Last Updated on October 1, 2021 by Tamara Bee

How To Start A Profitable E-Commerce Business In 7 Simple Steps

There are a lot of people who want to learn how to do “The e-Commerce thing.” But very few of them ever actually get started. One of the main reasons is they don’t know how to start a profitable e-commerce business by following these 7 simple steps that I am going to show you in this post.

This article is going to reveal these important steps to you in plain English. It is going to be updated and revised periodically (I promise) so you won’t have to go searching for this information elsewhere.

The e-commerce industry is growing faster than any other industry in history!

The future of e-commerce is huge. It is already worth more than the entire retail industry. It is bigger than travel, big box, and catalog shopping combined. And the opportunities for those who learn the real secrets of this industry are truly unlimited.

Some of the most common questions people ask are… “How do I start an e-commerce business in 2021?” Or, “How do I set up an online store?” Or, “Where do I get products to sell online?”

As an entrepreneur, you have many choices when it comes to creating and running your business. One of those choices is whether or not you decide to sell your product or service on the internet. There are pros and cons to this option.

On the plus side, you can market your product or service from anywhere in the world at any time of day or night. Also, you have the potential to make large profits since you don’t have to pay for overhead, rent, employees, or any other expenses that are normally associated with a “real” business.

On the downside, there’s a lot of competition and you have to learn how to do everything yourself which can be very difficult and very stressful.

This will blow your socks off! It’s very rare that anyone ever teaches you everything you need to know to make tons of money with an e-commerce business. Most likely, you have to figure out most of it yourself. That’s OK. What is NOT OK is to go into this sort of endeavor blind. You must have a clear picture of exactly what you’re trying to accomplish. This article will give you just that.

E-commerce sales worldwide 2021

How To Start A Profitable E-Commerce Business In 7 Simple Steps:

Step 1: Deciding What Type of E-Commerce Model To Use

It’s important to know what kind of business you’re getting into before you start designing your website and/or marketing campaigns. Are you going to sell information, handmade products, clothing, furniture, etc.?

Once you’ve identified the type of e-commerce business you want to get into, you’ll then be able to research different models of online business, such as how to set up a dropshipping or subscription-based business or selling via affiliate marketing programs.

Step 2: Researching Your E-commerce Niche

The mistake that the majority of businesses make is trying to scale too quickly. For your business to be successful, it is imperative to focus on step-by-step growth. You may not have enough funding in the initial stages, so the first step forward should be to implement a plan that fits your budget.

The biggest mistake a business can make is to try to scale up too fast. Your business will never be truly profitable until you are scaling up. However, you may not have enough funding in the early stages of your company to scale up. That’s when you must choose the path of step-by-step growth.

Choose a niche that suits your company’s style. Also, keep in mind to find a niche with market demand and with little or no competition. However, if your niche has extremely high competition, then you may need to find another niche that is less competitive. Either way, you should always begin by selecting a niche with low barriers to entry and then patiently scale up over time.

3 Ecommerce trends in 2021

Step 3: Test and Research your E-Commerce Product Markets

The next step is to understand your product market. Set a metric for success; identify your target audience, and research their current demands. Covid 19 has turned the online industry upside down, with online grocery stores’ traffic up 191% since March 2020 and travel and hospitality sales down a whopping 81%! Once you have set these sorted out, you can begin to look into your e-commerce products. 

When you are just starting out, it is best to only offer a small range of products. This will allow you to focus all your attention and energy on growing your business. Once you have a strong foundation, you can start scaling your business while your successful products continue to generate revenue.

Step 4: Getting the Legal Sides of Your E-commerce Business in Order

This step is about getting all the legal and financial aspects in order and making sure you are ready to go. It would be helpful to know you’ve got everything in place before starting to sell.

.If you want to do this legally, then you need to look into getting a license. Without one, you’ll be operating in the dark without any legal protection whatsoever.

Before you get started, you’ll need to get set up with a business bank account. This will require an Employer Identification Number (EIN).

