If you’re looking for ways to make extra money, you’ve probably considered the lucrative world of e-commerce. But what is e-commerce, and how can you make money from it? Before you dive in, it’s important to understand the ins and outs of this business model. Here are some of the most essential points to keep in mind.
Understand The Basics Of E-commerce
When you sell something online, you’re essentially operating a store. The difference is that instead of selling one item at a time, you’re selling an entire catalogue. This requires you to have a much larger physical inventory, as well as a much more efficient way of keeping track of all the products you have. Your e-commerce store will need a solid foundation of operations, including:
- An IT infrastructure that allows you to operate a store from the cloud.
- A good e-commerce platform to run your store on (such as Shopify, which we’ll discuss in more detail below).
- A web server to host your store’s website.
- A database to store your inventory (such as MySQL or Redmine).
- A payment processor (such as Stripe or PayPal).
- Good SEO so that your store’s website can be easily found by potential customers.
- Online marketplaces such as Amazon or eBay to allow your customers to purchase your products.
Find The Best Platform For Your Business
The above list of essentials makes clear that you need a good e-commerce platform to run your store. There are numerous platforms that you can use to build your online store, but not all of them are made equal. For example, Shopify is a solid choice because it’s built on solid technology foundations and is maintained by a vibrant community. In this case, Shopify is what we’ll be using to build our sample store.
When shopping for an e-commerce platform, you’ll want to consider these fundamentals:
- Does it have a good reputation?
- Is it well-documented?
- Does it have a vibrant community?
- Does it have all the features you need to grow your business?
- Is it worth the cost?
Choose A Suitable Name For Your Store
Your store’s name is one of the most vital aspects of your e-commerce brand. It will appear alongside your store’s logo and URL on all of your marketing materials (such as websites and social media posts). You can use a tool like Google Trends to quickly search for the popularity of any niche or keyword. With this information in hand, you can confidently choose a name that will appear to be just as suitable for your business as it is for any other brand. For example, myecommercestore.com is a perfectly acceptable choice for an online store selling beauty products.
Choosing a suitable name for your store is only the first step. When picking a name, make sure you don’t use any copyrighted or trademarked names. Also, make sure that the name you choose is easy to pronounce and remember. If you want to build a thriving business, you’ll need to choose a name that people can remember and associate with your store. Finally, make sure that the name you choose isn’t already being used by others in your niche. Before you make any major decisions, like choosing a domain name or building a website, take your time to think it over and choose wisely.
Choose A Suitable Domain Name
If you’re looking for the best domain name for your e-commerce store, you’ve come to the right place. Here are some of the most popular tips for choosing a suitable domain name:
- Avoid.com and.net (which are both owned by Google).
- Make sure the domain name is available.
- Avoid hyphens and underscores.
- Pick a word that will be easy to pronounce.
- Make sure the word is relevant to your business.
- Avoid generic and boring words.
- Use your email to verify your account.
- Don’t forget about your branding.
- Avoid names that are too long.
Many entrepreneurs prefer to build their e-commerce stores on a WordPress platform because it’s so easy to use. But if you’re looking for a more robust solution, you can use Shopify’s built-in domain name generators to easily choose a suitable domain name for your business.
Once you’ve built your site using Shopify, you can apply for a free domain name with the click of a button. All you need to do is provide your email address and choose a plan that fits your needs. If you want to learn more, click the link below.
Once you’ve registered your domain name, you can use it to build your store within minutes.
Make Sure Your Website Is Set Up Correctly
Your website is one of the most vital parts of your e-commerce operation. It’s where you’ll find all of your products, communicate with potential customers, and receive all of their orders. In order to function correctly, your website needs to be set up in a user-friendly manner that encourages shoppers to come back for more.
When setting up your website, you have numerous options concerning the appearance and functionality of your online store. For example, you can choose the color scheme and layout of your site, as well as whether you want to display products with or without images. You can use tools like Google Analytics to track the popularity of any page or feature on your site.
As a general rule, it’s best to keep your website simple, yet functional. The fewer steps a potential customer has to take to reach their desired destination, the more likely they are to become a returning visitor. When choosing a web host, make sure that they offer a simple, one-click installation for WordPress.
Get The Correct Legal And Financial Departments In Order
If you’re looking to do any kind of business in the United States, you’ll need to gain legal clearance from the IRS (as well as a business license from your state). Aside from this, you’ll need to consider insurance and financial planning for your business. The correct legal and financial departments in order will help you avoid any unnecessary complications down the line.
The IRS provides online forms that you can complete to request either an Employer Identification Number (EIN) or an Internet Tax Identification Number (ITIN). As the name implies, an EIN is an IRS form that allows you to identify yourself as an employer. An ITIN is a form that you can complete to identify your online store as a responsible party for Internet sales taxes. You might also consider getting an EIN if your business earns over $500,000 per year and you’re worried about how to report your income correctly.
Aside from these two essential forms, you’ll need to file an informational return each year to maintain your legal status as a business. You might also want to consider creating a separate bank account for your business, so that you can track the funds coming in and going out. Finally, you should consult with a reputable business attorney to ensure that your business documents are in order and to answer any questions you might have concerning legal matters.
Curate A Robust Online Store
To create a sustainable e-commerce business, you’ll need to do more than just build a website. You’ll also need to integrate various marketing and conversion tools onto your site in order to drive traffic and make sales. Some of the more popular tools that you can use to improve the performance of your website include: