It’s never been easier to start an eCommerce store. There are DIY online tools that can help you manage all parts of your eCommerce business, from sourcing and manufacturing products to email marketing and automation.
If you’ve got ideas, ambition, and a knack for learning new things, starting an eCommerce store could be just the thing for you.
Sections
What is an eCommerce store?
An eCommerce store is a website that sells products online. If you’ve ever purchased something online — whether it was on Amazon, your favorite specialty brand, or your friend’s Etsy shop — you bought it from an online store. The e in eCommerce stands for electronic, so eCommerce is electronic commerce, just as email is electronic mail.
How much does the average eCommerce store make?
The average eCommerce business makes $127,000 to $330,000 in monthly revenue by the end of year one. Of course, that number is skewed by mega players with tons of startup funding. So, the more reasonable answer is this: it depends.
Specifically, it depends on the types of products an eCommerce store sells, their profit margins, their marketing budget, and more. In general, however, the average conversion rate for eCommerce is 2%, the average order value is $45, and the average cost of acquisition is $0.35. Knowing all that, you can start to crunch the numbers to figure out how much traffic — and what kind of profit margins — you need in order to get the revenue you want.
Step 1: Find a product to sell
The most successful eCommerce products are in demand, have something different than what’s out there already, and are positioned to remain profitable long-term.
How do you find a product that matches that description? Go trend-hunting. Use tools like Exploding Topics and Kickstarter Trending Product to see what products are growing in popularity.
You can also pull inspiration from your own experiences and pain points. That’s how we came up with The Wanderer, our flagship product for Roam Often.
> Listen to the episode: Intro and Discovering a Product to Sell
Step 2: Set up your business
Just like a business in the real world, you need to have your business fundamentals all buttoned up. Do you want to be an LLC or a S-Corp? It can be helpful to chat with an attorney or CPA about this.
Once you’ve set up your business entity, it’s time to register for your Employer Identification Number (EIN) and open a business bank account. This is where you’ll deposit all the money from your sales, and pay for things like marketing and website hosting.
You’ll also need a seller’s permit, so you can purchase things at wholesale and charge sales tax for your state.
Step 3: Brainstorm your brand
What makes a loyal customer? Is it your brand or your product? Honestly, it’s a little bit of both.
Honing in on your brand will help you get in touch with your target customer — these are the people you’ll be targeting in your marketing and product positioning.
Think about what problem your product solves, and how you can share that story with your customers. Do you want to be a lifestyle brand or a product brand? What makes your brand different? If your brand was a person, what would their personality be like?
The answers to these questions will help you develop your brand voice.
Step 4: Develop your product
At last, it’s time for product development! Outline the problem your product will solve, and the features it will have in order to do so. Do competitive research to see what features are important and expected.
Then, create a mockup, and start looking for manufacturers to build your prototype.
Pro Tip: Order samples first, and know this process takes time. It will take some back-and-forth before you nail down the final product.
> Listen to the episode: Designing and Building Your eCommerce Product
Step 5: Build your website
You can start working on your eCommerce website while you’re still developing your prototype.
Investigate the pros and cons of different eCommerce platforms, select one, and start building your online store. Write copy for your home page, product pages, FAQ, shipping, and returns. Hire a professional photographer or designer to work with you on logos and product photography.
Find your shipping carriers and packaging suppliers. Work through the kinks of making a purchase on your website, and fulfilling an order. You want to stress test things before you go live.
Then, when you’re ready… press launch!
Can you start a successful eCommerce store in less than 30 days?
Absolutely. We’ve even made a podcast series all about it, based on our own experience launching an eCommerce store.
