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Starting An E-Commerce Business

The development and expansion of the Internet has made business opportunities, once only available to the wealthy, available to nearly everyone. In the past, opening a business was a huge commitment in terms of finances and risk. Traditional business owners had to quit the their current jobs, obtain bank financing, and sign leases before they even made a penny. It’s easy to see why 95% of them failed within five years. Today, business opportunities are available to anyone willing to put in the time and effort to learn about the world of e-commerce. Best of all, you can start an e-commerce business with minimal funds and very little risk. This guide will take you though the steps necessary to start your own e-commerce business.

Find Your Niche

The first step to creating your own e-commerce business is to find you niche. Examine your hobbies and interests for potential business ideas. If you love soccer, consider selling soccer supplies or team uniforms online. You may also consider opening a business that is similar to your current job. For example, as a nurse you may know a lot about medical supplies and how hospitals obtain them. You could start a medical supply business. Your contacts and industry knowledge could give you an advantage over a competitor who does not know the inner-workings of hospitals the way you do.

Research The Demand

Now that you have a few business ideas, it’s time to research the demand for your products or services. If you plan to sell to the general public, you’ll want to find out how many people are looking for your products or services. As a small business owner, you will not have the marketing funds to create a demand for a product. The products you sell, must already be in demand. A great way to determine product demand is to see how many people are searching for a specific product. Overture has a wonderful keyword tool (http://inventory.overture.com/d/searchinventory/suggestion/) that displays the number of searches for specific keywords. It will give you a good idea of which products are popular and the specific keywords you should target when building your website.

Scope Out Your Soon-To-Be Competitors

Before settling on a business idea, scope out your would-be competitors. Visit their websites and compare the following:

· Professional Look & Feel

· Products and Services

· Search Engine Ranking

· Page Rank (Available on the Google Tool Bar)

· Keywords

· Back Links (how many sites link to them).

You’ll need to know your competitor’s websites inside and out. Spend some time exploring each one. This will give you an idea of what you’re up against. Keep in mind, that your website will need to be equally as professional or better than theirs. Don’t worry if you don’t think you have the technical skills necessary to create a professional website. The use of professional website templates will be explained later.

While you’re researching your competitors, check to see if the products you intend to sell are sold at large department stores such as Wal-Mart, Target, and Amazon.com. It is very difficult for a small business to compete with these large companies because the profit margins are extremely low. You’ll need to sell products that are in demand, but aren’t sold by corporate giants.

Establish A Business Entity

In order to conduct business, you need to establish a business entity. Fortunately this can be as easy as filing a “Doing Business As” or “Fictitious Name” form with your local County Clerk’s office to become a sole proprietor. When you arrive at the County Clerk’s office, they will check their records to make sure your intended business name is not already in use. If it’s available, you will need to complete the appropriate forms and pay your filing fee. Each state has different requirements. Check with your state for requirements on becoming a sole proprietor.

You will also need a sales tax id. You will need to charge sales taxes in the state where your business resides. Contact your county office for details about sales tax ID’s and any other requirements they may have.

Open A Business Bank Account

Now that you are a legitimate business owner, it’s time to open a business bank account. Take your court documents to the bank and open a business checking account. Most banks offer a variety of business accounts. Choose the one the best meets your needs. It’s usually best to start with their least expensive account because it could be a while before you start earning revenue. You can always upgrade in the future.

Some banks require a business owner to wait specified amount of time, usually 90 days, after the court documents are filed before opening a business bank account. These rules are in place to help prevent fraud. Check with your bank to obtain waiting period information.

Choose A Domain Name

While you wait to open a bank account, you can start building your website. First, register a domain name. Names that end in “.com” are best. If possible your, domain name should include one or more of your target keywords. For example, if you are creating a yoga supply business, you’ll want to choose a name with the word yoga, such as yogacenter.com, yoga-supply.com, or yogastuff.com.

