How to Start an E-Commerce Business

Starting your own e-commerce business is such an exciting journey, especially if you’ve always dreamed about the freedom that comes with being your own boss. If you’re good with handling goods or have a talent for selling, going the entrepreneurial route might just be the perfect fit for you.

Getting a business up and running takes a lot of effort. Getting your idea out there takes a mix of business savvy, creativity, and a good dose of discipline. It can definitely be a journey that’s both worthwhile and rewarding. 

According to the US Census Bureau, e-commerce made up 15.4% of all sales in 2023, while international e-commerce sales are expected to reach $6.3 trillion in 2024. E-commerce has a lot of potential for making a profit.

In this guide, we’re going to talk about:

• How to start an e-commerce business in 5 easy steps
• 5 Tips for Managing Your Online Business
• How much does it cost to start an e-commerce business?

What is E-commerce Business?

An e-commerce business is all about selling products or services to customers online. Ecommerce businesses can be anything from small, home-based setups to big, multimillion-dollar companies.

Having an effective e-commerce strategy can help entrepreneurs connect with a wider, global audience without breaking the bank, since you’re not limited to just local customers.

Why Start a Delivery Business?

Starting an eCommerce business offers some important advantages:

• Low Startup Costs: No need for a physical storefront or huge inventory.
• Work from Anywhere: All you need is a laptop and an internet connection.
• Unlimited Growth Potential: Sell to customers worldwide, not just in your local area.
• Flexible Schedule: Be your own boss and set your own hours.
• Passive Income Opportunities: Automate processes and make money while you sleep!

These advantages make e-commerce an attractive option for aspiring entrepreneurs seeking to capitalize on the digital marketplace.

Delivery Business Statistics & Trends

Considering the potential of e-commerce? Here are some compelling industry insights:

• The global e-commerce market is projected to reach $6.3 trillion by 2025.
• Mobile commerce (m-commerce) is expected to account for 72.9% of all e-commerce sales by the end of 2025.
• Social media platforms are becoming significant sales channels, with 54% of social media users researching products on these platforms.

Now that we’ve explored the opportunities, let’s delve into how to start an e-commerce business step by step.

How Do You Start an E-commerce Business (Step-by-Step Guide)

E-commerce is really taking off, so it’s important to think about how you can stand out since everyone is jumping on the digital marketing trend for their businesses. Even with all the competition out there, e-commerce entrepreneurs have a promising future ahead of them. Here’s how to get started.

Step 1: Research e-commerce models and decide what to sell

These days, the e-commerce world is huge and super competitive, so it’s really important to think about what kind of business model you want to go with for your e-commerce business. These are the four primary categories:

1. Business-to-customer (B2C)

A common business strategy is when a company sells products to consumers, such as spices or shoes. Amazon, Walmart, and Alibaba are all examples of B2C names that can sell more than one brand.

2. Business-to-business (B2B)

In this type of business, one business sells goods or services to another business. Most orders are repeat sales. Amazon Business, Alibaba, and Rakuten are a few examples.

3. Community-to-community (C2C)

These are usually online markets where people can buy and sell goods and services with each other. There are many C2C businesses online, such as eBay, Craigslist, and Etsy.

4. Customer-to-business (C2B)

People sell their goods and services to businesses through C2B. Upwork is a good example because it lets companies hire workers.

While you’re thinking about your business plan, you should also think about how you’ll get your products or services to people. Most of the time, you’ll use one of these delivery methods:

• Direct-to-consumer (D2C): Sell your own items directly to clients, without the assistance of wholesalers or retailers.
• Dropshipping: Make a website storefront where buyers can pay with a credit card or PayPal. Get your goods from a supplier who takes care of the inventory and shipping. It’s easy and cheap to start a dropship business.
• Wholesaling is the process of purchasing things in bulk at a discounted rate from a store in order to sell them on your website.
• White label: Use your own name and trademark on a generic product purchased from a distributor.
• Private label: You hire a company to make a product that you will only sell.
• Subscription: Send items like pet food or fresh vegetable boxes to loyal customers who value ease on a monthly or weekly basis.

Read more: Best Platforms to Sell Your Digital Products

Step 2: Write a Business Plan

You can write a business plan once you have established the basis of your business. This written document lays out your goals and plans for marketing, business, and finances. You can use it to get prepared and to get investors interested.

Conduct some research to identify your current competitors and market landscape for your product or service. Figure out who your target market is and how you can sell to them. Make a plan for the next few months, including when, where, and how you will do things.

Download Our Business Plan Template!

Step 3: Choose a business name and start building your brand

Next, you need to give your business a name and a way to be known. If you’re starting a white-label e-commerce business, the brand is even more important to your success.

