Starting a business in 2022 may seem like a risky endeavor. However, there are a few industries where growth is almost guaranteed. Ecommerce is one of those industries.
Despite supply issues, soaring inflation rates, and people starting to slow their spending, online retail is still going strong.
According to data from McKinsey, the year-on-year growth of ecommerce in March 2022 stood at 27%. Plus, PWC found that for as many as 37% of consumers, shopping online presents the solution they need to combat supply chain issues. Couple this with Statista’s prediction that ecommerce revenue will reach $5.88 trillion by 2025, and it becomes clear that running an online store really does hold tremendous potential for business success.
But how do you actually start an ecommerce business? If you’re interested in building an online store, the following are the top tips to ensure your endeavor is fruitful.
Conduct Market Research & Identify Product Opportunities
An essential thing you need to do when starting an ecommerce business is conduct market research. By making sure you know your industry inside and out and acquainting yourself with current business trends, you can effectively identify market gaps your ecommerce business could fill.
The process of coming up with a product idea is never straightforward.
Even if you arrive at a concept that seems guaranteed to sell, you still have to validate your idea. The easiest way to do this is to check out how much consumer interest there is by using the Google Trends tool.
But, of course, remember that this won’t be enough to ensure success. To have the highest possible chance of starting an ecommerce business that drives profits, make sure that you also research your competition and identify ways in which you could bring something unique to the table.
Define Your Target Audience
The second most important thing about building an ecommerce store is knowing precisely to whom you want to sell your products.
One of the biggest mistakes businesses make is thinking that customers will come once the product is available for purchase. But the thing is, for you to reach potential buyers, you need to know exactly who you’re targeting.
So, make sure that you’ve properly defined your target audience by asking the following questions:
- What pain points do your potential buyers have that your products promise to solve?
- Why do the existing solutions not work for your audience?
- What do your ideal customers prioritize? Is it price, quality, convenience, or something entirely different?
- What are your audience’s demographics (age, location, purchasing power, consumer behavior, etc.)?
- Where will you reach customers? Through social media, paid search, content marketing?
Invest in Branding & Marketing
Once you’ve landed on a product idea and have a base of people you can sell your products to, it’s time to start thinking about your online presence.
How you define and position your brand will directly impact your audience’s willingness to spend money on your products, so make sure that your branding and marketing strategies are spot-on.
If you take a deep dive into the ecommerce expert advice available online, you’ll find that some of the most successful CEOs and marketers highlight the impact of branding. After all, the purpose of defining your brand identity isn’t just to have a brand logo and name.
More than that, branding is all about ensuring that your business is recognizable, that it enjoys a positive perception amongst your audience, and that it instills your potential customers with trust, encouraging them to invest in your products and support your company’s growth.
Of course, your ecommerce website will also play a huge role in ensuring the success of your brand. Plus, you’ll want to invest time and effort into marketing (even if you DIY it).
By having a solid social media presence and publishing and distributing high-value content, you can:
- Efficiently reach your target audience.
- Help potential buyers become acquainted with your brand and products.
- Drive organic traffic to your website.
- Improve your site’s authority on search engines.
- Minimize the amount you need to spend on paid campaigns to promote your business.
Focus on Delivering an Unmatched Customer Experience
You’ve sourced your products, launched your website, and made your first few sales. That’s it — your ecommerce business is set up to succeed, right?
Well, not exactly.
You see, one of the biggest challenges of running an online store in 2022 is that consumer loyalty is at an all-time low. And if you want to ensure that your endeavor remains profitable in the long run, you’ll have to design and deliver a first-rate customer experience.
How do you do this? Well, it’s not that difficult: make sure that your website is user-friendly and that buying your products offers convenience. Offer fast and affordable shipping (yes, more than one-third of online buyers now expects fast and free delivery). And, of course, hire a first-rate customer support team who can take care of any hiccup with ease and efficiency.
If you do all these things, your brand will slowly start to gain the reputation of a business that’s reliable, delivers a stellar CX, and offers quality service. But fail one too many times, and the result will be an influx of negative reviews, a low level of consumer trust, and a dent in your bottom line.
Final Thoughts
Starting a new business is never a walk in the park. It requires dedication, hard work, and a few good ideas. However, the great thing is that ecommerce offers countless possibilities for entrepreneurs looking to build a prosperous brand.
Ensuring great results often boils down to proper planning. So make sure to use the tips from this article and implement them when writing your business plan. Sure, there’s no formula that will guarantee that your endeavor ends in success. However, the advice from this article will help you take the right steps in setting up your business, giving you a higher chance of striking gold. And focusing on the fundamentals can pay dividends down the road should you eventually want to exit from your successful ecommerce business.
