Building a profitable eCommerce business is like running a marathon. You need to start preparing from the very beginning, so you don’t run out of fuel halfway through.
90% of eCommerce startups fail in the beginning, according to Forbes. But don’t let that figure scare you off. Your business model has the potential to become a success—that is if you know what you’re doing.
There’s no easy way to create a successful eCommerce business. However, a series of essential steps will help you set the ground for a profitable online business. Let’s check them out!
Step 1: Don’t Rush the Launch
As obvious as it sounds, one of the common mistakes entrepreneurs make is rushing the launch of an eCommerce website. Remember, you only get one shot at kickstarting your site, and you cannot mess this up.
While it is okay to buy your domain and set up a “Launching Soon” page, we recommend you hold back until you have laid some essential groundwork, such as SEO, social media, content marketing, paid advertising, and so on.
Also, don’t start cheap. Remember, you’re opening up a new business, and it’s likely to bring you profits in the long run. Therefore, strategically investing in it will be a huge reward.
Unfortunately, our current economy is rough, and unemployment rates are still at an all-time high. In today’s ever-changing economic climate, small business loans are the only option entrepreneurs have for generating revenue to further their businesses.
Luckily, enterprise loans like an SBA small business loan can take your eCommerce business to the next level. This particular enterprise loan is partially secured by the government, and the SBA works closely with a large network of financial organizations, such as Fidelity. With an efficient enterprise loan, your business can see instant growth so long as you utilize the additional capital wisely.
Step 2: Strategize Your Business Plan
“Do I need a business plan?”
Well, the short answer is yes! Every eCommerce business can benefit from a robust business plan, and here’s why:
- You are just starting out: A solid business plan will help you set your targets and create an action plan to approach them.
- You are seeking outside funding: Business plans are a standard way to show investors why it is worth trusting your online business.
- You are considering to go all-in: Since you’re planning to make your eCommerce business a full-time job, a strong business plan will help you decide whether or not it is a viable option.
“Okay, but how do I create a perfect business plan?”
Well, if you’re having a hard time creating or strategizing your business plan, don’t worry. Consider hiring a business plan consultant. Why? Because they don’t just document your ideas on paper; a highly-skilled business plan expert will conduct research and collaborate with you to implement strategies that will help you succeed in today’s competitive market and over the long-term.
Step 3: Leverage LinkedIn for Your eCommerce Business
You already know the power of social media in eCommerce, especially in terms of building your marketing and sales campaigns. It’s time to include LinkedIn as part of your social media promotion as well.
LinkedIn is quickly becoming one of the most popular places for B2C businesses. It’s an effective platform to share content, gain awareness, and connect with your target audience on a more personable level compared to other types of social media channels. LinkedIn is a great way to engage and convert prospects while being an easy-to-use platform to learn and employ.
You can further use an automation tool that allows for LinkedIn bulk messaging. Although there are times when a simple LinkedIn post is enough to convey your message, there are situations where a bulk message is more appreciated, such as:
- To tell customers about an upcoming event.
- To spread the news about your current promotions
- To disseminate business news like new product offerings, additional locations, etc.
Step 4: Find the Right Vendors
You will have plenty of competition, selling a variety of products online. Therefore, it’s in your best interest to look for the highest quality and best prices for the product you’re going to sell or materials you will be using to create your product.
Keep shopping around until you find a vendor suitable for your business needs—also one that you’re willing to do business with long-term. Think scalable from the start. Which brings us to our final step…
Step 5: Scale Your eCommerce Business
As we mentioned earlier, creating a profitable eCommerce business is no joke, and scaling it can be a hassle, even for professionals. As your business starts to grow, you notice an increase in sales. But that isn’t to be considered a success, yet.
To meet buyers’ demands, you need to scale your eCommerce store to outgrow your actions. Simply keeping an eye on your Key Performance Indicators (KPIs) will do the job. Such detailed stats will provide enough data to help you make future decisions.
Consider measuring the following E-Commerce KPIs:
- Visitor conversion rate
- Traffic sources
- Sales per month
- Site traffic
- How long a visitor stays on your website
- Cart abandonment rate
- Average order size
- Email subscribers
- Social media followers
The Internet is growing healthily, and if you are creating an eCommerce business today, it will certainly benefit from that growth.
No matter what niche you choose or which business model you go with, make sure to optimize your eCommerce store a month or two before going live. This will provide enough time to use effective online marketing strategies.
Did this article answer your questions about creating an eCommerce business? If so, please give it a share.
We have spent years helping business owners like you. Your success is important to us. If you take the time to follow the steps above carefully, you will save days of hard work and know where you are more likely to get your money’s worth in the world of eCommerce.