Ecommerce business plan: how to build, launch, and grow a profitable online store
Posted: Tue Dec 10, 2024 9:48 am
To help you out, we want this article to be like a blueprint that guides you through the development of an e-commerce business plan. The idea is to make it as robust a guide as possible, to walk you through the stages you will face when researching, launching, and growing a potentially profitable e-commerce business.
I. Choosing a product
Finding a product to sell
The first step to building an eCommerce business is knowing what products you want to sell directly to the consumer. This is often the most challenging part of starting a new online business. There are several strategies you can use to find product opportunities, explore the best places to look for product ideas, and finally analyze trending products to consider. For example, you can look here at what are the trending products for 2020. Here are some ideas for finding products to sell in your new online store:
Start with what you already have in hand.
Try to research in your community, which products have a better chance versus those that don't.
Look at the market leaders, what are their products?
Research on Social Media , especially look at comments about products.
Check out reports and publications with consumption data by sector, and check yours.
Look at what your competition is selling.
Evaluating your idea
Once you have a product idea in mind, how do you know if it will sell? Here are some approaches that entrepreneurs today have used to validate their product ideas and their potential market.
Check the cash register. Perhaps the first and best way to validate a product is to look at early sales. How willing are people to give you money for the value that product offers? We're always thinking about potential customers , but the truth is that until people buy a product, we have more assumptions than hard data.
Research current demand. Another strategy you can use to validate your product and market is to analyze demand and search volume. How much do you know about potential customers' interest in your product?
Meet your customers in person . Another method we can confidently suggest is signing up for a craft fair or local market. This allows you to get closer to reality. It can be a convenient way to gather quick, first-hand feedback from real potential customers.
There are more methods that can be used. In this link you have a 16-step guide to validate your idea, which can be very useful if you are a fan of checklists.
Getting your product
After you have a solid product idea, the next step is to figure out where and how you are going to source your products. Below are four possible ways to source your products.
You will manufacture the products.
Someone will make the products for you.
You will buy the products wholesale.
You will be doing dropshipping.
Each option has its pros and cons, this is a vital aspect that you must carefully evaluate.
Selling online as a retailer. Many independent retailers face a challenging road ahead. Shifting your physical business online can help weather times of crisis, generate cash flow, and build a business more resilient to future emergencies.
II. Research and prepare
Research your competition
You’ve found your product, assessed its potential, and have a supplier. But before you dive deeper, you’ll need to thoroughly research your competition to find out what you’re up against and how you can differentiate your eCommerce business from them.
Conduct a competitive analysis. When conducting a competitive analysis, you should consider elements such as: who their potential customers or clients are, what their market share is, their unique value proposition or differentiator, their product features/benefits, their price points, how they approach product shipments, and whether they have received venture capital funding. If this seems like a lot to you, or if you don't know enough about it, it is advisable to seek the help of professionals who can help you conduct this analysis.
You can also perform a SWOT analysis. Knowing your Strengths, Weaknesses, Opportunities and Threats can be a turning point in launching your e-commerce business. It is a fairly developed methodology, if you do not know it, you can visit this link for more details .
Write a business plan
With your competitive research complete, it’s time to write your business plan. A business plan is a roadmap that helps bring your ideas and thoughts together. A business plan is vital to determining what to prioritize and how to effectively reach out to your new customers. There is plenty of literature and professionals out there that can help you on how to write a business plan, to get started you can check out this article .
III. Setting up your business
Naming your business
Aside from finding an actual product to sell online, another challenging decision is determining the name of your company or brand . And accordingly, choosing an appropriate and available gambling data russia domain name. Here are some suggestions that can help you find or define that fantastic name for your eCommerce business.
Keep it short and simple. Two syllables, three maximum.
Be different. It's not easy, but make the effort to stand out.
Consider the online presence you will have. Domain name, social media.
Get creative with your web domain name.
Don't forget originality.
Get inspired and put all possible options on the table.
Although the human factor is always important, perhaps these business name creation tools can give you a hand.
Creating a logo
Once you have selected a memorable name and registered the corresponding web domain, it is time to create a simple logo. There are many tools available today that can make creating a logo easier for you . This can be good for a quick start, but our suggestion is to support yourself with a professional team that will accompany you in the task of developing your brand, an asset that can reach a relevant value in the medium term.
Understanding Search Engine Optimization (SEO)
You're almost ready to start building your online store. Before you begin, however, you need to understand the basics of search engine optimization so you can properly structure your site and its pages for Google and other search engines. We've written a few articles that may help you:
Why SEO is much more than just ranking?
This is how Google searches changed.
The SEO strategy will be the most valuable part of your digital marketing .
