E-commerce is a multi-trillion-dollar industry, and people are able to start their own businesses today for less money than ever before. With less overhead costs, greater access to consumers and virtually unlimited marketing potential, people are eager to quit their day jobs and become successful e-commerce entrepreneurs. Before you open up your first business, here are a few things you need to know that will help you avoid common pitfalls.
A Marketing Strategy
Without a good marketing strategy, you will struggle to get any attention in the e-commerce world. You have to plan ahead of your launch, figuring out what types of social media platforms and marketing strategies you’ll implement before you’re open for business. Instagram is one of the best social platforms for e-commerce marketing, and you should consider setting up a profile and preparing to launch ads before your store is live.
According to Elite Ops, while operating an e-commerce store means you don’t have brick-and-mortar stores, you still need warehouse space to stock inventory as you begin to grow. Some websites allow dropshipping, which is a form of e-commerce that relies on merchandise held by outside manufacturers until orders are placed. Store owners act as middlemen in the sales process, transferring orders from their shop to another store or the direct manufacturer. If you decide to sell your own stocks online, then you’ll need to look into warehouse storage and inventory management. Digital retail figures surpassed $2 trillion in sales in 2016; by 2020, e-commerce stores and their respective warehouses will make up 15 percent of the global salesforce, demanding more warehouses and better merchandise management.
Most small businesses and startups register as a Limited Liability Company (LLC) to protect their founder’s personal assets. According to SunDoc Filings, an LLC gives business owners protection while allowing companies to retain a unique and trademarked identity. Registering an LLC requires your business’s name, a statement of purpose, the anticipated duration of your operations and a registered agent. The LLC agent is the specified individual who will receive and handle all legal documentation regarding your business. If you do not want to be the agent, you can hire one instead, but most people choose to be the registered agent for their LLC.
Keeping these tips in mind, continue to refine your business strategy. E-commerce might be rooted online, but it still requires real-world dedication to thrive.