Since the outbreak of Coronavirus, online shopping is not a luxury anymore. It has become our day-to-day routine.
Given that, it is not surprising that the eCommerce business industry is growing at an astonishing rate. It is expected to exceed $5.7 trillion by 2022.
While starting an online store can be a lucrative business opportunity, you should not neglect your growing competition.
Here is how to launch a successful online store in the hypercompetitive eCommerce landscape.
Pick an eCommerce Business Model that Works for You.
No uniform business model works for everyone. Before choosing the type of products to sell online, you first need to research different eCommerce business models.
For example, if you want to start a business without investing heavily at the start, then drop shipping business models may be the right choice for you.
Want to create a unique product idea and sell it under your brand? Start a manufacturing business.
Subscription plans a popular in the eCommerce ecosystem. A customer signs up for your products, and you deliver them at regular intervals.
Narrow Down your Niche
For entrepreneurs with limited budgets, niching down is vital to running a profitable online retail business.
The idea is to choose a niche that is competitive enough. The absence of reputable companies may indicate that there is no market demand for your business and products.
On the other hand, do not choose a hypercompetitive industry. In that case, you would have to compete with established brands that already have a monopoly in your niche.
Try to be as specific as possible. When narrowing your niche down, you will have many collaboration opportunities. For example, say you want to start a talent agency that helps candidates find hostess jobs in Dubai. You could partner with authoritative brands in the hospitality sector to promote your platform.
Identify your Target Audience
Start by following relevant forums and social media groups. Analyze your competitors. What customers do they target?
Conduct online surveys and polls to learn more about your target audiences.
The goal is to collect two types of data – demographics (their age, location, gender, marital status, income, education) and psychographics (their needs, problems, preferences, frustrations).
Based on it, create buyer personas that will guide your business model.
Build an Online Store
One of the toughest tasks online retailers face is choosing the right eCommerce platform. You have already heard of the most renowned and reliable options, such as BigCommerce, Shopify, and WooCommerce.
The goal is to choose the platform that meets the needs of your business and industry. Choose a secure option that will not compromise the safety of customer data. Above all, it should provide personalization features, allowing you to create a highly visually appealing store that demonstrates your brand’s values and missions.
If you do not want to worry about customer data safety, you can also sell products online in a marketplace like Amazon. Choose marketplaces based on your industry. For example, if you are an independent designer, find a digital design platform that supports new fashion brands.
Register your Business
Now you have determined your business model, niche, and audiences, it is time to register your business. Here are a few steps to take:
- Pick a memorable business name and register your company. Make sure that the name aligns with your niche, brand values, and audiences.
- Choose your domain name. Keeping your business name and domain name consistent has multiple benefits. It makes your eCommerce website easier to find on Google and contributes to the overall brand promotion.
- Secure the right business licenses. Just because you are selling online does not mean you are excluded from legal formalities. Every state and local government has different laws and requirements, including the seller’s permit, a general license, a home occupation permit, etc.
- Get an Employer Identification Number (EIN) to open a business bank account.
- Find vendors that offer top quality at competitive prices. Do not make quick decisions. Shop around until you find companies that focus on long-term collaboration.
Choose your Brand Elements
Start by designing a logo for your online store. It should be simple, original, and memorable. Analyze your competitors’ logos to identify what types of designs and colors resonate with your target audiences.
Choosing the colors of your brand is also immensely important. They should reflect your eCommerce store’s personality. Yellow is the happiest color out there, orange is playful, while green is natural. Blue evokes trustworthiness, while black adds a pinch of luxury to your brand.
Once you choose your visual elements, keep using them consistently.
Running a successful eCommerce business does not have to be expensive or tedious. It would be best if you approached it strategically.
Once you launch your store, the next step is building a solid digital marketing plan that will help you drive website traffic and boost sales.