Initiating a new e-commerce website is one of the best ways to capitalize on your business and increase your profit margins. The number of online marketplaces has increased over the years and is steadily growing at a rapid pace.
With the coronavirus pandemic shifting more and more businesses to online platforms, this is one of the best times to set up a new online store to which you can easily add a payment method. It doesn't matter if this is your first time setting up an online store or if you've set up an online store before - This guide will let you know about all the best techniques that you can implement to improve your online sales. Let's get started with 7 of the best techniques to use.
How to Start an Online Store in 7 Simple Steps?
1. Find Your Niche
The kind of market you're aiming for is one of the most important steps to consider while setting up a new online store. Putting thought into the niche you choose is crucial as this impacts several parameters like -
- Sales traffic you generate
- Need for high volume customer support
- Whether customers repeat their purchases
Building a strategic plan to dominate niche sectors of the market is a great way to ensure that your sales generate profit. The market opportunities, the audience you attract, and the market opportunities are the deciding features for your new online store.
2. Sourcing Your Products
There are generally 3 ways in which you can source products for your online store - Do it Yourself (DIY), Dropshipping, and wholesale. Each of these methods has its own pros and cons. We have listed the basic idea of these product sourcing methods. Choose the one that fits your needs and budget the best.
· Do it Yourself (DIY) products
In case you're the one creating products and selling them, you can charge significantly more for your goods. This type of products include small batches of handmade products, niche products, or 3D printed goods. These products are quite expensive to make and can turn a great profit in case you target the right market.
· Wholesale Products
This is one of the traditional ways in which products are stored by most online stores. In this method, items are bought in bulk and then sold either individually or as a whole. Wholesale lots are available on platforms like eBay, Alibaba, or Etsy Wholesale. Make sure that you check the reviews of the wholesalers before committing to them.
· Dropshipped Products
Dropshipped products are handled by different suppliers that fulfill and deliver the orders. Dropshipping suppliers offer great convenience, but this is challenged by the lower profit margins and competition amongst suppliers. Some of the popular dropshipping suppliers known throughout the world are Wholesale2B, AliExpress, Megagoods, and many others.
3. Get your Prices Balanced
Pricing is another factor to consider when starting a new online store. AOV (Average Order Value) can be used to decide where you want to draw the line on your pricing. In case the items you sell are expensive, the number of customers you attract will automatically be less.
But, this also implies that your AOV will be greater. In case you sell low to mid budget products, then your AOV will be smaller, but your traffic will be greater. You can easily add a payment method once you decide on your budget.
4. Invest in Market Research
One important factor to consider before starting your own online business is the market research you conduct. It is important to identify the audience that is most likely to purchase your products. Also, considering the budget that your customers are most likely to purchase is important for calculating the potential profits you earn from your online store. Also, ask yourself these questions to get the right market research -
- The magnitude of the market you are aiming for.
- The current sales of existing products in your niche.
- Gaps in the current needs of the market.
- Average price that your competitors are offering.
5. Research on Your Competitors
Researching your competitors is important as you need to determine whether there is sustainable demand for the goods you sell. Take cues from successful competitors and integrate them into your own business strategies, with other unique changes that appeal to the market. Also, look into whether your competitors are maintaining a sustainable business or not.
6. Consider the Opinion of Your Audience
Another great way to gauge the interests of your potential audience is to conduct research in the form of surveys. Surveys can help to check the success of your idea in the near future. Also, it can determine what features need to be improved and even provide new insights into your product.
Overall, online surveys are a great way to classify interest in your product, while collecting information on potential customers. This information can be later used to grow the list of buyers for your product and advertise sales.
7. Create a High Impact Brand for Your Business
Brands are an important consideration amongst customers while choosing between competitor businesses. The identity of your brand is based on how you present your website, logo, and the methods you use to market your products. It is quite possible to create a unique and impactful brand with a few choices. Convey the worth of your products when creating a new brand for your online marketplace.
One of the basic rules for opening an online store is to differentiate your brand from competitors and create a unique selling proposition, especially if you're launching your own clothing brand. By developing a strong brand identity, creating quality designs, and leveraging print-on-demand technology, you can set your clothing brand apart and attract loyal customers to your online store.
Conclusion
Setting up a new online store can seem quite daunting, but it is manageable when you have a clear idea of the steps you need to take. Apart from the product itself, you also need to consider how you present your products, your brand, and the methods by which you source your materials.
Once you take the initiative for your online marketplace and follow the simple steps listed here, you can build a refined brand that dominates the particular niche you are aiming for. We hope that the 7 simple steps listed in this article can get you started on the online marketplace journey.