Create Your Website

One of the keys to successful e-commerce businesses is a professional website. Your website is the first and often the only impression your visitors will have of your business. A professional website can be the difference between your visitors viewing you as a home-based business operating out of your garage and a multi-million dollar business with hundreds of employees. Fortunately, you don’t need to be a web programmer to create a professional website. There are companies that sell professional website templates. You can get website templates for free, but it’s much better to pay for a highly professional template. To find these templates, simply search for “website templates”. You should


expect to pay $50 – $150 for a good template with multiple pages and professional images.

Most website templates can be customized with common HTML editors and a simple graphics program. Templates can be edited without having to invest a lot of time and energy into learning how to code web pages.

You’ll want your website content to target specific keywords. This can be achieved by creating articles, product reviews, product comparisons and detailed description of your products. Avoid repeating the keywords so often that the text becomes difficult to read. There is a fine line between good copy text and spam text. Spam text is designed to increase your site’s listing in the search engines, but often backfires when penalties are issued and your website is dropped from the listing.

Host Your Website

Now that your website has been created, it’s time to find a company to host your website on their servers. You should be able to find a good hosting company for around $10 per month. This fee should include technical support and email accounts with your domain name. Domain name-specific email accounts are important for a professional image.

Your website files can be uploaded with a simple FTP program. The hosting company’s technical support personnel can walk you through the steps to upload your files and launch your website.

Implement A Shopping Cart

No e-commerce website is complete without a secure shopping cart. There are many shopping cart options. Many e-commerce business owners make the mistake of using Pay Pal to accept payments, which immediately tells visitors that their company is very small and not professional.

A good alternative to Pay Pal is a remotely hosted shopping cart. Remote shopping carts take the burden of maintaining security and credit card numbers off your shoulder and places the responsibility on another company. Remote shopping carts can usually be configured to look similar to your website. In fact, your customers may not realize that they have left your website to place an order. The remote shopping cart provider will give you the HTML to add to your website. When your potential customer clicks on the Buy Now button, he or she is taken to the remote shopping cart to enter the personal information and payment details.

Depending on your choice of a shopping cart, you may or may not need a merchant account to process transactions. Some shopping cart services allow you to use their merchant accounts for a slightly higher fee.

Stock Your Inventory

Now that your website has been created, it’s time to stock your inventory. The first step is to find the manufacturers of the products you wish to sell. You can find this information by reviewing your competitor’s websites. Some of them may list the manufacturer with the product name or description. Once you have the name, you can search for the manufacturer online.

Contact the manufacturer and tell them that you are interested in becoming a distributor. Ask for a wholesale price list and an application. The price list will help you determine if the profit margins are high enough to justify selling their product.

You’ll want to ask the manufacturer the following questions:

· What is the MSRP (Manufacturer Suggested Retail Price) for the item?

· Am I required to sell the item at MSRP?

· What is your minimum order quantity/amount?

Some manufacturers will not sell to e-commerce businesses that do not have a brick and mortar retail location. If this is the case, you’ll simply have to find a company that manufactures a similar product and is willing to sell to an e-commerce business.

Promote Your Business

Now that your website is live and you’re open for business, it’s time to promote your website. If no one knows that it exists, you will not receive any sales. Most website visitors originate from search engines. Before search engines can list your website, they have to know that it exists. You’ll need to submit your website to search engines and directories such as Yahoo!, DMOZ, Excite, and others. Search engine submission programs and services are available, but they not effective. Most good search engines require websites to be manually submitted. They enforce this by displaying an image with a series of letters or numbers that automated programs cannot read. The code embedded in the image is required to submit your website.

Search engine algorithms are extremely complex. The ranking of a website in their search results depends on a number of factors, including keywords, density, back links, page rank, and other factors. After submitting your website to the major directories and search engines, the next step is to establish back links. When search engines crawl the web and find a link to your site, they count the link as a vote for your site. The more votes you have, the higher your site will rank (assuming other criteria has also been met). You can acquire back links by sending emails to other website owners and offering to exchange links. It’s very difficult for new websites to acquire back links. Most people prefer to exchange links with established websites. In a way, it’s a catch-22, but it can be done and the results are worth it.

