How to Start an eCommerce Business in 7 Steps

You don’t have to look very far back in time to realize that the retail industry has undergone a rapid transformation. Millions of people now do most of their shopping online from their weekly groceries and clothes to furniture, holidays, and complex products like life insurance policies. This situation is only going to intensify with almost all businesses having some kind of online presence and many starting their own eCommerce site. While this has opened up previously impossible business opportunities, it also means that someone starting an eCommerce business is facing a lot of competition.

If you are one of these people, this guide outlines 7 key steps to help you get started.

1.   Choose a name for your business

When you have decided on the products you will be selling, you then need to choose a memorable and unique business name. You can find out if a name is already in use or not by carrying out a corporate name search.

2.   Decide on a business structure and register the business

You can then register the business under that name in your state as a sole proprietor, an LLC, a corporation or a partnership if you have a business partner. It’s worth bearing in mind that if you operate as a sole proprietor, you are putting your personal assets at risk should you ever be sued.

3.   Find your domain name and build your website

You will then need to find a domain name for your business, which, ideally, will match your business name. If the domain name you want is not available, you should opt for one which accurately represents your business and is easy for people to remember. You can then set about the design of your website which should be easy for people to use as well as be visually attractive. To ensure you get the best website, it is generally recommended that you hire professional WordPress designers rather than attempting to build it yourself.

4.   Apply for an Employer Identification Number

To be able to open your business account and file taxes, you need to get an Employer Identification Number (EIN) from the IRS. This is a unique number that identifies your business and is needed whether you employ staff or not.  

5.   Get your permits, licenses, and insurance

Even eCommerce businesses need to get licenses and permits to operate. Find out what is required in your city, county, and state in terms of tax and licenses before you begin trading.

6.   Find suppliers or vendors

There will be lots of other eCommerce businesses out there to compete with, so it’s important to find the best prices for your materials or products. It’s also a good idea to find a vendor or supplier who you can build a rapport with, as this should mean you can establish a long-lasting relationship.

7.   Start your digital marketing

Before you start trading, you might want to create your social media accounts and start building an online presence where your target customers are. You could offer people the chance to sign up for email alerts so they know when you will be open for business.

Is Our Society Changing How We Shop Online?

In this technology-driven society, our routine and thoughts are constantly swirling around our steadily flourishing virtual world. Most of us openly and inexhaustibly plan our lives around the internet; whether it be social media to plan our events, emails to communicate or YouTube to be entertained.

The internet makes the unreachable reachable, and shopping is no exception. We can happily flip through our smartphones on our lunch break, and the tempting ‘online only’ deals can easily trigger an impromptu buy. 

E-commerce, or more commonly known as ‘internet shopping’ brought in a staggering £91bn last year alone; and 30% of all shopping is done via e-commerce and some of this is down to social media! Some may say that e-commerce’s accessibility is the most attractive asset for shoppers and at the tap of a finger we can have products flying through our letterboxes within 24 hours.

Social media has definitely swayed our views; we can see products and see bloggers using products way before we click buy. Making sense of how social media works as a business can be challenging too and with social media tracking, it makes things a lot easier. 

Photo: Pixabay

With our cities’ populations on the rise, the impatient line of people standing in lines is a constant battle for shoppers. We are never sure whether the ever-growing line for the self-checkout is the better option. There is always that rush of customers at Christmas or the Saturday madness, and e-commerce proves to be a welcomed escape from that peevish world.

E-commerce covers everything, from food, clothes, gifts, and even holidays, and in 2013, we saw a 16% rise in online shoppers from the previous year. If these figures continue, by 2020, just about all of our shopping will be done online. A big blow to our already established shops, and of course the lack of custom and an impending rise of e-commerce can only mean another spell of cutting layoffs, therefore, further unemployment; and could open up a whole new world of problems.

E-commerce is definitely changing our shopping strategy; cleverly laid out websites are unscrupulously appealing; with 25% of a £50 shop or free shipping over orders of £100. This lures us into a false sense of control, but some may think it’s just enticing us to spend more and more and ultimately rack up larger credit card bills. Shopping responsibly is always key! 

Of course, however, e-commerce has its perks, especially in the realms of marketing for new companies; then suddenly there is the capability of growth, and the figures speak for themselves; our shopping is changing, because our society is changing.

In a perfect world, e-commerce and commerce should run like clockwork together, integrating their assets; but in our electronic-addled society, one will always prevail. It may take time, and the natural progression of commerce will possibly, like so many other things, go full circle; but it is safe to say that the old school ways of high-street shopping, may soon be a dying enterprise