How To Start An Ecommerce Business – A Complete Guide


It is the 21st century, and everything is going digital. Then, why not start your own online business? According to the data in 2024, e-commerce revenue estimates to reach only $740 billion in the United States.

It is evident through the estimated revenue data that the e-commerce business has some serious potential. It would be best if you were looking to cash on this opportunity and set up your e-commerce store, as it is one of the Easiest online businesses to start.

However, like any other business, starting your own online business comes with challenges you must face boldly to take your online business to new heights. It could be overwhelming at the start. However, with ongoing work, you will succeed.

The question is: How to start an eCommerce business? Where should one begin? For that, you need to start with the basics, i.e., to work on an online business plan, which entails identifying which product you want to sell and how you will sell it.

If you start well with the basics, you will likely be able to build a brand for yourself and get your e-commerce business running right away. So What do you need to start an eCommerce business? Here is a complete guide on creating an E-commerce business; you must read it as you plan to start an E-Commerce business anytime soon.

Selecting The Niche

You need first to select your niche and identify your area of expertise. You need to know what skill you possess and how you can market it. Then Identify the type of product you want to sell in your eCommerce business. Without doing this, you cannot start an online e-commerce business. To start an online business, you must have a complete proof plan. You can do that by researching the market. Try to find out other companies in your niche, focus on them, evaluate their strengths and weaknesses, look if you are doing anything wrong, and how you can get them right!

  • When looking at other businesses under the niche of your interest, you should be looking at:
  • Their strategy of reaching out to their potential customers What is compelling about their website
  • What business model have they adopted

Some other important factors that you should be taking into account are:

  • Determine the type of product you wish to sell. Is it a digital or a physical product?
  • If you are choosing a digital product, then how would you sell it?
  • Would you handle the production part yourself? Will you need help?
  • What model will you use for your business? Would it be one-time orders, bundles, or any other?

Starting an eCommerce business is like starting any other company. For instance, if you plan to open a restaurant, you will first identify the type of restaurant you want. Then you would look at what location to choose and so forth.

Before starting, do intense market research and get as many ideas as possible about businesses. Because the e-commerce industry is increasing, you will face much competition. You will need to brainstorm, be picky while choosing your niche, and make sure that you stand unique to others to gain attraction.

If you are unsure how to start, you may avail of Internet marketing services in Houston.

Do You Research The Right Way

The question most people have is How to start a successful eCommerce business? To create a successful online business, you must find who your competitors are. And then, pick out the top ones under your niche, then the fun part begins.

You get to become Sherlock holmes. You research the business’s history and the company’s model. You can get more product ideas by doing thorough research on trending products.

Once you are through with the research, it’s time to brainstorm and figure out what people are looking for in your niche and how you can present the product or service uniquely that catches the eye of potential customers and makes you stand out.

But the research part doesn’t end just here. Now it’s time to identify the barriers which may prevent or be of any hindrance in your way to starting an online business and then overcome all the obstacles.

Will you need money to promote your business through ads? Or any software related to the e-commerce? And the list goes on and on. You need to figure out whether you can afford all these expenses.

If not, then you need to work your way around. Starting your e-commerce business in a more specific setting without investing much is beautiful.

However, if you have no money to invest at all? Is Starting an online store with no money possible? The simple and short answer is YES.

You can set up a WordPress website or a blog and then use third-party sites like Amazon or any other to sell their products while bearing no inventory cost.

Moreover, your research should help you identify the gaps and loopholes in the market that will be filled with your product or the services you offer. However, everyone can’t come up with a service or product that no one else is offering.

So in such cases, you should focus on presenting the product or service in a unique way that no one else has done before. Be the game changer.

Once you complete all these basics, it’s time for the famous SWOT analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats. It will help you find any potential obstacle that may affect your business and help you plan for your online business.

Finalize The Product And Your Target Audience

The e-commerce market has been explored in depth by many before you. The newcomers have the luxury of having tried and tested strategies to finalize your product to start your online business.

When deciding on the product you want to sell, keep your personal experience in mind. Do you have enough experience in the field and know the ins and outs that others don’t know?

Moreover, it would help if you were also looking at the trends. Your decision should also be instead of it as the product’s trendier. The chances of a sale are if you can spot the trend and get into the industry with your product or service. The opportunities for your success increase with your proactive strategies.

However, one crucial thing to remember is that there is a difference between fad and trend. The fad is more of a momentary surge in the product’s popularity because of its newness in the market.

