, resilient team behind the scenes.
Building a Career in eCommerce
Starting your own eCommerce business can be an exciting and rewarding experience. It will be challenging, but it can also be an opportunity to learn and bond with a community that is enthusiastic about the same niche you are. Going in with a plan will ensure you get started on the right foot and have a roadmap to start and scale your eCommerce business successfully.
