How to Start an E-Commerce Business?

The electronic commerce has been exploding for a while and the numbers of
providers are still growing rapidly. With the pandemic, sales have reached to a
level where stocks cannot be sustained well enough and this causes a need in
commercing businesses to support their systems.

Before we dive into the real deal, let me explain what does e-commerce really mean. 

E-commerce, a.k.a electronic commerce, is the buying and selling of goods and services via the internet with the transfer of money and data to complete the sales. One of the basic definitions of e-commerce is a commercial transaction which is happened over the internet. Amazon, Shopify, Ebay, Aliexpress are the websites we can exemplify as electronic commerce businesses that provides online services.

These are typically four ways to carry through the transactions: 

  • Business to Business (B2B)
  • Business to Customer (B2C)
  • Customer to Customer (C2C)
  • Customer to Business (C2B)

Business to Business (B2B)

Business to business transactions happen between companies that have business with each other. The final attained customer is not involved here – b2b transactions are generally amongst the wholesalers, retaliers… 

Business to Consumer (B2C)

With this transaction system, companies sell their goods or services straight to the customer with no middle tier. The consumer surfs on the website, views the products, investigate reviews and place their orders. Then subsequently the order gets shipped to the customer directly. 

Consumer to Consumer (C2C)

Here transaction only happens between customers, no company is involved. Direct contact is with each other. It is for people to sell their personal services and goods to an interested party. 

Consumer to Business (C2B)

Fiverr is an example for this transaction. Customers provide freelance services to companies or businesses in search for the right supplier. 

E-commerce provides the sellers and consumers a global field of communication. It removes the barriers and builds up a virtual world where multiple realities intersect while lowering the transaction cost. This allows companies to enlarge their profit rates.

Rather than spending time over going out and looking for the right service, internet usage brings along opportunities with only several clicks. It it works 24/7. One of the conveniences also involves quick delivery of goods with very little effort on part of the customer. Direct questions to companies or providers are addressed and answered very quickly – means it saves time, effort and energy.

There is always a great reason and time to start your business – and what about now? 

How to Start an E-commerce Business? 

Giving a start to something is not always the easiest thing, I know. The goal of pulling things off, finding good reasons to launch and maintaining sites where people in different actions of all sorts can sell their wares is more satisfying than giving up on an enterprise, right? Well, if your answer is positive then I’m ready to help you.

Let’s start with reading this article in which it is clarified what an e-commerce business actually is. 

The first steps are not easy. They need a bit of research just as you are digging to find the right gold which will be the most suitable for your customers to buy – but you need to afford all the needs of customers and yours as well. Starting with asking questions and slowly answering all that is on the table would clean a great amount of workforce for your progress.

These questions might be: 

– What services do you plan to sell?

– Will you be selling products or services?

– If the deal is selling, are they physical or digital?

– How your customers will get the products or services you provide?

– What are the legal regulations that you may need to keep in mind? 

All of these questions will help you gather necessary information for you to write your business plan as well. Methodical research will give you a better view of where you are and where you want to go in terms of your goals. 

Although we always consider how finding a great name appeals to the customers to the core, it is the most important part of the process, really! Nothing does it better than a great name. You have to dive deep to find the most loyal one to your business’ substances. 

After you’ve selected the proper name, you can go for the legal structures of your company that will open multiple ways for your e-commerce operations – this will lead you to complete all the paperwork required to register to give your business a start. Now you can choose a platform and launch your website – but before, we have a variety of mountains to knock over. 

The website is how you look, just as you are in a fashion show and everyone is depicted in ways of how they really look. Keeping that in mind, creating your website in the most efficient way is one of the most important parts of starting your e-commerce business. 

While choosing your domain name, make sure that it is nearly the same with your business name or at least related by reason of your ecommerce platform being the basement of your online business.

We can exemplify sites such as Shopify, WooCommerce, Squarespace, Magento to make it more clear how e-commerce websites work and what they actually provide.

After you’ve chosen the platform for your eccommerce business and started your website, we’ve nearly reached to a point where everything gets more refreshing and fun. For now, you just get ready to decide whether you sell the product or being an act of a consultant. If you’re selling, the overall process is a bit more complex than sourcing the products from distributors. 

For further information, we leave a useful guide for all of us to read.

Overall abstract is,

To start your very first ecommerce business, you have to get all the legal business licenses and permits from the beginning, after that finding a software is the step.

Domain name and hosting are the parts where everything is slowly getting real and your website is about to be launched but before that some issues with customer payment should be solved while the solution probably passes through the processor such like Square of Stripe.

Some ecommerce software providers include their own payment processing systems within the platform while some don’t. Either way, if you’re gonna pay the platform itself, it’ll take an amount of percentage per transaction made.

So at the end of the day, all you need to do is building trust and be loyal to what you’re doing. That will be the most affective way to advert your services. 

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Batuhan Arda

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  1. This is a well written blog post that I ever seen.

    1. This is a well written blog post that I ever seen.

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