6 Things You Should Know Before Setting Up An eCommerce Business

Setting up an eCommerce business, whether as a side hustle or a full-time entrepreneurial venture, is a great way to earn independent income. Once you’ve defined your business model and set up all the essential logistical considerations (i.e. packaging, shipping schedules, bookkeeping, etc.), you’ll find that an orderly eCommerce enterprise can be operated with great efficiency.

Before you can get to that sweet spot however, you need to grease the wheels of your new digital enterprise. In this guide, we’ll be sharing 6 tips you should know before setting up an eCommerce business. With these insights, you’ll be able to better plan and execute your idea.

1. Make sure you’re fully insured

Whether you’re selling clothes, homeware, jewellery, artwork or something totally different, it’s important to protect yourself and your products from a legal perspective. With small business insurance, you can protect yourself from any unwarranted customer claims and unfortunate events like theft or natural disasters.

For example, you want to insure yourself from general or public liability claims – if an individual claims an injury or personal harm was caused by interacting with your product, it’s essential to cover the cost of defending yourself. This can save you the financial strain of legal expenses, as well as protect your budding brand’s reputation. Aside from this, you can take out coverage to protect your physical assets in the event of a break in or storm.

There are also specific home-based business policies, so make sure you spend time researching which coverage is best tailored to your situation. If you plan to operate out of a rented warehouse, or convert or scale your business into a physical retail store model, it might be worth speaking to an insurance broker to discuss the most cost-effective and comprehensive coverage for your needs.

2. Don’t skimp on product photography

When you’re setting up your website, social media pages and perhaps even physical banners or posters, prioritise product images above all else. Whatever you’re selling, consumers who are shopping online want the next best thing to inspecting an item in person. 

With the quality of cameras today, there’s no excuse not to provide high-quality images that showcase every detail and angle of your products, perhaps even with the option to zoom in closer. Make sure your items are photographed individually, in good lighting, and with minimal or no background to distract from the product. 

You can always use photo editing software to touch up small photography errors, but make sure to stay authentic to the likeness of the product, and refrain from photoshopping imperfect details out. Overediting your photos will be obvious to consumers, and is a sure-fire way of losing their trust.

3. Conduct market research to refine your product range

You might have a great business idea, but is it actually going to sell? Before you invest in the products or raw materials, ensure you conduct thorough market research. Find out what’s trending in your industry, and whether demand exists for the style of product you intend to provide. 

If your product is guaranteed to be popular, make sure there’s a point of differentiation that will attract consumers to your site, rather than a competitor. For example, target a new location, offer more attractive prices or higher-quality versions.

Your market research should go beyond the product and industry itself, and extend to the demographics you plan to sell to. Learn about them – their lifestyle habits, cultural interests and day-to-day problems. This information will inform everything from your colour ranges to your marketing campaigns. Because ultimately,  if your product isn’t attractive to those it’s pitched to, your business won’t make many sales.

4. Develop your digital marketing strategy 

You don’t have to be a marketing whizz to set up an eCommerce business, but a basic understanding of digital marketing is essential if you want to make a lasting impression. The digital marketplace is crowded, and without the luxury of visual accessibility that you would have at a traditional market stall, you have to fight your way to the top of search engine results pages, or into the Discover feeds of social media platforms.

Learn the basics of SEO (search engine optimisation), so you can follow best practices that will help search engines like Google rank your web pages higher. This can include setting up a blog where you write about useful and interesting information related to your product range and its use cases. On your branded platforms, engage with those who comment on your posts and share your products. If someone leaves a negative review, it’s important to reply with grace – remaining authentic, honest and willing to improve will be valued by potential future customers.

While you’re operating on a shoestring budget, you can tackle these tasks yourself. But as you begin to get your footing, it’s worth investing in the services of a professional marketing agency or freelancer who can help you develop a long-term growth or visibility strategy.

5. Optimise (and reoptimise) your user experience

The health and navigability of your website is crucial for growing any digital business. For example, if your page takes more than a couple of seconds to load, your potentially interested customers may click off before they’ve even seen what you have to offer. Therefore, ensure you prioritise fast loading speeds, and simple, intuitive navigation that doesn’t overcomplicate the browsing experience.

Include a clear ‘shopping basket’ and ‘checkout’ section and corresponding icons on your page. It can also be helpful to categorise your products into different sections across your website, such as by size, colour, theme or price. Avoid cramming your website with graphics and text – blank space can contribute to a clean, slick design. However, it’s also important to include enough information on your website that builds audience trust, and ultimately persuades them that you’re a reliable, quality business to spend their money on. 

Again, working with professional web developers can help you develop the best ways to do this for your product range and industry. However, in the meantime, a simple ‘About Me’ with a bit of backstory on how and why you’ve set up your eCommerce site can mean a lot.

6. Invest in inventory management solutions

Perhaps in the first week or month of your operations, your sales will be sparse enough to get away with a ‘deal with it as it comes’ approach. However, as you pick up the pace, it’s vital to get your financial management and inventory processes down, so it’s wise to develop the habits and patterns from the get-go. It may take some trial and error, but adopt a defined way of managing your eCommerce business, from keeping track of your stock to your outgoing orders.

Establish (and clearly define on your website) your timeframes and conditions for shipping, returns and refunds. You can use automated software that will alert you when certain stock is running low, and even automatically place a replacement order. Consequently, it’s vital that you keep your cash flow up-to-date. Aim to set up a contingency fund that can cover ongoing expenses in the case of slower periods or a temporary dip in sales. This will help you from unexpectedly struggling to cover your day-to-day expenses.

Set your eCommerce enterprise up for success

Let’s take a brief look at the 6 things we think you should know before setting up an eCommerce business.

1. Small business protection – insure yourself, your products, and your digital business from claims and damages.
2. Product photos – invest in high-quality, well-lit, and professionally edited pictures of your product range for your website.

3. Catering to demand – conduct market research on your target audience and adjust your product range accordingly.

4. Establishing a digital presence – learn SEO practices and engage on social media to boost your brand’s visibility.

5. Intuitive web design – prioritise the customer experience and build an easy-to-use, trustworthy website.

6. Inventory organisation – design a rigid process to track and manage inventory, finances and your business flow.

Follow these tips, and you’ll be able to set up a booming eCommerce business in no time.