Starting your own e-commerce business is a lot of work. Making it successful is even more work, but the pay-offs can be rewarding. Thanks to the explosion of the Internet age, e-commerce business opportunities are now available to anyone with a computer, a few hundred dollars for start-up costs, some spare time and the desire to create a business.

Copyright 2004 Danna Henderson. All Rights Reserved.

About the Author

Danna Henderson started ZIP Baby in order to provide parents with comprehensive potty training information as well as a large selection of potty training products. For more information about potty training, or to browse the potty training store, visit potty chairs & more.

 

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  • index

  • internet marketing and public speaking seven steps to a successful murder board

  • internet marketing and public speaking the murder board practice

  • internet marketing for sales leads

  • internet marketing strategies setting up your affiliate program

  • internet marketing surviving the first year

  • internet nostalgia remember this dumb little ad

  • introduction to affiliate marketing

  • is a trade show for you

  • is email marketing still an effective option for network marketing

  • is it a real business or a hobby

  • is it possible to make a living being an affiliate marketer

  • is permission email marketing in trouble and is rss the answer

  • is your online storefront open for business

  • is your site ready to face the new year

  • its all about the hits

  • its free its powerful its in your email

  • it really is only early days in the internet gold rush

  • ive got to get this off of my chest

  • i hate asking for referrals 6 proven methods for getting a flood of referrals without asking

  • keeping your affiliates active and loyal

  • keyword density and how to use it to keep traffic flowing to your site

  • knocking the mythology out of affiliate network marketing

  • learn how to market your ebusiness in real time dissect study emulate

  • learn how to use these six explosive marketing techniques to explode your website with traffic

  • linking is queen

  • link myths

  • link popularity basics

  • link popularity its role and importance in getting top search engine rankings

  • link popularity your key to a page 1 listing

  • link this drive traffic to your site

  • little known secrets about credibility marketing

  • looking forward looking back

  • make 10000000000000000000 with affiliate marketing

  • make internet marketing work for you via rss

  • make money online with multi level affiliate programs mlaps

  • make money online work from the comfort of your own home

  • make money while you sleep

  • make your e commerce website more than an electronic catalog

  • making real money with google adsense

  • managing your downline

  • marketing

  • marketing all about focus

  • marketing a single affiliate program is the first key to success

  • marketing your business the affiliate way

  • marketing your home business through newsletters

  • meeting the uk ecommerce regulations

  • michael glaspies hidden key to making massive amounts of money from your list

  • milk your winners drop your losers

  • misery loves company a marketing disease

  • mlm and work at home businesses get financial boost

  • mlm leads for network marketing

  • mlm or dlc

  • mlm success requires leadership and professionalism

  • more article submission websites require authors to register and use passwords

  • multi level marketing mlm is it taboo

  • multi level marketing online business

  • multi level marketing with email leads

  • my adsense click revenue shot up 12 times when i used free legal bulk email marketing

  • my first 0 check in 365 days

  • my website needed more targeted traffic guess where i found it

  • need business home work

  • newsletters are vital to your home based business success

  • new type of e comerce search engine on the block

  • new viral tactic cause marketing

  • not knowing this explosive email secret can kill your mailing list

  • one a month in your network marketing business

  • one of the biggest and deadliest mistakes affiliates make online and how you can avoid falling into the same trap

  • online money making site 5000 free leads

  • online success by the numbers

  • optimize your search engine placement five easy ways

  • opt in email marketers how to deal with a growth pain of internet success the email glut

