The revamping of business strategies took place after the first wave of the pandemic. In this regard, various E-commerce companies have gained immense traction. Interestingly, the rise in business ideas created new E-commerce companies. E-commerce offers convenience, cost-effectiveness, and brand building in minimal time and effort. 

 Global sales revenue of the E-commerce sector shows healthy projections and is expected to reach 6.5 trillion USD by 2024. Furthermore, E-commerce companies are striving for gaining a competitive edge by outperforming. Henceforth, this article contains easy and cost-effective ways of initiating an E-commerce business.

How to get started with a profitable E-commerce business?

E-commerce companies need a meticulously tested business model. So, hereunder is the business model for an E-commerce business:

• Product selection: Choosing a usable product is of utmost importance before initiating an E-commerce business. In this regard, market research can be carried out to know the product with high demand, competitors, customers’ tastes and preferences, business dynamics, and others.  

• Business plan: It is essential to present the business model on paper. A business plan should comprise the executive summary, which should not be too long and mention the business strategies, the company’s financial health, and product USPs. It should also mention the “company overview” section to depict its mission and vision. Additionally, sections on market analysis, products and services, operations, sales, and marketing plans should be there.

• Funding and Registration: Of course, funding is the prime concern of the E-commerce business. E-commerce companies should also register their business before launching it. They should also take help from Woocommerce or Shopify to launch their businesses.

• Renowned investors: E-commerce companies should create a pitch deck to present their ideas. The pitch deck should contain business valuation, marketing, sales, production, and financial strategies. Additionally, they should emphasize pitching to renowned investors to accumulate funding.

• Business nomenclature and website development: Apart from funding, naming the business is necessary. In this regard, startups should select a catchy domain, logo, and brand name. Additionally, the product packaging must be designed well to appeal to customers. Also, website development becomes even more important in this peak phase of digitization. An E-commerce website should contain well-structured navigation, an appealing interface, and a good UI/UX design. Website content optimization plays a vital role in an E-commerce company’s success. The website must also contain attractive visualizations to appeal to customers.
• Content creation: Content marketing cannot be overlooked per the prevailing scenario. So, powerful storytelling can be done through content marketing. In addition, detailed product descriptions on the website and app help customers understand the product. Moreover, content optimization is essential, and E-commerce companies should optimize their content regularly to generate website traffic. Additionally, product photography should be ‘top-notch’.

• Supplier relationships can help: An E-commerce needs to have an organized distribution channel to reduce the lead times. In this regard, it should collaborate with reputed suppliers to maintain its inventory levels. Company-supplier relationships are also of utmost importance.

• Stock listing: Inventory management is understood as a complex process in every business. In this regard, the cost-saving option is to incorporate an automated supply chain management software to keep track of the inventory level. Although it incurs a minimum cost, it has multiple advantages. Moreover, an automated supply chain management software helps monitor goods, save money, advance, eliminate inventory calculation errors, and many more!

• Choose the right sales channel: Product promotion is the crucial step of an E-commerce business because it helps in branding and inclining maximum customers. Of course, social media marketing cannot be neglected. Likewise, relationship marketing strategies can also help in customer creation. For example, sending customized messages during festivities is a favourable relationship marketing strategy. Email marketing campaigns also help in mass marketing.

• Performance assessment: E-commerce companies should monitor their performance after product launch. They can set key performance indicators (KPIs) for various departments. Key performance indicators for sales include gross profit, COGS, new orders, average order value, and others. For marketing, it includes website traffic (for mobile and desktop or laptop users), number of views, newsletter subscriptions, and others. The KPIs for customer service are the net promoter score and average resolution time. Likewise, project management KPIs include ROI, cost performance index. So, KPIs help in performance assessment for E-commerce companies.

 Why choose YRC for business consulting services for an E-commerce business?

YRC has renowned consultants that guide businesses in formulating SOPs for their startups. We have consulted many startups for their business models. We assist in E-commerce business model development, business setup, developing market research reports, and customer experience consulting.