How Much Money Do I Need To Start An Ecommerce Business?

There is no direct answer to this question because of many variables and individual objectives about their ecommerce business and setups but for as little as $100, you can start your ecommerce business on a low-budget and can scale up as far as $50,000 as you expand in your ecommerce business.

Why Ecommerce Business Is Growing So Fast?

Global eCommerce sales were over $1.3 trillion in 2014. Today the ecommerce business industry is expected to climb up to about $4.5 trillion by 2021 and beyond.

Customer demand, buying and changing habits from time to time are largely a factor for this rapid and constant rise. Almost two-thirds of American shoppers buy things from an online marketplace at least once a month, and the number of people who use eCommerce sites on a daily basis is growing exponentially.

7 Important Tips (Questions) For Marketing Your Ecommerce Business Successfully

Marketing your ecommerce business is a crucial step in generating more sales and driving more revenue for your business. That’s why we’ve put together 7 important tips or questions you must answer in order to market your ecommerce business successfully, as well as suggestions for what channels might be right for you.

1) Where do I start?

With so many options to choose from today, it can be hard to figure out where to begin — let alone how to create a strategy that’s both strategic and tactical. You might have heard advice about focusing on SEO or PPC or content marketing for an ecommerce business, but figuring out which channel makes sense for your company is often not as simple as choosing one at random.

The first step in starting an ecommerce business is to properly investigate your business idea and be able to create a product that meets a customer’s needs. Find a problem or a challenge worth tackling. What problem or challenge are you looking to solve? Who feels that pain point the most? Who would be most excited by you solving this challenge?

Finding a problem worth solving is critical, because even the most inventive ideas might fail if they don’t have a potential customer base to sustain them.

2) How much time will it take?

More and more, businesses are realizing that a combination of content marketing and social media is an effective way to market their products. According to Brafton, 90% of marketers using social media for business said they increased their followers in Q1 2016. And as many as 72% say they use content marketing to build relationships with customers. That makes sense: if you like what you see on someone’s Facebook or Twitter account, why not check out their website?

Consistent, high-quality content not only helps you connect with potential customers, but it also allows search engines (such as Google) to better understand your site and improve rankings. Want your products featured in content people actually want to read? You can do it yourself, — but ecommerce success stories like The Honest Company and Warby Parker show how critical having a professional partner can be.

Work with a talented writer who knows how to promote retail brands through content marketing; ask them to brainstorm new topics based on feedback from fans; make sure they’re researching product names regularly so when trends emerge, you’re ready to take advantage. An agency partner will give you more freedom — just focus on growing your audience by sharing quality posts directly.

3) What platforms should I use?

As you research and create your e-commerce marketing plan, consider what platforms make sense for your business. If you’re selling tangible goods or want to focus on in-person customer service, then a site like Etsy might be right for you. If you’re trying to sell digital products or services, websites like 99Designs or Fiverr may be better fits.

Whatever platform(s) you choose to build your ecommerce business around, make sure they align with your specific goals as a brand; being everywhere means nothing if no one can find you. Start by figuring out which platform is best for your product: It seems simple enough, but there are many ways that even seasoned entrepreneurs forget about important details like these when starting their businesses.

Take some time to think about how you’re going to approach your product — will it have multiple uses? What’s its primary function? Can customers replace it easily? If so, doesn’t mean that people are going to need different versions of your product — or at least variants within each version based on their preferences.

4) What type of content works best?

List posts rank highest for keywords in Google, so creating a list of tips for marketing your e-commerce business is likely to give you good results. With 1 million+ people opening Etsy shops, and roughly 800,000 starting Amazon businesses every year, there’s a huge potential market out there for new e-shop owners.

Make sure you have all of your SEO in place before you launch so that customers can find you as soon as possible. The sooner they find you, the more time they have to spread your brand through social media and word-of-mouth. Ecommerce content works really well because it uses easily discoverable information (that isn’t so subjective). If you want to be a great writer, try writing an eBook or compiling lists. People love both.

5) What resources do I need?

Here below are few questions and tips to ponder on. You should try and look into them for success in your ecommerce business either you are starting on a low budget or not.

  • Decide which social media channels you’re going to use and how you’re going to market your product on those channels.
  • Know what type of budget you have to work with, then figure out what tools (technology) you will need in order to execute your plan and achieve your goal for success.
  • Have a point of view about who your audience is and how you can market products effectively towards them.
  • What are you trying to accomplish by spending time on marketing your ecommerce business?
  • How much time do I have?
  • When should I start?
  • Start small, think big – You don’t need an enormous amount of money or big connections to get started, especially if you’re just starting out in e-commerce – just some basic technology & resources and maybe someone to bounce ideas off!
  • What resources am I able to share with other companies/entrepreneurs that may be looking at marketing their own e-commerce businesses as well?
  • Find partners – people that know something that they can teach me that would be beneficial.
  • Develop relationships! Go meet people!

6) Who should I reach out to?

When it comes to marketing your business online, you can’t really go wrong. You want to avoid cold calling potential customers, but do what you can to reach out via social media and email. Look for influencers who might be interested in a review of your product or services.

Also consider: what would your target audience search for when trying to solve their problem? Use those keywords on Google AdWords to boost your exposure, even if they don’t lead directly to a purchase; click-throughs are a free source of information about how people are searching for solutions — which gives you ideas about ways to improve. It also tells you where your target market hangs out online so that you can join them there and get closer attention from these active users.

7) How will it all come together?

Before you can create an effective plan for marketing your ecommerce business, you need to know exactly what you’re planning to sell. Start by breaking down your product or service into its core components. What makes it different from similar products? What benefits does it offer customers? By understanding what sets your company apart, you can use marketing tactics that are customized to promote your strengths and highlight why consumers should choose you over competitors.

If possible, consider asking trusted friends or family members what they think of when they think of your brand. Are there specific things they remember or associations that come to mind? You may be surprised at what resonates with them — and their feedback can help shape an ecommerce marketing strategy that positions you as a thought leader in your industry.

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