E-Commerce Business – Proceed With Caution

The internet has made it easier than ever to set up an e-commerce business without a storefront. With sites like Etsy and eBay, you can sell products from your bedroom or garage with the click of a button. You may think this is the perfect way for you to start off in the entrepreneur world, but before you make a commitment, there are some things you should know about starting an online store.

Before jumping in headfirst and investing in your new enterprise, read our guide on how to start an e-commerce business. Inside this blog post we will discuss everything from what it takes to get started (including marketing tips) to what pitfalls await those who aren’t careful (such as copyright law).

Pick Your Niche

This is the first major step in starting an e-commerce business: picking out your niche. Before you even think about opening a business, you need to find something that you’re truly passionate about. Not only will it make your job easier, but it will also prevent the headaches that come with selling things you don’t care about. To help narrow things down, there are a few things to consider before picking a niche.

First, figure out what you want to sell and how much money is involved in your perfect situation. Are you selling physical goods or digital products? You also need to figure out how much experience you have with this item. If you’re starting a business, you don’t want to waste time learning how to do something you won’t be able to do well. Next, you need to know your customer base. Will they be local or international? What makes them stand out from the rest of the population? By answering these questions, you can narrow down your niche until you find exactly what it is that you’re passionate about and what customers are willing to buy (and give feedback on!).

Network and Build Relationships

Once you have your niche down, it’s time to network. You won’t build a good business with only one customer and one sale. Starting your company off small means building meaningful relationships with consumers and businesses alike. When you start online, there is no need to go around making contact with people that aren’t going to be interested in what you’re selling – they aren’t going to buy anything anyway. Instead, develop strong relationships and ask them how they found out about your shop (through word of mouth or search engines). People are often more likely to buy something from someone they know than someone who is unknown (and may be a competitor).

Selling Your Products: Offline Marketing

Once you have your contacts, it’s time to start selling. E-Commerce is all about bringing your products to the people, but you can’t always do this from behind a computer monitor. While it is possible to sell online, this isn’t an ideal situation if you want to generate leads and make more sales. Take advantage of in-person marketing events like craft fairs and business expos to get the word out about your business.

While there isn’t a lot of business etiquette for running a small business (especially when your storefront is virtual), you should always be careful about how you present yourself. When marketing to consumers, keep your business card handy. Be cautious about getting too personal with consumers as many will report any information they receive to their credit card companies. While not all sales people will be out to scam you, that small chance is enough to make you wary of online transactions that require consumer information.

When it comes to the customers themselves, be careful not to get too personal or form expectations right away. Your first interaction with the consumer should focus on creating trust so they will buy from you later on (and then again). Don’t expect immediate feedback from consumers, either. They may be busy and need to wait a while before you hear from them.

Selling On The Internet

Online marketing is more work than offline marketing, but you don’t need to devote as much time or energy. In fact, it doesn’t take very long at all to get your product on the internet and available for purchase by others. For example, your pictures don’t need to be professional-quality – as long as they accurately represent your product (and make it look good) they will work just fine.

If you’re selling digital products, especially, you don’t need to worry about a business website. A free blog will work just as well and it is much easier to get started on. If you’re selling physical products, however, it may be wise to look into getting a business website if you have the time and resources available.

Customer Feedback Is A Must

Word of mouth is the best way for customers to find out about your business. If they have a bad experience with you, they will talk to their friends and family about the problem (and your company will suffer in their eyes). Likewise, if they have a great experience, they may talk them into buying something. Word of mouth is one of the most effective marketing strategies you can use when starting an e-commerce business.

Don’t Be Afraid To Ask For Feedback

When starting an e-commerce business, it’s important to know how consumers are responding to your niche and products. The easiest way to do this is by asking for feedback from those who buy from you.

Sure, they may be a bit hesitant to give you honest feedback at first. They might also think you’re just being polite or asking for feedback that isn’t important. In this situation, it’s best to be upfront and tell them what you want (and what you plan to do with their opinion). You don’t have any obligation to change your business because of their opinions, but they will appreciate the honesty and be more likely to give honest answers the next time around.

Copyright Issues

A common mistake that many businesses make when starting an e-commerce business is using copyrighted material without permission. While you can’t infringe on the copyright of another source, you can still make use of certain images that are under copyright. However, to avoid any problems, it’s best to only use copyrighted images from other sources in your business.

For example, if you are selling a jacket that has a photo of an airplane on it then you don’t want to put the photo in your store for sale. A photo of an airplane is copyrighted and unless you have permission to use it in your online store, it won’t be allowed onto the Internet. This will prevent any problems with copyright infringement and will still leave enough room for people to see what kind of product they are buying.

Conclusion

Starting an e-commerce business is much simpler than you may think. Online businesses cost relatively little to start, but they can become very profitable with a little work and some dedication. If you’ve been considering opening shop online, then do it today!

Image Credit: rawpixel / 123RF Stock Photo

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