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5 things to know before you start your own ecommerce business

The first thing you need to know about ecommerce is that the opportunities are vast. A lot of people think that e-commerce is oversaturated. And it’d be impossible for them to kick start your own ecommerce business successfully. The truth is that yes, it is harder to start an ecommerce business today than it was maybe five years ago. But there’s still so much more opportunity available.

The e-commerce share of total global retail sales from 2015 all the way to 2023. As you can see, ecommerce has been growing very strongly since 2015. With the year to year growth getting higher and higher.

There is always going to be way more consumers as there are creators and sellers. And there’s a never ending and growing group of people who buy everything online.

So take advantage of this huge shift to start your own ecommerce business.

And if you are able to succeed, it’s gonna change your life completely and create a whole brand new stream of income for you. It is also extremely scalable.

Marketing

Next up is the fact that marketing is king. This is stuff that you really should know yourself before you hire it out to other people. First, there are hundreds of ways to market and get sales. And it’s the field that’s always evolving. So you constantly have to be experimenting or learning in order to get the best ROI return on your investment.

The main reason for marketing is visibility. Without visibility, no one will buy your product because no one will see it and no one will know that it exists. It can literally be the best product in the world. But without adequate marketing, it’s going to be very hard to succeed.

So you need to enter with the expectation that the first few dollars that you spend on marketing aren’t going to fully work out. But if you keep trying and trying, you will stumble upon a type of marketing strategy that works for your brand or company, a mentor will for sure help. And a digital marketing agency would be great. But that’s only if you have the money to spend, there’s going to be a time where every dollar you put into your marketing strategy is going to generate, let’s say, three, five, even $10 of profit. When this does happen, you can scale this campaign and that’s really going to help you make your brand successful.

Practically, marketing is first and your product is a close second. There are two types of marketing. The first is to raise brand awareness. And the second is to increase your sales. You want to have a marketing plan. And this marketing plan totally depends on your type of business and product.

For some Instagram influencer marketing might be the best ROI for some YouTube ads, Google ads, sponsored posts, social media, those could be a lot better. It does involve a fair degree of trial and error.

Choose the niche

Your customer should not be everyone. This is a very important part because I think that a lot of new ecommerce people think that if they make a product that appeals to everyone, then everyone will want to buy. The truth, however, is that if you do have a product that appeals to everyone, that product will likely only appeal to everyone a little bit, certainly not enough to get them to buy, there’s a certain tipping point or a hump that the customer has to get over in order to buy your product. And based on past experience, General products are just not likely to make that cut. Instead, that customer is likely to just purchase something that’s more specialized or more directed at a certain need than the most successful products and this is especially true for private labeling our niche products, this is a type of product that you don’t think that there would be too much demand for but there actually is. 

Aiming your product at a smaller audience helps with your marketing return on investment, no one has enough money to market to everyone in the world. 

PreLaunch Strategy

The fact is that without a proper pre launch strategy, no one is going to buy your product on the first day it’s launched one crucial thing that a lot of companies miss is starting to market before they create the product. This can be done by creating an audience, a newsletter, a website or a social media account before the product is ready to sell. A lot of successful e-commerce companies started way after that initial audience was created. And this is why I’m such a big fan of personal branding. This is one of the most powerful ways to build an audience before you start your own ecommerce business and by having a successful personal brand. You have this pre-built audience who is going to support whatever business you have in the future. 

Customer Service

The most important thing you need to know before you start your own ecommerce business is that customer service is key. If you take a look at some of the most successful e commerce businesses, one key reason why they succeed is because of their customer service. For example, take a look at Zappos and their CEO Tony Hsieh 75% of their purchases are from returning customers. So you can see that they are extremely loyal. And also about 44% of the customers heard about them through word of mouth, a huge contributor to this is how they treat their customers. Their CEO Tony Hsieh is known for his unconventional approach to customer service. He has said that his goal with customer service is not to save money, and it’s not to be highly efficient. Instead, the only metric that he uses is how happy and how satisfied that customer is at the end of that service interaction.

Placing your customer first places money into your future business and gratitude bank account the more positive customer service interactions, the more full this jar gets. 

Any of those extra minutes you spend making the customer happy or any extra dollars you spend making them happy will pay off in the long run. Plus, it’s just a better way of running a business.

Private Labelling

The fact is that direct to consumer and private labeling is growing at an extremely fast pace. Manufacturers and brands are realizing that they don’t need to work with these retail partners, they can bypass them, keep their profits high and be more in control of their brand and their audience. So that is where you come in. That’s where you come in with that private labeling and start your own ecommerce business. There are so many different opportunities in this field.

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