How to Start an E-commerce Business?
An e-commerce business is a company that sells online. E-commerce is not just about marketing, but it is about purchasing, logistics and distribution. Therefore, building an e-commerce business model means understanding digital business and how to integrate physical components such as procurement and logistics into digital elements such as distribution and digital marketing.
Learn the basics of e-commerce
E-commerce, short for electronic commerce, can be defined as a business model that involves the buying and selling of physical products, services, and digital products among multiple companies and individuals over the Internet, without distance posing a barrier. It also involves electronic transfers of funds to execute these transactions without the need for buyers to meet sellers. E-commerce, usually on mobile devices and computers, tablets, also known as the online version of catalog shopping, is like you browse a FashionTIY store, pick the products you want, pay and checkout with your credit or debit card.
Almost every product and service you can imagine is available through e-commerce platforms, including perishable items like books, airline tickets, food, digital goods like online courses, and even financial services like stock trading and investing.
E-commerce has helped many businesses establish a more prominent market position. Because the Internet is not limited to physical buildings, someone in Toronto can provide services to a client in California without ever meeting that person. Asian sellers can sell to European buyers. Due to the unlimited nature of the Internet, it enables efficient distribution channels for a product or service.
The rise of Amazon and Alibaba are the largest examples of e-commerce players, and their rise has inevitably reduced the importance of brick-and-mortar stores.
Advantages of eCommerce Businesses over Brick and Mortar Stores
It is inevitable for e-commerce businesses to reduce the importance of physical stores due to the great convenience experienced in online shopping. Brick and mortar stores require customers to leave home, go to a store, search catalogs and departments, and even deal with the possibility of not finding an item in said store and having to buy another product or go to another store. But thanks to the mass adoption of e-commerce, customers sit in the comfort of their homes, use the search box to search for the item they want, pay securely online with a debit or credit card, even compare prices with other online stores, pay a small shipping fee, and get it at their doorstep. Convenience has always been a key part of human evolution, as seen in our devices and apps; they consider the convenience of the user.
E-commerce businesses run 24 hours a day, 7 hours a day, unlike many brick and mortar stores, which run about 12 hours a day, 5-6 days a week. Online stores often also offer a wider range of products on their platforms, as they can have products from wholesale distributors.
The growth of e-commerce has also increased customer service, digital marketing, website developers, logistics and courier services, freelancing, and more, and the continued rise of e-commerce can only mean more job opportunities.
For these reasons and more, starting an online business seems like an attractive idea to many young entrepreneurs these days. Before anyone can explore the e-commerce industry, they need to understand the technical details behind it and what it takes to start a successful e-commerce business.
E-commerce Business Model
There are 4 main important models of e-commerce business, categorized according to trade participants. they are:
Business-to-business model (B-2-B): In this case, a business sells to other businesses, such as a wholesale jewelry selling bulk products to other businesses that will sell in small quantities, or a business that provides business optimization tools as a service to other businesses.
Business-to-Consumer (B-2-C): This is the most common type of model in e-commerce; as the name suggests, it involves direct transactions between businesses and online customers, sometimes involving third-party retailers. Examples of this business model are Nike Store, Alibaba, Amazon respectively.
Consumer-to-Consumer Model (C-2-C): This is a business model where consumers meet directly with other consumers to transact, while the website owner earns from commissions, advertising, traffic, etc. eBay and Offer Up are (US only) examples of this business model.
Consumer-to-Business Model (C-2-B): This is a business model where an individual provides a service or gig to a business, especially between a remote worker and an employer, usually on a contract basis, platforms like Fiverr, Freelancer, Upwork support this business model.
Select Microniche
A micro-segment is a subset of potential customers in a segment. In an era of dominant digital super-platforms, identifying micro-ecologies can unlock strategies for digital businesses to prevent competition with larger platforms. As micro-businesses become niches and then markets, size becomes a choice. A niche is a specific area within the broader context that you know, or that you can handle well.
Choosing a niche market is a crucial step in opening an online business. It may be wise to approach this process by identifying established companies(Wholesale05) that are already working in your preferred field. At this point, you may be internally shrugging your shoulders and asking yourself why you are looking for competition when you can look for a business space with very little competition; the simple fact is that, as cute as a monopoly sounds, competition is the key to an online marketplace with no limits; As much as we wanted to compete, we didn't want to pick an overcrowded niche because it seemed difficult to break into an already saturated market dominated by big brands.
You need to have an identity. Knowing who you are, what your brand is, what you stand for, it is important to know who your target customers are, you need to know who you are selling to in order to sell effectively.
Select and source profitable products to sell online
When choosing a niche market, there are certain things to consider to ensure the best market for you and, ultimately, profitability – the ultimate goal of any business.
Do a keyword search
From the niche ideas that come to your mind, identify keywords and do a search. If there's a lot of traffic to an item related to your search, it's probably an idea with a good market. Remember, we don't want too much traffic either, so avoid overcrowded keywords.
