E-Commerce Business: Popular and Fast-Growing

Starting an e-commerce business is exciting. Not only is this business model budget-friendly, it also enables rapid growth since many people prefer to order online. Fast, uncomplicated purchases where the purchaser is in more control over the amount of communication they want and wish to have. Often, the shop location, the rent and other expenses form a heavy burden for a new entrepreneur. This doesn’t mean that starting an e-commerce business is risk-free and automatically leads to profit. You need to pay attention to the following:

Pre-Launch

You need a business plan where you write in detail all about your business – its name, logo, trademarks, website, market and potential buyer research, all people involved, and all related expenses.

Launch

After extensive testing you will launch your e-commerce business and monitor it every day. Analyse the following: Are all important payment methods included? Do all clickable tabs and CTAs work? Are there any tech/functional difficulties (bugs) within your website? Is your website sufficiently protected?

Warning: During the lockdown when many create new home offices and online businesses, cyber criminals try new ways to cause damage through malware and steal data (phishing). Don’t react to strange emails, even when they seem to come from the WHO, ICO or HMRC. Contact those organisations and institutions directly and ask them about the email you received.

Measure

Every entrepreneur needs to establish objectives. There are many Key Performance Indicators (KPIs) to measure effectiveness and success.

Warning: Without proper tech, software and apps you won’t have the access to instant reports (orders, inventory, cash flow..) with accurate data to make quick decisions. Compare available tech and choose the most suitable for your business.

Communication

Excellent communication matters. Physical distancing, self-isolation, home office – the new situation brings many challenges. Make sure that you understand why people choose to buy your products and services. Don’t focus on selling only. Build relationships, ask what your customers what they need – and how they feel.

Be active on Social media – inform and encourage. Online communication can also include emails, newsletters, reacting to the messages received via Facebook or Instagram Inbox, blogs, Messenger.

Starting an e-commerce business has many benefits. Your customers can become your big supporters and fans – happily discussing and sharing your news and tips.

We are E-Commerce accountants and tax advisors providing specialist advice related to the platform of your choice. Contact us! 

Photo source: Freepik