Digital buyers continue to increase at a rapid pace and eCommerce has undoubtedly become an integral part of the retail economy. Online sales surpassed $ 4.2 trillion worldwide in 2020, up from $1.4 in 2014, which is a 385% growth. According to predictions, 21.8% of total global retail sales in 2024 will be online.
Launching a profitable eCommerce startup that is also scalable, requires some planning, but will reward you immensely once you have built it up.
What Type of Ecommerce Businesses Are There?
Physical products are just one of the many things you can sell online. Others include software, services, and digital products. Your business structure will depend on the products you sell, the business model, and the type of eCommerce website you decide on.
Ecommerce Business Models
There are several business models to choose from when starting an online store. The four most used are business to business, business to consumer, consumer to consumer, and consumer to business, but there are also some niche ones.
Alibaba is an example of a B2B model. It sells wholesale to other businesses, allowing them to make a markup when reselling the products retail to consumers. When you decide to open a business that sells to customers, it is known as the B2C model. Some examples of these are Amazon, Apple, and Walmart.
Etsy, eBay, and Craigslist are examples of C2C business models where you sell things you already own – these can even be second-hand. In a C2B model, you sell your services or products to another business. One example is a photographer selling his services to a business.
Types of eCommerce Websites
If you have a warehouse with stock, but don’t want a brick-and-mortar store, then a website selling physical goods to consumers is a good option for an online business. This option also works well for the B2B business model if you like the idea of having a warehouse full of products.
Then again, if you don’t want any contact with the product you are selling, drop shipping or affiliate marketing are good options. If you are manufacturing an excellent product or know of someone else that does, white labeling is an ideal option. Finally, subscriptions allow you to sell a product or a curated set of products to customers regularly, reaping a steady income.
Whatever you decide is the best business model for you, remember that creating a niche is the most important step in ensuring your online business is competitive.
Starting an Ecommerce Business
Once you have done your research and decided on your product niche and business model, you need to get down to the nitty-gritty of starting your business.
Choose a Name for Your Store
Decide on the name of your online store. The legal name of your business and the name of your store don’t need to be the same. Look for a name that will make your brand stand out and fits the products you sell.
How to Incorporate Your Ecommerce Business?
An online business incorporation service will handle the entire process of business formation for you. Whether you have decided to form a limited liability company or corporation, these online corporation services save you time and money.
Zenbusiness comes highly recommended, but there are several excellent and affordable online incorporation services to choose from. Besides business formation, they can also file the articles of organization, make sure you remain compliant, and apply for your business EIN. Business incorporation services can also do your business operating agreement and act as your registered agent services for your eCommerce platform.
Using an incorporation service takes the guesswork out of what procedures you need to get your business started, and they offer excellent support for any business queries you have.
Building an Ecommerce Platforms
Ecommerce platforms like Shopify, Wix, Magento, and Squarespace are just some of the web builder platforms you can use to create the perfect store to sell your products or services online. These builders have drag-and-drop features that allow you to customize your branding. They also include selling tools like multichannel selling and abandoned cart recovery.
Once you have decided to start selling goods or services online, an incorporation service handles the legal aspects of registering your business on your behalf. Which filing service you choose is your business, but the best allows you to stop worrying about being compliant and to focus on growing your eCommerce store.