Things to Consider Before Starting an eCommerce Business
Launching an eCommerce businesses can be great way to get your start in business, due in large part, to the low overhead costs. Of course, costs can vary depending on your industry but you will find that an online business is often much easier to manage and will require less startup cash, compared with brick and mortar ventures. If you are currently thinking about starting your an eCommerce business, whether that’s to sell physical or digital goods, subscriptions or anything else, have a look at some of the points below to determine if it’s something you can manage.
Start Up and Running Costs
Even though the start up costs of an eCommerce business can be small, you’ll still want to make a business plan and list everything you’ll need. One of the biggest advantages of eCommerce businesses is that they can be started from the comfort of your own home, and as the business grows you can then think about office and warehouse premises depending on your requirements. Some start up costs involved when starting a new business online are outlined below.
- Business registration (you will need to choose one of the different types of business entities)
- Website design and development
- Web hosting and maintenance
- Marketing and advertising
- Inventory and storage
- Business phone & utilities
- Office supplies
Of course, there will be more to consider and your level of seriousness will determine how much you choose to invest initially. You may even want to hire a small unit that is close to a post office so you can easily pack and post goods with ease.
One of the hardest things to do when starting a business in the world of eCommerce is finding a reliable supplier that can provide you with the products you want to sell. The supplier needs to be reliable for a start, but they will also need to be cheap enough for you to be able to make a profit. This is when a big investment is handy because you will be able to buy products in bulk which will give you much bigger discounts, thus making you more profit.
Customer Support Methods
You will need to be able to provide the best support to your customers to make sure your business is a success. You will need to think about this step carefully, because you’ll want to be able to provide support via a variety of methods. Phone support is a good start, but you will also want to consider email support, and a support ticketing system for customers to take advantage of. Providing a variety of support methods will do you many favors, but it will also take a lot of time out of your day responding to requests, so you may eventually have to hire someone to help out.
The above points are just some of the many points to consider before diving in and starting your eCommerce business. It will be a lot of hard work, but if you start with a good business plan and set yourself monthly targets, there is no reason why you can’t profit from a successful eCommerce store.