How to Start an eCommerce Business in 2020 - Nexahost
- May 25, 2020
- Dinesh Kundnani
Many people like to start any business, learning how to start an eCommerce business is not always easy – yet, the goal of setting up, launching and maintaining sites where entrepreneurs, designers and creators of all types can sell their goods. They are more attainable now than it has ever been.
Ecommerce businesses — which are businesses that transmit goods, services, and money over the Internet — vary in size and scope from retail behemoths to Amazon to Etsy craft sites. Online shopping is one of the many areas that have seen extensive growth in the last five years. According to a report by the US Census Bureau, in the third quarter of 2019, US eCommerce sales were approximately $ 154.5 billion, accounting for 11.2% of all retail sales in the nation. How to Start an Ecommerce Business
Therefore, depending on your goals, it may make sense to start an eCommerce business. Ultimately, without the need for a brick-and-mortar location, eCommerce businesses provide greater flexibility, affordability and opportunity for many entrepreneurs. So, how do you actually start an online business? This guide is here to help. How to Start an Ecommerce Business
We will break down how to start an eCommerce business in just seven simple steps – so that you have all the information you need to get your online business up and running in no time.
How to Start an Ecommerce Business in India
Although there are notable differences in starting an eCommerce business compared to starting a brick-and-mortar business—there are also a number of similarities. As we’ll discuss below, many of the planning and legal steps you’ll need to take will follow the same process (more or less) than any other business. This being said, however, once it’s time to actually start your operation, you’ll see how different starting an eCommerce business can be. How to Start an Ecommerce Business
Step 1: Research the eCommerce space and find your niche.
The first step in learning how to start an eCommerce business is doing the necessary research. Like if you are starting a restaurant and looking at different places, food options and topics, you want to examine the e-commerce area about your specific business in which you are interested and make some decisions.
Although the growth of the eCommerce industry is very beneficial for those who learn to start an eCommerce business, it also means more competition. Therefore, you want to do competitive research and find a place where you think you can establish your brand and be successful in selling your products and services.
Step 2: Select your business name and choose a legal structure.
Once you’ve solidified the plan for your eCommerce business, the next step is to choose a name. Like any other business, you’ll want to choose a name that’s unique, but also that clearly indicates what your business is or does. You’ll likely want to consult your local secretary of state’s website, as well as the U.S. Patent and Trademark Office to ensure that you’re not choosing a business name that’s already claimed by another company.how to start an eCommerce business in India
Step 3: Apply for an EIN.
Next, you want to apply for an EIN, or employer identification number, for your eCommerce business. Although EIN is not required for all business unit types, this nine-digit number can help you differentiate your personal and business finances. In addition, you can apply for an EIN from the IRS, for free – either online, by mail, fax, or phone. Since you are learning to start an eCommerce business, you want to apply for this business tax ID online, and once you do that, you will get your number immediately.
Step 4: Obtain business permits and licenses.
After applying for your EIN, you now want to obtain any business license or permit that you are legally required to operate within your city and state. As we mentioned above, if you have established your eCommerce business as a sole proprietorship or general partnership, you don’t really need to register your business with the state – unless you are a specific DBAs are not filing to operate legally under the business name. For other business unit types, however, you must register your business in your state and obtain a general operating license. Depending on where your business is located, you may also have to obtain a local operating license. how to start an eCommerce business in India
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Step 5: Choose your eCommerce platform and create your website.
At this point, you have completed the necessary paperwork to register and legally start your eCommerce business. Thus, most of our steps have so far reflected the process of starting a brick-and-mortar business. Now, however, instead of searching for a location and preparing to set up your physical store, you will start building your website and online store. How to Start an Ecommerce Business
First, you want to think about your domain name, as we mentioned above. You want your domain name to match (at least closely) your business name. Along these lines, and perhaps your most important decision will be to choose the eCommerce platform. Whether an all-in-one software, such as Shopify or an open-source platform, such as Magento, your eCommerce platform will be the foundation you use to build and develop your online store. How to Start an Ecommerce Business in India
Step 6: Source or develop (and list) your products.
If you’re selling products, as you might imagine, this step will be more complex, as you’ll need to consider the inventory you want to start out, as well as what these startup costs will look like. You’ll also want to make sure that you take the time to list your inventory on your online store—thinking about the customer experience, SEO, and the way the process will work from when a customer purchases a product to when they actually receive that product. how to start an eCommerce business in India
How to Start an Ecommerce Business
Step 7: Market your eCommerce business.
You have it – You have learned how to start an eCommerce business. Now that you have your products or services ready and listed on your online store, your website is up and running, you are ready to start serving customers. To do this, of course, you will need to market your eCommerce business properly.
There are many marketing strategies you can decide to use – Google Advertising, Social Media Advertising, Word of Mouth and more. At the most basic level, you want to optimize your business website for SEO and can take advantage of your online marketing tools that are included in your e-commerce platform.
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