Setting up an online business is not as easy as you might think. There are several things you need to take care of before you can start calling your business ‘running’. Due to the increasing trend of online stores more and more people are weighing up their business moves. When starting an online store there are five things one must take into consideration.
Products in demand and the class of targeted customers
To start off one should research the market. Market research will help you develop a plan for what products you should put up on your store. In every country or should I say city the market is different. A successful businessperson needs to know what the customers want from his/her store.
The quality of the products should be kept in view according to the class and range of the targeted customers. For example if you open an online clothing store, targeted for middle class people, it would be foolish to keep high quality fur coats and expensive dresses. On the other side providing low quality products to upper class people would render your business a failure.
Choosing the right ecommerce platform
Choosing the right ecommerce platform is the key to successfully running an online store. An ecommerce platform can make your life easier if it has the right set of tools. It helps you manage your online store with a minimum fuss. Some of these platforms allow you to manage several stores from a single administrative panel.
A good ecommerce platform will help you keep your store online 24hrs and provide your customers with easy checkout features. Some platforms offer one page checkout services, several payment options and delivery options which are integrated with services such as FedEx and UPS. Some platforms have SEO friendly features, which help market your website.
Set up cost:
Set up costs can vary depending on several factors. The main factors that will determine the costs are the products and the platform. Platforms such as Magento are available for free, but it would require a development cost. It is very cheap to launch an e-store, a $20 a year for the domain and $150 a year for hosting and you are up and running.
Next, the cost of the items depends on their quality and quantity. If you are targeting a mid-level crowd and you are running a clothing store then it would cost you around $3000 to get enough items to start the shop. Next comes the marketing costs. Costs for marketing your store can range from $10 a day to $100 a day depending on the size of your business and the market you want to capture.
Quality of customer service:
The quality of customer service is an important part of running a successful store. This is not a real (concrete) store so the number of workers doesn’t really matter. Here the important things are the download rate and the quickness of service.
You should get a high quality hosting service which offers backup services. Your store should be online all the time and should have a high bandwidth.
Research your competition:
Now that you are ready to launch your store it is time to identify your competitors. Determine your competitors and devises strategies to overtake them.