Establishing your own e-commerce company is a thrilling endeavor, particularly if you’ve always wanted the independence of being your own boss. Being an entrepreneur could be a fantastic option if you are crafty or have a talent for selling.
It takes effort to get a business off the ground. It takes discipline, intelligence, and business sense to take the required actions to get your concept out there. However, it may be a highly gratifying and meaningful trip. With e-commerce accounting for 15.4 percent of total sales in 2023, the US Census Bureau projects that global e-commerce sales will reach $6.3 trillion in 2024 [1, 2]. E-commerce has enormous profit potential.
This post will provide you with a detailed guide to beginning your
Step 1: What is E-Commerce
Finding the business model is the first stage because the industry is highly competitive. There are four fundamental kinds.
Business-to-customer (B2C): This business strategy seeks to sell directly to customers via the internet. Daraz is one of the best examples in Pakistan. Individual clients visit the website, look for what they want, and place an online order. This category includes the vast majority of internet businesses. Create a website and begin selling goods and services online if you have any.
Business-to-business (B2B): B2B models are designed to help companies sell goods or services to other companies, not to private citizens. Two of the best examples of B2B eCommerce models are Alibaba and Amazon Business.
Step 2: Identify Your Niche and decide what to sell
Finding the niche for your company and the target market is crucial. The group of people who might be interested in your business is known as the target market, and a niche is a particular area that the company hopes to operate in. Recall that a company may offer a service or a product for sale. You can create a marketplace on Facebook, Amazon, Instagram, or Daraz, or you can create a website and sell products online.
Step 3: write a business plan
The next step is to create a business strategy after determining the company’s target market and niche. A business plan is a written document that outlines the objectives and tactics of the company. The methods specifically concentrate on marketing channels to disseminate information and connect with potential customers.
Here is a short list of five things you should be aware of.
1- Select a business name and start building your brand:
You should consider the following stages while selecting a business name:
Make it easy to pronounce and memorable.
Verify the availability of the domain name.
The name ought to be original.
Think about the possibility of future expansion.
The name should have a pleasant connotation.
Once you have decided on a name, you can begin creating a brand identity. This include coming up with a tagline, brand colors, and logo. To help build your online presence, you can also make a website and social media profiles.
Maintaining your brand image and messaging across all marketing and communications materials that potentially engage your target audience is equally crucial to building a strong and recognizable brand.
2- Register Your Business:
After choosing a brand name you will need to register your business and obtain any necessary licenses. To register a business in Pakistan, you will need to take the following steps
- Get registered with FBR and obtain NTN (National Tax Number)
- Register with SSCP
- Register with the Local Chamber of Commerce
It is recommended that you consult with a lawyer or accountant for specific advice on how to register your business name in your city.
3- Create your e-commerce website:
After you have taken care of the business mission, and legal aspects, the next step is to get your online presence and it begins with developing your eCommerce website. A website can be developed in WordPress or Shopify.
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4- Build Your Inventory and Create Product Listings:
Once the website is set up, the next step is to populate the store with products. You will need to upload inventory that includes product name, description, price, pictures, and item number (quantity) available in stock. Next, you’ll need to arrange logistics such as branded packaging, warehousing, inventory management, and shipping.
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5- Marketing & Advertisement:
The last piece of the puzzle is to identify the marketing and advertisement budget and avenues. In Pakistan, people use Facebook, Instagram, TikTok, and YouTube a lot. It won’t be a bad idea to head to these social media platforms and start advertising your online store.
When you select creatives for social media paid campaigns, videos work best. People like to see what they want to buy and when a brand story is attached to the creatives, the decision-making gets a lot easier. In Pakistan, celebrity endorsement in videos works best for eCommerce. It is important to keep a track of return on investment (ROI) when spending money on advertisement.
The best and fastest paid advertisement approach is Google PPC. When you choose Google for driving traffic to your website for your business-related keywords, people only come to o your website when they want to buy or at least they are interested in your business because they’ve come to your website after searching a keyword on Google. Your sponsored listing is shown on the very top which prompts users to click on the link and land on your landing page.
The landing page must have these three elements
- Facebook Pixel
- Email Opt-In Form
- Social Media Icons
What is the cost involved in launching an e-commerce business?
Website development and hosting: eCommerce requires a website and the website needs to be built on a reliable hosting company that is fast, scalable, and has 99% uptime with 24/7 support available. The website and hosting costs vary from product to product.
Product sourcing and inventory: This cost depends on the number of products you want to have in your warehouse (inventory). Also, product sourcing avenues are the most cost-intuitive.
Marketing and advertising: A typical marketing and advertisement budget in Pakistan is set aside from $1000 to $10,000. The budget is spent on
- Google PPC
- Facebook Advertisement
- TIKTOK Ads
- Instagram Promotion
- YouTube Advertisements