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What it takes to start and run an online store

April 24, 2024

Online store basics: An overview of what it takes to start and run an online store, including initial steps and basic needs

Online shopping has drastically changed how we buy things, becoming super popular over the last 20 years. This boom is thanks to better smartphones, easier internet access, and safer ways to pay online. The COVID-19 pandemic pushed even more people to shop online for the first time due to lockdowns and social distancing. Now, having an eCommerce site is essential for any retail business looking to succeed in the digital age.

The purpose of this post is to set expectations. What is involved when setting up an eCommerce site from scratch?

Step 1: Planning Your eCommerce Website

Identifying your niche:

Identifying your niche is a crucial first step if you're thinking about starting an eCommerce business. It all starts with doing market research to spot a niche that isn’t fully served yet. Look at the latest trends (use Google Trends), figure out what customers really want, and check out the competition. The idea is to find a specific area where your products or services can really stand out by fulfilling a unique need. Focusing on a particular niche helps you target your marketing and product development more effectively, appealing directly to a group of customers who are looking for exactly what you’re offering.

Picking products to sell on your eCommerce site: It's important to choose items that are popular or trending but also easy to ship and handle if you are not sure where to start. Focus on products that people really want, which helps ensure you'll have buyers. At the same time, think about how you'll ship these items. It’s best to go for products that are tough enough to withstand shipping, aren’t too heavy, and don’t take up a lot of space. This not only lowers delivery costs but also lessens the likelihood of items sustaining damage during transit. Also, consider if the products need special packing or care, as this can add to the hassle and expense. Finding the right balance between popular items and easy logistics can help make your eCommerce venture successful and smooth.

Understanding Your Audience: Understanding your audience is key to a successful eCommerce site. Creating buyer personas helps you get to know your ideal customers better. This means you can design your website and plan your marketing in a way that really speaks to your target audience, making your efforts more effective and boosting sales.

Step 2: Setting Up Your eCommerce Platform

  • Choosing an e-commerce platform for a start-up: We would suggest WooCommerce, as it is robust and open-source, saving on costs, scalability, and ease of use. We provide hosting maintenance and one-on-one training on how to use the platform.
  • Domain name and hosting: We advise you on choosing a relevant domain, registering it on your behalf, and providing managed hosting so you can focus on your business.
  • We design your site in a clean, user-friendly style that reflects your brand. We supply a proven and tested template layout that can be customised to align with your brand and match the colours of your logo.
  • How do I choose the right e-commerce platform for my online store?
    • Answer: Selecting an e-commerce platform depends on your specific business needs, including budget, design preferences, and the technical skills required to manage the platform. Popular platforms like Shopify, WooCommerce, and BigCommerce offer various features tailored to different business sizes and needs.

Step 3: Adding Products and Setting Up Shop

Product Listings: How to Create Engaging Product Descriptions and Professional-Quality Images.

The first step is to make a list of your products and categories. We supply a spreadsheet that consists of the following:.

Categories and navigation:

Product categories are a way of organising similar products into groups to help both the seller manage their inventory and the buyer navigate the store more easily. Having well-defined categories on an eCommerce website is critical for improving the user experience and improving search engine optimisation (SEO).

Example in the Clothing Niche

You might divide the product categories on an eCommerce site specialising in clothing by type, gender, occasion, or season. Here’s a practical example of how you might categorise products in the clothing niche:

  • Men’s Clothing
    • T-Shirts
    • Dress Shirts
    • Jeans
    • Suits
  • Women’s Clothing
    • Dresses
      • Casual Dresses
      • Evening Dresses
      • Work Dresses
    • Tops
      • Blouses
      • T-Shirts
    • Skirts
    • Pants and leggings

Each category can further be broken down into subcategories, as seen with women’s clothing, where "dresses" is the main category and is further segmented into more specific types like casual, evening, and work dresses. This helps customers find exactly what they're looking for quickly and effortlessly, improving the overall shopping experience.