  • opt in mlm leads are good prospects to grow your business

  • ordinary people making extraordinary income

  • overachieving your way to super affiliate stardom

  • overcoming frustration with technology

  • overcoming the five obstacles to affiliate success

  • paid search advertising that delivers maximum roi

  • pay per click the ultimate tool to boost affiliate sales

  • people accusing you of sending spam five email marketer must know tips

  • pick a category sell then sell again

  • plain jane email equals flat results

  • planning for success a positive approach

  • plug n profit e commerce principles

  • practical information products for the internet

  • privacy reduce your customers concerns by building trust first

  • produce more sales from your email promotions

  • produce more sales from your email promotions five ways part 1

  • profitable network marketing systems and products

  • promote your website link popularity

  • promote your website using newsgroups

  • promoting my affiliate programs how

  • proper opt in email marketing step by step

  • provide a good home for your website

  • putting people in a buying mood

  • p your way to online business success

  • qualifying yourself as a reliable vendor

  • quick ecommerce tutorial

  • realtors hit a home run with your email marketing

  • real world mlm marketing tips

  • reciprocal linking a business partnership

  • rejection

  • relationships the foundation of your network marketing business

  • resistance means success for affiliates

  • retired need some extra cash

  • rich dad

  • rotator

  • rss and the 10 most powerful reasons why you should be using it

  • rules for achieving online success

  • safelists extreme marketing

  • scams be aware and report when necessary

  • search engine marketing with blogs

  • search engine submission dont be a cheapskate

  • secrets to a higher conversion ratio

  • secrets to writing powerful s

  • sell anything to anyone on the internet with hypnotic writing

  • seven must follow rules while participating in message boards

  • seven simple questions to build your sites sales

  • seven tips on submitting your ezine articles to content sites and publishers

  • seven ways to set yourself apart from other affiliate marketers

  • shorten your blogging rss learning and submission curve

  • simple changes to make your web site sell

  • simple steps to start a profitable member only subscription web site

  • six reasons why your alexa rating is still important

  • smart ways to use a website with your business

  • smoke and mirrors

  • starting an e commerce business

  • start doing online business using b2b portals in six steps

  • stepping stones

  • steps to clickbank success

  • still seeking network marketing success

  • strategies to make your blog more interesting

  • success with newsletters

  • super affiliate strategies part 2

  • super affiliate strategies part 3

  • take dead aim with affiliate programs

  • take the leap and work at home

  • taking email marketing to the next level

  • taking e mail marketing to the next level

  • taking it personally

  • target the little guy this could be a reely big shoo

  • ten answers that turn your visitor in to your customer

  • ten free ways to promote your site

  • ten lessons from a survivor my first year as a network marketer

  • ten steps to a well optimized website step 2 content creation

  • ten tips for affiliate marketers using google adwords

  • testimonials as a linking strategy twist on link campaigns

  • the 2 step lead generation machine

  • the 3 secrets to successfully analyzing your marketing

  • the 5 sure fire ways of building massive traffic and making thousands in affiliate sales

  • the 7 habits of a successful web marketing plan

  • the affiliate model how to make money as an affiliate

  • the affiliate program starting your success online

  • the basics of asking for a reciprocal link

  • the best traffic secret i ever learned

  • the case for a network marketing system

  • the color of e business

  • the ecommerce business plan

  • the four best ways to market your affiliate program

  • the great direct marketing conundrum

  • the hidden key to making massive amounts of money from your list

  • the human touch

  • the idiots step by step guide to blogging for profit

  • the key to a winning internet marketing strategy is to master one technique first

  • the lazy mans way to building a massive list in minimum time

  • the lowdown how to create and send html email

  • the magic the mystery of success

  • the mlm dilemma

  • the mlm revolving door syndrome

  • the most important thing you can do for your online business planning

  • the most useful way to utilize traffic exchanges

  • the new paradigm will it work

  • the new wave of multi level marketing

  • the no mailing list solution to affiliate profits

  • the one bite at a time principle

  • the only 5 things you can sell

  • the perfect network marketing system

  • the personal touch

  • the power of an autoresponder email service send out unlimited marketing follow up emails and newsletters to jump start your sales