Building your online store
With a better understanding of search engines, it’s time to build your store . There are many crucial elements to consider. The first of them, of course, is deciding which technology platform is best for your eCommerce business. There are many on the market, although Shopify and WooCommerce take the main market share. At this decision point, the following article can help you choose the right eCommerce platform for you.
Once you've decided on the ideal platform, the process of building an online store will involve evaluating aspects like creating high-converting product pages, writing captivating product descriptions, taking beautiful product photos, choosing your eCommerce color palette, and much more.
Do you want us to help you create your online store? If you don't have time to do it and need help, you can contact us here today and we will gladly make your e-commerce business a reality.
Choose your sales channels
One of the best ways to reach new customers is to choose the sales channels where they already shop. The right mix of sales channels will depend on your products and your target customers, but there are a number of great options that can complement and support your store. By this we mean considering integrating your store with channels like Amazon, eBay, Google Shopping, and of course social media.
IV. Preparing for launch
As you prepare to launch your new e-commerce business, there are several shipping-related elements you need to consider. Here are the ones we consider to be the most important ones that you can’t afford to overlook, especially if you sell physical products.
Shipping strategy, defines how you will get your products to customers.
Shipping rates and methods, this is often a recurring challenge, and varies depending on each business and country.
Calculate shipping costs. How will you do the calculation? Or will the platform calculate them for you?
Packaging and marketing.
Packaging options.
Insurance and tracking of shipments.
Customs declarations and forms.
Business accounts.
Labeling your packages.
Whether or not to use a warehouse and the regulations for doing so correctly.
International shipping.
Claims and returns management.
Reduction in shipping costs.
IV. The post-launch
Acquiring your first client
Now that your store is online, the hard work of getting the word out about your new eCommerce business and products begins.
While many new store owners should consider selling their physical products in person (having a storefront), a digital marketing strategy is a key success factor. In the case of an online store, there is only one goal that digital marketing must do well: generate qualified traffic. This may take some time, but the first step is to have that strategy defined, which can include actions such as these:
Share your new store on social media and online communities, along with a discount code.
Investing in digital advertising , thinking that you have to “spend money to make money.”
Create alliances with partners and influencers.
Build a subscriber base and take email marketing actions .
Generate content related to your products.
Analyze your online store visitor data to implement improvements.
Now it's your turn
Creating your own e-commerce business is both exciting and challenging. At a fast pace, you'll learn a lot about how to choose a product, evaluate its viability, figure out how to produce it, build an online store, market the store, and sell to customers who may even be in another country. The process may feel like solving a puzzle, but the results are sure to be rewarding.
We hope this post helps you see the route more clearly. Don't forget that perhaps the best advice we can give you is to decide to start and have fun along the way.
I. Choosing a product
Finding a product to sell
The first step to building an eCommerce business is knowing what products you want to sell directly to the consumer. This is often the most challenging part of starting a new online business. There are several strategies you can use to find product opportunities, explore the best places to look for product ideas, and finally analyze trending products to consider. For example, you can look here at what are the trending products for 2020. Here are some ideas for finding products to sell in your new online store:
Start with what you already have in hand.
Try to research in your community, which products have a better chance versus those that don't.
Look at the market leaders, what are their products?
Research on Social Media , especially look at comments about products.
Check out reports and publications with consumption data by sector, and check yours.
Look at what your competition is selling.
Evaluating your idea
Once you have a product idea in mind, how do you know if it will sell? Here are some approaches that entrepreneurs today have used to validate their product ideas and their potential market.
Check the cash register. Perhaps the first and best way to validate a product is to look at early sales. How willing are people to give you money for the value that product offers? We're always thinking about potential customers , but the truth is that until people buy a product, we have more assumptions than hard data.
Research current demand. Another strategy you can use to validate your product and market is to analyze demand and search volume. How much do you know about potential customers' interest in your product?
Meet your customers in person . Another method we can confidently suggest is signing up for a craft fair or local market. This allows you to get closer to reality. It can be a convenient way to gather quick, first-hand feedback from real potential customers.
There are more methods that can be used. In this link you have a 16-step guide to validate your idea, which can be very useful if you are a fan of checklists.
Getting your product
After you have a solid product idea, the next step is to figure out where and how you are going to source your products. Below are four possible ways to source your products.
You will manufacture the products.
Someone will make the products for you.
You will buy the products wholesale.
You will be doing dropshipping.
Each option has its pros and cons, this is a vital aspect that you must carefully evaluate.
Selling online as a retailer. Many independent retailers face a challenging road ahead. Shifting your physical business online can help weather times of crisis, generate cash flow, and build a business more resilient to future emergencies.
II. Research and prepare
Research your competition
You’ve found your product, assessed its potential, and have a supplier. But before you dive deeper, you’ll need to thoroughly research your competition to find out what you’re up against and how you can differentiate your eCommerce business from them.