Key Tips for E-commerce Product Images:

  • Capture detailed shots with high-resolution cameras.
  • Use a plain or blurred background to highlight your product.
  • Show your product in real-life situations to help customers visualise its use.
  • Always start with a main photo against a white background.
  • Add additional images to show different angles and details.
  • Ensure photos are clear, well-lit, and suitable for zooming without blurring.
  • To avoid blocking the product view, keep logos and texts small and in corners.
  • The product should dominate the photo, ideally covering 80% of the space.
  • Save images in JPEG or WebP format, with a minimum size of 600 pixels on the shorter side, and optimise for mobile use.
  • Before uploading product images to the shopping cart, ensure that the name matches the product name for SEO purposes.
  • Properly use SEO-friendly alt tags and descriptions for images.

Read more about the importance of product images and how they convert visitors into customers.

Step 4: Legal and Administrative Aspects

Understanding Privacy Policies, Terms of Service, and Legal Necessities: We can show you what these documents usually include. When someone wants to buy your product, they need to agree to your terms and conditions. It's crucial that your terms also mention your return policy for refunds and exchanges. If you're operating in South Africa, your privacy policy needs to cover the POPIA Act. International sales must comply with GDPR. Compliance with the EU General Data Protection Regulation is mandatory.

VAT and Tax Considerations: The dashboard manages VAT and sales tax preferences, including whether the prices displayed include tax. It uses geolocation to automatically apply the right tax based on where your customers are. For specific tax scenarios, you can create custom tax rates for different regions and assign products to various tax classes.

Setting Up Payment Options: A payment gateway is a technology that safely handles payment information during transactions. It verifies the customer's card details, ensures there are enough funds, and transfers money from the card to your merchant account. Payment gateways protect data through encryption, help prevent fraud, enhance efficiency, and facilitate instantaneous transaction processing.

Register your business and obtain the necessary licenses. Registering a domain name is necessary if you want to have a presence online, while registering a company name is necessary by law if you run a close corporation (CC) or a private limited company (Pty Ltd).

What are the legal considerations for operating an online store?

Answer: Legal considerations include complying with e-commerce regulations, obtaining necessary licenses and permits, respecting privacy laws, and ensuring data protection. It’s also important to have clear terms of service and return policies to provide transparency for your customers.

Step 5: Launching Your Website

Pre-Launch Checklist: The best way to do this is to perform a test transaction to ensure that the website is functional with user registration, payment systems, and notification emails from the payment gateway.

Launching Strategies: Considering promotions, initial email marketing blasts, and social media announcements.

After launch, ongoing strategy: marketing your eCommerce site

Marketing encompasses several key strategies that can significantly boost your business's visibility and customer engagement. Here's a brief summary:

  1. SEO for eCommerce: Involves implementing fundamental SEO strategies specifically designed for eCommerce success.
  2. Content marketing and blogging: using content to effectively attract and engage customers.
  3. Social Media and PPC Advertising: Leveraging social media platforms and PPC campaigns to drive traffic.

How can I ensure my online store attracts the right customers?

Answer: Attracting the right customers involves effective market research to understand your target audience's needs and preferences. Implementing SEO strategies, leveraging social media marketing, and running targeted ad campaigns can also help draw in and retain the desired customer base.

Please feel free to contact us to arrange a meeting where we can discuss these marketing topics in greater detail.

After Launch: Managing and Growing Your eCommerce Business

Essential strategies for enhancing your online store's performance and expanding its reach. Here’s a concise overview:

  1. Analytics and Feedback: Employing tools to monitor performance and gather customer feedback to fine-tune your strategies.
  2. Scaling Your Business: Implementing growth strategies, such as introducing new products or entering new markets,

For a more detailed discussion on these points, please feel free to contact us to schedule a meeting on "Managing and Growing Your eCommerce Business."

Conclusion

Steps 1 to 5 outline the essential actions needed to launch your eCommerce website. We'll guide you through each stage, right up to the launch and going live. Additionally, we offer coaching programmes focused on marketing and business growth.  Price of an eCommerce store fully build hosted, supported and maintained.

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