How to Start an E-Commerce Business
In the past, businesses could only operate in physical locations, but new technologies and the growth of the internet has led many retail businesses online, giving rise to e-commerce. In this article, you will learn all about an e-commerce business and how to start one.
Generally, e-commerce is the buying and selling of products using the internet, but it can also include every commercial transaction that takes place online. So, a retail store that sells clothes online is an e-commerce business; as is a money exchange service that sells cryptocurrencies online.
E-commerce has many advantages over traditional brick and mortar businesses. They include to:
- No distance limit, as retail businesses can sell to people outside their geographic area. You can be in the US and a customer in Africa can find your retail business and buy from you, even though you are an ocean apart.
- Lower costs to start and maintain a business. If you do not have a physical location, you do not have to pay for rent, overhead, repairs and maintenance.
- Your business is more visible. With a good website, anyone can find you when they search for the products you sell using a search engine, leading to more sales and business growth.
Now, you must be itching to start your e-commerce business, after seeing the amazing benefits, but the question remains: how do you start?
To start an e-commerce business, follow these simple steps.
Step 1: Find a good product idea. Know what you want to sell, what the product is, its niche, and the target customers for that product.
Step 2: Next, validate the product idea. Does it have enough people in the niche to support your business growth? You cannot start an e-commerce business on a niche size of 10, or even 100 people.
Step 3: Decide on your business model. Will you use dropshipping or a wholesaling or retailing model?
Step 4: Choose a business name and register your business. Create a name that identifies with what you are selling and register it with the right authorities.
Step 5: Build an e-commerce store where your products are displayed and where customers can purchase them. It can be a website or a page on a seller platform like Shopify or Amazon Seller.
Step 6: Add an online payment gateway to enable your customers to pay for your products. There are several to choose from, each with distinctive features. For example, Klasha offers a seamless payment process that makes it easy for your customers in Africa to pay you in their local currencies using different options with high transaction success rates.
Step 7: Optimize your delivery system. When customers pay for products, you must have an efficient system in place to deliver orders to customers. A poor delivery system can make a mockery of your business effort. Klasha knows this, which is why beyond just offering a payment method, we provide super-fast last-mile delivery to consumers across the African continent.
So, have you decided to start an e-commerce business and sell to the African market without restrictions? If so, Klasha has got you covered.