  • the power of reverse advertising

  • the problem with html email newsletters

  • the problem with the affiliate system

  • the red flags of affiliate marketing scams

  • the right way to write articles

  • the secret weapon of successful web marketing is

  • the seven pillars of ecommerce defined

  • the ten commandments of linking

  • the top 10 e commerce ways to follow up with clients part 1

  • the top 10 e commerce ways to follow up with clients part 2

  • the top ten tips for auction success

  • the truth about affiliate commissions

  • the turtle and the rabbit do affiliate marketing

  • the value of value

  • the web your window of opportunity

  • the wrong email format can destroy your offer

  • three steps to building a 50k email list in less than 90 days

  • three ways to re invest in your business for maximum profit

  • three ways you can use the ezines to increase your sales

  • tips on writing a successfull ad

  • top 10 reasons why rss autoresponders are becoming a permission email marketers best friend

  • top 10 ways to irritate your visitors

  • top 5 super affiliate tips whats your usp

  • top 5 tips for frustrated affiliate program marketers

  • to buy or not to buy avoiding false promises

  • traffic generation the number one skill that will generate cash flow part 2 of 3

  • turn emails into dollars with one word

  • turn your customers into a sales force for your product or service

  • two newer methods to ensure your emails are read if you are an online marketer

  • use an affiliate network to boost your commissions

  • use email marketing wisely stand out from junk mail

  • using back links to get top search engine ranking

  • using drop shipping for e commerce

  • using google

  • video emailthe new way to communicate

  • viral marketing are you missing out

  • viral marketing methods and applications

  • viral marketing technique creates a chain reaction with one time action

  • viral mutations of email list building creating new strands part 1

  • viral mutations of email list building creating new strands part one

  • wacky test marketing part 3

  • want bigger profits think of your web site as a catalog not a store

  • ways to earn income using email

  • ways to persuade your web site visitors to give you their email address

  • ways to use autoreponders to increase your profits

  • web advertsing its all about the click thrus

  • web design for ecommerce

  • whats new on the internet scene

  • whats the straight scoop on mlm leads programs

  • what 15 years in the network marketing industry taught me

  • what are promotional articles and how can they work for you

  • what do i sell

  • what if you coulda had a piece of google

  • what is drop shipping the perfect solution

  • what is google poodle how it will help you

  • what is network marketing

  • what is wrong with email marketing

  • what to look for when choosing affiliate programs

  • when a customer has done everything to get your goat

  • when to hire a professional seo firm

  • wheres your web site

  • where do i start

  • where to post and read articles online

  • which affiliate program makes you the most money

  • which of these 7 mistakes are you making in mlm

  • whose watching you

  • who is sick and tired of network marketing

  • why arent visitors buying

  • why arent you making a ton of cash as an affiliate

  • why every articles marketing campaign must build an opt in email list

  • why has a work at home paradigm shift occurred

  • why is a work at home business now easy

  • why is no one buying from my website

  • why mastery equals profits

  • why mlm doesnt work for me

  • why mlm works for me

  • why search engine traffic should be your top priority

  • why this is the best year ever to shop and sell online

  • why youre missing out on hundreds of visitors if you arent doing this

  • why your network marketing efforts are failing

  • why you must have more than one niche sites

  • why you need to and how to follow up your visitor or customer

  • why you should be an affiliate of several products

  • why you should consider mlm as a second income

  • wise ways to build your email list

  • working with affiliate programs

  • working with drop shippers

  • writing emails with a purpose

  • yahoos back

  • your affiliate web site is built now what

  • your e business strategy is it love or fear

  • your fan club getting inbound links

  • your mission if you choose to accept it kunle

  • your newsletters are pretty lame if you are doing these 7 things

  • your words will determine your business

  • you aint seen nothin yet

  • you can achieve success on the interent

  • you can make great in a week from free advertising for only one affiliate