How to launch an online business that actually works from the first?

In 2021, more and more businesses moved online. After a leap of at least 3 years, e-commerce will continue its evolution and will register increases of at least 15% by the end of 2021. Thus, it will offer the most optimistic perspective for an online business.

But not all online businesses are as successful as they could be. To be successful with an online business, there are a series of steps you can follow to know how to launch an online business that actually works. A growing eCommerce business requires intuition, market knowledge, a solid business plan, and careful research into products and business models.

In my 17 years of experience with small, medium and giant online stores, I have noticed that among the most common problems of eCommerce business owners are:

• lack of technical knowledge about the field
• ignorance of the strategic options available to entrepreneurs
• Too much diversity of knowledge leads to confusion. A feeling of overwhelm and ultimately to bad decisions.
• lack of a structured and phased plan to organize knowledge/resources in a format that produces sales and profit

So in today's article you will receive 4 concrete solutions to these challenges.  

Let's take them one by one:

Study existing eCommerce business models

E-commerce encompasses all online marketplaces that connect buyers and sellers.

The first thing you need to think about when you want to open an online business is the type of commercial transaction you want to engage in, who do you want to sell your products to?

• B2B: business-to-business e-commerce – focuses on supplying products from one business to another
• B2C: Business-to-consumer e-commerce – this is the most common way to do business online. It’s what most people think of when they imagine an e-commerce business. 
• C2C: customer to customer – these e-commerce sites allow customers to transact, buy and sell items in exchange for a small commission paid to the site. 
• C2B: E-commerce between consumers and businesses. The consumer sells goods or services to businesses – a sole proprietorship that serves a larger business.
• B2G – C2G – Government / Public Administration – involves the government / public administration conducting transactions with companies or consumers.

The next most important thing you should think about is how you want to manage your product inventory. Maybe you like the idea of having your own products, having your inventory at home, or having it in a warehouse.

So, now you can also choose the commercial revenue model:

Dropshipping – This method is considered the simplest form of e-commerce. Dropshipping allows you to create your online store with product images and collect money from customers through online payment methods, and then the supplier makes the delivery. This method saves you from managing inventory, warehousing, and packaging, but several problems can arise. 

Orders will have a longer delivery period, may not be sent at all, or may make the product return procedure more difficult.

Wholesale and warehousing. this method involves a higher investment to start an online business. You have to manage your own inventory and stocks, keep track of customer orders and shipping information. The products will be stored in a storage space that you will have to purchase, rent or build. This type of eCommerce business is about volume, so you can upload your products to marketplace platforms like – eMAG, elefant, cel.ro, fashiondays etc.

Private label rights. If you are one of those who have a product idea that they want to create and sell, then this is the right eCommerce model for you. You don't need a factory to create your product. You can send the product plan to a manufacturer, and they can deliver the product directly to you or to a third party – for example eMAG.

White Labeling. This type of eCommerce is similar to the previous one, except that now the product is already successfully sold by other companies that offer the white label option. Basically, it gives you the opportunity to create your own brand, your own label and packaging to use in selling their products. This type of eCommerce is especially suitable for cosmetic and wellness products. 

Subscription – More and more companies of this type have appeared in Romania. They are based on the subscription model that offers customers a box of products, at a certain time interval. Customers can choose from several types of subscription that include a larger or smaller number of products. 

Identify the assortments you want to take to your online business (not all of them may be suitable)

Let's say you like a certain product and want to sell it online, but not everyone likes it. But you still think about trying, what can happen? You invest a lot of money in inventory and building a brand around the product. A product that may not be liked by the market you sell in or be an oversaturated stone for that product.

If we look at Eurostat's statistics on the most popular categories of online products and services sold in 2020 at the European level, we see that the Fashion industry (clothing - including sportswear, footwear and accessories) has the highest share of 64%, followed by 29% - Food deliveries from restaurants, fast food, catering services, 28% - Furniture and accessories for home and garden, 27% - Cosmetics and beauty and wellness products, 27% - Books, magazines and printed newspapers, 26% - Computers, tablets, mobile phones and IT accessories.