It can be fun to pick a name for your business, but you need to be smart about it. Not only should you come up with a unique, easy-to-remember name for your product, but you should also make sure that your website, social media handles, and legal name are all free. If you want to go global, make sure it works well with people from other cultures by doing research.

To build your brand, you’ll need to make a logo that will be used on all of your marketing, packaging, and website. At some point, you might want to hire a graphic designer to turn the values of your brand into beautiful web graphics.

Step 4: Register your business

You will need to choose a legal structure, ask for an employer identification number (EIN), and get other permits and licenses that are specific to the type of business you want to run before you can start selling.

After choosing a business name, check your local Secretary of State’s website and the U.S. Patent and Trademark Office for availability. Your legal structure—general partnership, LLC, corporation, or sole proprietorship—will set your online business’s legal and financial guidelines. Consult a lawyer to make the appropriate business decision.

Apply for an EIN next. Registration for this business tax ID is free on the IRS website. This nine-digit number separates company and personal finances.

Check your city and state business licenses and permissions after acquiring your EIN. General partnerships and sole proprietorships don’t need state registration unless they submit a DBA.

E-commerce enterprises are often home-based, so they don’t need as many licenses as brick-and-mortar stores, but you may need a home occupancy permit to prove your business doesn’t cause traffic or noise. Business registration requirements vary by state, industry, and type.

Step 5: Create your e-commerce business website

Create an e-commerce website after signing the paperwork and registering your business. Your website is your business’s “storefront” where clients may explore and add things to their cart. Success depends on your business website’s functionality.

Your domain name should match your business name. Next, choose an e-commerce platform that fits your online store creation and maintenance bandwidth. Most businesses use all-in-one software like Shopify to manage inventory, ship orders, and more.

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

• Techdella: This popular e-commerce platform has a lot of customization choices and is easy to use. Depending on your business requirements, you can select from a variety of subscription choices with this hosted software-as-a-service (SaaS) platform.
• Squarespace: Known as a platform for creating contemporary websites, Squarespace also provides e-commerce features. Although it is easy to use, Techdella offers more configurable e-commerce capabilities.
• WooCommerce: To begin selling on your WordPress website, you can integrate WooCommerce, an open-source plugin. Best suited for entrepreneurs with prior technological skills, it provides a variety of e-commerce capabilities and is available for free download.
• Magento: If you’re tech-savvy, you might want to utilize Magento, an open-source platform that lets you personalize every aspect of your online store, or pay a developer to do it for you.

Note: Website builders like TechDella can help you make a professional site with payment and booking features.

Click here to select the website of your choice

Step 6: Source and develop your products or services.

Once your website prototype is complete, you may add product names, descriptions, and photographs. You must also receive your products, either by manufacturing or buying them from a wholesaler.

Craftspeople should make enough inventory for the first several months. That could mean making one of each clothing color and size, or twenty pottery pots. Your labor bandwidth and marketing strategy, such as website launch traffic, will affect this amount.

You must then organize branded packaging, warehousing, inventory management, and shipment.

Step 7: Launch and market your business

Once your business has been successfully set up, you can start tracking your metrics and key performance indicators (KPIs) as it expands. To increase brand visitors, keep experimenting with various forms of digital marketing.

You want to make sure that every customer’s shipping and fulfillment experience runs well in the midst of marketing, logistics, and inventory management. Making backup plans is a smart idea in case something goes wrong.

How Much Does It Cost to Start an E-commerce Business?

Startup costs can vary widely based on factors like product type, e-commerce platform, and marketing strategies. Here’s a rough breakdown:

• E-commerce Platform: $29 – $299/month (e.g., Shopify plans).
• Domain Name: Approximately $10 – $15/year.
• Web Hosting: $2.75 – $300/month, depending on the provider and plan.
• Inventory: Varies based on product and supplier.
• Marketing and Advertising: $0 – $5,000/month, depending on strategies.

On average, you might expect initial costs ranging from $1,000 to $10,000. Starting small and scaling as you grow can help manage expenses.

What You Need to Start an E-commerce Business

To set yourself up for success, consider the following essentials:

• Reliable Internet Connection: Ensure consistent and fast connectivity.
• Computer or Mobile Device: For managing your store and communications.
• E-commerce Platform: Choose one that aligns with your business needs and budget.
• Payment Gateway: To securely process transactions.
• Marketing Tools: For email campaigns, social media management, and analytics.

If you want to succeed, having the right tools and support is key. Here is how TechDella can help:

• TechDella Website & Branding: At TechDella, we create professional websites that look great on mobile and are optimized for local SEO.
• Automated Booking & Payment Systems: Make your customer orders and payments simple and fast!
• Marketing & Growth Strategies: Our professionals help you in promoting your company and attracting clients quickly.