Solve a problem or meet a need
As an entrepreneur who wants to delve into a specific field and grow quickly, you should be selling products that fill a specific need or solve a problem. One of the ways to do this is to examine your chosen niche. Since it's a category that's not new to you, check for products or services that are already available but leave holes in specific issues that you've personally experienced.
Choose a brand name
Having an identity is very important to product selection, which is the cornerstone of branding. Your brand is not limited to your name and logo, but also includes the way your products are packaged, your customer service relationships and everything else your business offers that makes you stand out. There is something about you that your target customer base will unconsciously know about you, and if they can't get it elsewhere, they will always come back. It doesn't have to be exceptional; it has to be unique.
We've discussed the criteria for selecting products to offer the market, but another thing to consider is how to source them. As an eCommerce business owner, you most likely won't be manufacturing the products yourself. You need a product manufacturer or wholesale distributors.
FashionTIY
FashionTIY is a leading one-stop shop for wholesale merchandise sourcing worldwide. The platform offers a diverse range of products, including wholesale mens clothing, womenswear, jewelry making supplies, home furnishings, canvas tote bags bulk, wedding dresses, and wholesale kids clothing.
Their specialty lies in providing stylish men's and kids' clothing, such as shirts, pants, coats, and more. With a user-friendly interface, customers can easily browse through various styles, colors, and sizes, accessing detailed product descriptions and pricing information. FashionTIY updates its inventory daily, consistently launching the latest styles to capture customers' continuous attention and purchases.
The website also showcases an extensive collection of high-quality jewelry, featuring a wide selection of rings, necklaces, earrings, and other pieces. The beautifully designed website highlights the exquisite craftsmanship and unique designs of the jewelry, offering customers a comprehensive understanding of the products at a glance. In addition to providing product details, the website also offers valuable jewelry maintenance knowledge and purchase guides, delivering professional advice to customers. FashionTIY ensures the authenticity of jewelry raw materials and offers customized services to meet individual customer needs.
FashionTIY is dedicated to selling an array of fashionable wholesale bags, including handbags, backpacks, and wallets. The website's simple and aesthetically pleasing interface presents high-definition pictures that showcase the intricate details of the bags, with various color and size options available. Customers can easily purchase their favorite bags through the website, and a flexible return policy is in place. To stay in line with the latest trends and cater to diverse fashion needs, suppliers regularly introduce new bag designs.
Wholesale05 is an indispensable and important resource for all e-commerce practitioners. Covering categories like wholesale beauty supply, home & garden, jewelry wholesale, fashion, electronics, gift bags bulk, tools, and hardware, the supplier offers premium shipping to over 190 countries.
This supplier site offers a wide and varied selection of merchandise, as well as real-time updates on inventory and new arrivals. On these sites, you can easily find and compare products of different brands, styles and prices, helping you find a product partner suitable for your e-commerce platform. The supplier site also often offers flexible purchasing options such as wholesale discounts, subscription offers, and customization to meet the specific business needs of e-commerce practitioners.
At the same time, they will also provide secure payment and fast logistics delivery to ensure the smooth completion of the transaction between you and your customers. They bring convenience and opportunities to e-commerce practitioners, helping you successfully run online businesses in the fields of beauty, jewelry and bags.
WeiTu Display wholesale website is an online platform specialized in providing wholesale services of acrylic display stands in the field of e-commerce. On this website, practitioners can easily find all kinds of acrylic display stands, retail display, retail display shelves, jewelry display cases, etc., covering different sizes, styles and uses. Product display pages usually provide detailed product information, including pictures, specifications, materials, etc., to help users make informed choices.
WeiTu Display tends to offer wholesale discounts and flexible ordering options to cater to customers of different sizes and needs. Acrylic display stand wholesale websites usually provide a secure online payment system to ensure the safety and convenience of the transaction process.
Basic pages on your site
Marketplace: There should be a separate link to your store, even if you have products for sale on your homepage. You should have a store where you can further categorize your products.
Shipping/Returns: Provide the necessary information about shipping methods, return policies, and refund policies in a very prominent place on the website.
Contact/Help: There should be clear customer support email and social media handles.
Asked Questions: When you're talking to customers about their problems, you'll start getting a specific set of questions multiple times. You should be compiling them on the Frequently Asked Questions FAQ page, not just emailing them a few times.
Create a landing page : Landing pages are usually created a few weeks before your store officially opens. You put your website link on your ad, potential customers go there, and for everyone who visits, the landing page appears as an attractive magnet (you offer the potential customer a freebie in exchange for their details).
Maintain a social media presence : You should be on social media before and even after your store opens. You can use influencers on Twitter or Instagram to drive a campaign that gets you on every phone before, during, and after your launch—you want to keep it fresh in your memories.
You are your own greatest challenge; while you understand the challenges of e-commerce, when you are able to overcome your inner pessimism, you should be prepared to face many challenges at the beginning, even after you get off work. As you grow, you will become stronger to meet challenges.
Last updated