The following categories in the top of the European online shopping rankings were:

• Food supplements, pharmaceutical products, vitamins, diet products (online prescription renewals not included)
• Sports goods (excluding sportswear)
• Food and beverages from specialty stores
• Electronics and appliances
• Children's items and toys
• Cleaning products and personal hygiene products
• Auto & Moto (including spare parts)
• Movies and series on DVD, Blu-ray, etc.
• Music on CD, Vinyl, etc.

So, study the market first and see what products you can bring into it. What you, your neighbors, or your friends like doesn't always mean it will sell. 

Trick: You can use Google Trends to see what the most searched products are or to see if what you want to sell is being searched on Google.

For example, if I want to sell shorts, skirts, and men's t-shirts, I can see how popular they have been in the last 12 months.

Identify a platform that suits your needs

Whether you choose Shopify, GoMag, MerchantPro or a WordPress plugin (WooCommerce), choose the eCommerce platform that suits you. It should offer all the features you need and adapt to your needs. Especially as your online business expands. 

To choose the right eCommerce platform for your business, start by testing a few of them. The vast majority have a 14-30 day trial period in which you can test the services they offer. You will notice that each platform has advantages and disadvantages.

You can learn more about these in this article – what are the main eCommerce platforms and what you need to keep in mind to choose the best platform for your online store.

And then you can choose between SaaS or Open Source, you have all the information in this video.

Make a launch plan

After you have chosen your platform, the assortment of products you sell, and the eCommerce model you want to practice, it's time to prepare for the big launch.

But how do you launch it?

You need a launch plan and a checklist to check off. This way you can make sure everything is in order.

Let's start with the site.

• Custom domain
  • Your brand name should be simple and clear. A name that is not only found on the website but also in its name. 
  • Search for your brand name in the domain list to see if it is available and not already taken by another brand. You can then purchase the domain right from the platform you have chosen to develop your online store on.

• Standard pages
  • It is important for your online store to have more than just product pages. Pages like "About Us", "Contact", "FAQ", "Delivery Details", "Return Policy" and the inevitable GDPR, are important for the credibility of your online store.

• Optimize product images
  • Large images not only load your hosting memory but also the site loading experience, so:
    • reduce image sizes – here's a site that can help you with that https://imagecompressor.com/  For example, a typical, small image is 50 x 50 pixels, so there's no need to upload a 2000 x 2000 pixel image.
    • choose the correct image format types. Generally the correct format for photos is JPG. but you can also upload PNG. for icons and logos.
    • Image names. Describe the image added to the site. This will help you with SEO. Use keywords relevant to your business.

• Emails. Email is a very powerful tool for an online business. The customer will receive information about the purchased product or its payment via email. So, check:
  • Welcome messages for potential customers
  • Abandoned cart notifications
  • Order confirmation messages
  • Shipping notifications
  • Electronic invoices 
  • Check the product purchase process. Make sure your potential customers can purchase products from your store with confidence and ease.
    Carry out a product purchase process and see if:
    • Shipping rates are displayed during checkout.
    • Discount codes can be applied in the cart.
    • You can edit the contents of your shopping cart.
    • What payment methods are available – Card, Cash on Delivery, Bank Transfer, etc.
    • There is an order processing status.
    • Is there a chat or phone number that the potential customer can call if they encounter problems in the product purchasing process?
    • The customer receives an email notification when they make a purchase.

Marketing

We've set up the website, now it's time to take care of the marketing strategy of your eCommerce business. 

How? The vast majority of entrepreneurs have a tendency to skip this step. They want as many sales as possible and skip stages of the marketing process.

What does marketing strategy help you with and how is it implemented – read here – How to prepare your online store for your first marketing campaigns.

Your online store is now ready. You've checked your technical settings and created a marketing strategy. 

All that's left for you to do is go back to your launch plan to make sure everything has been implemented as you planned. Constantly update your online store with products and make sure that all store functions are within normal parameters.

Pay attention to the feedback your customers give your online business, especially in the first month after launch. Keep an eye on your competition, what they post, what new products they add, and what marketing strategy they adopt. 

You too can have an online business that generates profit!

And I'm here to help and guide you every step of the way. That's why, for entrepreneurs and managers who want to launch, optimize and scale a profitable online business, I've created a checklist with 35 concrete actions and solutions, structured and immediately applicable. If you have already launched your eCommerce business, download this checklist right here and start identifying step by step the weaknesses that are holding your business back, what is missing and what you can improve in your eCommerce business to become profitable.