Consider getting a trademark for the name of your business, and creating a brand identity (logo) for your business. Make sure everything is clear and simple, so your message gets through.

Your business name should be easy to pronounce and remember. It should be unique and non-descriptive. And, it should be able to efficiently and effectively convey your message.

You will also need a unique logo which you can get for $5 on Fiverr.com or if you have some talent in graphic design then I recommend using Canva.com.

Step 5: Solidify Your E-commerce Business Plan

Resources are limited in the beginning; therefore, you must devise a business plan where you invest in the products where you are most likely to make a profit.

There are certain events that are inevitable; however, you should always create a fail-safe plan that gives you the option to weather the storm. In a time of crisis, your fail-safe plan will keep your business alive and allow it to thrive.

Starting an ecommerce business in 2021

Step 6: Creating Your New Ecommerce Website

After you have the basics down, the next step in getting your business off the ground is to buy your domain name, hosting, and setting up your website. This is the first impression you will make on your customer. If it is a good one, you will begin to get a great deal of traffic which will help you make profits. If it’s a bad one… well… that’s it then, kiddo. It’s just you and the sidewalk again.

The website must be easy-to-use and navigate to enjoy it and to make sure it gets the sales it deserves. Almost half of the respondents in the eCommerce Industry Report say making the checkout process as seamless and frictionless as possible is one of the biggest drivers of online sales.

The website must be easy-to-use and navigate to enjoy it and to make sure it gets the sales it deserves. Almost half of the respondents in the eCommerce Industry Report say making the checkout process as seamless and frictionless as possible is one of the biggest drivers of online sales.

Fortunately for you, I can highly recommend the all-in-one marketing platform that I have been using for over four years called “Builderall”. With this platform, you’ll get everything you need to create your eCommerce website.

This includes buying your domain name, setting up your shopping cart, hosting your website, payment gateways (over 13 different options such as PayPal & Stripe), Woocommerce, legal pages, landing pages to collect email leads, and an unlimited email autoresponder to keep in touch with your leads and customers so you can send emails about new products, sales and offer coupons. Along with 40 more online marketing tools!

You can even try it absolutely free for 2 weeks if you click here.

Start creating an E-commerce website for free

Step 7: Bringing People to Your Ecommerce Website & Getting Those Sales!

A good marketing plan is the first step towards good traffic.

Here are some points to remember while writing a marketing plan.

Who is your target audience?

What are their age, location, sex, etc.?

Is your website targeting professionals or consumers?

What are the keywords you are going to be using for SEO?

What kind of audience do you want to attract?

According to your targeted demographic, you may have to use different marketing strategies and platforms.

If your products cater to millennial demands, it is good to focus on appropriate channels and social media to advertise.

Include a QR code with your advertising materials to encourage millennials to scan and get access to more details about your product. Millennials use different social media platforms, such as Facebook, Twitter, Instagram, Snapchat, TikTok, etc.

Find the appropriate ones for your brand and make use of them.

But this won’t work for baby boomers. Since they are less tech-savvy, you may want to focus more on search engine optimization and paid advertising such as Facebook, Instagram, and Google ads.

Final Tips on How To Start A Profitable E-Commerce Business In 7 Simple Steps:

People are willing to pay for value… and… they’re even more willing to pay for value when they can see the product in person. Show your audience how your offer meets their needs. Tell them why it is uniquely valuable. Don’t scrimp on the quality of the photos you use. Your audience will form a judgment of you and your product based on the quality of the visuals you provide.  

The Internet is the world’s largest marketplace and it is getting larger every day. Sell anything on the Internet and you will make money, lots of it. But, there is a big difference between making a little bit of extra cash and making the big bucks with your Internet sales.

The difference is, of course, the quality of your product.

It is the quality of your product that determines your sales (and following my 7 simple steps of course!)

If you have any further tips or questions about how to start a profitable e-commerce business then please comment below.

Thanks for checking out my post and I wish you all the success in the world for your e-commerce store!

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