Conduct a competitive analysis. When conducting a competitive analysis, you should consider elements such as: who their potential customers or clients are, what their market share is, their unique value proposition or differentiator, their product features/benefits, their price points, how they approach product shipments, and whether they have received venture capital funding. If this seems like a lot to you, or if you don't know enough about it, it is advisable to seek the help of professionals who can help you conduct this analysis.
You can also perform a SWOT analysis. Knowing your Strengths, Weaknesses, Opportunities and Threats can be a turning point in launching your e-commerce business. It is a fairly developed methodology, if you do not know it, you can visit this link for more details .
Write a business plan
With your competitive research complete, it’s time to write your business plan. A business plan is a roadmap that helps bring your ideas and thoughts together. A business plan is vital to determining what to prioritize and how to effectively reach out to your new customers. There is plenty of literature and professionals out there that can help you on how to write a business plan, to get started you can check out this article .
III. Setting up your business
Naming your business
Aside from finding an actual product to sell online, another challenging decision is determining the name of your company or brand . And accordingly, choosing an appropriate and available gambling data russia domain name. Here are some suggestions that can help you find or define that fantastic name for your eCommerce business.
Keep it short and simple. Two syllables, three maximum.
Be different. It's not easy, but make the effort to stand out.
Consider the online presence you will have. Domain name, social media.
Get creative with your web domain name.
Don't forget originality.
Get inspired and put all possible options on the table.
Although the human factor is always important, perhaps these business name creation tools can give you a hand.
Creating a logo
Once you have selected a memorable name and registered the corresponding web domain, it is time to create a simple logo. There are many tools available today that can make creating a logo easier for you . This can be good for a quick start, but our suggestion is to support yourself with a professional team that will accompany you in the task of developing your brand, an asset that can reach a relevant value in the medium term.
Understanding Search Engine Optimization (SEO)
You're almost ready to start building your online store. Before you begin, however, you need to understand the basics of search engine optimization so you can properly structure your site and its pages for Google and other search engines. We've written a few articles that may help you:
Why SEO is much more than just ranking?
This is how Google searches changed.
The SEO strategy will be the most valuable part of your digital marketing .
Building your online store
With a better understanding of search engines, it’s time to build your store . There are many crucial elements to consider. The first of them, of course, is deciding which technology platform is best for your eCommerce business. There are many on the market, although Shopify and WooCommerce take the main market share. At this decision point, the following article can help you choose the right eCommerce platform for you.
Once you've decided on the ideal platform, the process of building an online store will involve evaluating aspects like creating high-converting product pages, writing captivating product descriptions, taking beautiful product photos, choosing your eCommerce color palette, and much more.
Do you want us to help you create your online store? If you don't have time to do it and need help, you can contact us here today and we will gladly make your e-commerce business a reality.
Choose your sales channels
One of the best ways to reach new customers is to choose the sales channels where they already shop. The right mix of sales channels will depend on your products and your target customers, but there are a number of great options that can complement and support your store. By this we mean considering integrating your store with channels like Amazon, eBay, Google Shopping, and of course social media.
IV. Preparing for launch
As you prepare to launch your new e-commerce business, there are several shipping-related elements you need to consider. Here are the ones we consider to be the most important ones that you can’t afford to overlook, especially if you sell physical products.
Shipping strategy, defines how you will get your products to customers.
Shipping rates and methods, this is often a recurring challenge, and varies depending on each business and country.
Calculate shipping costs. How will you do the calculation? Or will the platform calculate them for you?
Packaging and marketing.
Packaging options.
Insurance and tracking of shipments.
Customs declarations and forms.
Business accounts.
Labeling your packages.
Whether or not to use a warehouse and the regulations for doing so correctly.
International shipping.
Claims and returns management.
Reduction in shipping costs.
IV. The post-launch
Acquiring your first client
Now that your store is online, the hard work of getting the word out about your new eCommerce business and products begins.
While many new store owners should consider selling their physical products in person (having a storefront), a digital marketing strategy is a key success factor. In the case of an online store, there is only one goal that digital marketing must do well: generate qualified traffic. This may take some time, but the first step is to have that strategy defined, which can include actions such as these:
Share your new store on social media and online communities, along with a discount code.
Investing in digital advertising , thinking that you have to “spend money to make money.”
Create alliances with partners and influencers.
Build a subscriber base and take email marketing actions .
Generate content related to your products.
Analyze your online store visitor data to implement improvements.
Now it's your turn
Creating your own e-commerce business is both exciting and challenging. At a fast pace, you'll learn a lot about how to choose a product, evaluate its viability, figure out how to produce it, build an online store, market the store, and sell to customers who may even be in another country. The process may feel like solving a puzzle, but the results are sure to be rewarding.
We hope this post helps you see the route more clearly. Don't forget that perhaps the best advice we can give you is to decide to start and have fun along the way.