The ecommerce industry is exploding. Global retail online sales are poised to touch $6.3 trillion by 2024. So, it isn’t surprising that most savvy entrepreneurs are contemplating starting an ecommerce business.
FAQs about How to start a successful ecommerce business
How does ecommerce work?
Ecommerce means electronic commerce, which is essentially buying and selling done over the internet without the constraints of time and place. Ecommerce websites are like virtual storefronts where visitors can browse, save, and buy products and make payments without stepping out of their houses.
How much money do I need to start an ecommerce business?
For a basic ecommerce business, you will need to invest in hosting, website development, inventory, insurance, and store permits. The average cost break-down will be as follows:
- Hosting: $300 - $500 per month
- Website development: $5000 - $10,000
- Inventory: Variable, depending on industry and product
- Insurance and permits: Depends on the niche
How do I start a successful ecommerce business?
To start a successful ecommerce business, follow these steps in sequence:
- Decide on your business model
- Conduct niche research
- Validate product idea and target market
- Register your brand name and domain
- Design and develop your store
- Launch your store
- Start driving traffic.
Why do most ecommerce businesses fail?
Currently, the failure rate of ecommerce stands at 90% within 4 months of store launch. The rate falls to 78% after one year. After surveying ecommerce businesses, the main reasons for failure have been identified as: poor online visibility, weak marketing, little market demand, insufficient capital investment, pricing issues, out-competed by bigger players, poor customer service, and inaccurate targeting.
What is the best ecommerce business to start?
For 2021, the best ecommerce business ideas include custom apparel, dropshipping store, handmade goods/art, thrift store finds, curated subscription boxes, and niched products.