The Rise of E-Commerce

The outlook for India’s economy may be gloomy for now, but one sector looks
set to boom: online retail. As more and more Indians use the internet, revenues
of e-commerce companies could triple over the next three years to 504 billion
rupees ($8.13 billion). It’s not just Flipkart, Amazon or Jabong anymore, E-
commerce has extended its roots to various sectors of retail, and there are now
above three hundred such websites in India. Over the last few years, dozens of
websites have been launched in India to sell everything from books and
appliances, to baby care products and flight tickets. As of last year, online retail
sites have acquired a whopping 138 billion rupees as revenue. With social
media at the forefront, E-commerce is backed to be a massive revolution in
marketing and sales.

The most amazing aspect of e-commerce is its ability to impact sales and
marketing efforts immediately. By going online, suddenly a neighbourhood
bakery or a home-based consulting service expands its reach to a national, or
even international base of potential customers. Web-based sales know no
international boundaries.

How to Start an E-commerce Business: Share

Build the e-commerce business of your dreams with help from this handy how-
to guide.

Starting your own e-commerce business is an exciting venture, especially if

you’ve dreamed about the freedom of being your own boss. If you are crafty or
have a knack for selling, then the entrepreneurial route could be a great choice
for you.

Lifting a business off the ground is hard work. It requires business acumen,
creativity, and discipline to take the necessary steps to put your idea out there.
But it can be a very worthwhile and rewarding journey. Global e-commerce
sales are projected to reach $6.3 trillion in 2024, and, according to the US
Census Bureau, e-commerce accounted for 15.4 percent of total sales in 2023
[1, 2]. There is huge potential to profit from e-commerce.

In this article, you'll find a step-by-step guide to starting your online business,
learn about the possible costs you may encounter along the way, and explore
cost-effective courses to help you gain the skills to set up a successful business.
If you're ready to explore e-commerce now, consider enrolling in the Google
Digital Marketing & E-Commerce Professional Certificate, which includes
building and managing e-commerce stores.
How to start an e-commerce business

E-commerce is on the rise, so you’ll need to consider how to stand out because
everyone can use digital marketing for their business. Despite the competition,
there is a bright future ahead for e-commerce entrepreneurs. Here’s how to get
started.
Step 1: Research e-commerce models and decide what to sell.

The e-commerce space today is vast, with plenty of competition, so it is

important to consider what your e-commerce business model will be.

There are four basic types:

 Business-to-customer (B2C): A common business model, in which a business
sells to consumers, anything from spices to shoes. B2C brands can sell different
brands under one umbrella, such as Amazon, Walmart, and Alibaba.
 Business-to-business (B2B): In B2B models, businesses sell products or
services to other businesses. Orders tend to be recurring purchases. Examples
include Amazon Business, Alibaba, and Rakuten.
 Customer-to-customer (C2C): C2C models tend to be online marketplaces
that connect consumers to exchange and sell goods and services. Online C2C
businesses include Craigslist, Etsy, and eBay.
 Customer-to-business (C2B): With C2B, individuals sell their goods and
services to companies. A good example is Up work, which enables businesses
to hire freelancers .At the same time that you're considering your business
model, you'll also want to explore the delivery method you'll use to distribute
your goods or services. Generally, you'll use one of the following delivery
methods:
 Direct-to-consumer (D2C): Sell your own products directly to customers,
without the help of wholesalers or retailers.
 Drop- shipping : Set up a storefront (website) so customers can pay by credit
card or PayPal, sourcing from a supplier that manages inventory and
packaging . Drop ship businesses are quick and inexpensive to start.
 Wholesaling: Purchase products in bulk at a discounted rate from a retailer to
sell on your website.
 White label: Put your own name and brand on a generic product that you
purchase from a distributor.
 Private label: Deliver products such as pet food or fresh vegetable boxes on a
monthly or weekly basis: Hire a manufacturer to create a product to be sold
exclusively by you.
 Subscription: To loyal customers who prioritize convenience.
Step 2: Write a business plan.

After you establish the foundation of your business, you’re ready to draft a
business plan. This written document details your objectives and roadmap
for finance, operations, and marketing. You can use it to get organized and
be used to attract potential investors.

Do some research to figure out the current competitors and market

landscape for your product or service. Determine your target market and
how you might sell to potential customers. Plan the logistics, including when,
where, and how you will proceed in the coming months.

Step 3: Choose a business name and start building your

brand.

Next, your business needs a name and brand identity. For those starting
white label e-commerce businesses, the brand is especially crucial to the
success of your business.

Choosing a business name can be fun, but it requires a bit of strategic

thinking. In addition to a unique yet uncomplicated name that clearly
explains what your product is, you’ll also want to check if the web domain,
social media handles, and legal name are available. Do your research to
make sure it translates well across cultures, especially if you aim to go
global.

In building your brand, you’ll need to design a logo that will be placed on all
packaging, website design, and marketing materials. Eventually, you may
want to hire a designer who can translate your brand’s ethos into beautiful
web visuals.

Step 4: Register your business.

Before you begin selling, you’ll need to register your business by choosing
a legal structure, applying for an employer identification number (EIN), and
obtaining other permits and licenses specific to your chosen business
model.

Once you’ve decided on a business name, consult your local secretary of

state’s website and U.S. Patent and Trademark Office to ensure your
business name is available. You will need to choose your legal structure, a
 business entity type that will determine the legal and financial guidelines of
your online business—typically, you can select from a general partnership,
LLC, corporation, or sole proprietorship. Consider consulting a legal
professional to ensure the right choice for your business.

Next, you can apply for an EIN. Registering for this business tax ID can be
done online for free from the IRS website. This nine-digit number allows you
to separate your business finances from your personal finances.

After receiving your EIN, check what other business licenses and permits
you need to operate in your city and state. If your business is a general
partnership or sole proprietorship, you won’t need to register with your state
unless you file a DBA (“doing business as”). Many e-commerce businesses
are home-based, so they don’t need as many licenses as brick-and-mortar
stores, but you might need a home occupation permit that states your
business doesn’t contribute to traffic or noise. Your business registration
requirements will differ depending on your state, industry, and business type.

Read more: How to Create an LLC in 5 Steps

Step 5: Create your e-commerce business website.

With the paperwork signed and your business officially registered, the next
step is to create an e-commerce website. The website is the “storefront” for
your business for customers to arrive, browse, and place items in their
shopping cart. Your business website and its functionality are critical to your
success.

To start, you’ll need a domain name that matches your business name.
Then, you’ll select an e-commerce platform that suits your bandwidth for
creating and maintaining the online store. The most common type is an all-
inclusive software (like Shopify), on which you can conduct business
operations such as managing inventory, shipping orders, and more.

Here are just a few e-commerce platforms to choose from:

 Shopify: This popular e-commerce platform is all-inclusive and user-friendly,
with plenty of customization options. With this hosted, software-as-a-service
(SaaS) platform, you can choose from several subscription options
depending on your business needs.
 Squarespace: Known as a platform for building websites with modern
templates, Squarespace also offers e-commerce capabilities. It is user-
friendly but does not offer as many customizable e-commerce features as
Shopify.
 WooCommerce: WooCommerce is an open-source plug-in that you can
add on to start selling on your WordPress site. It is free to download and
offers a wide range of e-commerce tools, best for entrepreneurs with prior
technical experience.
 Magento: If you’re tech-savvy, you might want to use Magento, an open-
source platform that allows you (or a hired developer) to customize every
element of your online store.