But building your entire online business around it would be a wrong decision because such popularity may fizzle out at any moment, leaving you in shambles.

Whereas the trend, in contrast to fad, is different. A trend fulfills any existing need uniquely. Since the product or service is fulfilling a requirement that exists in another way than before, it is doubtful that there will be a drastic decrease in popularity.

Are you Still Wondering how you can identify the trends? It is straightforward. You can place the trends through social listening, keeping in touch with search trends, and browsing different e-commerce websites.

Since any business cannot be a success without customers’ input, you should go over the customer reviews as they will provide you with an abundance of insight about what your potential buyers are expecting from the services or products you are planning to offer.

By browsing similar products and looking at their reviews, you get an idea of what is lacking from the product. You then get the opportunity to incorporate the feedback to make your product even better. To be spotted in the crowded market if you can fill those gaps.

Identify Your Target Market/Audience

While gathering product information, don’t forget to dig deep and identify your target market. You need to know who would be an ideal customer for your business. You need to know about their characteristics.

You should know about the age, socio-economic background, and causes that matter to them. You need to understand every aspect of your potential customer.

This information will help you understand what factors may influence your product or service and what business model to adopt.

Pricing Your Product

Once you know the nitty-gritty of the market, you should start the next step, which includes identifying your product’s potential selling price, its potential markup, regulation of your product, etcetera.

Analyze The Data

Once you are done identifying market audiences and pricing the product, you are in the right place to understand How much your eCommerce business is worth. Moreover, if you sell a physical product for a bare minimum price, you will have to deal with them a lot to generate revenue.

Whereas digital products are priced according to what purpose and value they are serving for the customer.

Getting Your Product

If you plan to sell a physical product, you need to figure out a model to get the product and ship it to your customers. There are many ways to do so;

  • Make it: One of the options is to make the product yourself and then sell it to the customer.
  • Manufacturer of the product: if you don’t have expertise in the product you sell, it is better to manufacture it. However, this is a viable option if you plan to sell the product in bulk.
  • Wholesale and resale: you may buy a product and then sell it to the customers through your online store at a markup.
  • Dropshipping: If you don’t want to get into the hassle of managing inventory yourself, then dropshipping is for you.
  • The digital way: Blogs, articles, educational videos, etcetera can all be products as well.

Business Plan

Once you think you have gathered enough information and have developed an understanding of the business you are about to start, it’s time to write a business plan which may include but is not limited to :

  • What your business entails
  • What product/service are you selling
  • How are you going to make money?
  • Method of operation

Once the business plan is finalized, it’s time to choose a name for your eCommerce business. It would help if you had a catchy name that describes your brand.

After that, it’s time to register your new online business. However, you will also have to research here since it may affect your business legally and financially.

Your business will be registered as;

  • Sole proprietorship
  • General partnership
  • LLC
  • Corporation

Every legal structure has its pro and cons. It’s better to consult someone professional, like a legal expert, before making this decision. It is a significant step in the ‘How to start your own business online guide!’


Not all businesses need an EIN, which is an employee identification number. It is better to get one. You can apply for it through the IRS, mail, or fax.

Now it’s time to get the license or permit required to operate legally.

Licenses Or Permits You May Need

  • Professional and trade rights for specific industries
  • Sales tax permits
  • Health, safety, and environmental permits
  • Signage permits

You will have to pay fees for these permits.

Create An Online Store And Market It

Now since everything is in its place, it’s time to open an online store. But How do you set up an eCommerce website?

The first step to building an online store is to buy a domain name for your website, which will be the face of your business—worried about how to get this done?

Don’t worry because Ecommerce web design Houston has got your back! They provide you with a great eCommerce website business plan which you wouldn’t want to miss because they can be the game changer!

After getting the website done, it’s time to market it well. Don’t be shy to use social media to sell your new product or service. Run ads and partner up with affiliate marketers and YouTubers. You can get your marketing done just right by availing yourself of the benefits of Houston digital marketing.

Like any other business, people looking to start an e-commerce business are worried about How long it takes to make money with eCommerce. It seems that it takes 1-6 months for a beginner to start making money from online eCommerce stores.

The other question should also be: How much does it cost to start an eCommerce business? So, an online eCommerce business can be started without any investment, such as drop shipping.

Since one is putting his hard work into building up an eCommerce business, one is interested in knowing How much money you can make with e-commerce: So according to the data, an online business can earn up to $63,000 in monthly revenue after three months, whereas after one year it could make up to $127,000 in monthly income.

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