6 Business Prerequisites of Starting an E-commerce Business

E-Commerce is an industry that is booming with leaps and bounds & it’s here to stay for a very very long time.

If there is anything that COVID-19 has proven to us then that is to always do business in the infrastructure that can sustain itself amidst unexpected circumstances.

Ecommerce website building

E-Commerce is that very infrastructure that I am talking about. Technologies like Shopify have made it easier to get started with E-Commerce with templates and processes.

However that’s just the crux of it. To win at the e-commerce game there are certain prerequisites that need to be fulfilled.

Keep reading that’s what you will learn in the post, the prerequisites of winning the e-commerce game.

1. Start with a Business Name

This is the first step and I suggest you give this the most time; it deserves every bit of it. Did you know what was Amazon earlier called?

Any guesses?

It was called Cadabra, which in one foreign country was mispronounced as Cadaver which meant a casket in which a dead body is buried. Spooky right? Now it’s called Amazon which sounds much better and there’s a ring to it. In the logo you can see A & Z getting connected by signalling that they have commodities from A – Z.

Think Big! Consider building a brand rather than doing small term business. The name that you choose for your business has to be unique, that’s how you will be able to build your brand identity.

The #1 mistake people often make is that they choose a brand name without researching if there already is a business existing with the same name. Always double-check before finalizing on brand name.

2. Choose the best platform to build your online store

Choose the content management system that your team can handle, that you can handle. Be sure that the CMS that you are choosing is SEO friendly, there are CMS’s out there that are actually not search friendly this mistake can cost a fortune. Re-migrating to a better platform creates hosts of new problems.

Some of the greatest platforms to build e-commerce stores are Shopify, Magento, WordPress, Prestashop & OpenCart.

3. Get yourself a Business License

Don’t think of saving money in the short-run by ignoring the business license or thinking that it’s a hassle acquiring an online business license.

Having an online business license can be a lifesaver in many ways as it can help you save money on taxes additionally you can brag about your business and sound credible at the same time; that’s what being backed by a business license means.

Having a business license for your online store puts you in a position to effortlessly reach out to potential investors and customers about your business.

4. Select your best business structure

You’ve got several options when it comes to your business structure:

  • Sole Proprietor
  • Partnership (if you have a business partner)
  • LLC
  • Corporation.

The choice of your business structure depends on how you’re conducting the business. If it’s just a nascent stage e-commerce business where you’re yourself producing 1 or 2 types of commodity and selling it with just a handful of workers at your disposal then it’s most probably Sole Proprietor that you would choose. Accordingly you have to take the call how you will pick the business structure.

5. Don’t ignore the power of SEO

SEO is the life and blood of an e-commerce business. SEO promotes sustainable growth in your e-commerce business. There are other mediums to promote your goods online. Mediums like Paid ads from networks like Google Ads & Facebook Ads.

And they do bring the sale in a very short-while but at the end of the day that’s not sustainable; as soon as your ad budget diminishes, your prospective customers cannot discover your products.

A product category page ranked for it’s dedicated keyword on page 1 will stay there for long and bring sales for a very long time to come and you don’t have to pay for resulting clicks.

6. Automate workflow with proper software and apps

Automation is the key when it comes to online business. Without automation you will go insane. So invest in softwares and automation apps wherever they can automate menial tasks requiring useless man hours.

It could be something as simple as automatically registering product sales entries in a Google Spreadsheet; things like these can be automated effortlessly.

There are plenty of other automations at your disposal that will help you greatly.

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