So you’ve decided to start your own ecommerce business, and while you dream of making it big one day, you’re aiming high and starting out small with either handmades, artwork, or anything you create or offering some services Good for you! But before you embark on your adventure, you need to be prepared. Here are a few questions that you should ask yourself before diving in.
Workspace
Where is your business going to be based? For some businesses it’s an office, a co-working space, or you may prefer to work from home. The important thing is to have a space that you feel you will be comfortable, productive, and organized in. Renting space in an office environment may seem like a waste of money, but if there are external factors at home that distract you from your work, it may turn out to be a worthy investment. If you’re working with a partner or an employee, make sure that they feel the comfortable in the space as well. Also consider that you need to have a solid Internet connection that is private and dependable.
Inventory & Storage
You need to figure out where you are going to store the products you are selling. Like your workspace, you can choose either to rent an outside space specifically for inventory, or store your stuff at home or office. It all depends on cost effectiveness, accessibility, and safety. Renting a storage unit would ensure that your inventory is safe, but you need to consider accessibility and managing shipping. If you have the space, storing your inventory at home may be a good starting point. Just make sure to put it in a clean space that is somewhat sectioned off from the rest of the house. You don’t want your products to get caught in the crossfire of say, your kids playing basketball, and get damaged or broken.
Shipping Rates
To stay competitive you need to make sure you’re shipping rates are a bargain. This requires you to get offers from the shipping companies available to you for every product you sell, even bundles of multiple products. Most shipping companies do this by weight, and most ecommerce solutions allow you to state weight charges. So if an order is 3lbs the shopping cart will calculate the shipping right to the decimal point of your shipping company will charge you. This allows you to stay competitive, and hopefully start offering free shipping for marketing promotions.
Product Prices
When deciding on the pricing of your products, you have to consider whether it has practical or subjective value, or both. If it has only practical value, than you should price it according to the quality of the product. If however it is a subjective item, such as a piece of art, or a handmade decoration, the pricing can be much more varied. Consider the time and energy you put into the product, and how proud you are of how it turned out. It’s also good to get a trusted friend’s opinion, as sometimes artists can be overly critical or protective of their own work. Also do your research on what similar items at other stores are selling for similar items for. Stay competitive, but don’t short sell your work.
Business Plan
While you don’t necessarily need a 50-page document with detailed sales projections and charts, you should at least have some long-term goals in mind, and realistic deadlines by which to meet those goals. This will give you clarity of focus that will help you see the big picture even when dealing with the day-to-day grind. Put your business hat on, and start writing early. Asking a friend for help, or even finding a business student to collaborate with and offer your plan as a sample they can submit to their school may help you get a better perspective.
Marketing Plan
Once you have all your products priced and the details ironed out, you need to get the word out. This is where your marketing plan comes into play. While having a marketing plan may feel like a rather expensive undertaking, it actually can cost you relatively nothing out of pocket, if you use the avenues available effectively. The first avenue, and by far the most appealing to cash-strapped businesses, is social media. Sites such as Facebook and Twitter are free, and they provide businesses with an arena in which to engage a vast audience, and build buzz. Their are plenty of articles out there that show you exactly how this is done, so do your homework and find out what works for your business.
Blog
Another free avenue that you can use to market your business is blogging. Starting a blog costs nothing, and blogging platforms such as WordPress and Tumblr hold your hand through the entire process. Blogging for your Ecommerce site has two big advantages. One, you are able to get your businesses name out there and gain trust by providing useful and entertaining content. And two, you are able to tell a story about your products. Especially if you are selling something handmade or artsy, this can be immensely valuable. In that market segment, people want to know a lot of individual love went into making a product. Buying a unique product is an emotional investment, and any copy that can your products more depth and character will help you make a sale.
I’m hopeful that the above would get your mind evaluating different angles, and judging what works for you, and if you have any added points that may help others, please share in the comments.
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